Someone who worries a lot

After long years of delay, Finance Minister Nirmala Sitharaman has announced the setting up of an entity to address the stressed assets of banks. The organization will be set up through an Asset Reconstruction Company (ARC) model, she said in the 2021 Budget Speech. Details of the proposals are still awaited. This institution, what is commonly known as ‘bad bank’, will be a major boost for bad asset resolution in the financial system and has been in discussions for long. Banks can transfer bad assets to this entity at a discount. Experts will then attempt for a resolution through a professional approach, while originating banks can focus on new business. On January 27, Moneycontrol reported that a bad bank is likely to be announced in the Budget. Nearly 8 percent of the total loans have gone bad (overdue more than 90 days) at this stage. What is a bad bank? To be sure, the idea of a bad bank itself is not new. In 2018, the government announced a plan for PSBs called … [Read more...] about Budget 2021: FM announces bad bank, why it is a big step towards addressing Indian banks’ toxic assets worries

- A + A (June 23): Glossy, cosmopolitan Singapore is playing host to a very unusual balancing act. The city is one of Asia’s most expensive property markets — and at the same time, boasts one of the highest home ownership rates in the world. Liu Thai Ker, “the architect of modern Singapore,” is a big part of the reason why. As the chief architect of Singapore’s Housing Development Board, Liu was instrumental in establishing a housing model that has underpinned decades of astonishing economic growth. The 84-year-old Yale graduate personally oversaw the development of more than half a million public housing units. Now, almost 90% of the city’s residents own the well-designed, government-built apartments they live in. Since its independence in 1965, citizens have been able to buy these units at a steep discount, turning homeownership into a key way for Singaporeans to grow their wealth. But in the past few years — and especially since the pandemic, which plunged the … [Read more...] about The man who helped create Singapore’s housing boom is getting worried

Representative Image The euro and sterling fell on Wednesday as investors turned to the safe haven dollar as part of a move away from riskier assets which also saw a stock market rally fizzle out, and after data showed British consumer price inflation hit a new 40-year high. With investors turning nervous again about global growth prospects, the U.S. dollar gained ground on most peers. The yen hit a fresh 24-year low as rising U.S. and European bond yields contrasted with low Japanese interest rates. Sterling was down 0.8% at $1.2198, touching its lowest level in almost a week, after British consumer prices rose to 9.1% last month, the highest rate out of the Group of Seven countries, underlining the severity of the cost-of-living crunch. Mike Bell, global market strategist at J.P. Morgan Asset Management, said as real wages in Britain are already being squeezed by higher prices, increasing borrowing costs further "could feel like rubbing salt in the wound" and elevates … [Read more...] about Euro, sterling knocked by growth worries and UK inflation at new 40-year high

Finance Minister Nirmala Sitharaman Market chatter is that Budget 202 1 may offer some roadmap to address the problem of bad loans in the banking system. Nearly 8 percent of the total loans have gone bad (overdue more than 90 days) at this stage. How can banks speed up bad asset resolution? Among options, the most favoured idea is the creation of a bad bank--a long-pending proposal in the Indian banking industry. What is a bad bank? A 'bad bank' is a bank set up to buy the bad loans and other illiquid holdings of another financial institution. Once toxic assets are transferred to this entity, attempts for an early resolution by experts begins while originating banks can focus on their business. Banks can transfer NPAs to a bad bank at a discount. The price discovery can happen at a later stage. To be sure, the idea of a bad bank itself is not new. In 2018, the government announced a plan for PSBs called 'Project Sashakt', which had a five-point plan for bad loan resolution … [Read more...] about Budget 2021: Will ‘bad bank’ take off this time? 5 reasons why the timing could be just right

Share to Twitter Share to Linkedin TSMC's Morris Chang It was 2005, and Morris Chang, at age 74, had earned his retirement: the global economy had bounced back from a postmillennial downturn, and his Taiwan Semiconductor Manufacturing, or TSMC, was back leading a wave of change in the electronics industry. Before the 1980s suppliers of chips for everything from computers to radios mostly spent big sums to design chips themselves and churn them out in their own factories. Chang in the middle of the decade came up with a niche: specialized factory services (also called a "foundry") for companies willing to outsource manufacturing to an unknown Taiwan company. The option erased an enormous financial barrier to entry for engineer entrepreneurs, led to a wave of innovations and lower costs for consumers, and created fortunes for young outfits such as Qualcomm and Broadcom . Older industry giants like Philips and AMD turned to TSMC, too. … [Read more...] about Ageless And Peerless In An Era Of Fabless

Representative image: fintech Industry bodies including the Internet and Mobile Association of India (IAMAI) and the Payments Council of India (PCI) are preparing to make representations to the Reserve Bank of India (RBI) and various government arms, questioning their stance on supporting innovation and financial inclusion. This comes two days after the RBI issued a clarification to fintechs, saying that loading credit lines into prepaid payment instruments (PPIs) such as wallets and prepaid cards is not permitted. The move has threatened to junk the business models of a number of fintechs that have seen tremendous growth over the past year such as Slice, Uni, PayU’s LazyPay, KreditBee, EarlySalary etc. According to multiple sources, the letters will be addressed to RBI Governor Shaktikanta Das, the Finance Ministry, and the Prime Minister’s Office with a core objective of seeking clarification on the two-paragraph long notice that was shared with fintechs. “The notice … [Read more...] about RBI’s freeze on PPI-led lending: Industry bodies to write to RBI, Govt on their stance on supporting innovation

There is no leadership crisis at RBL Bank and incoming chief R. Subramaniakumar will use his expertise to build RBL Bank 2.0, the bank management told Moneycontrol in an exclusive interview on June 15. In a candid conversation with Moneycontrol, RBL Bank’s new Managing Director and CEO (MD & CEO) R. Subramaniakumar and outgoing interim CEO Rajeev Ahuja open up on challenges related to the bank’s leadership transition and fall in share prices. The RBL Bank management also gave guidance on the bank’s asset quality, its microfinance and card portfolio, and business outlook for FY23. Edited excerpts: Q- The announcement naming you as the next CEO came Saturday. Were you tensed? Close Kumar - I caught up with my six and a half hours of sleep. Normally I sleep for up to seven hours a night. I could catch up on my sleep because both Rajeev and I and the team are very clear on the path forward. So, there was no need for me to get under much pressure. Q- Mr. … [Read more...] about Exclusive Interview| No leadership crisis at RBL Bank, RBI to take final call on board nominee, says management

File image of HDFC Bank HDFC Bank, India’s largest private sector lender, is on an aggressive drive to recover lost ground in the credit card business. On March 11, the Reserve Bank of India lifted a ban imposed on the bank in December 2020, allowing the lender to launch digital products. In an exclusive interview to Moneycontrol on March 16, HDFC Bank’s group head of payments, consumer finance and digital banking, Parag Rao, said the bank has used the interim period to relook at fault areas and revamp strategy. Rao is optimistic the bank can get back lost market share in cards in 2-3 quarters. Rao also spoke about digital initiative plans in FY23 and on forming a digital-only bank. Edited excerpts: Q: The RBI had barred HDFC Bank from issuing credit cards and launching fresh digital initiatives in December 2020. What are the lessons learned? A: We are thankful to the RBI for pointing out some of the areas where we needed to improve. HDFC Bank has consistently … [Read more...] about Exclusive Interview| After RBI green light, HDFC Bank will take 2-3 quarters to regain credit card market share, says Parag Rao

On May 2, just hours before Politico published a leaked Supreme Court draft opinion to overturn Roe v. Wade , the anti-abortion group Focus on the Family released a series of alarmist ads on Facebook and Instagram. They contain assorted motifs from a now-familiar playbook of anti-abortion canon: In one, the words “I’M ALIVE” accompany a bright-eyed infant’s photographed image; in another, an exhortation to “help a vulnerable mom choose LIFE!” is stamped over a baby’s feet. But all are accompanied by the same fear-mongering caption (“Scared. Overwhelmed. Hopeless. These emotions and more pulsate through an abortion-minded woman.”) and plea for money (“Just $60 saves a life!”). advertisement advertisement The ads would appear to violate Facebook and Instagram parent company Meta’s policy against misinformation in advertisements: Research debunks a link between abortion and negative mental health outcomes either … [Read more...] about Ahead of the Supreme Court’s Roe decision, social media is rife with anti-abortion misinformation

Those self-identifying as lesbian, gay, bisexual, transgender and queer (LGBTQ) are underinsured for life insurance coverage, a position that financial professionals say leave their families at a greater financial security at risk. Key Takeaways LGBTQ Americans have less life insurance coverage than the general population, according to a new LIMRA survey. Only 38% of LBTQA adults surveyed say they have life insurance coverage, representing 7.6 million adults of 20 million adults. Overall, half of Americans own life insurance. 43% of LBTQA consumers are more likely to buy life insurance within the next year compared with 37% of the general population. The Covid-19 pandemic prompted one in five LGBTQ consumers actually to purchase life insurance coverage, not just think about it, a higher rate than the general population. Finances in general remain a big concern in LGBTQ populations 48% surveyed are worried about what will happen to them if they become ill or injured, … [Read more...] about LGBTQ Consumers Trail in Life Insurance Coverage, Study Finds