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Banking & Finance

Business & Finance - Banking & Finance

State Bank of India cuts lending rate by 90 bps across maturities MUMBAI: State Bank of India, the country's biggest lender by assets, said on Sunday it had cut its lending rates by 90 basis points for maturities ranging from overnight to three-year tenures, after experiencing a surge in deposits.After the move, its so-called overnight marginal cost of funds-based lending rate (MCLR) fell to 7.75 percent from 8.65 percent, while three-year loan rates will now be 8.15 percent from 9.05 percent previously.Lending rates were also cut across other maturities effective Sunday.Banks have received an estimated 14.9 trillion rupees ($219.30 billion) in old 500, and 1,000 rupees notes from depositors since the government in Nov. 8 unexpectedly banned the banknotes in a bid to fight counterfeiting and bring unaccounted cash to the economy.That had raised expectations banks would have room to cut lending rates, which is seen as vital to increase credit growth and spark a revival in private investments.Although India's gross domestic ...

Business & Finance - Banking & Finance

ECB's Coeure says policy normalisation must be discussed carefully FRANKFURT: The European Central Bank has not discussed ending its asset-purchase programme, ECB Executive Board Member Benoit Coeure told a German newspaper, though he said that would have to happen at some point. "There is no plan to cut back the purchases to zero. That wasn't even discussed by the Governing Council. A discussion will be needed about normalisation of monetary policy but it needs to be initiated carefully," he told daily Boersen-Zeitung in an ...

Business & Finance - Banking & Finance

Italy criticises ECB over Monte Paschi capital decision MILAN/FRANKFURT: The European Central Bank should have explained more clearly why it nearly doubled its estimated capital shortfall for the ailing Monte dei Paschi di Siena bank, which is being bailed out by the state, Italy's economy minister said. In unusually critical comments of the euro zone's single banking supervisor, Pier Carlo Padoan said in a newspaper interview the ECB's new capital target was the result of a "very rigid stance" in its assessment of ...

Business & Finance - Banking & Finance

Euro forefather Tietmeyer dies aged 85 FRANKFURT AM MAIN: Former Bundesbank president Hans Tietmeyer, a key architect of the euro who oversaw its introduction in Germany, has died at the age of 85, the central bank announced Wednesday.Tietmeyer ran the mighty Bundesbank from 1993 to 1999, a period that straddled the aftermath of German reunification as well as the launch of the single European currency and the creation of the European Central Bank."Hans Tietmeyer was an outstanding president, who always acted ...

Business & Finance - Banking & Finance

ECB's Weidmann says Monte dei Paschi bailout must be carefully weighed FRANKFURT: European Central Bank policymaker Jens Weidmann said plans for a state bailout of Italian bank Monte dei Paschi di Siena should be weighed carefully as many questions remain to be answered, according to German newspaper Bild. "For the measures planned by the Italian government the bank has to be financially healthy at its core. The money cannot be used to cover losses that are already expected," Bild quoted Weidmann as saying in a summary ...

Business & Finance - Banking & Finance

China's ICBC signs debt-for-equity swaps with state coal, steel firms BEIJING: Industrial and Commercial Bank of China (ICBC) has signed three debt-for-equity swaps with Shanxi province's highly indebted state-owned coal and steel firms, the bank said late on Monday. China's biggest lender ICBC has agreed to invest in Taiyuan Iron & Steel (Group), Datong Coal Mine Group and Yangquan Coal Industry (Group) to swap their existing debt and reduce their corporate leverage, the bank said. Heavy industries such as coal and steel have languished as ...

Business & Finance - Banking & Finance

Bundesbank brings home gold faster than planned FRANKFURT: Germany's Bundesbank has this year taken back more of its gold than planned as it moves toward hoarding half of the world's second-largest reserve at home, Bundesbank President Jens Weidmann told German daily Bild. "We brought back significantly more gold to Germany in 2016 again than initially planned. By now, almost half of the gold reserves are in Germany," the paper quoted Weidmann as saying in a summary of an article to be published ...