Banking

Bloomberg China’s overall credit growth held up in December and a gauge of borrowing costs fell, signalling that policy makers are beginning to see some progress in channelling credit to the economy. The stock of outstanding aggregate financing expanded by 10.7% in the 12 months to December, the same pace as in November, the People’s Bank of China (PBOC) said. ...

Bloomberg If European Central Bank (ECB) officials use their review of monetary policy this year as a chance to connect with ordinary people, they need to be ready for some plain truths. At the heart of the assessment, likely to be announced on January 23, is how price stability should be defined and targeted. But ask citizens how they feel ...

Bloomberg In the country that’s had negative interest rates longer than anywhere else on Earth, economists are going through a bit of a rough patch. Since Denmark introduced subzero rates in mid-2012, citizens have struggled to get their heads around a world in which savers are punished, borrowers are rewarded and the basic laws of risk-return feel like ancient mythology. ...

Bloomberg The Federal Reserve is shifting its focus from writing and revising rules aimed at limiting risk in the banking system to a concentration on how lenders interpret the restrictions, the agency’s supervision chief said. Having finished the bulk of its work on major rules, the Fed can now devote more attention to behind-the-scenes interactions between bankers and their government ...

Bloomberg Deutsche Bank AG is cutting the bonus pool at its investment bank by about 30%, deepening pay reductions after a tumultuous year that saw the lender embark on a huge restructuring. While the figure is an average at the division housing fixed income trading, there’ll be some adjustments for individual performance and units, people with knowledge of the matter ...

Bloomberg The expansion of financial services in an economy can reduce income inequality — but beyond a certain point it tends to have the opposite effect, according to the International Monetary Fund (IMF). Better access to banking and credit can help close income gaps by allowing people to save and invest more, the Washington-based fund said in a staff discussion ...

Bloomberg Add a shocking slump in retail sales to the list of reasons why the Bank of England may cut interest rates in less than two weeks. Instead of showing evidence of a much-anticipated post-election bounce, the release exposed how British shoppers, the mainstay of growth the past few years, reined in spending during the crucial Christmas season. The pound ...

Bloomberg The cost of Ghana’s financial sector clean-up risks escalating to 20 billion cedis ($3.5 billion) as the government weighs increasing the guaranteed payback for some depositors, Finance Minister Ken Ofori-Atta said. The West African nation has approved funding of about 16.4 billion cedis since 2017 to help recapitalise the industry and safeguard depositors’ funds after the central bank revoked ...

Bloomberg The path to a Bank of England (BOE) interest-rate cut as soon as this month became clearer on Wednesday after inflation unexpectedly slowed to a three-year low. The pound fell and traders increased bets that policy makers would reduce rates on January 30, as the shock reading reinforced speculation fuelled by dovish comments from BOE Governor Mark Carney and ...

Bloomberg The Federal Reserve Bank of New York announced plans to conduct repurchase agreement operations through until at least February13, although the size of term operations will be trimmed to $30 billion from the start of next month. The central bank did not elaborate on plans beyond that. The move extends a programme that has been in place since it ...