Representative image (PTI) Raising growth capital is expected to be Central Bank of India’s top priority after its exit on September 20 from the Reserve Bank of India’s stringent Prompt Corrective Action (PCA) framework. Analysts caution that five years of restrictions clamped on the bank may have put it behind its peers in terms of both business growth and technological upgrades. Raising growth capital will be the top focus of Central Bank’s management after removal from the list, they said. The old public sector lender was the last bank remaining under RBI's PCA framework. It was put under watch in June 2017 because of its high net non-performing assets (NNPAs) and low return on assets. PCA is triggered when banks breach regulatory requirements such as those pertaining to return on assets, minimum capital and non-performing assets. “The main challenge that we see with Central Bank of India is its loss of market share in both advances and deposits over the last few years … [Read more...] about Raising growth capital to be Central Bank of India’s top priority post-PCA exit
Unsterilized central bank
Share to Twitter Share to Linkedin Iran has begun experimenting with a central bank digital currency (CBDC), launching a pilot scheme in partnership with two local banks. The launch of the Ramzrial (digital rial) by the Central Bank of Iran places the country among the digital currency frontrunners in the region. Only a few countries have fully launched a CBDC, including the Bahamas, Jamaica and Nigeria. Around 26 other central banks have run pilot projects, according to the Switzerland-based Bank for International Settlements, which also says most central banks around the world are at least looking into the area. For most countries, the main purpose of a CBDC is to make international trade more efficient. For Iran that issue has added resonance due to the international sanctions it faces. In an effort to skirt some of the effects of U.S. sanctions, Tehran has been looking for ways to reduce its reliance on the U.S. dollar. In early August, it … [Read more...] about Iran Launches Central Bank Digital Currency Scheme With Local Banks And Shops
Share to Twitter Share to Linkedin I was recently reading a book on the life of Beethoven, the composer, and what caught my attention was that he almost lost his life when doctors of the time recommended his deafness be cured by bloodletting! Apparently Mozart, Charles II and many others were not so lucky. Even George Washington was “ bled ” until he died – supposedly as a cure for throat infection. Bloodletting was a common medical practice for thousands of years until the 18 th century for all types of ailments ( here ). Today, the technique is still used for some diseases, typically those related to an excess of iron in the red blood cells (the technique is called phlebotomy , and the diseases for which it is currently used are hemochromatosis , polycythemia and porphyria cutanea tarda – I am not a doctor of medicine so you will have to look this up). So yes, bloodletting does make some sense for specific maladies. But to use it as a solution to … [Read more...] about Bloodletting And Central Bank Pseudoscience
Representative image. India’s central bank is encouraging state-run refiners to reduce dollar buying in the spot market to contain a sharp fall in the rupee, two sources said, adding they have been asked to lean on a special credit line instead. The Reserve Bank of India has ensured $9 billion has been made available at overseas branches of some Indian banks for the country’s three state-run refiners to tap, said the sources who have direct knowledge of the matter, adding that the funds are available at market rates. “Since last 2-3 days RBI has been asking companies to tap this credit line,” one of the sources said. The credit line is available only for Indian Oil Corp, Hindustan Petroleum Corp and Bharat Petroleum Corp, which together control more than half of India’s 5 million barrels per day refining capacity. Monthly oil purchases from overseas account for about 30% of India’s overall imports. Close Banks participating in the credit-line scheme include … [Read more...] about India’s central bank encouraging state refiners to cut spot dollar buying
Representative image (PTI) Trade Watchlist Portfolio Message Set Alert live bse live nse live Volume Todays L/H More × Shares of Central Bank of India opened 15.5 percent higher on Wednesday after the Reserve Bank of India (RBI) removed the lender from prompt corrective action (PCA) framework after more than five years. At 9.40am, the stock was trading at Rs 22.60 on BSE, up 11 percent from its previous close. Central Bank of India was the only bank under the RBI's PCA framework. It was put under monitoring in June 2017 due to its high net non-performing assets (NPAs) and low return on assets. PCA is triggered when banks breach certain regulatory requirements such as return on asset, minimum capital and quantum of the non-performing assets including on lending, management compensation and directors' fees. On August 8, the RBI had said the sustainability of a weak … [Read more...] about Central Bank of India shares surge 15% after RBI lifts restrictions
After Wednesday’s rally, the markets are now pricing in a Fed rate cut as early as June 2023 Highlights The Bank of England has gone back to buying bonds (Quantitative Easing or QE) The move follows a disastrous mini budget by the UK government that sent bond yields soaring and pension funds on the verge of blowing up The markets have given a rousing cheer to the pivot in the hope that other central banks, including the Fed, will follow All risk assets are up But the UK’s wounds are entirely self-inflicted The Fed hikes and the unprecedented strength of the dollar have... … [Read more...] about Bank of England first central bank to pivot; will others follow?
Share to Twitter Share to Linkedin Facebook's 27-year-old founder, Mark Zuckerberg , isn't usually mentioned in the same breath as Ben Bernanke , the 58-year-old head of the Federal Reserve. But Facebook's early adventures in the money-creating business are going well enough that the central-bank comparison gets tempting. Everything started quietly, in 2009, with the experimental launch of Facebook Credits , billed as "the safe and easy way to buy things on Facebook." Anyone who chipped in $5 from a Paypal account, Visa card or the like, could do the equivalent of changing money on an overseas trip. Voila! -- $5 turned into 50 Facebook Credits. Initially, the Credits-based economy was confined to the virtual world's trifles. Credits could be spent to buy imaginary gold bars for aficionados of Mafia Wars, or bouquets of virtual flowers for birthday postings on friends' Facebook accounts. This new form of digital money was cute but essentially … [Read more...] about Is Facebook a Central Bank, Too?
Share to Twitter Share to Linkedin Dr. Marta Ra is the cofounder of the international network Women in Sustainable Finance (WISF), a mental health and well-being ambassador. The extensive coverage of the UN’s latest climate report makes one thing clear: We must act fast to avoid catastrophic damages to our planet and economy. The report confirms that we’re not on track to secure a climate-resilient, liveable future—and the costs could be huge. Under climate stress test scenarios, the U.S. bank Citigroup would have to raise over $73 billion to cover climate losses alone. But, climate change is only one side of the environmental crisis. Nature loss is the other one. Together, they represent a major twin crisis. In her keynote speech during the IUCN World Conservation Congress 2021, the president of the European Central Bank, Christine Lagarde, noted that climate and biodiversity represent two sides of the same coin: “ There is no economic and … [Read more...] about Central Banks And Supervisors Can Help Address Nature Loss, A Major Financial Stability Issue
- A + A LONDON (Sept 20): Stocks were little changed on Tuesday (Sept 20) as investors braced for more hefty interest rate hikes from central banks to quell inflation, with Sweden setting the tone ahead of its US, Swiss and British counterparts later in the week. The US dollar was steady near a two-decade high versus major peers, crude oil prices were little changed, and euro zone bond yields hit new multi-year highs on concerns over high energy prices. Asian and European bourses used a tailwind from Monday's advance on Wall Street to chalk up modest gains, with the STOXX index of 600 European companies flat. The benchmark is down about 16% for the year as fallout from war in Ukraine and rising borrowing costs fuel recession fears. The MSCI all country stock index was 0.2% ahead, leaving it down about 20% from a lifetime high in January. US stock futures, the S&P 500 e-minis, advanced 0.22%. Sweden's central bank hiked rates by a greater than expected full … [Read more...] about Stocks muted, Sweden kicks off salvo of central bank hikes
Central Bank Governor Yang Chin-long. REUTERS/Tyrone Siu/File photo TAIPEI -Taiwan central bank governor Yang Chin-long said on Thursday there would be no foreign exchange controls during his tenure at the bank, adding management measures were sufficient to maintain market stability if there were large capital outflows. Yang’s five-year term is due to expire early next year. He can be reappointed for a second term though there has been no confirmation either way. The Taiwan dollar has, like other major Asian currencies, depreciated sharply in recent weeks due to aggressive U.S. interest rate increases and U.S. dollar strength as well as worries over slowing global economic growth. It has lost 13 percent this year against the dollar. Yang, taking lawmaker questions in parliament, said recent outflows of foreign capital were mainly due to U.S. interest rate rises and that he believed the United States would continue to push up interest rates until the end of this year. … [Read more...] about No forex controls while I’m in office, Taiwan central bank chief says