DIRS.INFO The most relevant business & tech news

☆ Italy's term deposit rates inch up in March
▼ + stars: | 2023-04-06 | by ( ) www.reuters.com time to read: +2 min

The increase is 4% for a 18-month term deposit and just 1% for a six-month deposit. After shielding retail customers from negative rates in recent years, Italian banks have tried to profit from the gap between 'active' rates charged on loans and those paid on deposits as the cost of credit started rising. Passive interest rates which lenders pay to depositors typically rise with a lag compared to active ones. The Bank of Italy has also called on banks to revise deposit terms to increase benefits for customers as monetary policy normalises. The threat of higher funding costs is bigger for specialist lenders than traditional commercial banks, with ConfrontaConti.it featuring term deposit offers mostly from challenger banks on its home page.

☆ Adani trumpets stable ties to global banks in bid to ease investor worries, document shows
▼ + stars: | 2023-04-05 | by ( Aditya Kalra | ) www.reuters.com time to read: +3 min

The document, which was reviewed by Reuters, did not elaborate on how the lenders reaffirmed their commitment to the Adani group. Adani group did not respond to a request for comment. Mitsubishi UFJ Financial Group Inc (MUFG) (8306.T), Sumitomo Mitsui Financial Group Inc's (8316.T) SMBC unit, Mizuho Financial Group (8411.T), Standard Chartered (STAN.L) and Deutsche Bank (DBKGn.DE) did not immediately respond. CONCERNS ABOUT DEBTThe Hindenburg report had sparked concern among investors about banks' exposures to the Adani group. Now, 39% of Adani's debt is currently in the form of bonds, 29% is from global banks and 32% comes from public or private banks in India, the Adani document added.

☆ BMO's chief strategist says you have to 'sift through the rubble' in the banking sector. Here are the smaller names he likes
▼ + stars: | 2023-04-05 | by ( Alex Harring | ) www.cnbc.com time to read: +2 min

First Citizens BancShares and Glacier Bancorp are smart smaller bank stocks to own as investors re-examine the pummeled financial sector, according to Brian Belski, chief investment strategist at BMO Harris. "Unfortunately, you have to kind of sift through the rubble to find ... the best names," he said on CNBC's " Halftime Report ." That's despite the fact that small- and mid-size banks will likely see massive consolidation more broadly, Belski added. Three out of the five analysts with ratings on First Citizens say the stock is worth buying, according to Refinitiv. But after its recent drop, the average analyst expects the stock to rally almost 25% in the next year.

☆ Russia is looking for money from 'friendly' nations to indirectly support its war in Ukraine, UK intel says
▼ + stars: | 2023-04-05 | by ( Sinéad Baker | ) www.businessinsider.com time to read: +2 min

Russia appears to be anticipating financial support from countries seen as "friendly," it said. As a result, foreign investors would be "indirectly financing Russia's invasion of Ukraine." The MOD said that the move is "almost certainly an indication that Russia anticipates external financial support from foreign states it deems 'friendly.'" "Such investors would be indirectly financing Russia's invasion of Ukraine," the MOD said. Last June, Russia defaulted on its foreign debt for the first time since 1918.

☆ Russia's VTB eyes rebound after sanctions-hit $7.7 bln loss
▼ + stars: | 2023-04-05 | by ( Elena Fabrichnaya | ) www.reuters.com time to read: +3 min

CEO Andrei Kostin has blamed the bank's losses squarely on Western sanctions against Russia's financial sector. VTB posted a net loss of 612.6 billion roubles ($7.73 billion), down from a record profit of 327.4 billion roubles in 2021. Provisioning costs increased 343.3% to 514.3 billion roubles and net interest income slumped 50.3% to 321.0 billion roubles. It purchased rival Otkritie for 340 billion roubles from Russia's central bank late last year and is planning a second additional share issue this quarter, in which it plans to raise 50-125 billion roubles. The disposal of those subsidiaries cost VTB 229 billion roubles before tax.

☆ Exclusive: India's Bank of Baroda stops clearing payment for above-cap Russian oil - sources
▼ + stars: | 2023-04-04 | by ( Nidhi Verma | ) www.reuters.com time to read: +4 min

"Bank of Baroda is extremely cautious in settling payments for Russian oil bought (at levels) above the price cap," one of the sources said. After Western sanctions on Moscow for its invasion of Ukraine, Indian refiners have been gorging on discounted Russian oil. Russia has replaced Iraq as the top oil supplier to India in the last few months, data from trade sources showed. It was not clear if Axis Bank had also stopped settling trades for Russian oil sold above the price cap. India does not recognise the Western price cap on Russian oil, a senior oil ministry source said last month.

☆ U.S. banks fallout will intensify margin headwinds for Aussie lenders, UBS says
▼ + stars: | 2023-03-29 | by ( ) www.reuters.com time to read: +2 min

Australian banks are "well regulated" and carry strong liquidity coverage ratios, UBS said. Regulators and bankers insist the country's banks, bolstered by post-global financial crisis reforms, are well placed to handle the solvency and liquidity shocks that rocked lenders overseas like Silicon Valley Bank in the United States. Competition for mortgages, accounting for anywhere between 45% and 65% of net interest income of banks, "has never been fiercer," with some banks "sub-economically" pricing new business, UBS said. Still, the brokerage expects the bank to report strong first half earnings on sustained operational momentum. Three of the "Big Four" banks barring CBA lost between 1% and 5% from March 10 when the first signs of trouble surfaced at the tech-focused lender Silicon Valley Bank.

NEW DELHI, March 27 (Reuters) - Indian banks must give defaulters an opportunity to be heard before they classify a loan account as fraud, the Supreme Court ruled on Monday. Banks cannot unilaterally declare an account as fraud without providing the defaulter the right to be heard, a top court bench led by Chief Justice DY Chandrachud said. However, there is no such requirement before registering a first information report (FIR) to declare a loan account as fraud, the bench observed. The apex court was examining judgements by the Telangana High Court and Gujarat High Court on the Reserve Bank of India (Frauds Classification and Reporting by Commercial Banks and Select Fls Directions 2016) master circular. Telangana High Court had ruled that not granting the right to be heard infringes on the borrowers' constitutional right.

☆ Asia banks may face difficulty bolstering capital via AT1s - Citi
▼ + stars: | 2023-03-22 | by ( ) www.reuters.com time to read: +2 min

The challenge will be particularly acute for a large number of smaller banks in Asia more reliant on AT1s compared with Western peers due to tighter regulatory liquidity requirements. AT1 bonds, which can be converted to equity, rank higher than shares in the capital structure of a bank. The write-down to zero at Credit Suisse will produce the largest loss in the $275 billion AT1 market to date. Citi said in its note it expected the Credit Suisse fallout to trigger re-pricing of AT1 across Asian banks' capital structures. "Regulators may tighten capital and liquidity requirements, which may impact smaller banks more," Citi said in the research note.

☆ U.S. bank crisis 'unlikely' to spill over to Canada, analyst says
▼ + stars: | 2023-03-20 | by ( Divya Rajagopal | ) www.reuters.com time to read: +4 min

read more"The U.S. contagion is unlikely to spill over to Canadian banks as the issues in U.S. are unique and specific to certain business models or lending activities," said James Shanahan, banking analyst with Edward Jones to Reuters. REGIONAL BANK SCRUTINYCanadian banks emerged stronger from the 2008 global financial crisis due to prudent regulations and since built a reputation for financial stability. The Canadian banks have kept their focus on domestic lending and majority of their earnings come from serving local clients. But in recent years, Royal Bank, BMO, TD Bank and CIBC (CM.TO) have expanded into the United States by buying regional lenders to benefit from strong growth in second-tier U.S. cities. However, last week the regional bank's stock was hit after the SVB collapse.

☆ Explainer: How resilient are Indian lenders amid a global banking turmoil?
▼ + stars: | 2023-03-20 | by ( Siddhi Nayak | ) www.reuters.com time to read: +5 min

He does not foresee a direct impact of the global banking turmoil on Indian banks. HOW WELL CAPITALISED ARE INDIAN BANKS? Reuters GraphicsHOW ARE INDIAN BANKS' BOND PORTFOLIOS PERFORMING? Indian banks are not facing the same level of pressure on their bond portfolios as U.S banks because Indian interest rates have risen less. If Indian banks mark their held-to-maturity (HTM) investments to market, it would bring down their CET-1 capital by 12-25%, estimates Moody's Investors Service.

☆ U.S. bank crisis 'unlikely' to spill over to Canada, analysts say
▼ + stars: | 2023-03-20 | by ( Divya Rajagopal | ) www.reuters.com time to read: +4 min

"The U.S. contagion is unlikely to spill over to Canadian banks as the issues in U.S. are unique and specific to certain business models or lending activities," said James Shanahan, banking analyst with Edward Jones to Reuters. REGIONAL BANK SCRUTINYCanadian banks emerged stronger from the 2008 global financial crisis due to prudent regulations and since built a reputation for financial stability. The Canadian banks have kept their focus on domestic lending and majority of their earnings come from serving local clients. But in recent years, Royal Bank, BMO, TD Bank and CIBC (CM.TO) have expanded into the United States by buying regional lenders to benefit from strong growth in second-tier U.S. cities. However, last week the regional bank's stock was hit after the SVB collapse.

☆ Asia Pacific markets dip after UBS rescue of Credit Suisse
▼ + stars: | 2023-03-19 | by ( Michelle Toh | ) edition.cnn.com time to read: +2 min

Hong Kong CNN —Asia Pacific markets edged slightly lower on Monday morning as investors reacted to news of a Credit Suisse bailout by its bigger rival UBS. In Hong Kong, the Hang Seng Index (HSI) tumbled 1.5% at its opening. On Sunday, Switzerland’s biggest bank, UBS (UBS), agreed to buy Credit Suisse (CS) in an emergency rescue deal aimed at stemming financial market panic unleashed by the failure of two American banks earlier this month. “Volatility in Australian financial markets has picked up,” he told a conference Monday. Dow futures and S&P futures each rose 0.6%, while Nasdaq futures ticked up 0.4%.

☆ ECB's Wunsch does not see repeat of 2008 financial crisis
▼ + stars: | 2023-03-18 | by ( ) www.reuters.com time to read: +2 min

BRUSSELS, March 18 (Reuters) - ECB Governing Council member Pierre Wunsch does not expect a repeat of the 2008 financial crisis despite turbulence caused by the collapse of Silicon Valley Bank, arguing European banks were subject to tougher rules than regional U.S. banks. "We don't have any information indicating the European banks to be vulnerable," Wunsch, also governor of the Belgian central bank BNB, told Belgian news paper L'Echo in an interview published on Saturday. "If you look at the Belgian banks, they are more solid than the average of European banks. "We do neither see a risk of contagion nor a risk of instability if we look at the figures from a rational perspective," the central bank governor said. Asked about the future of Credit Suisse, Wunsch said he only saw a "very low" likelihood that the bank might go bankrupt.

☆ ECB likely to keep boosting interest rates, Belgian central-bank chief says
▼ + stars: | 2023-03-18 | by ( ) www.reuters.com time to read: +3 min

FRANKFURT/BRUSSELS, March 18 (Reuters) - The ECB is likely to keep raising interest rates as a repeat of the 2008 financial crisis is unlikely with European banks subject to tougher rules than regional U.S. banks, Belgian central bank chief Pierre Wunsch said. It will meeting by meeting," Wunsch said. "If you look at the Belgian banks, they are more solid than the average of European banks. "We do neither see a risk of contagion nor a risk of instability if we look at the figures from a rational perspective," the central bank governor said. Asked about the future of Credit Suisse, Wunsch said he only saw a "very low" likelihood that the bank might go bankrupt.

Two of the sources linked the increased Russian interest directly with reported Turkish plans to crack down on the transit of sanctioned goods. Some Russian firms have sought to establish long-term sanction-busting partnerships, the sources said. Under Russian law, it is an offence to comply with the Western sanctions and sanctions-busting has become a profitable boom industry for some entrepreneurs. Ankara also said it would not allow Western sanctions to be violated in or via Turkey and was taking steps to prevent this. Kazakh exports to Russia rose by a quarter to $8.8 billion last year and sales of some items surged.

☆ Indian startups have deposits of about $1 billion in SVB, minister says
▼ + stars: | 2023-03-17 | by ( ) www.reuters.com time to read: +1 min

MUMBAI, March 17 (Reuters) - Indian startups had deposits worth about $1 billion with embattled Silicon Valley Bank (SIVB.O) and the country's deputy IT minister said he had suggested that local banks lend more to them going ahead. California banking regulators shut down Silicon Valley Bank (SVB) on March 10 after a run on the lender, which had $209 billion in assets at the end of 2022. "The issue is, how do we make startups transition to the Indian banking system, rather than depend on the complex cross border U.S. banking system with all of its uncertainties in the coming month?" Hundreds of Indian startups had more than a billion dollars of their funds in SVB, according to his estimate, Chandrashekhar said. Indian banks could offer a deposit-backed credit line to startups that had funds in SVB, using those as collateral, Chandrashekhar said, citing one of the suggestions he had passed on to the Finance minister.

[1/4] A combination of photographs shows people using automated teller machines (ATMs) at Australia's "Big Four" banks - Australia and New Zealand Banking Group Ltd (bottom R), Commonwealth Bank of Australia (top R), National Australia Bank Ltd (bottom L) and Westpac Banking Corp (top L). REUTERS/StaffSYDNEY, March 17 (Reuters) - An A$300 billion ($201.21 billion) refinancing task for Australia's biggest banks is about to get harder, say analysts, as appetite for new debt shrinks across global markets roiled by concerns about bank stability and liquidity. "Now major banks don't have to hit markets everyday... but ultimately banks can't stay out of the market forever." Refinancing today would add extra 5 to 10 basis points to banks' costs versus a week and a half ago, he added. ($1 = 1.4910 Australian dollars)Reporting by Lewis Jackson and Scott Murdoch; Editing by Simon Cameron-MooreOur Standards: The Thomson Reuters Trust Principles.

☆ Jefferies sees softer impact of Credit Suisse crisis on India
▼ + stars: | 2023-03-16 | by ( ) www.reuters.com time to read: +2 min

March 16 (Reuters) - India's banking sector will likely have a softer impact from the troubles at Credit Suisse (CSGN.S), given the Swiss lender's relatively small presence in the country, equity analysts at Jefferies said on Thursday. Credit Suisse has a 1.5% share among foreign banks' assets in India and a 'small' 0.1% share of overall banking assets in the country, Jefferies estimated. It has only 1 branch in India and total assets of over 200 billion rupees ($2.42 billion), it said. "Given the relevance of Credit Suisse to India's banking sector, we see softer adjustments in assessment of counter-party risks, especially in the derivative market," analysts Prakhar Sharma and Vinayak Agarwal said in a note. This may also lead to institutional deposits moving more towards larger or quality banks, Jefferies said.

☆ Canada should support startups after SVB collapse, says lobby group
▼ + stars: | 2023-03-16 | by ( ) www.reuters.com time to read: +2 min

TORONTO, March 16 (Reuters) - A lobby group for Canada's venture capital and private equity funds is asking Prime Minister Justin Trudeau's government to provide emergency financing to help startups hit by the collapse of Silicon Valley Bank (SVB), according to a letter seen by Reuters on Thursday. Spokespeople for Ng and Finance Minister Chrystia Freeland's office could not immediately be reached for comment. Reuters reported on Monday that the sudden collapse of SVB could choke funding for Canada's technology start-ups and place them in the hands of domestic lenders who may be more selective. The letter also asked the government to instruct the Business Development Bank of Canada to deploy a bridge financing program similar to the one used at the outset of the COVID-19 pandemic. ($1 = 1.3755 Canadian dollars)Reporting by Maiya Keidan, additional reporting by David Ljunggren; Editing by Josie KaoOur Standards: The Thomson Reuters Trust Principles.

☆ Russia is so cut off from the international financial system that the Kremlin thinks Western sanctions have 'insured' the country against the banking crisis
▼ + stars: | 2023-03-15 | by ( Huileng Tan | ) www.businessinsider.com time to read: +3 min

The Kremlin said Russia will not be impacted by the US bank crisis. Sanctions over the Ukraine war have cut Russia off from the international financial system. Russia is now so cut off from the global financial system that the Kremlin thinks it will face no impact from the collapse of Silicon Valley Bank. In contrast, Russia — like much of the world — faced a credit crunch due to the fallout from the US subprime mortgage crisis in 2008, which ultimately led to the Global Financial Crisis. As the country recovered from the recession, it started working towards its grand ambition of making Moscow a global financial hub.

☆ India using SWIFT global payment system to settle Russia dollar trade - source
▼ + stars: | 2023-03-15 | by ( Shivangi Acharya | ) www.reuters.com time to read: +2 min

NEW DELHI, March 15 (Reuters) - Indian companies are using the SWIFT global payment system to settle dollar payments with Russia, a top trade official said on Wednesday, even though many Russian banks are blocked from the network due to Western sanctions. The West blocked access to SWIFT for several Russian banks, including Sberbank and VTB, soon after Moscow invaded Ukraine in February last year to target Russian trade, making it harder for Russian companies to do business. “We are using SWIFT for dollar payments," the official, who did not want to be named, said, when asked about the payment gateway being used for Russian payments. The official did not give more details about the banks that Indian traders were using to make the dollar payments. India has been using varied currencies to settle trade with Russia since the war in February last year.

Commuters cycle past a Credit Suisse Group AG bank branch in Basel, Switzerland, on Tuesday, Oct. 25, 2022. Credit Suisse will present its third quarter earnings and strategy review on Oct. 27. Shares of Credit Suisse on Wednesday hit another all-time low for a second consecutive day, dropping by more than 24% at one point during the session. Credit Suisse's largest investor, Saudi National Bank, said it could not provide the Swiss bank with any further financial assistance, according to a Reuters report, sparking the latest leg lower. It's a regulatory issue," Saudi National Bank Chairman Ammar Al Khudairy told Reuters Wednesday. However, he added that the SNB is happy with Credit Suisse's transformation plan and suggested the bank was unlikely to need extra money.

March 14 (Reuters) - Australia's economic health will be its central bank's compass for plotting the course of rate hikes, as stringent regulation insulates its banking sector from the collapse of Silicon Valley Bank (SVB) (SIVB.O), analysts at top domestic banks said. Analysts at three of the top four lenders - Commonwealth Bank of Australia (CBA.AX), National Australia Bank (NAB.AX), and ANZ Group Holdings (ANZ.AX) - continue to expect the RBA to deliver its 11th consecutive rate hike next month. 0#RBAWATCH"The Australian domestic fundamentals remain consistent with further tightening from the RBA," Adelaide Timbrell, senior economist at ANZ Research said. Australian banking sector, while not immune to the collapse of SVB, is in a "more insulated" position, Rodrigo Catril, senior FX strategist at NAB said. Globally, banking stocks have taken a hit from the collapse of SVB despite of assurances from U.S. authorities, prompting a reassessment of interest rate expectations.

Traders currently see a 50% chance of no rate hike at that meeting, with rate cuts priced in for the second half of the year. Shares of First Republic Bank (FRC.N) tumbled more than 60% as news of fresh financing failed to reassure investors, and so did Western Alliance Bancorp (WAL.N) and PacWest Bancorp (PACW.O). U.S. bank regulators sought to reassure nervous customers on Monday who lined up outside SVB's Santa Clara, California, headquarters, offering coffee and donuts. Regulators also moved swiftly to close New York's Signature Bank SBNY.O, which had come under pressure in recent days. In China, where SVB was the main go-to foreign bank for the majority of start-ups, entrepreneurs and venture funds were also scrambling for alternative funding.

Search resuls for: "Ian Banks"

25 mentions found