08262016Fri
Last update: Fri, 26 Aug 2016 10pm

Banking & Finance

Business & Finance - Banking & Finance

China's M1, M2 gap does not indicate a ‘liquidity trap’: central bank BEIJING: The growing gap between M1 and M2 cannot be used as an indicator to evaluate whether the economy is entering a "liquidity trap," the People's Bank of China (PBOC) said on Monday.Growth in M1 money supply, which includes cash and short-term deposits, accelerated to 25.4 percent in July from a year earlier while M2 money supply, which includes longer-term deposits, grew only 10.2 percent, its weakest growth in 15 months, raising concerns a "liquidity trap" is forming in China."M2 growth was distorted by a higher base of comparison boosted by money injections to calm stock market volatility in the second and third quarter of last year," the central bank said in a statement posted on its website.M2 growth is likely to rebound in August and September as the base effects of last year's injections fade, the statement added, and it is normal to see some fluctuations in monthly money ...

Business & Finance - Banking & Finance

Japan negotiating with banks to borrow at zero rate TOKYO: Japan's Ministry of Finance is negotiating with the country's major banks to lend to the government at a zero interest rate in auctions beginning in October or November, a government official familiar with the procedure said on Monday. The government has been asking lenders about the possibility of submitting tender offers with negative rates at the ministry's short-term special accounts borrowing programme auctions.But Japan's big banks have said it would be difficult to submit ...

Business & Finance - Banking & Finance

ANZ reviews Asian retail banking operations SINGAPORE/SYDNEY: Australian and New Zealand Banking Group is reviewing its retail operations in Asia as it continues to "reshape" its institutional products and services in a bid to slash costs and boost returns, a senior executive told Reuters in an interview. Australia's No.4 lender is alone among the country's four major banks to have a large business in Asia, but is pulling out of less profitable areas to bolster earnings as regulatory costs rise. Investors ...

Business & Finance - Banking & Finance

Negative rates seen reducing Japan big banks' profits by 300bn yen TOKYO: Japan's financial watchdog estimates that negative interest rates under the Bank of Japan's monetary easing policy will reduce profits for the country's three big banks by at least 300 billion yen ($2.96 billion) for the year through March 2017, the Nikkei business daily reported on Saturday. The Financial Services Agency (FSA) expressed concern to the BOJ regarding the situation as it sees reduced profits weakening the banks' ability to extend loans, the Nikkei said.According ...

Business & Finance - Banking & Finance

Japan to fund $2.4bn railway in Philippines MANILA: Japan on Friday announced it is pouring a massive $2.4 billion into a new railway in the Philippines aimed at easing Manila's notorious gridlock.Japan, the Philippines' top trading partner and source of aid, said the 38-kilometre (24-mile) elevated commuter line would connect Manila to nearby Bulacan province to decongest the capital and help spur economic activity."This is one of the biggest projects Japan has ever embarked upon using the yen loan," Masato Ohtaka, deputy ...

Business & Finance - Banking & Finance

Lloyds investors fret over CEO's future and who could replace him LONDON: Top investors in Lloyds Banking Group are concerned that chief executive Antonio Horta-Osrio might leave the bank sooner than anticipated following press scrutiny of his private life and want its board to start looking for his successor. After a stellar 2015, which saw Lloyds swing back to profit, restore dividends and millions of British government shares sold to private owners, 2016 has been less auspicious for the Portuguese banker, who took the top job ...

Business & Finance - Banking & Finance

RBS looks to sell Turkish loans in latest bid to exit shipping LONDON: Royal Bank of Scotland has put its portfolio of Turkish shipping loans up for sale, in the latest move by the state-backed bank to exit this troubled sector and cut overall losses through asset sales, two sources told Reuters. RBS, which has not made an annual profit since 2007, is restructuring under chief executive Ross McEwan and is looking to offload its entire shipping loans business to shore up its capital and avoid more ...