Banking

BLOOMBERG Italian Finance Minister Giancarlo Giorgetti said monetary-policy measures alone can’t tame inflation. “Fighting inflation with monetary policy is not enough, and recession can’t be the price to pay for fighting inflation,” Giorgetti said at the Ambrosetti workshop in Cernobbio, Italy. Faced with the biggest cost-of-living crisis in a generation in the wake of Russia’s invasion of Ukraine, governments across ...

BLOOMBERG China’s biggest state-owned banks warned of a tough 2023 as uncertain economic conditions may squeeze earnings after most delivered better-than-estimated profit growth for last year. China’s tightly controlled $54 trillion banking industry was pushed to extend more credit in 2022 to help cushion the economy from a slowdown triggered by the nation’s strict pursuit of Covid zero, which helped ...

BLOOMBERG  Wall Street banks are looking to start trading private credit loans as they seek to make inroads into the lucrative world of direct lending, a potential first step that could ultimately reshape the largely buy-and-hold market. JPMorgan Chase & Co, Goldman Sachs Group Inc and Barclays Plc are among the firms talking to private debt funds about facilitating secondary-market ...

BLOOMBERG  The People’s Bank of China’s (PBOC) relending programs have incentivised banks to allocate more loans towards green projects, Governor Yi Gang said. The relending programs provide cheaper funding to banks and at the same time promotes information disclosure by lenders, Yi said on a panel at the Boao forum in Hainan. One of the PBOC’s relending programs — focussed ...

BLOOMBERG  The Bank of England (BOE) warned the next blow up in financial markets may be triggered by corporate credit after a massive build-up in private debt over the past decade. Riskier corporate borrowing — including high yield bonds, leveraged loans and private credit — is “particularly vulnerable” to interest rate rises and “heightened geopolitical risks increase the likelihood of ...

BLOOMBERG  Japanese banks have little risk of facing a situation like Credit Suisse Group AG’s recent Additional Tier 1 (AT1) bonds wipeout, Japan’s finance minister reassured onlookers who may be concerned about their holdings. Finance Minister Shunichi Suzuki said in parliament that Japanese banks’ AT1s do not have a clause which recently triggered $17 billion worth of junior debt being ...

BLOOMBERG  Credit Suisse Group AG’s top executives in Switzerland sought to reassure local clients over worries stemming from the takeover by UBS Group AG, and underlined the importance that the domestic business has for the new combined bank. The Swiss bank held a 45-minute webcast, hosted by Andre Helfenstein, chief executive of the Swiss business, and Roger Suter, head of ...

BLOOMBERG  Bank of England (BOE) Governor Andrew Bailey said global markets are testing “quite a lot” of the banking sector for any signs of trouble after the failure of Silicon Valley Bank (SVB) and the rescue of Credit Suisse Group AG. While the UK banking system remains in a “very strong position,” Bailey said the past weeks brought “moves in ...

BLOOMBERG  India’s decision to tax returns from fixed-income mutual funds is set to bolster its lenders’ efforts to lure deposits for financing a resurgent credit growth and boost profits. The nation scrapping tax incentives for some debt mutual funds has paved the way for banks to garner as much as $36 billion in deposits from the asset managers, according to ...

BLOOMBERG  The boss of ClearBank Ltd said clients moved 20% more money through its platform in the week of Silicon Valley Bank’s (SVB) implosion, adding the firm to a cohort of rivals benefiting from the collapse. Charles McManus, chief executive officer (CEO) of the London-based clearing bank, said business has now begun to stabilise after the sudden jump. The firm’s ...