Briefing: Derivatives Nov 13, 2009
Indeed, commercial banks in America have pocketed $115 billion from cash and derivatives trading in the past ten years, according to the Office of the Comptroller of the Currency, a regulator. Banks lump their trading revenue together but the significant majority of it comes from derivatives, says Kevin McPartland of TABB Group, a research firm. (The Economist)
China's Yuan `Straitjacket' Risks Inflating Asset Bubbles as Growth Surges Nov 13, 2009
With developers and commercial banks, the market is already pricing in a lot of optimism and when policy tightens, they will be the first to go down, says , a Morgan Stanley strategist in Hong Kong. He declined to specify which firms should be sold. (Bloomberg)
Long-Term Rates Fall to Lowest Level in Five Weeks Nov 13, 2009
"This comes at a time when house price declines are moderating and consumer demand for prime mortgages at commercial banks has picked up.". "The National Association of Realtors reported that national median sales price of existing homes fell 11.2 percent in the third quarter relative to the same period last year.Moreover, almost 20 percent of the top metropolitan areas experienced positive annual growth, compared to only about 12 percent in the first quarter of this year.". (RealtyTimes)
Indian stocks facepower shortage Nov 13, 2009
Outstanding non food credit of Scheduled Commercial Banks (YoY gr. . (Asia Times Online)
Wall Street Faces `Live Ammo' as Congress Tries to Dismantle Biggest Banks Nov 12, 2009
Reversing the trend of allowing more financial activities within commercial banks is unlikely to limit the too-big-to- fail problem to a significant degree, Tarullo said. One obstacle for proponents is knowing when a financial firms size poses a threat. (Bloomberg -- US)
RBI asks banks to update list of terror funding entities Nov 12, 2009
NEW DELHI: Banks and financial institutions have been directed by the RBI to scan all existing accounts to ensure that these are not held by or linked to any entity or individual figuring in the UN list of terrorists or terror-related organisations (India Times)
FDIC's 20% Shorter `Merit' Examinations Preceded Failures of Three Banks Nov 11, 2009
By the end of 1986, more than 1,800 commercial banks under the agencys supervision hadnt been examined in three years, the study said. The decisions that caused examiner levels to be reduced during the first half of the 1980s were a public policy failure, the book said. (Bloomberg)
Fed Faces Biggest Blow to Authority, Independence in Dodd Banking Measure Nov 11, 2009
Under the proposal, commercial banks would lose their power to appoint directors of the 12 regional Fed banks ... Commercial banks power to appoint regional Fed directors dates to the 1913 law that created the central bank. (Bloomberg -- US)
Small Banks Reject TARP Nov 10, 2009
Why should only the big commercial banks get access to cheap money. BankTexas, however, isn't biting. (ABC News -- Business)
Tighter Bank Lending Standards Reinforce Fed's Decision to Keep Rates Low Nov 10, 2009
Loans and leases held by U.S. commercial banks have declined for 10 straight months, falling to $6. 7 trillion as of Oct. 28 from $7. (Bloomberg -- US)
Failure written into'too big' policy Nov 10, 2009
King called for the revival of the Glass-Steagall Act, a New Deal piece of legislation that separated investment banks from commercial banks. The solution to the "too big to fail" dilemma intuitively lies in preventing institutions from getting too big. (Asia Times Online)
'Africa needs China' Nov 10, 2009
Much of this will be Chinese commercial bank financing and China's commercial banks have both the liquidity and the appetite to step up their support for China's trade and investment with Africa. "With almost 150 years of experience on the African continent and through its strategic partnership with ICBC, Standard Bank is well- positioned to facilitate these commercial financing transactions for trade, infrastructure and investment projects, thereby expanding the financing opportunities... (iAfrica.com)
Valuing bonds and dollar not easy anymore Nov 9, 2009
The combination of US authorities keeping the fixed- income market on life support by buying debt, plus commercial banks filling their balance-sheet holes with top-quality government securities, makes the Treasury yield an exercise in marking-to-myth. $12. (India Times)
Banks fail us: Shoprite Nov 9, 2009
The Shoprite Group (SHP) on Friday expressed its dismay at what it called "apparent indifference demonstrated by commercial banks in South Africa to successfully address intermittent system failures in the country's national electronic payment system (EPS)". Shoprite said the systems failures had caused consumers 'endless frustration' and left them disenchanted with retailers. (iAfrica.com)
K N Hazarika, Chairman and MD, NEDFi Nov 8, 2009
Now, NEDFi is a leading financial institution in 00004000 the country disbursing more industrial loans in North Eastern region than any other commercial banks ... NEDFi disburses more industrial loans in North Eastern region than any other commercial banks. (India Times)
Encourage merger of small banks: Assocham Nov 8, 2009
On an average 26% rise in net NPAs have been registered by 21 public sector and commercial banks during the second quarter of the current financial year as against the same period last year, the chamber said ... "If the NPAs and CAR reported by commercial banks are an indication of their financial strength, the second quarter results of Indian banking sector portray a mixed picture," Assocham President Swati Piramal said. (India Times, India)
Dollar Falls on Bets U.S. Jobless Rate of 10.2% Will Keep Fed Rates Low Nov 7, 2009
European Central Bank President took a step toward removing emergency stimulus measures designed to end the recession on Nov. 5, saying commercial banks wont be offered unlimited 12-month loans next year. Policy makers kept the main refinancing rate at a record low 1 percent. (Bloomberg -- US)
Fed official: 'Too big to fail' too big to ignore Nov 7, 2009
There already is a procedure in place for banks, but not for holding companies, Tarullo said, or for companies that don't own commercial banks. "A regime that raised the real prospect of losses for shareholders and creditors would add a third alternative to the unattractive existing options of bailout or disorderly bankruptcy," he said. (Daytona Beach News Journal -- Local)
ECB, BoE hold interest rates at record lows Nov 6, 2009
In Europe, the ECB has granted unlimited loans to commercial banks to boost credit flows, and media wondered whether the bank would announce in December that its next 12-month supply of central bank funds would be the last of that length. It would mark the first step to undo exceptional measures supporting the eurozone economy. (Yahoo! Asia News)
Eurozone interest rates unchanged Nov 6, 2009
It has also provided unlimited loans to commercial banks in a bid to boost credit. "Rates on hold was a given," said Unicredit economist Marco Valli. (BBC News -- Business)
European, British central banks leave rates alone Nov 6, 2009
Markets were looking for clues on when the bank might trim back some of its lending efforts that have been giving commercial banks more ready cash during the financial crisis. The European moves come a day after the U.S. also and said it would keep them there for "an extended period" even as growth picks up after a deep recession. (USA Today -- Money)
Money Fund Assets Fell to $3.339T in Latest Week Nov 6, 2009
com said its survey of 100 leading commercial banks, savings and loan associations and savings banks in the nation's 10 largest markets showed the annual percentage yield available on money market accounts was unchanged from the previous week at 0. 32 percent. (ABC News -- Wire)
Banks borrow more from emergency Fed program Nov 6, 2009
The Fed said commercial banks averaged $22. 6 billion in daily borrowing over the week that ended Wednesday. (Muscatine Journal, IO)
A not-so-merry Christmas Nov 6, 2009
It remains to be seen whether the sale will attract interest from trade buyers such as investment banks or commercial banks this time around. Interestingly, CICC is attempting to build a foothold in the US, where it plans to open an office in New York to trade Chinese stocks in that market. (Sydney Morning Herald -- Business)
Higher provisions may put pressure on bank profits Nov 6, 2009
In a meeting with the deputy governors of the RBI on Wednesday, CEOs of large commercial banks urged the regulator to reconsider its stand on 70% PCR by September 2010. Banks urged RBI to extend the deadline by one more year (till September 2011). (India Times)
Fed likely to keep key interest rate at record low Nov 5, 2009
The economy started to grow again last quarter for the first time in more than a year, although there are uncertainties about the strength and staying power of the recovery, especially after government supports are removed (Somerset Daily American, PA)
Valuing Bonds, Dollar Is Crazy in World Gone Mad Nov 5, 2009
The combination of U.S. authorities keeping the fixed- income market on life support by buying debt, plus commercial banks filling their balance-sheet holes with top-quality government securities, makes the Treasury yield an exercise in marking-to-myth. $12. (Bloomberg -- Columnists)
Fed holds key interest rate near zero Nov 5, 2009
Against this backdrop, the Fed decided to hold the key interest rate, or federal funds rate, which commercial banks charge each other for overnight loans, unchanged at a record low of between zero to 0 ... The decision means that commercial banks' prime lending rate, used to peg rates on home equity loans, certain credit cards and other consumer loans, will stay around 3. (Xinhuanet, China)
Yen Gains Against Euro, Dollar as Asian Stocks Slide on Recovery Concerns Nov 5, 2009
Council member said last week commercial banks need to prepare for a gradual withdrawal of the ECBs liquidity, and signaled next months 12-month loan auction may be its last. The Federal Reserve yesterday repeated its intention to keep interest rates exceptionally low for an extended period as long as inflation expectations are stable and unemployment fails to decline. (Bloomberg -- Japan)
U.S. factory orders rise for 5th time in 6 months Nov 5, 2009
The change effectively pumps almost $65 billion more into the two banks and could result in the creation of as many as three new commercial banks. Madoff's auditor pleads guilty. (Honolulu Advertiser)
Plan for investor dispute mediation Nov 5, 2009
These members include commercial banks, investment banks, Islamic banks, insurance companies, takaful operators, development financial institutions, and payment system operators and payment instrument issuers. In its website, the bureau explains that mediation is a process by which the mediator helps both the complainant and the financial service provider to resolve the complaint by first investigating the complaint. (The Star Online, Malaysia -- Business)
Editorial Roundup Nov 5, 2009
The Volcker position would resurrect the Depression-era Glass-Steagall Act prohibiting commercial banks from engaging in brokerage activities. Why the ban. (Hanford Sentinal, CA)
Programs help 'unbanked' avoid high fees Nov 5, 2009
By Martha T. Moore, USA TODAY Dozens of cities are launching programs to sign up low-income people as customers at commercial banks so they can avoid the high fees typical of check-cashing stores and payday lenders. More than 50 cities and at least three states now have programs modeled on the 3-year-old Bank On San Francisco. (USA Today)
Britain downsizes bailed-out banks Nov 4, 2009
Massive restructuringThe changes amount to a massive restructuring of the British financial system, among the hardest hit by the global crisis, that could result in what the government has described as the creation of three new commercial banks. The Royal Bank of Scotland -- now 70 percent owned by British taxpayers -- announced Tuesday that it would sell off 318 branches in England and Wales, as well as sell its NatWest brand in Scotland, RBS Insurance, and Global Merchant Services, a credit... (MSNBC -- International)
Nigeria: Central Bank Wants Banks to Report Politicians' Deals Nov 4, 2009
" Sanusi said the real gross domestic product (GDP) growth rate rose to 7.58 per cent at the end of the third quarter of this year. The GDP, the CBN noted, had grown from 7.22 per cent in the second quarter and 4.5 per cent in the first quarter. The banking watchdog chief said no decision had been taken on a fixing the tenure for chief executives of commercial banks. Rather, the apex bank said it was still conducting a forensic and diagnostic audit of the banks, which is expected to be ready... (allAfrica.com)
Blowing jobs to China Nov 4, 2009
Why should a wind farm in Texas mostly financed by Chinese commercial banks and featuring made-in-China wind turbines get stimulus money supposedly intended to create jobs in the United States. That's the question some and not without reason. (Salon)
Banks should look beyond brick and mortar Nov 4, 2009
The roles played by investment and commercial banks in financing the next stage of growth will be crucial, as will be the enhanced framework for risk management, corporate governance and board oversight ... 5 accounts on average, more than Americans, Italians or Spaniards, with commercial banks dominating the provision of deposits ... 5 accounts on average, more than Americans, Italians or Spaniards, with commercial banks dominating the provision of deposits. (The Star Online, Malaysia -- Business)
Markets watch European Central Bank for exit plan Nov 3, 2009
Markets are looking to see if the European Central Bank looks to reduce its lending to commercial banks once recovery is on a sound footing ... But it has instead provided massive liquidity injections to commercial banks to get them lending to businesses. (The Star Online, Malaysia -- Business)
No one has sure fix for 'too big to fail' dilemma Nov 3, 2009
Policymakers seem to have rejected former Fed chairman Paul Volcker's proposal to separate commercial banks, which would enjoy a measure of government guarantee in return for heavy regulation of their risk-taking, from investment banks and other non-bank financial players, which would be free to trade in risky assets on the understanding that there would be no bailout. In theory, this would clarify market signals, thus restoring market discipline. (Juneau Empire)
Interest rate debate brews ahead of Fed meeting Nov 3, 2009
If it does, commercial banks prime lending rate, used to peg rates on home equity loans, certain credit cards, and other consumer loans, will stay at about 3. 25 percent, the lowest in decades. (Boston Globe)
Suriname-2009 Article IV Consultation Concluding Statement of the IMF Mission Nov 3, 2009
Commercial banks profitability has declined, while the NPL ratio for the banking sector as a whole has risen from 7. 9 percent at end-2008 to 9. (IMF News)
RBA ups rates Nov 3, 2009
The quarter-point increase will add about $45 to the average monthly payment for a typical 25-year, $300,000 mortgage if it is passed on in full by commercial banks. The Australian economy's unexpectedly strong performance during the global financial crisis was fueled in part by record-low interest rates that the RBA is now nudging higher to prevent inflation picking up. (Sydney Morning Herald -- Opinion)
South Africa: New Farmers Want Funding Overhaul Nov 2, 2009
"The bank's argument for charging us more than commercial banks has always been because they raise their own funds. But this R1bn is public money.". His views are shared by Otto Mbangula, president of the National African Farmers Union. (allAfrica.com)
Report: AIG scraps plans to sell Japanese units Nov 1, 2009
The Fed said Thursday that commercial banks averaged $22. 6 billion in daily borrowing over the week that ended Wednesday. (Fresno Bee -- Business)
Interest rates to remain stable Nov 1, 2009
As such, apart from a hike in the statutory liquidity ratio (SLR) - the amount of deposit that commercial banks are to park in government securities - the central bank left other key policy rates and ratios unchanged. The one percentage point hike in SLR could draw over Rs 30,000 crores from the system. (India Times)
Send your questions Oct 31, 2009
With investment banks having shown robust performance for the quarter how likely are retails and commercial banks to follow that lead. What, in additional to loan losses, makes them vulnerable to further problems. (FT.com -- Markets)
ABC: $160,000 Per Stimulus Job? White House Calls That 'Calculator Abuse'... Oct 31, 2009
Nothing in your post actually refutes the blame on fannie freddie and mortgage banks (like countrywide and indymac, NOT investment or commercial banks) and cheap credit for driving the housing bubble/bust. Posted by: Econ 101 | Oct 31, 2009 3:34:24 AM. (The Drudge Report)
Bangladesh—2009 Article IV Consultation: Preliminary Conclusions of the IMF Mission Oct 31, 2009
The reintroduction of interest rate ceilings on important categories of bank lending was a setback to financial market development, and the recent appointments made at the Boards of Directors of three state-owned commercial banks (SCBs) were not fully in line with established regulations ... Recent improvements include (i) preparing for the introduction of Basel II regulations effective January 1, 2010; (ii) raising the quality of banks capital; (iii) creating risk management units at all banks;... (IMF News)
Albina Community Bancorp Reports First Quarter Loss; Pre-Tax, Pre-Provision Earnings Increase 72% Oct 31, 2009
Albina is one of approximately 50 commercial banks across the United States certified by the U.S. Treasury Department's Community Development Financial Institutions Fund as a community development financial institution. Albina is the only CDFI-certified commercial bank headquartered in Oregon. (Primezone Releases)
Cielo, Chinese partner to build wind farm Oct 30, 2009
According the the joint venture agreement, commercial banks in China are expected to finance the $1. 5 billion for the project through Shenyang Power Group. (Austin Business Journal, TX)
Zimbabwe: Country On Right Track, Says IMF Oct 30, 2009
In its advice to Government, the IMF is understood to have observed that the "incomprehensible" non-funding of the RBZ led to the undesirable scenario where the central bank, on some occasions, had to rely on part of statutory reserves from the commercial banks to keep the electronic payments system running, among other critical requirements. This came as the IMF registered a vote of confidence in the economy, saying a 3 percent growth would be achieved by year-end. (allAfrica.com)
US moves to shift cost of big bail-outs Oct 29, 2009
It will provide new authority for the Federal Deposit Insurance Corporation, which seizes weak commercial banks, to take over other large financial institutions such as insurance companies or hedge funds, when they run into trouble. The legislation was prepared after the revelations of problems at the Securities and Exchange Commission, including its repeated failures to detect the huge Ponzi scheme engineered by Bernard Madoff. (Sydney Morning Herald -- Business)
Foreign speculation on our currency is a bubble set to burst Oct 29, 2009
US and British commercial banks can borrow from their central banks at a rate less than 1 per cent. The equivalent RBA rate is 3. 25 per cent and many pundits are forecasting the rate could go to 3. (Sydney Morning Herald -- Opinion)
Uganda: In Defence of Uganda's Competitiveness Oct 29, 2009
The government instituted financial liberalisation reforms that have seen a proliferation in financial institutions from nine banks in 1992 to over 21 commercial banks, four Credit Institutions and three micro deposit taking institutions today. This has created competition and improved access. (allAfrica.com)
Infra financing to be made easier Oct 28, 2009
Currently, most infrastructure companies raise part of their finances from commercial banks, part from the overseas market and the rest from the equities market. In a parallel development, RBI has provided some clarity on capital requirement for banks involved in takeout financing deals. (India Times)
Finance bill gives US broader bank powers Oct 28, 2009
It would also provide new authority for the FDIC, which seizes weak commercial banks, to take over other large financial institutions like insurance companies or hedge funds, when they run into trouble. Copyright 2009 Globe Newspaper Company. (Boston Globe)
Eurozone lending contracts for the first time: ECB Oct 28, 2009
The ECB has provided unlimited amounts of cash to commercial banks in a bid to spur activity in interbank markets and increase lending to the broader economy. But the banks have held on to much of the money because they are wary of borrowers' business prospects and because they need to bolster their own weakened balance sheets. (Yahoo! Asia News)
RBI leaves key rates unchanged Oct 27, 2009
Barring the hike in Statutory Liquidity Ratio, the deposits that commercial banks are to park in government securities, the central bank left other key policy rates and ratios unchanged. Although the one percentage point hike in SLR could suck up over Rs 30,000 crore from the system, the average SLR of banks is already at 27. (India Times)
India's central bank holds interest rates Oct 27, 2009
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India's central bank holds rates Oct 27, 2009
The repo, the rate at which the central bank lends to commercial banks, was kept at 4 ... However, the RBI restored the statutory liquidity ratio (SLR) -- the minimum share of bank deposits to be held in government bonds, cash and gold -- for commercial banks to 25 percent, from 24 percent. (Sydney Morning Herald -- World)
India Begins Exit From Monetary Stimulus With Order to Buy Government Debt Oct 27, 2009
Subbarao said todays action wouldnt affect the liquidity position of the banking system, since most commercial banks have government bond holdings amounting to 27. 6 percent of their deposits. (Bloomberg -- Asia)
Africa: Green Revolution Requires Supporting Farmers, Says Agriculture Expert [interview] Oct 27, 2009
So, essentially we've been able to leverage 10 times the amount of money we put down to cover the risk of lending to farmers by commercial banks. It's been a hugely, hugely successful program. (allAfrica.com)
South Africa: Country Beats Recession This Year Oct 27, 2009
"While the GDP performance for the past three quarters has been especially weak, the third- quarter performance may actually show an increase off a low base. SA's leading indicator has started to improve and some commercial banks have announced a modest relaxation in their lending criteria," Stanlib said. Economists expect government expenditure growth to be similar to that budgeted at 16,2% year on year, due to a rising wage bill, the creation of new departments and more spending on social... (allAfrica.com)
Industry reactions Oct 27, 2009
It raised the statutory liquidity ratio of commercial banks to 25 percent from 24 percent effective Nov. 7, and said the collateralised borrowing and lending obligation liabilities of banks would be subject to cash reserve ratio requirements from Nov. 21. As expected, the RBI left the repo rate at 4. (India Times)
NYT: U.S. eyes reining in too big to fail firms Oct 27, 2009
The administration and its Congressional allies are trying, in essence, to graft the process used to resolve the troubles of smaller commercial banks onto both large banking conglomerates and nonbanking financial institutions whose troubles could threaten to undermine the markets ... In a speech last week, Mr. King said policy makers should consider breaking up the largest banks and, in effect, restore the Depression-era barriers between investment and commercial banks. (MSNBC -- Politics)
