05052016Thu
Last update: Thu, 05 May 2016 11pm

Banking & Finance

Business & Finance - Banking & Finance

Bundesbank chief puts question mark over European shield for savers FRANKFURT: The head of Germany's Bundesbank has signalled that Germany won't back a common deposit guarantee scheme for euro zone savers, saying that banks' risks are still too entangled with their home countries. Jens Weidmann said the fact that banks still owned many bonds of their home countries meant that any such pan-European shield for savers would mean Germany, as the richest country, would be exposed."The fact that member states have significant influence on the quality of banks' balance sheets speaks against hasty mutualisation of deposit protection in the euro zone," Weidmann said in remarks made in Rome. He signalled that there would first need to be stricter rules on the capital that banks are required to hold to cover the risks from state bonds they own. Currently banks are required to hold little capital to cover sovereign debt holdings which have long been regarded as "risk free" in regulatory ...

Business & Finance - Banking & Finance

ECB's Constancio: macroprudential policy should pre-emptive FRANKFURT: Central banks should have responsibilities over both monetary and macroprudential policies and their action should be both pre-emptive and strongly counter-cyclical, European Central Bank Vice President Vitor Constancio said on Tuesday. "Macroprudential policy is complementary to monetary policy and should share the same status as a policy area," Constancio told a conference. "Both areas need to work in close co-operation; central banks are more sensitive to macro-financial stabilisation goals; they possess more information about ...

Business & Finance - Banking & Finance

Fed awards $29.56bn reverse repos NEW YORK: The Federal Reserve on Tuesday awarded $29.56 billion of one-day, fixed-rate reverse repurchase agreements to 26 bidders at an interest rate of 0.25 percent, the New York Fed said on its website. On Monday, the Fed allotted $24.15 billion in one-day reverse repos to 23 bidders, including Wall Street dealers, money market mutual funds and mortgage finance agencies, also at an interest rate of 0.25 percent. The reverse repurchase agreement program is seen ...

Business & Finance - Banking & Finance

Bank of England says investors may need to accept lower bank profits LONDON: Investors have not fully priced in the likelihood that banks will generate lower returns than in the past as they shift to less risky business models, a deputy governor of the Bank of England said on Tuesday. Major global banks such as Citi and Goldman Sachs have reported sharp falls in profits in their latest earnings, and some British ones such as Royal Bank of Scotland are in the midst of large-scale job cuts. ...

Business & Finance - Banking & Finance

New York City's FY 2017 executive budget plan reaches $82.2bn NEW YORK: New York City's executive budget proposal for the 2017 fiscal year will amount to $82.2 billion, almost identical to a preliminary budget estimate in January of $82.1 billion, Mayor Bill de Blasio said on Tuesday. "At its core, our budget is our roadmap for lifting up communities," de Blasio said. "The strategic investments we have put to work in every neighborhood, coupled with disciplined fiscal management - are producing real results for New ...

Business & Finance - Banking & Finance

Egypt's central bank sells $118.7 million at Tuesday auction CAIRO: Egypt's central bank sold $118.7 million at its regular rate of 8.78 to the dollar at Tuesday's sale.Egypt's pound strengthened on the black market, traders quoting rates of 10.40/10.50 to the dollar, after it had sharply weakened in the past couple of weeks, hitting around 11.50 Egyptian pounds to the dollar.The United Arab Emirates has allocated $4 billion to Egypt, half of it in investment and half as a central bank deposit to support ...

Business & Finance - Banking & Finance

StanChart profits rebound as unwanted loans are cut LONDON: Standard Chartered took an extra US$107m charge to cover losses from the sale of US$20bn of assets it no longer wants, but said it was making good progress in getting rid of the loans.New CEO Bill Winters in January put the risky loans in a "liquidation portfolio" to be sold or closed. It reduced the portfolio by 5% in the first quarter, leaving it with gross loans of US$7.5bn, or US$19bn on a risk-weighted ...