Bloomberg Malaysia’s central bank sees room to adjust monetary policy again after economic growth slowed to its weakest pace in more than a decade and the nation braces for the impact of the coronavirus on tourism and trade. Fourth quarter gross domestic product expanded 3.6% from a year ago, the lowest since the third quarter of 2009 and far worse ...
Read More »Banking
ECB officials defend rates with eye on side effects
Bloomberg Three of the European Central Bank’s (ECB) top policy makers defended their monetary stimulus even as they acknowledged that the negative side effects must be watched closely. President Christine Lagarde told the European Parliament in Strasbourg that she realises subzero interest rates and bond purchases can hurt savers and lead to overvalued asset prices such as real estate, but ...
Read More »India using yield curve control as rate cuts fail to deliver
Bloomberg India’s central bank is actively managing bond yields to keep borrowing costs in check, analysts say, after five interest-rate cuts last year failed to spur lending in the economy. The Reserve Bank of India’s (RBI) recent shift to targeted cash injections and credit easing contrasts with the central bank’s insistence that it only looks to smoothen liquidity and facilitate ...
Read More »Poland fails to assure with economic appraisal
Bloomberg Poland’s central bank is raising eyebrows in its justifications for maintaining record-low borrowing costs. Governor Adam Glapinski has brushed aside concern about the worst economic expansion in three years and an upward shift in inflation surpassing anywhere else in the European Union (EU). Western sluggishness is weighing on growth, he says, while factors beyond the bank’s control are driving ...
Read More »Lagarde’s review rush may see inflation goal decided by July
Bloomberg The European Central Bank (ECB) has set out an ambitious timetable for its strategic review that could see a decision on whether to change its inflation goal by the summer, according to euro-area officials. Speaking on condition of anonymity because the process is confidential, the officials described a rushed agenda under President Christine Lagarde, who reached her 100th day ...
Read More »China local authorities to sell $122bn of debt
Bloomberg China will allow local governments to sell another 848 billion yuan ($122 billion) of debt before March, as authorities seek to offset the economic shock of the coronavirus. The new quota includes 558 billion yuan of local government debt as well as 290 billion yuan of so-called special debt, according to a Ministry of Finance statement on Tuesday. The ...
Read More »Mastercard wins approval to join China’s $27tn market
Bloomberg Mastercard Inc won approval to set up a bank card clearing business in China, gaining access to a $27 trillion payments market as part of the nation’s financial opening. The announcement by the People’s Bank of China (PBOC) on Tuesday signals the country is moving ahead with the speedier opening of its financial system that was agreed on as ...
Read More »Deposits are another pain point for capital-hungry Yes Bank
Bloomberg When a former Yes Bank Ltd executive started selling his stake in September, the Indian lender’s top managers watched for any sign that the resulting drop in share price would trigger a rush to withdraw deposits. The stock sales came as customers of a regional lender — Punjab & Maharashtra Co-operative Bank Ltd — were lining up outside its ...
Read More »China urges lenders to raise bad loan tolerance
Bloomberg Local Chinese banking regulators are urging lenders to increase their tolerance for bad loans and lower profit targets as the coronavirus hits at businesses across the country. Over the weekend, China Banking and Insurance Regulatory Commission’s Zhengjiang branch asked banks in the region to be more lenient on bad loans and reduce their profit targets. The local bank watchdog ...
Read More »UniCredit likely to cut about 6,000 jobs in Italy
Bloomberg UniCredit SpA expects to cut 6,000 jobs and close 450 branches in Italy as Chief Executive Officer Jean Pierre Mustier sets his three year-efficiency plan in motion. The reductions and closures will take place through 2023, according to a letter sent to unions and seen by Bloomberg News. The Italian redundancies are part of a plan announced in December ...
Read More »