Banking

LONDON / Reuters Tougher rules introduced after the financial crisis have made it harder for banks to support the economy, a European banking lobby said in a study they hope will stem the flow of new regulation. Banks have been forced to hold far more capital since many of them were bailed out by taxpayers during the 2007-09 financial crisis. ...

Bloomberg India’s state-run Punjab National Bank (PNB) is conducting an internal investigation into an alleged $2 billion fraud and more heads could roll, its chief executive said in an interview. The country’s second-biggest state lender disclosed in February that companies owned by two jewellers defrauded it by raising credit from overseas branches of other Indian banks, using illegal guarantees issued ...

SEOUL / Reuters South Korea’s central bank held interest rates steady, with Governor Lee Ju-yeol taking a cautious stance in the face of high household debt, weak inflation and tightrope-tense trade relations between the United States and China. The Bank of Korea’s monetary policy committee held its base rate steady at 1.50 percent, in line with forecasts from 18 analysts ...

DUBLIN / Reuters Ireland’s central bank raised its forecast for economic growth as domestic activity strengthened and international demand improved, but it said the economy was vulnerable to post-Brexit trade restrictions and changes in European Union tax rules. Ireland’s economy has been the best performing in Europe since 2014 and the central bank sees that momentum continuing, with gross domestic ...

KIEV / Reuters Ukraine’s central bank left its main interest rate at 17 percent, as expected, but warned that an improving outlook for inflation could be undermined if the International Monetary Fund delays in disbursing loans. Over the past six months, the bank has kept monetary policy tight to curb stubbornly high inflation linked to higher food and oil prices ...

Bloomberg Italian bank Monte dei Paschi di Siena is slowly turning a corner after last year’s 8 billion euro ($10 billion) bailout, its chief executive said, flagging an increase in both lending and client funding. Italy’s fourth-largest lender, laid low by mismanagement and a large bad loan pile, has long been Rome’s biggest banking headache and is now 68 percent ...

NEW YORK / Reuters Quirks in the new US tax code are sowing doubts over how much big banks can boost dividends and stock buybacks this year, threatening to take the shine off what are likely to be strong quarterly profits. Changes in how companies can measure and apply past losses to tax bills, coupled with more extreme scenarios in ...

Bloomberg Mario Draghi is finding the euro area’s eastern flank to be an unwelcome distraction. The European Central Bank president is likely to find the Governing Council missing both its Latvian and Slovenian representatives this summer, with the former barred because of a bribery investigation and the latter opting to leave his job. The ECB is questioning Latvia’s restrictions on ...

Bloomberg A new type of bank bond is coming to China, albeit slowly. Chinese regulators in March released preliminary guidelines encouraging mainland banks to consider selling securities that can take in large losses in the event of a crisis. Bond watchers have taken that as a sign that total-loss absorbing capacity (TLAC) issuance may make its debut in China, following ...

Bloomberg Poland’s monetary tightening, already postponed for a second year, is no longer inevitable. Instead of a widely anticipated pickup in inflation, two months of below-forecast readings are a vindication of the central bank’s reluctance to tinker with borrowing costs in what’s already its longest-ever period of stable interest rates. The 10-member Monetary Policy Council will keep its benchmark at ...