09292016Thu
Last update: Thu, 29 Sep 2016 04pm

Banking & Finance

Business & Finance - Banking & Finance

Regulators expect Monte dei Paschi to ask Italy for help LONDON: European regulators expect Italian bank Monte dei Paschi di Siena will have to turn to the government for support, three euro zone officials with knowledge of the matter said, although Rome would strongly resist such a move if bondholders suffered losses. Less than two months after the Tuscan lender announced an emergency plan to raise 5 billion euros of fresh capital, having come last in a health check of 51 European banks, there is growing concern among European regulators that the cash bid will fall short. While the bank is determined to see through the capital raising, if it were to disappoint, it would be left with a capital hole. Now euro zone authorities are considering whether state support would have to be tapped after what bankers have described as slack interest in the bank's share offer. "There is clearly an execution risk to the capital raising," said one ...

Business & Finance - Banking & Finance

ECB needs flexible time horizon to reach inflation goal FRANKFURT: The European Central Bank's inflation objective is not in contradiction with financial stability goals as long as the bank is sufficiently flexible about the time horizon for reaching the inflation target, Governing Council Klaas Knot said on Thursday. "The first thing you need to do in this context is use the medium term perspective in monetary policy in a sufficiently flexible fashion," Knot told a conference in Frankfurt. "In such circumstances, financial stability and ...

Business & Finance - Banking & Finance

Banks take up higher-than-expected 45.3bn euros in cheap ECB loans FRANKFURT: European banks took up almost twice the amount of cheap loans that analysts had predicted in a second round of European Central Bank refinancing, according to data released Thursday.The ECB announced that it had agreed to lend 45.3 billion euros ($51 billion) to 249 banks in the eurozone under the so-called TLTRO 2 programme, lower than the first round in June but significantly higher than a forecast of 25 billion euros made by analysts ...

Business & Finance - Banking & Finance

Bank of England says UK faces ‘challenging period’ for financial stability LONDON: Britain still faces a "challenging period" for financial stability despite resilience seen after the European Union referendum, and rules for banks must remain stay tight, the Bank of England said on Thursday.Britain's government is keen to ensure London retains its place as Europe's leading financial centre even after the country leaves the EU, but the BoE said there was no case to loosen bank capital rules."Although financial stability has been maintained in the United ...

Business & Finance - Banking & Finance

US Federal Reserve keeps key interest rate on hold WASHINGTON: The Federal Reserve kept its benchmark interest rate unchanged for the sixth straight meeting Wednesday, saying it needs to see a bit more sign of strength in the US economy.While hailing a pickup in activity since the sluggish first half of the year, the US central bank showed uncertainty about some persistent weak signs in the economy, and cut its 2016 growth forecast to 1.8 percent, down from 2.0 percent in June.Yet the policymakers ...

Business & Finance - Banking & Finance

How low can they go? Central bank policy easing around the world  LONDON: Kenya's central bank unexpectedly cut its benchmark interest rate by 50 basis points on Tuesday, a move aimed at spurring credit growth and facilitated by inflation remaining within the government's target band.A total of 57 monetary authorities around the world have now eased policy since the beginning of last year in the face of slowing growth and inflation. This was the 197th easing step in that period.Below is a list of all 57 central ...

Business & Finance - Banking & Finance

Hungarian central bank accepts 3-month depos worth HUF 687bn at tender BUDAPEST: The Hungarian central bank accepted 3-month deposits worth 687 billion forints ($2.49 billion) on Wednesday at its last monthly tender before its limits take effect. The 3-month deposits now hold 2.227 trillion forints. The bank announced on Tuesday that it would cap the amount in the 3-month deposits at 900 billion forints by the end of the year. Copyright Reuters, 2016 ...