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☆ India's HDB Financial Services flags data breach at service provider
▼ + stars: | 2023-03-07 | by ( ) www.reuters.com time to read: +1 min

BENGALURU, March 7 (Reuters) - HDB Financial Services, the non-bank lending unit of India's top private lender HDFC Bank (HDBK.NS), said on Tuesday there was a data breach at one of its service providers which processes customer information. "We have taken immediate steps to secure the service provider's system to prevent any further unauthorized access," HDB said in an emailed statement. The company did not immediately respond to a Reuters request for comment on the nature of the data breach and how many customers were affected. HDFC Bank said it was not affected by the incident. "We wish to state that there is no data leak at HDFC Bank and our systems have not been breached or accessed in any unauthorised manner.

☆ Euro zone lending growth slows further amid downturn
▼ + stars: | 2023-02-27 | by ( ) www.reuters.com time to read: +1 min

FRANKFURT, Feb 27 (Reuters) - Bank lending to euro zone companies eased for the third straight month in January, as rising interest, an economic downturn and increased caution from lenders appear to be taking their toll, European Central Bank data showed on Monday. Lending to businesses in the 20 nation currency bloc expanded by 6.1% in January after a 6.3% rise a month earlier while household credit growth slowed to 3.6% from 3.8%. The monthly flow of loans to companies was a mere 2 billion euros but that is still an improvement on the negative 25 billion euro reading a month earlier. Growth in the M3 measure of money circulating in the euro zone meanwhile fell to 3.5% from 4.1%, coming well below expectations for 3.9% in a Reuters survey. Reporting by Balazs Koranyi Editing by Francesco CanepaOur Standards: The Thomson Reuters Trust Principles.

☆ Brazil bank lending down for the first time in a year in January
▼ + stars: | 2023-02-27 | by ( ) www.reuters.com time to read: +1 min

BRASILIA, Feb 27 (Reuters) - Outstanding loans in Brazil decreased by 0.3% in January, according to central bank data on Monday, marking the first decline in a year. The result suggests a slowdown that is likely to gain momentum in a scenario of high borrowing costs following the aggressive monetary tightening implemented by the central bank to curb inflation. Bank loans in Latin America's largest economy have decelerated amid more expensive credit, as the country's benchmark interest rate stands at 13.75% from a record low of 2% in March 2021. The central bank has left interest rates unchanged since September, but data from the central bank shows that average interest rates on non-earmarked loans have increased to 43.5% per year from 41.7% in December. Bank lending spreads also grew from 28.7 points the month before to 30.6 percentage points, while a broad measure of Brazilian consumer and business default ratios increased to 4.5% from 4.2% in December.

☆ Real-Estate Deal Making Slows as Bank Lending Tumbles
▼ + stars: | 2023-02-21 | by ( Peter Grant | Rebecca Picciotto | ) www.wsj.com time to read: 1 min

Regent Properties in March closed on the purchase of the Trammell Crow Center, the tower in the center, in Dallas. Wall Street is tightening the loan spigot on the commercial real-estate industry, which is putting a squeeze on deal making and values. Banks are lending less and charging higher interest rates for the loans they make to owners and buyers of office buildings, shopping centers and other commercial real estate. The tightening is a response to the sharp increase in interest rates this year triggered by high inflation as well as concerns of a possible recession that would lead to an increase in defaults.

☆ NatWest calls time on UK banks’ rate-hike party
▼ + stars: | 2023-02-17 | by ( ) www.reuters.com time to read: +2 min

But NatWest Chief Executive Alison Rose has brought that excitement to an end. It’s surprising that Rose thinks lending margins have maxed out already. Higher rates take a while to feed into revenue because so many borrowers have long-term or fixed-rate debt, which reprices slowly. That would be a cause for celebration among households and firms with spare cash, but it might bring the bank share-price party to an end. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.

☆ China tightens requirements on classifying banks' asset risks
▼ + stars: | 2023-02-11 | by ( ) www.reuters.com time to read: +2 min

SHANGHAI, Feb 11 (Reuters) - China on Saturday tightened risk management requirements on banks, requiring them to classify financial-asset risks in a timely and prudent manner, in a bid to better assess lenders' credit risks. The rules will help "commercial banks evaluate credit risks more accurately and reflect the true quality of their financial assets," said the People’s Bank of China and the China Banking and Insurance Regulatory Commission (CBIRC). The new rules, it said, will help prevent credit risks more effectively, the regulator said. Saturday's rules urge banks to scrutinise the underlying assets when they classify risks for asset management or securitisation products. Lenders will also be required to strictly abide by the rules when assessing credit risks in debt restructurings.

U.S. credit card borrowing rates have never been higher and bank lending standards are at recession levels. Many of his colleagues have doubled down on their view that interest rates may need to stay higher for longer. The average U.S. credit card rate is now higher than it has been in at least half a century. This is easily the highest since the comparable data series was started in 2007.chart"It's triple trouble: credit card rates are at record highs, balances are up 15% over the past year, and more people are carrying credit card debt," said Ted Rossman, senior industry analyst at CreditCards.com. "Credit card debt is one of those things that's easy to get into and hard to get out of," he said.

☆ Italian banks' lending to firms stagnates in December
▼ + stars: | 2023-02-09 | by ( ) www.reuters.com time to read: +2 min

A monthly report on the balance sheets of domestic banks showed loans to non-financial companies were flat year-on-year in December compared with a 2.7% expansion the previous month. Extraordinary government support measures during the pandemic and the energy crisis fuelled strong growth in corporate bank lending, but the trend has weakened as support measures have been gradually unwound. Banks' corporate loans totalled 649.2 billion euros at the end of December, down from 666.3 billion euros a month earlier. Thursday's data also showed Italian residents' deposits with domestic banks fell to 2.71 trillion euros ($2.92 trillion) compared with 2.74 trillion euros the previous month. Gross unpaid loans declined to 30.15 billion euros at the end of December from 34.01 billion euros a month earlier.

☆ Column: India's economy - and emissions - primed for big jumps in 2023
▼ + stars: | 2023-02-08 | by ( Gavin Maguire | Thomson Reuters | Gavin Maguire Is The Global Energy Transition Columnist. He Was Previously Asia Commodities | ) www.reuters.com time to read: +5 min

Climate trackers will be alarmed by such a robust outlook, as India's power sector already spewed out near record emissions in 2022 when its economy was stuck in a lower gear, and will likely elevate pollution totals further as momentum builds. RECORD USE OF COALIndia's power sector emissions of carbon dioxide (CO2) and equivalent gases are on track for a record in 2022, according to data from think tank Ember. The emissions tally for January through November - the latest monthly data available - is 7.5% above the same period in 2021, which registered a record annual power sector emissions total of 1.091 billion tonnes. Strong, sustained electricity demand from households, retail outlets and offices - mainly for air conditioners - helped push India's overall electricity demand higher in 2022, despite the soft showing from manufacturers. India's electricity generation and emissions scale record highs in 2022Total electricity generation through November increased by 8.3% from the year before, indicating that India's power producers successfully deployed larger amounts of new clean power in 2022 (up 13.3%) than new fossil-fuel power (up 6.7%).

Traders in Asia had the weekend to digest the U.S. market action on Friday, and the signals are mixed. Wall Street fell as implied U.S. rates rose and 2023 rate-cut expectations faded, but technical and momentum indicators are positive, market volatility remains low, and "soft landing" hopes are rising. Monday's session in Asia could also be clouded by the latest deterioration in Sino-U.S. relations and the Chinese spy balloon saga. Ratings agency Moody's warned the Adani Group may struggle to raise capital, and S&P cut the outlook on two of its businesses. Analysts reckon this will be the penultimate hike before the cash rate settles at 3.60% in March.

☆ China set to launch long-awaited IPO reforms to reset the economy
▼ + stars: | 2023-02-02 | by ( Laura He | ) edition.cnn.com time to read: +3 min

A surveillance camera outside the China Securities Regulatory Commission (CSRC) building in Beijing on July 9, 2021. Tingshu Wang/ReutersUnder the new system, regulators will stop vetting planned share sales by companies. Currently, listings on the main boards of the Shanghai and Shenzhen stock exchanges must be reviewed and approved by regulators before they can be launched. Financial stress has surged, even as the economy has started to recover after three years of strict pandemic controls. Following a chaotic exit from its zero-Covid policy, Beijing is trying to reset the economy and rebuild the trust of investors and businesses.

☆ Sticky underlying inflation set to keep ECB on its toes
▼ + stars: | 2023-02-01 | by ( ) www.reuters.com time to read: +4 min

The drop in headline inflation is unlikely to expunge concerns among conservative policymakers that rapid price growth is becoming entrenched, a worry reinforced by high underlying inflation on Wednesday. Inflation excluding volatile food and fuel prices picked up to 7% from 6.9% while an even narrower measure watched closely by the ECB held steady at 5.2%, exceeding forecasts for 5.1%. Underlying inflation was driven by a jump in processed food and industrial goods prices but services inflation, a key worry because it reflects wage growth, eased a touch. Euro zone unemployment held steady at 6.6% in December, its lowest rate on record, separate data showed on Wednesday. Markets now expect ECB rates to peak at 3.5%, the highest rate in over 20 years, suggesting another 100 basis points of hikes after Thursday's move.

☆ Euro zone inflation drops more than expected but core price growth holds steady
▼ + stars: | 2023-02-01 | by ( ) www.reuters.com time to read: +3 min

FRANKFURT, Feb 1 (Reuters) - Euro zone inflation eased for the third straight month in January but relief may be limited as underlying price growth held steady and concerns have already been raised about the reliability of the figures. The headline inflation drop is unlikely to expunge concerns among conservative policymakers that rapid price growth is getting entrenched, a worry reinforced by poor underlying inflation data on Wednesday. Excluding food and fuel prices, inflation picked up to 7% from 6.9% while an even narrower measure watched closely by the ECB, held steady at 5.2%, exceeding forecasts for 5.1%. Underlying inflation was driven by a jump in processed food and industrial goods prices but services inflation eased a touch. Indeed, unemployment held steady at 6.6% in December, its lowest rate on record, separate data showed on Wednesday.

☆ Hong Kong's cenbank raises interest rate after Fed hike
▼ + stars: | 2023-02-01 | by ( ) www.reuters.com time to read: +2 min

HONG KONG, Feb 2 (Reuters) - The Hong Kong Monetary Authority (HKMA) raised its base rate charged through the overnight discount window by 25 basis points to 5.0% on Thursday, hours after the U.S. Federal Reserve delivered a rate hike of the same margin. Hong Kong's monetary policy moves in lock-step with the United States as the city's currency is pegged to the greenback in a tight range of 7.75-7.85 per dollar. "Rate hikes in the U.S. will not affect the financial and monetary stability of Hong Kong," HKMA chief executive Eddie Yue told a media briefing, adding monetary and financial markets continue to operate in a smooth and orderly manner. "The rate hike cycle in the U.S. has not yet completed, the Hong Kong dollar interbank rates might remain at elevated levels for some time," Yue said. Hong Kong is facing risks from high inflationary pressure and aggressive monetary tightening in advanced economies.

☆ Euro zone economy unexpectedly expands in Q4, avoids recession
▼ + stars: | 2023-01-31 | by ( ) www.reuters.com time to read: +2 min

FRANKFURT, Jan 31 (Reuters) - The euro zone eked out growth in the final three months of 2022, avoiding a recession even as sky-high energy costs, waning confidence and rising interest rates took a toll on the currency bloc's economy, data from Eurostat showed on Tuesday. Gross domestic product in the euro zone expanded by 0.1% in the fourth quarter, outperforming expectations in a Reuters poll for a 0.1% drop. Among the bloc's biggest countries, Germany and Italy recorded negative growth rates for the quarter but France and Spain expanded, Eurostat added, based on a flash estimate that is subject to revisions. Russia's nearly year-old war in Ukraine has proved costly for the euro zone, which now spans 350 million people in 20 countries, given some members' heavy reliance on cheap energy. But the economy has displayed some unexpected resilience, too, much like during the COVID-19 pandemic, when growth outperformed expectations as businesses adjusted faster to changed circumstances than policymakers had predicted.

☆ Euro zone economy unexpectedly grows in Q4 but weak 2023 looms
▼ + stars: | 2023-01-31 | by ( Balazs Koranyi | ) www.reuters.com time to read: +3 min

Among the biggest euro zone countries, Germany and Italy recorded negative growth rates for the quarter but France and Spain expanded, Eurostat added, based on a flash estimate that is subject to revisions. Russia's nearly year-old war in Ukraine has proved costly for the euro zone, which now spans 350 million people in 20 countries, given some members' heavy reliance on cheap energy. The overall picture nevertheless remains weak, with meagre growth forecast for 2023 due to a large drop in real incomes and surging interest rates. Ireland's 3.5% Q4 growth figure distorted the overall picture as it was driven largely by activity among big foreign companies based there for tax reasons, economists said, adding that without Ireland, euro zone growth would have been zero. "We continue to expect the euro area economy to contract slightly in the first half of the year, and the recovery expected in the second half is likely to be weak."

☆ ECB rejects banking sector call for lower capital to boost lending
▼ + stars: | 2023-01-27 | by ( Huw Jones | ) www.reuters.com time to read: +3 min

REUTERS/Pascal RossignolLONDON, Jan 27 (Reuters) - The European Central Bank (ECB) on Friday rejected calls from Europe's banks to ease capital rules to boost lending and put them on an equal footing with U.S. rivals. "Policymakers should redouble their efforts to complete the banking and capital markets unions," the report said, referring to EU projects to deepen its capital market and create a more competitive cross-border banking market. "The largest global European banks have even slightly lower requirements than their counterparts across the Atlantic," an ECB spokesperson said. "It is also questionable that lower capital requirements would lead to higher lending: what is proven is that low levels of capital lead banks to abruptly reduce lending in a crisis, thus deepening the adverse impact on the economy," the ECB said. The EU is finalising the remaining leg of global bank capital rules that were written in response to the financial crisis, with temporary waivers from some elements in the teeth of ECB opposition.

☆ Ease capital rules on EU banks to boost lending, banking industry says
▼ + stars: | 2023-01-27 | by ( Huw Jones | ) www.reuters.com time to read: +2 min

Banking regulation is internationally coordinated by regulators, but differences remain in how the rules work in practice, and how they are implemented, the report said. EBF Graphic 2The report said the difference in regulatory-induced costs at EU banks compared with their U.S. peers can explain 0.8-1.0 percentage points of a gap in return on equity, which is a measure of profitability. "Policymakers should redouble their efforts to complete the banking and capital markets unions," the report said, referring to EU projects to deepen its capital market and create a more competitive cross-border banking market. Banks now hold more capital after being bailed out by taxpayers in the 2008 financial crisis. The EU is finalising the remaining leg of global bank capital rules that were written in response to the financial crisis, with temporary waivers from some elements.

☆ Euro zone lending growth tumbles as higher rates bite
▼ + stars: | 2023-01-27 | by ( ) www.reuters.com time to read: +2 min

[1/2] A woman holds Euro banknotes in this illustration taken May 30, 2022. Lending to businesses in the currency bloc expanded by 6.3% in December after an 8.3% reading a month earlier, while household credit growth slowed to 3.8% from 4.1%. "Now we see sharp declines in (corporate) borrowing occurring, which is in fact more of a recessionary sign." The monthly flow of loans to companies was a negative 16 billion euros after a minus 4 billion euro reading a month earlier. Growth in the M3 measure of money circulating in the euro zone, often seen as an indicator of future economic expansion, meanwhile dropped to 4.1% from 4.8%, coming well below expectations for 4.6% in a Reuters survey.

☆ Euro-banks have done their time in valuation jail
▼ + stars: | 2023-01-26 | by ( Liam Proud | ) www.reuters.com time to read: +7 min

Major euro zone and UK banks are trading at a 40% discount to the region’s wider benchmark index, using price to forward earnings multiples tracked by Refinitiv. The subsequent euro zone crisis in 2012 prompted a wave of bad debt that weighed down earnings. More recently, though, euro zone lenders have been facing up to their past sins, and offloading non-performing loans. There’s no evidence of a bank lending splurge, despite years of rock-bottom interest rates. Between November 2012 and November 2022, euro zone banks’ total lending to households and companies grew at an annual clip of under 2%, a fraction of its pre-2008 pace.

☆ Fed's Lael Brainard among leading contenders for top White House economic post
▼ + stars: | 2023-01-25 | by ( Jeff Cox | ) www.cnbc.com time to read: +3 min

Lael Brainard, vice chair of the US Federal Reserve, listens to a question during an interview in Washington, DC, US, on Monday, Nov. 14, 2022. Federal Reserve Vice Chair Lael Brainard is a top candidate to take the most important economic position in the White House. Biden named Brainard vice chair at the Fed in 2022; she also was considered as a possible successor to Fed Chair Jerome Powell, whom Biden reappointed last year. Brainard is one of multiple candidates being considered and interviews for the position are continuing, according to a White House spokesman familiar with the matter. For her part, Brainard could garner support from progressives who are in favor of strong bank regulation and easier monetary policy.

[1/2] A woman takes pictures of the China Development Bank booth at the 2021 China International Fair for Trade in Services (CIFTIS) in Beijing, China September 3, 2021. Commitments made to 100 developing nations by the Export-Import Bank of China (China EximBank) and the China Development Bank (CDB) have fallen every year since hitting a record in 2016 as the lenders scaled back financing even before the COVID-19 pandemic hit in 2020. "We expect an overall shift toward lower volume, higher quality investment from China," Kevin Gallagher, director of the university's Global Development Policy Center, told Reuters. Reuters GraphicsWORLD BANK STEPS INWhile Chinese lending has been waning, World Bank lending has ramped up, the study found. Overall, China's commitments were 83% of the $601 billion lent by the World Bank from 2008-2021.

☆ China seen keeping benchmark lending rates unchanged for fifth month
▼ + stars: | 2023-01-19 | by ( ) www.reuters.com time to read: +2 min

SHANGHAI, Jan 19 (Reuters) - China is expected to keep benchmark lending rates unchanged for a fifth month in January, a Reuters survey showed, although analysts think cuts next month are probable after the central bank pledged steps to boost a COVID-ravaged economy. The one-year LPR currently stands at 3.65%, while the five-year LPR is 4.30%. Eleven respondents forecast a cut to the five-year LPR while seeing no change to the one-year tenor. Only one respondent predicted a cut to the one-year LPR. The LPR is calculated each month after 18 designated commercial banks submit quotes to the National Interbank Funding Center, a PBOC affiliate.

☆ Morgan Stanley shares rise as bank's earnings top expectations, helped by record wealth management revenue
▼ + stars: | 2023-01-17 | by ( Yun Li | ) www.cnbc.com time to read: +3 min

Morgan Stanley reported fourth-quarter earnings on Tuesday that exceeded Wall Street expectations, boosted by the bank's record wealth management revenue and growth at its trading business. The job cuts impacted about 1,600 of its 81,567 employees and touched nearly every corner of the global investment bank. Excluding those expenses and a tax gain of $89 million, Morgan Stanley said it earned $1.31 per share. The company's wealth management business, which tends to have steady returns, posted record net revenue of $6.63 billion in the latest quarter, 6% higher than a year ago. But fixed income net revenue was up 15% from a year ago, reflecting stronger results in macro and credit products.

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