Blowing jobs to China Nov 4, 2009
Why should a wind farm in Texas mostly financed by Chinese commercial banks and featuring made-in-China wind turbines get stimulus money supposedly intended to create jobs in the United States. That's the question some and not without reason. (Salon)
Interest rate debate brews ahead of Fed meeting Nov 3, 2009
If it does, commercial banks prime lending rate, used to peg rates on home equity loans, certain credit cards, and other consumer loans, will stay at about 3. 25 percent, the lowest in decades. (Boston Globe)
Suriname-2009 Article IV Consultation Concluding Statement of the IMF Mission Nov 3, 2009
Commercial banks profitability has declined, while the NPL ratio for the banking sector as a whole has risen from 7. 9 percent at end-2008 to 9. (IMF News)
Markets watch European Central Bank for exit plan Nov 3, 2009
Markets are looking to see if the European Central Bank looks to reduce its lending to commercial banks once recovery is on a sound footing ... But it has instead provided massive liquidity injections to commercial banks to get them lending to businesses. (The Star Online, Malaysia -- Business)
RBA ups rates Nov 3, 2009
The quarter-point increase will add about $45 to the average monthly payment for a typical 25-year, $300,000 mortgage if it is passed on in full by commercial banks. The Australian economy's unexpectedly strong performance during the global financial crisis was fueled in part by record-low interest rates that the RBA is now nudging higher to prevent inflation picking up. (Sydney Morning Herald -- Opinion)
No one has sure fix for 'too big to fail' dilemma Nov 3, 2009
Policymakers seem to have rejected former Fed chairman Paul Volcker's proposal to separate commercial banks, which would enjoy a measure of government guarantee in return for heavy regulation of their risk-taking, from investment banks and other non-bank financial players, which would be free to trade in risky assets on the understanding that there would be no bailout. In theory, this would clarify market signals, thus restoring market discipline. (Juneau Empire)
South Africa: New Farmers Want Funding Overhaul Nov 2, 2009
"The bank's argument for charging us more than commercial banks has always been because they raise their own funds. But this R1bn is public money.". His views are shared by Otto Mbangula, president of the National African Farmers Union. (allAfrica.com)
Interest rates to remain stable Nov 1, 2009
As such, apart from a hike in the statutory liquidity ratio (SLR) - the amount of deposit that commercial banks are to park in government securities - the central bank left other key policy rates and ratios unchanged. The one percentage point hike in SLR could draw over Rs 30,000 crores from the system. (India Times)
Report: AIG scraps plans to sell Japanese units Nov 1, 2009
The Fed said Thursday that commercial banks averaged $22. 6 billion in daily borrowing over the week that ended Wednesday. (Fresno Bee -- Business)
ABC: $160,000 Per Stimulus Job? White House Calls That 'Calculator Abuse'... Oct 31, 2009
Nothing in your post actually refutes the blame on fannie freddie and mortgage banks (like countrywide and indymac, NOT investment or commercial banks) and cheap credit for driving the housing bubble/bust. Posted by: Econ 101 | Oct 31, 2009 3:34:24 AM. (The Drudge Report)
Send your questions Oct 31, 2009
With investment banks having shown robust performance for the quarter how likely are retails and commercial banks to follow that lead. What, in additional to loan losses, makes them vulnerable to further problems. (FT.com -- Markets)
Albina Community Bancorp Reports First Quarter Loss; Pre-Tax, Pre-Provision Earnings Increase 72% Oct 31, 2009
Albina is one of approximately 50 commercial banks across the United States certified by the U.S. Treasury Department's Community Development Financial Institutions Fund as a community development financial institution. Albina is the only CDFI-certified commercial bank headquartered in Oregon. (Primezone Releases)
Bangladesh—2009 Article IV Consultation: Preliminary Conclusions of the IMF Mission Oct 31, 2009
The reintroduction of interest rate ceilings on important categories of bank lending was a setback to financial market development, and the recent appointments made at the Boards of Directors of three state-owned commercial banks (SCBs) were not fully in line with established regulations ... Recent improvements include (i) preparing for the introduction of Basel II regulations effective January 1, 2010; (ii) raising the quality of banks capital; (iii) creating risk management units at all banks;... (IMF News)
Zimbabwe: Country On Right Track, Says IMF Oct 30, 2009
In its advice to Government, the IMF is understood to have observed that the "incomprehensible" non-funding of the RBZ led to the undesirable scenario where the central bank, on some occasions, had to rely on part of statutory reserves from the commercial banks to keep the electronic payments system running, among other critical requirements. This came as the IMF registered a vote of confidence in the economy, saying a 3 percent growth would be achieved by year-end. (allAfrica.com)
Cielo, Chinese partner to build wind farm Oct 30, 2009
According the the joint venture agreement, commercial banks in China are expected to finance the $1. 5 billion for the project through Shenyang Power Group. (Austin Business Journal, TX)
US moves to shift cost of big bail-outs Oct 29, 2009
It will provide new authority for the Federal Deposit Insurance Corporation, which seizes weak commercial banks, to take over other large financial institutions such as insurance companies or hedge funds, when they run into trouble. The legislation was prepared after the revelations of problems at the Securities and Exchange Commission, including its repeated failures to detect the huge Ponzi scheme engineered by Bernard Madoff. (Sydney Morning Herald -- Business)
Uganda: In Defence of Uganda's Competitiveness Oct 29, 2009
The government instituted financial liberalisation reforms that have seen a proliferation in financial institutions from nine banks in 1992 to over 21 commercial banks, four Credit Institutions and three micro deposit taking institutions today. This has created competition and improved access. (allAfrica.com)
Foreign speculation on our currency is a bubble set to burst Oct 29, 2009
US and British commercial banks can borrow from their central banks at a rate less than 1 per cent. The equivalent RBA rate is 3. 25 per cent and many pundits are forecasting the rate could go to 3. (Sydney Morning Herald -- Opinion)
Finance bill gives US broader bank powers Oct 28, 2009
It would also provide new authority for the FDIC, which seizes weak commercial banks, to take over other large financial institutions like insurance companies or hedge funds, when they run into trouble. Copyright 2009 Globe Newspaper Company. (Boston Globe)
Infra financing to be made easier Oct 28, 2009
Currently, most infrastructure companies raise part of their finances from commercial banks, part from the overseas market and the rest from the equities market. In a parallel development, RBI has provided some clarity on capital requirement for banks involved in takeout financing deals. (India Times)
Eurozone lending contracts for the first time: ECB Oct 28, 2009
The ECB has provided unlimited amounts of cash to commercial banks in a bid to spur activity in interbank markets and increase lending to the broader economy. But the banks have held on to much of the money because they are wary of borrowers' business prospects and because they need to bolster their own weakened balance sheets. (Yahoo! Asia News)
India Begins Exit From Monetary Stimulus With Order to Buy Government Debt Oct 27, 2009
Subbarao said todays action wouldnt affect the liquidity position of the banking system, since most commercial banks have government bond holdings amounting to 27. 6 percent of their deposits. (Bloomberg -- Asia)
Industry reactions Oct 27, 2009
It raised the statutory liquidity ratio of commercial banks to 25 percent from 24 percent effective Nov. 7, and said the collateralised borrowing and lending obligation liabilities of banks would be subject to cash reserve ratio requirements from Nov. 21. As expected, the RBI left the repo rate at 4. (India Times)
RBI leaves key rates unchanged Oct 27, 2009
Barring the hike in Statutory Liquidity Ratio, the deposits that commercial banks are to park in government securities, the central bank left other key policy rates and ratios unchanged. Although the one percentage point hike in SLR could suck up over Rs 30,000 crore from the system, the average SLR of banks is already at 27. (India Times)
NYT: U.S. eyes reining in too big to fail firms Oct 27, 2009
The administration and its Congressional allies are trying, in essence, to graft the process used to resolve the troubles of smaller commercial banks onto both large banking conglomerates and nonbanking financial institutions whose troubles could threaten to undermine the markets ... In a speech last week, Mr. King said policy makers should consider breaking up the largest banks and, in effect, restore the Depression-era barriers between investment and commercial banks. (MSNBC -- Politics)
Africa: Green Revolution Requires Supporting Farmers, Says Agriculture Expert [interview] Oct 27, 2009
So, essentially we've been able to leverage 10 times the amount of money we put down to cover the risk of lending to farmers by commercial banks. It's been a hugely, hugely successful program. (allAfrica.com)
South Africa: Country Beats Recession This Year Oct 27, 2009
"While the GDP performance for the past three quarters has been especially weak, the third- quarter performance may actually show an increase off a low base. SA's leading indicator has started to improve and some commercial banks have announced a modest relaxation in their lending criteria," Stanlib said. Economists expect government expenditure growth to be similar to that budgeted at 16,2% year on year, due to a rising wage bill, the creation of new departments and more spending on social... (allAfrica.com)
India's central bank holds rates Oct 27, 2009
The repo, the rate at which the central bank lends to commercial banks, was kept at 4 ... However, the RBI restored the statutory liquidity ratio (SLR) -- the minimum share of bank deposits to be held in government bonds, cash and gold -- for commercial banks to 25 percent, from 24 percent. (Sydney Morning Herald -- World)
India's central bank holds interest rates Oct 27, 2009
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Rural and community Banks introduced to a new reporting system Oct 26, 2009
Mr. Osei Bonsu said the new system had been adopted by bigger commercial banks and that the Apex Bank adopted the system because it would be of benefits to the rural banks. For example, he said, the Base 11 Accord would help avoid the possibility of collapse of banks in that, there would be a setting of rigorous risk and capital management requirements designed to ensure that a bank held capital reserves appropriate to the risk it exposed itself to through its lending and investment practices. (Ghana Web, Ghana)
ECB's Noyer Says Banks Need to Keep Up Reform Pace, Restrain Compensation Oct 26, 2009
Chinas banking regulator ordered stress tests for commercial banks on a quarterly basis to prevent possible future liquidity crises, the China Securities Journal reported Oct. 23. Bank Profits. (Bloomberg -- Germany)
Pay cuts for millionaires Oct 25, 2009
Meanwhile, the immediate crisis has passed, the bank lobbyists are working their magic, and the toughest proposed reforms (like prohibiting commercial banks from also doing investment banking) are already off the table. In so many ways, Wall Street is already back to business as usual. (San Francisco Chronicle -- Opinion)
Saudi SABB bank books $94 mln for Q3 loan losses Oct 24, 2009
Standard #39;s has said it found banks in Saudi Arabia and the United Arab Emirates accounted for almost two-thirds of the total net exposure to the conglomerates of the 30 commercial banks it rates in the Gulf. (Reporting by Souhail Karam; Editing by Sugita Katyal). (Yahoo News -- Press Releases)
Fed Plan to Police Bank Pay Unlikely to Curb Risk Oct 24, 2009
That's led some critics to call on the government to ban big commercial banks from trading risky securities or shrink them so their collapse wouldn't jeopardize the economy. The Obama administration and the Federal Reserve have resisted such calls, opting instead to seek the authority to take over and wind down large banks that get into serious trouble. (ABC News -- Wire)
Bernanke urges Congress to enact financial safeguards Oct 24, 2009
Some proposals would create a single regulatory agency to replace the several that now separately oversee commercial banks, savings banks, investment banks, and security dealers. Under those proposals, the Fed would be stripped of its bank supervisory powers. (Boston Globe)
Florida Shores Bancorp obtaining controlling interest in Naples-based Shamrock Bank Oct 24, 2009
Shamrock, founded in 2007, has two locations and brings $70 million in assets to Florida Shores, a bank holding company that operates full-service commercial banks under the names ofFlorida Shores-Southwest and Florida Shores-Southeast. Once approved, Shamrock will operate under the name of Florida Shores-Gulfcoast. (The News-Press -- Business)
Banks see growth in loan lending Oct 24, 2009
Data released by the Reserve Bank of India (RBI) shows that the total non-food credit loans to farmers, individuals as well as businesses extended by the commercial banks in the country was Rs 27,47,595 crore as on October 2009, implying that banks have cumulatively lent close to Rs 82,000 crore in the past three fortnights. Total food credit loans to Food Corporation of India for food grain procurement was Rs 42,721 crore as on October 2009, taking the total loans disbursed by... (India Times)
Korea Development Bank Sets Up $1.8 Billion Fund on Ship-Financing Slump Oct 24, 2009
8 billion fund to help pay for vessels at the nations shipyards as commercial banks pare ship- financing on tumbling vessel prices. State companies like us have to step in and fill some of the gap left by the global commercial banks, Kim Joong Gon, a senior manager in KDBs ship-finance team, said at the in Busan yesterday. (Bloomberg -- Asia)
Poland Banks on Privatizations to Plug Budget Oct 23, 2009
Telecom monopoly TPSA was sold to France Telecom (), and a handful of foreign banks have controlling stakes in the main Polish commercial banks, save for one, PKO Bank Polski (). Poland has also listed many companies on the , including its crude oil refineries and natural gas distributor, while holding on to majority stakes in them. (BusinessWeek)
Chrysler Financial to close by end of 2011 Oct 23, 2009
The Fed on Thursday said commercial banks averaged $23. 8 billion in daily borrowing over the week that ended Wednesday. (The Augusta Chronicle)
Transcript of a Press Briefing by Caroline Atkinson, Director, External Relations, IMF Oct 23, 2009
It may be to do with the commercial banks, and it s important that in Nigeria, as in the U.S. and other countries, that a strong approach is taken to strengthen the financial system with dealing with making sure that you have adequate capital and deal with toxic assets, so that credit growth can resume and support the economy. QUESTIONER: Hello. (IMF News)
Unconventional monetary policy: Loose thinking Oct 22, 2009
THE Bank of Japan (BoJ) pioneered the process known as quantitative easing (QE) in 2001-06, when it massively boosted the reserves that commercial banks held at the central bank. Its verdict on how well QE worked then ought to interest policymakers today. (The Economist)
Moodys assigns moderate risk rating to 13 banks Oct 22, 2009
NEW DELHI: Global rating agency Moodys on Wednesday assigned moderate credit risk rating to 13 Indian commercial banks, including the countrys largest public sector lender State Bank of India and private entity ICICI Bank ... Global rating agency Moodys on Wednesday assigned moderate credit risk rating to 13 Indian commercial banks, including the countrys largest public sector lender State Bank of India and private entity ICICI Bank. (India Times)
News in brief Oct 22, 2009
For over 12 years, 's Safe service has given consumers information on the relative financial strength and stability of U.S. commercial banks, savings institutions and credit unions. Farmers Trust and Savings Bank is proud to have earned a consistent five-star Safe rating since the first quarter 2008. (Forest City Summit, IO)
Gloating with WallStreet's goodfellas Oct 22, 2009
From heretofore, they would be turned into much more tightly regulated commercial banks, able to access emergency Federal Reserve reserves in case of another run on the bank ... But it was clear and sunny skies for the then investment now commercial banks ... According to weekly figures provided by the Federal Reserve, total loans at commercial banks have fallen at a 19% annual rate over the past three months, while loans to businesses have dropped at a 28% annualized pace. (Asia Times Online)
UK's Brown, King clash over bank reforms Oct 22, 2009
" Critics of King's idea say for Britain to go down the route of splitting up banks in isolation would cripple them within a global marketplace. "I don't think a Glass-Steagall approach which might have been right for the 1930s is right for the 21st century," Darling said. The Glass-Steagall act set up barriers between U.S. commercial banks and investment banks as a response to the 1929 Wall St Crash and Great Depression. The law was repealed in the 1990s. Global approach Speaking in Edinburgh,... (Sydney Morning Herald -- Business)
Break Up the Banks Oct 21, 2009
"The scale of the and we will paying for the impact of the crisis on the public finances "for a generation", The Guardian writes. Ah, but this view is little more than the crazy ramblings of a European central banker. Right? Think again. Former Fed chairman Paul Volcker has been pressing Congressmen and the Obama Administration's top financial advisers to dramatically too so as to prohibit commercial banks from participating in investment banking activities. "He wants the nations banks to be... (Slate)
Rwanda: Commercial Banks Should Embrace Govt's Good Gesture [editorial] Oct 20, 2009
com: Rwanda: Commercial Banks Should Embrace Govt's Good Gesture (Page 1 of 1). Commercial Banks Should Embrace Govt's Good Gesture ... Kigali The Central Bank Governor has voiced concern over the reluctance of Commercial Banks to utilize a special fund instituted by government to cushion their risks as they resume long-term lending. (allAfrica.com)
Galleon's lessons Oct 20, 2009
But not surprising, given the number of entities investment banks, commercial banks, rating agencies, consultants, staff, board of directors that are privy to information that is not publicly available. The temptation to use or rather misuse such information is bound to be high, especially when the stakes are so huge and the chances of being caught and punished so low (as evidenced by the abysmal record of regulators in nabbing the guilty). (India Times)
Carney May Keep Rate at Record 0.25%, Warn About Risks of Strong Currency Oct 20, 2009
The target rate for overnight loans between commercial banks will stay at 0. 25 percent in a decision due at 9 a.m. New York time, said all 26 economists surveyed by Bloomberg. (Bloomberg -- Canada)
Even SBA's standard loans are hard to come by Oct 20, 2009
The drop in loans and dollar value are the result of some larger commercial banks tightening lending standards, making SBA-backed loans harder to get, said Gerald Baroudi, vice president at Mid-Atlantic Business Finance Co. in Glen Burnie ... She said she was turned down by several large commercial banks that wanted her to make a hefty down payment ... While some commercial banks have pulled back on SBA lending, that s not the case at M&T Bank, executives there say. (Baltimore Business Journal, MD)
Iceland in move to bolster banks Oct 19, 2009
Iceland's three main commercial banks, Glitnir, Landsbanki and Kaupthing, all collapsed within a week last October, owing $60bn to foreign lenders. The collapse jeopardised the savings of 300,000 savers in Britain. (BBC News -- Europe)
Open for the same risky business Oct 18, 2009
Commercial banks serve an important role in citizens daily lives and in the overall financial health of the economy. An economy can only be as strong as its banks, so keeping banks strong, healthy, and out of trouble is paramount. (Boston Globe)
Liberia: Government Lacks Vision LP Charles Brumskine Says; Prescribes Steps for 2011 Transition Oct 18, 2009
Poverty reduction in the midst of rampant corruption is impossible," he said. He accused President Sirleaf of personally stabbing poverty reduction in the back by seeking "to destroy Liberianization" through the submission a bill to the Legislature to repeal the Liberianization Act. The repeal of the Act, he said, would expose to and put Liberian petty business owners in direct competition with foreign business people in the sale of ice cubes and cold water, all in the name of free enterprise... (allAfrica.com)
Prosperity Bank sees profits rise Oct 17, 2009
Like other commercial banks preparing for what could be a rough ride toward the end of the year and into 2010 due to volatility in the commercial real estate market, Prosperity hiked its provision for loan losses sharply in the quarter, to $7. 2 million, from $1. (Houston Business Journal, TX)
Wonk Watch 10.16.09 Oct 17, 2009
After discussing the global imbalances between U.S. and Western European deficits and the surpluses in China, Germany, Japan, and oil-exporting countries, Brittan suggests making Krugman the Comptroller of the US Currency, to better regulate greedy commercial banks. Brittan continued by referring to Krugman as a radical Keynesian economist (and thats the part that bugged Krugman). (Slate)
Zimbabwe: No Collateral, No Inputs, Then No Food Oct 17, 2009
The government had suggested that farmers borrow from commercial banks, using their land as collateral ... John Mangudya, who works at one of the largest commercial banks in Zimbabwe, said the offer letters and 99-year leases could not be used as collateral because they were not transferable to third parties, whereas "loans are bilateral arrangements between the bank and its customer." If the farmer defaulted on the loan, the bank would have no claim on either the lease or the land to settle the... (allAfrica.com)
Banks Cut Back on Fed Emergency Lending Programs Oct 16, 2009
The Fed on Thursday, Oct. 15, 2009 said commercial banks averaged $27 ... The Fed on Thursday said commercial banks averaged $27. (ABC News -- Wire)
BofA's Ken Lewis to get no '09 salary, bonus Oct 16, 2009
Place an obit: (559) 441-6228. Web Search powered by YAHOO. (Fresno Bee -- Business)
Bank of America still tops in state Oct 16, 2009
State Street Bank & Trust Co., one of the state s largest commercial banks, showed a sharp 14 percent decrease in deposits to $20. 6 billion. (Boston Globe)
ProCredit focuses on SMEs Oct 15, 2009
Savings and loans companies generally focus on microfinance activiti= es, while commercial banks usually prefer big and already well established corporate clients. It said financial needs for the SME clients generally ranged from GH20,000 to GH500,000. (Ghana Web, Ghana)
China's Era of Bank JVs May Be Ending Oct 15, 2009
The pilot rules for bank JV ownership and management issued in February 2005, but still a trial project dictate that only state-owned commercial banks with experience in managing asset management companies within the Chinese domicile can bid to acquire a fund management company. This leaves a relatively short list, and that's even assuming qualifying companies will want to support a competing brand at the expense of their own businesses. (BusinessWeek)
Savings from new salary deduction system Oct 14, 2009
A new system is to be built by a consortium of commercial banks to interface with the AGs Department, following a move by the Government to open up the monopoly of automated salary deductions currently held by Angkasa, the National Cooperative Organisation of Malaysia ... In a related development, Angkasa and a number of credit cooperatives are planning on issuing a petition to the Government to halt the opening up of the Angkasa salary deduction scheme to commercial banks on the premise that... (The Star Online, Malaysia -- Business)
Investors should maintain debt-equity mix of 30:70 Oct 14, 2009
While interest rates on small savings, which are administered rates, are seldom revised and are not linked to market conditions, rates offered by commercial banks are essentially linked to demand for funds and resources at their disposal. 1. (India Times)
Nigeria: Ex-Bank Director Gave Loan to Own Firms - Governor Oct 14, 2009
Meanwhile, the Senate yesterday gave its full support for the sack of eight managing directors and chief executive officers of some commercial banks. The endorsement was heralded by a briefing by the CBN governor, Mr. Sanusi to the Senate during yesterday's sitting. (allAfrica.com)
