Bloomberg China’s central bank boosted injections via open-market operations to the most in two months to counter seasonal tightening of liquidity. The People’s Bank of China pumped in a net 270 billion yuan ($42 billion) on Tuesday, as sales of reverse-repurchase agreements more than offset maturities. That’s the most since Nov. 16, data compiled by Bloomberg show. As much as ...
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No rush for dollars in Morocco as looser peg boosts currency
Bloomberg It finally happened: Morocco eased its grip on the dirham. But there was no stampede for dollars and the currency strengthened. Bank al-Maghrib set the reference rate at 9.2184 per dollar even after the central bank widened the dirham fluctuation band to 2.5 percent above or below its peg. And the regulator allocated less than a fifth of the ...
Read More »China vows to toughen rules on $38 trillion banking industry
Bloomberg China’s banking regulator pledged to continue its crackdown on malpractice in the $38 trillion industry in 2018, vowing to tackle everything from poor corporate governance and violation of lending policies to cross-holdings of risky financial products. The China Banking Regulatory Commission unveiled its regulatory priorities for the year in a statement. They include: Inspecting the funding source of banks’ ...
Read More »Brookings urges India to ease regulations for new bank permits
Bloomberg India should make it easier for new banks to open in the South Asian nation, according to a new report from the Brookings Institution. The Reserve Bank of India could consider easing rules for allocation of permits, including an initial capital requirement of 5 billion rupees ($79 million) and so-called priority sector lending targets, which include loans to farmers ...
Read More »JPMorgan bearish on pound despite Brexit breakthroughs
Bloomberg The pound has hit the highest level since the Brexit vote in 2016, yet JPMorgan Chase & Co. remains relatively glum on its prospects. While recent Brexit developments have been constructive, the bank sees sterling failing to maintain its strength amid flagging economic fundamentals and a “non-negligible risk†that Brexit talks collapse. It sees the pound falling to $1.30 ...
Read More »Bundesbank to include yuan in currency reserves
Bloomberg Germany’s central bank has decided to include the Chinese yuan in its own reserves, in a further boost to the international status of the currency. Speaking at an event in Hong Kong on Monday, Bundesbank board member Andreas Dombret said the decision was taken last year following an investment of 500 million euros ($611 million) by the European Central ...
Read More »Morocco to loosen currency peg to attract investors
Bloomberg Morocco will loosen its currency peg in a long-awaited move aimed at strengthening its economy and avoiding financial imbalances that forced a slew of emerging nations into sharp devaluations. Bank al-Maghrib, as the central bank is known, will allow the dirham to fluctuate 2.5 percent above or below its official rate, significantly widening the band from 0.3 percent each ...
Read More »Wells Fargo determined to keep mortgage crown
Bloomberg Wells Fargo & Co. isn’t giving up its mortgage-lending crown without a fight. The bank wants to hold on to its top spot as the whale of the $1.7 billion industry in the US, even as it predicts profit margins on making home loans will shrink this year and it faces pressure from rival Quicken Loans Inc. “We want ...
Read More »Canada’s bank regulator pushes for faster adoption of Basel III rules
Bloomberg Canada’s financial watchdog plans to revise capital requirements for the nation’s banks, drafting more risk-sensitive interim rules while moving faster towards adopting new criteria set by global regulators. The Office of the Superintendent of Financial Institutions’ Carolyn Rogers announced the changes during a speech at a conference hosted by RBC Capital Markets in Toronto. She said Canadian banks would ...
Read More »BOJ tightening to begin by mid-2018
Bloomberg Japan’s economy will exceed growth forecasts this year, prompting the central bank to tighten monetary policy by mid-year, said Allen Sinai, president of Decision Economics Inc. Sinai said he expects Japan’s economy to grow 2 percent in 2018, and even faster in 2019, perhaps as much as 2.5 percent. “What has snuck up on everybody is the world business ...
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