Banking

Bloomberg China’s smaller banks, caught between a seasonal cash squeeze and an official deleveraging drive, are stomaching record high borrowing costs to raise funds. Issuance of negotiable certificates of deposit jumped to 758 billion yuan ($111.5 billion) this week, the most since the securities were introduced in 2013 as a lifeline for smaller banks. The yield on one-month AAA rated ...

Bloomberg A potential share sale of Banco Patagonia SA was delayed after majority holder Banco do Brasil SA prevented a shareholder meeting of the Argentine lender. Banco do Brasil hasn’t decided whether it will sell its 59 percent stake in Patagonia or offer new shares, according to two people familiar with the matter who asked not to be named because ...

Bloomberg Russia’s ruble pared a third weekly drop while bonds fell as the central bank slowed the pace of easing with a 25 basis-point cut in its main interest rate amid an escalation of tensions with the U.S. and a drop in oil. The currency traded 0.4 percent higher at 57.67 per dollar in Moscow, paring a weekly drop to ...

Bloomberg Bank of England (BOE) policy maker Kristin Forbes warned that the move in the pound may have a more persistent effect on inflation and a monetary policy response is needed. Forbes, one of three BOE officials to vote for an interest-rate increase this month, said it’s acceptable to look through inflation shocks if they create deviations from trend rather ...

Bloomberg Canada’s department of finance proposed new rules limiting government support for potential bailouts of the nation’s banks, extending a so-called “bail-in regime” promised last year. The government introduced in its April 2016 budget a plan to implement a bail-in regime for Canada’s “systemically important banks,” which would allow authorities to convert securities of a failing lender into common shares ...

Bloomberg Barclays Plc plans to plead guilty to UK charges that it failed to make proper disclosures about a multi-billion-pound capital raising from Qatar during the financial crisis, according to a person with knowledge of the process. The bank is braced for a fine, which would likely range from 100 million pounds ($128 million) to 200 million pounds, said the ...

Bloomberg The Irish government’s selldown in lender Allied Irish Banks (AIB) had enough demand for the entire 3.8 billion euros ($4.3 billion) worth of stock on offer on the first full day of the sale, an update on the deal showed. Shares in the bank are being offered at between 3.90 euros and 4.90 euros each in the initial public ...

Bloomberg India’s banks have been ordered to use the country’s courts to resolve bad loans totaling about 2 trillion rupees ($31 billion) issued to 12 large debtors. The Reserve Bank of India told the banks to use insolvency laws to find a solution for the debtors, which account for a quarter of the country’s total bad loans, before moving on ...

Bloomberg Reserve Bank of New Zealand (RNBZ) chief Graeme Wheeler complained to the head of one of the nation’s largest banks about an economic commentary written by its research department. In a letter to Bank of New Zealand (BNZ) Chief Executive Officer Anthony Healy dated May 11, Wheeler said the BNZ’s Markets Outlook note of May 8 “appeared to bring ...

Bloomberg The Czech central bank stepped up efforts to cool the mortgage market, warning that rising house prices may spiral out of control and hurt lenders in a country with one of Europe’s lowest levels of housing loans. As record-low interest rates helped fuel a credit expansion in the ex-communist European Union member, policy makers in Prague are pushing for ...