Banking

Bloomberg The world is still full of risks for the banking industry, despite reforms put in place since the financial crisis 10 years ago. That was the main subject of discussions this weekend in Bali, where bankers gathered for the annual meeting of the Institute of International Finance. From market turmoil and trade tensions to rising leverage and the implications ...

Bloomberg China’s central bank is considering a range of risks in its currency policy, including a worst-case scenario, Governor Yi Gang said. As the yuan inches closer to the psychologically important level of 7 per dollar amid rising trade tensions with the US, the People’s Bank of China governor told Bloomberg in an exclusive interview that the Chinese currency is ...

Bloomberg Kazakhstan’s central bank has a range of options besides changing its key interest rate as it looks to fine-tune monetary policy after markets stabilized and inflation came in below expectations, according to Governor Daniyar Akishev. With the benchmark held twice at 9 percent after four cuts and anticipation building that a hike is on the way, Akishev said “the ...

Bloomberg European Central Bank President Mario Draghi said the key threat facing the global economy is a jump in interest rates sparked by financial instability, inflation surprises or geopolitics. “It’s quite clear that the main risk we should focus on here is a sharp repricing in assets, or a sharp increase, a sharp and sudden increase, in interest rates,” he ...

Bloomberg Bank of England Governor Mark Carney warned against the “weaponisation” assets in the global financial system as central bank chiefs fretted about the impact of a trade war. Speaking at the Group of 30 conference in Bali, Indonesia on Sunday, Carney stressed the need for investment flows to remain open, alluding to previous warnings that US protectionism affects the ...

Bloomberg When interest rates tick higher, consumers carrying too much debt start to default. It’s the natural assumption, but Americans keep meeting their obligations. Three of the largest US banks — JPMorgan Chase & Co., Wells Fargo & Co. and Citigroup Inc. — announced that their costs for bad loans are falling. The same strong economy pushing the Federal Reserve ...

Bloomberg US President Donald Trump is not alone in blaming the Federal Reserve for this week’s tumble in stocks, as many investors attribute the ebbing of easy money for spurring an outbreak of market turmoil. With Bloomberg Economics declaring October as the month the world’s major central banks together start running down their bond holdings, the withdrawal of liquidity is ...

Bloomberg Thailand’s economy is solid enough to handle an interest-rate increase and expectations of tightening this quarter are already partially reflected in the strength of the baht, according to the central bank. A quarter-point hike, or even a climb of 50 basis points, would have “some, but not much” impact on consumer and corporate borrowing, Bank of Thailand Senior Director ...

Bloomberg Egypt struck a deal to get $3.8 billion in new financing from an international consortium that includes Deutsche Bank AG and HSBC Bank Plc to boost its foreign-currency stockpile at a time when an emerging-market selloff is spooking investors. The accord replaces a one-year, $3.1 billion agreement that will expire next month, and aims at “extending the duration” of ...

Bloomberg If the Bank of Japan’s “stealth tapering” of its asset purchase program were to continue at the current pace, it would need to revise its monetary easing policy within the next two years, according to Goldman Sachs Group Inc. By the end of 2019, the pace of growth of the central bank’s bond purchases is on track to fall ...