12042016Sun
Last update: Sun, 04 Dec 2016 09pm

Banking & Finance

Business & Finance - Banking & Finance

Royal Bank of Scotland fails stress test: BoE   LONDON: The Royal Bank of Scotland is the worst prepared among Britain's lenders for another financial crisis, the Bank of England said Wednesday, forcing the state-rescued lender into a new capital-raising plan.The BoE, revealing its latest stress tests on Britain's top seven banks, added that two -- Barclays and Standard Chartered -- also missed key hurdles but had taken steps to strengthen their capital positions.The stress tests, designed to see if the sector can weather a global recession and crashing house prices, found that four out of the seven top banks did not have capital inadequacies based on their balance sheets at the end of 2015.The four comprised HSBC, Lloyds Banking Group, Nationwide Building Society and Santander UK."The bank's 2016 stress test comprised a severe, synchronised UK and global recession with associated shocks to financial market prices. It also incorporated a misconduct cost stress," the BoE's Financial Policy Committee said in a report.The FPC added that, in light of the tests and action agreed by ...

Business & Finance - Banking & Finance

BoE's Vlieghe says more cautious about raising rates than holding SHEFFIELD: Bank of England policymaker Gertjan Vlieghe said on Monday he still believed it was better to act with more caution about tightening monetary policy than keeping interest rates at very low levels. "We can tighten as much as we want but we can only ease a little bit further and, at least for me, that's an important consideration when thinking about how to set monetary policy in the future," he said after giving a ...

Business & Finance - Banking & Finance

Italy's Monte dei Paschi warns of myriad threats to rescue plan MILAN: More than 8 billion euros of legal claims against Monte dei Paschi di Siena, its weakening liquidity and the possibility of more bad loan writedowns are among the risks the Italian bank said could scupper its 5-billion euro rescue plan. In a 146-page prospectus for a debt swap offer that is a crucial plank of an attempt to stave off being wound down, Monte dei Paschi warned on Monday of "considerable uncertainty" surrounding the ...

Business & Finance - Banking & Finance

Statement by ECB's Draghi on euro zone outlook, and on Brexit BRUSSELS: Following is the introductory statement of European Central Bank President Mario Draghi to the ECON committee of the European Parliament in Brussels: I am glad to be back at the European Parliament just a week after the plenary debate on the ECB's activities in 2015. This will be my last visit this year, so it is a good opportunity to reflect on upcoming challenges. In 2016 the euro area economy proved to be resilient, ...

Business & Finance - Banking & Finance

Kenya central bank holds benchmark lending rate at 10.0pc NAIROBI: Kenya's central bank will hold its benchmark lending rate at 10.0 percent, amid mild inflationary pressures and a strong economy, the bank said in a statement on Monday. The bank said that private sector credit growth had stabilised at 4.6 percent in October, and that banking system liquidity had stabilised following the introduction of interest rate caps.The economy was also performing strongly at 6.2 percent in the second quarter of 2016, the bank said ...

Business & Finance - Banking & Finance

Barclays nets less than expected from Asia wealth business sale LONDON: Barclays completed the sale of its Singapore and Hong Kong wealth management businesses for a less-than-expected $225 million, as not all of the bank's customers chose to transfer their business across to the buyer, Oversea-Chinese Banking Corp. OCBC, which bought the businesses through its Singapore private banking unit Bank of Singapore, said in April it had agreed to pay $320 million for the operations.The $95 million discrepancy with the final price reflects the fact ...

Business & Finance - Banking & Finance

Monte dei Paschi faces potential legal claims for 8bn euros MILAN: Ailing Italian bank Monte dei Paschi di Siena said on Monday it is facing potential legal claims for a total of more than 8 billion euros ($8.5 billion) in a series of civil lawsuits. In a prospectus for a debt swap offer due to start on Monday, the Tuscan bank said it had set aside 627 million euros to cover for such claims.The bank, which is seeking to raise 5 billion euros through the ...