Banking

Bloomberg If you want to know what long-term negative interest rates are doing to banks, watch Denmark in the coming months. Danes have lived with subzero rates longer than anyone else, after the central bank resorted to the policy in 2012 to defend its currency peg. But according to the country’s financial watchdog, it’s only now that the real cost ...

Bloomberg The head of India’s biggest lender said he’s certain “some solutions will emerge” to steady Yes Bank Ltd, which has been on a prolonged quest to raise new capital. “Yes Bank is a significant player in the market with an almost $40 billion balance sheet,” State Bank of India (SBI) Chairman Rajnish Kumar told Bloomberg Television in Davos. “I ...

Bloomberg A bond fund manager who correctly predicted that India’s central bank would introduce a US Federal Reserve style Operation Twist, now says that the nation needs more foreign capital to fund its record borrowing. India’s borrowing may rise to 7.6 trillion rupees ($107 billion) for the fiscal year starting from April 1, according to Suyash Choudhary, head of fixed ...

Bloomberg Ever since she moved to Frankfurt as European Central Bank (ECB) president three months ago, Christine Lagarde has been working hard to charm the locals. The institution’s new chief has sought to turn a new leaf with Germany after years of cooler relations under her predecessor, Mario Draghi. His stimulus policies, including negative interest rates that erased returns on ...

Bloomberg The Reserve Bank of Zimbabwe has frozen the bank account of a Chinese company that the central bank alleges has been manipulating the foreign exchange market. The bank escalated the matter to the Financial Intelligence Unit for investigation and it has so far identified one company — China Nanchang — “which has used its bank account to inject millions ...

Bloomberg European Central Bank (ECB) president Christine Lagarde warned investors not to assume that current monetary policy is locked in for the foreseeable future just because officials are focused on reviewing their strategy. “To those who think it’s on autopilot, that’s ridiculous,” she said in a Bloomberg Television interview at the World Economic Forum in Davos, Switzerland. “Let’s look at ...

Bloomberg American Express Co has high hopes for 2020, predicting earnings that surpassed many analysts’ expectations and prospects for “more rational” competition from its biggest rivals. After sweetening the bonuses on some of its most popular products, including the Green card, AmEx said overall rewards costs climbed 8% to $2.72 billion during the fourth quarter. That was less than the ...

Bloomberg Nigeria turned the screws even tighter on lenders by increasing the amount of money they need to park with the central bank for the first time in almost four years in an effort to tame inflation. The West African nation’s central bank raised the cash-reserve requirement for lenders to 27.5% of total deposits, from 22.5%, to curtail excess liquidity ...

Bloomberg Deutsche Bank AG and a Singapore based hedge fund bought more debt of an embattled Indian shadow lender, highlighting the growing foreign interest in the discounted assets of the financier at the center of a credit crisis. Deutsche Bank has almost doubled the debt it holds of Altico Capital India Ltd to 3 billion rupees ($42.1 million) in the ...

Bloomberg A rift among the global elite over the future of digital payments was on display during a panel discussion at the World Economic Forum’s annual meeting in Davos, Switzerland. At stake is the potential overhaul of the global financial system that could see companies like Facebook Inc pitted against the world’s central banks in the race to develop a ...