Banking

BLOOMBERG  Bank of England (BOE) Governor Andrew Bailey rejected the need for an inflation target higher than 2%, warning that changing the goal could damage the bank’s credibility and “unpick expectations.” He told a conference in Aix-en-Provence in France that the BOE can be flexible about timing but that it’s “absolutely critical that that flexibility isn’t confused with people thinking ...

BLOOMBERG  Switzerland’s lenders are strong enough to cope with possible additional interest-rate increases by the Swiss National Bank (SNB), its vice president, Martin Schlegel, told Schweiz am Wochenende. Most lenders have sufficient capital buffers to handle even an abrupt increase in borrowing costs, Schlegel said in an interview published in the weekly newspaper. While further monetary tightening could lead to ...

BLOOMBERG  Mizuho Financial Group Inc’s securities arm is boosting hiring in the US as it seeks to cement its position among the top 10 stock and bond underwriters in the lucrative market. The Japanese bank’s US unit plans to recruit more than 100 people for its investment banking and trading business by the end of March next year, according to ...

BLOOMBERG  HSBC Holdings Plc said it began private banking operations in India, marking a return to the market as Europe’s largest lender seeks to serve the nation’s growing rich. The business is aimed at professionals, entrepreneurs and their families with investable assets of more than $2 million, the London-based bank said in a statement. The move underscores how global wealth ...

BLOOMBERG  Deutsche Bank AG has hired Samuel Kim, a veteran Morgan Stanley dealmaker, as the German lender continues to beef up its investment banking operations in Asia Pacific. Kim is joining Deutsche Bank as its chairman of mergers and acquisitions in Apac, according to an internal memo seen by Bloomberg News. He will be based in Hong Kong and report ...

BLOOMBERG  JPMorgan Chase & Co, Wells Fargo & Co, Morgan Stanley and Goldman Sachs Group Inc led US banks in announcing higher dividends after every lender subject to this year’s Federal Reserve stress tests passed the exam. The banking giants announced the increases after the close of trading, as regulators freed the industry to update shareholders on payouts following this ...

BLOOMBERG  China took steps to slow a decline in the yuan for a fourth time, as its weakness intensified on souring sentiment towards the world’s second-largest economy. The central bank set its so-called fixing for the managed currency at a stronger-than-expected level, after the offshore yuan extended a seven-month low. The move came after reports that regulators have stepped up ...

BLOOMBERG  Bank stocks’ recovery from their swoon earlier this year took a step back, with one prominent analyst cautioning that US lenders face a series of regulatory headwinds over the next few months. After rallying for the better part of a month since hitting their lowest level in more than two years, banking shares once again find themselves under pressure, ...

BLOOMBERG  The bond market is finally getting in sync with Jerome Powell’s outlook for the economy. Traders have scrapped once-aggressive wagers that the Federal Reserve chief would pivot to easing policy before the end of this year, reflecting deeply diminished expectations that the central bank’s rate hikes are poised to set off a sharp recession. Bond yields have risen back ...

BLOOMBERG British lenders will likely have to pass on all of the Bank of England’s record rate hikes to some savers, a JPMorgan Chase & Co analyst predicted as he warned of intensifying risks to profits in the sector. “With increased political pressure, we believe that deposit pass-through is likely to be closer to 100% on interest-bearing time deposits, with ...