DIRS.INFO The most relevant business & tech news

Some banking groups have urged the Biden administration and the Federal Deposit Insurance Corp (FDIC) to temporarily guarantee all U.S. bank deposits, a move they say will help quell a crisis of confidence after the failure of Silicon Valley Bank (SIVB.O) and Signature Bank (SBNY.O). "I have not considered or discussed anything having to do with blanket insurance or guarantees of deposits," she said. "The failure of a small bank, of a community bank, could likewise trigger a run on other banks," she said. "To the best of my knowledge, we've never seen deposits flee at the pace that they did from Silicon Valley Bank," Yellen said. Yellen said it was "not obvious" that banks would pass those costs on to bank customers.

☆ Credit Suisse went the way of Bear Stearns in 2008. But this crisis is different
▼ + stars: | 2023-03-21 | by ( Hanna Ziady | ) edition.cnn.com time to read: +9 min

A sign of Credit Suisse pictured behind a sign of UBS in Zurich on March 18, 2023. The Swiss government said Tuesday it had ordered Credit Suisse to temporarily suspend the payment of some bonuses, including share awards, to bank staff. Credit Suisse is the first “global systemically important” bank to be rescued since 2008. Yet despite its importance to the financial system, most analysts are not expecting Credit Suisse’s demise to mark the beginning of another global financial crisis. “It’s possible that a vicious circle develops, in which credit tightens, the real economy deteriorates, and default rates start to rise,” he said.

☆ FDIC to break up SVB, seeks separate sale of private unit
▼ + stars: | 2023-03-20 | by ( ) www.reuters.com time to read: +2 min

March 20 (Reuters) - The Federal Deposit Insurance Corporation on Monday decided to break up Silicon Valley Bank (SVB) and hold two separate auctions for its traditional deposits unit and its private bank after failing to find a buyer for the failed lender last week. It will seek bids for Silicon Valley Private Bank until March 22 and for the bridge bank until March 24. The private bank, which is housed within SVB's retail operations, caters to high net-worth individuals. Last week, sources told Reuters that the FDIC was planning to relaunch the sale process for SVB, with the regulator seeking a potential break-up of the failed lender. The parent company of the lender SVB Financial Group had on Friday filed for a reorganization under Chapter 11 bankruptcy protection and sought buyers for its assets after steps to shore up investor confidence failed.

☆ Treasury yields decline as investors weigh UBS’ takeover of Credit Suisse
▼ + stars: | 2023-03-20 | by ( Sophie Kiderlin | ) www.cnbc.com time to read: +2 min

ET, the yield on the 10-year Treasury was down by over six basis points to 3.3319%. U.S. Treasury yields fell on Monday as investors considered the stability of the banking sector after Swiss bank UBS agreed to buy its rival Credit Suisse. Over the weekend, the Swiss National Bank, the Swiss Financial Market Supervisory Authority and the Swiss government worked on the takeover of Credit Suisse by UBS, the two largest Swiss banks. As part of the deal, the Swiss National Bank and Swiss government also announced they would take measures to support the deal, including a loan of up to 100 billion Swiss francs ($108 billion). Last week, Credit Suisse's biggest investor, the Saudi National Bank, said it could no longer support the Swiss bank financially.

☆ Treasury yields mixed as investors consider outlook for bank stocks, monetary policy
▼ + stars: | 2023-03-17 | by ( Sophie Kiderlin | ) www.cnbc.com time to read: +2 min

One basis point is equivalent to 0.01%. The yield on the 2-year Treasury was last up by just under one basis point to 4.1384%. U.S. Treasury yields were mixed on Friday as investors weighed the outlook for stock markets and considered what the Federal Reserve's next policy moves might be. Major international banks also had a volatile week after Credit Suisse's biggest backer said it could no longer support the Swiss bank financially. A 25 basis point rate hike rather than a 50 basis point rate hike is now expected.

☆ This week's top performers include General Electric and two semiconductor makers
▼ + stars: | 2023-03-10 | by ( Alex Harring | ) www.cnbc.com time to read: +4 min

General Electric has jumped 42.9% this year, more than recovering form last year's 11.3% drop. Roughly three-fifths of analysts covering the stock rate it a buy, with the average price target implying a 12.5% gain over the next 12 months. On Monday, On entered into a long-term supply agreement with BMW to support technology in the automaker's next generation of electric vehicles. Just under three-fifths of analysts rate the stock a buy, with the average analyst's price target showing shares should rise 9.6% in the next year. The stock is liked by about three-fifths of analysts covering it, and the average price target implies upside of 11.6%.

☆ Silicon Valley Bank Financial in talks to sell itself after attempts to raise capital have failed, sources say
▼ + stars: | 2023-03-10 | by ( Jesse Pound | ) www.cnbc.com time to read: 1 min

In this articleThis is breaking news. Please check back for updates. The Silicon Valley Bank mobile app logo on a smartphone arranged in Riga, Latvia, March 10, 2023. SVB Financial , parent of Silicon Valley Bank, is in talks to sell itself, sources told CNBC's David Faber. Attempts by the bank to raise capital have failed, the sources said.

☆ Fed minutes show officials mulled financial stability risk amid aggressive hikes
▼ + stars: | 2023-02-22 | by ( Michael S. Derby | ) www.reuters.com time to read: +2 min

WASHINGTON, Feb 22 (Reuters) - At their last monetary policy meeting, Federal Reserve officials took stock of how the financial system was faring in the face of very aggressive rate rises. The commentary came as part of the release of meeting minutes for the Federal Open Market Committee meeting held on Jan. 31-Feb. 1, released Wednesday. The meeting minutes showed that officials believed more rate rises were needed to cool inflation, in a gathering where officials saw considerable uncertainty surrounding the outlook. The minutes showed Fed policymakers were also worried about the unsettled efforts by elected officials to raise the nation's debt ceiling. "A number of participants stressed that a drawn-out period of negotiations to raise the federal debt limit could pose significant risks to the financial system and the broader economy," the minutes said.

☆ India, Singapore launch real-time link for cross-border payments
▼ + stars: | 2023-02-21 | by ( Siddhi Nayak | ) www.reuters.com time to read: +2 min

MUMBAI, Feb 21 (Reuters) - India and Singapore launched on Tuesday a real-time link to facilitate easier cross border money transfers between one of the world's biggest recipients of remittances and an Asian financial powerhouse. Transfers of funds will now be possible using just mobile phones due to the tie-up between India's Unified Payments Interface (UPI) and Singapore's PayNow facility. UPI is an instant real-time payments system, allowing users to transfer money across multiple banks without disclosing bank account details. To begin with, State Bank of India (SBI.NS), Indian Overseas Bank (IOBK.NS), Indian Bank (INBA.NS) and ICICI Bank (ICBK.NS) will facilitate both inward and outward remittances while Axis Bank (AXBK.NS) and DBS India will facilitate inward remittances, the Reserve Bank of India (RBI) said in a statement. At the launch event, Singapore's Prime Minister Lee Hsien Loong said that cross-border retail payments and remittances between India and Singapore currently amount to over $1 billion annually.

☆ G20 watchdog says commodity market concentration poses threat to wider economy
▼ + stars: | 2023-02-20 | by ( Huw Jones | ) www.reuters.com time to read: +2 min

The FSB, which coordinates financial rules for G20 economies, said that forced governments to offer liquidity to some cash-strapped market participants. But fallout from the surge in nickel prices echoed concerns over large, concentrated positions and opacity in commodities more generally. The commodities market adapted to stress by switching to opaque over-the-counter (OTC) or off-exchange contracts where margin requirements are less strict, making ties between commodities and banks more complex, the report said. FSB Commodities Graphic 1The FSB said vulnerabilities in commodities are similar to those in non-bank financial intermediaries as economies went into COVID-19 lockdowns, and are now being addressed. FSB Commodities Graphic 2Reporting by Huw Jones; Editing by Kirsten DonovanOur Standards: The Thomson Reuters Trust Principles.

☆ Risk Panel Discusses Possibility of New Rules for Nonbanks
▼ + stars: | 2023-02-11 | by ( Andrew Duehren | Andrew Ackerman | ) www.wsj.com time to read: 1 min

The Financial Stability Oversight Council on Friday heard a presentation from Treasury Department staff about establishing new oversight of nonbanks. WASHINGTON—The Biden administration’s top financial regulators discussed the possibility of stepping up oversight of financial firms operating outside the banking system, a sign they could move to ease or repeal Trump-era restrictions on regulating nonbank firms such as hedge funds or asset managers. During a closed meeting of the Financial Stability Oversight Council on Friday, regulators heard a presentation from Treasury Department staff about the process for establishing new oversight of nonbanks, the department said in a statement. The panel, charged with detecting risks to the financial system and led by Treasury Secretary Janet Yellen , said that nonbank financial activity was among its priorities for the year.

☆ Turkish central bank includes other financial firms in securities regulation
▼ + stars: | 2022-12-31 | by ( ) www.reuters.com time to read: 1 min

ANKARA, Dec 31 (Reuters) - The Turkish central bank has included non-bank financial companies in securities maintenance regulations as part of its "liraization strategy" which will be introduced in the New Year. In addition to banks, other financial institutions - such as factoring companies which help firms manage their cash flow - were included in the regulations, according to the Official Gazette published on Saturday. "The securities maintenance practice ... will ensure a balanced course in FX loans in line with the decline in foreign currency funding items," the central bank said in a statement. Reporting by Nevzat Devranoglu; Writing by Huseyin Hayatsever; Editing by David HolmesOur Standards: The Thomson Reuters Trust Principles.

What credit scores don't captureLenders have always needed a way to determine a borrower's creditworthiness, and credit scores were a faster, easier way to do so. "If you look at credit scores from the perspective of other social actors, like policymakers or consumer advocates, why someone does or does not repay might start to have more bearing on how you make sense of credit scores," says Kiviat. The credit scoring system can also reflect and even worsen existing racial and wealth inequality. However, the credit scoring and reporting systems can function imperfectly, leaving many of the most marginalized without credit scores or with poor credit scores. Furthermore, policymakers have been considering how to make it easier for people to access their credit scores and resolve mistakes on their credit reports.

☆ Global finance unknowns are more “who” than “what”
▼ + stars: | 2022-12-27 | by ( Aimee Donnellan | ) www.reuters.com time to read: +4 min

LONDON, Dec 27 (Reuters Breakingviews) - After British pension funds narrowly dodged catastrophe in 2022, regulators are hunting enthusiastically for hidden risks in the non-bank financial industry. The key to stopping a crisis isn’t locating the landmines – it’s working out who’s most likely to stand on them. As a result, regulators everywhere, including the G20’s financial stability task force, are on high alert looking for hidden leverage. Emerging market funds are one place to start the search. Before the pandemic, banks, hedge funds and other investors were happy to back corporate takeovers with high levels of debt.

☆ Bank of England calls for 'urgent' global action after near-collapse of UK pension funds
▼ + stars: | 2022-12-13 | by ( Elliot Smith | ) www.cnbc.com time to read: +1 min

LONDON, February 03: Governor of the Bank of England Andrew Bailey leaves after a press conference at Bank of England on February 3, 2022 in London, England. LONDON — The Bank of England on Tuesday called for "urgent international action" from regulators on non-bank financial institutions after it was forced to rescue U.K. pension funds in September. A number of pension funds were hours from collapse when the central bank intervened in the long-dated bond market. It came after a series of massive moves in interest rates on U.K. government debt exposed vulnerabilities in liability-driven investment (LDI) funds, which are held by U.K. pension schemes. Its temporary emergency bond-buying program allowed LDI funds time to shore up their liquidity positions and ensure the country's financial stability.

☆ Mukesh Ambani will take credit where it’s due
▼ + stars: | 2022-12-06 | by ( Shritama Bose | ) www.reuters.com time to read: +5 min

Boss Mukesh Ambani might do precisely that to fund a push by his $220 billion Reliance Industries (RELI.NS) conglomerate into consumer lending. The company is spinning off and listing its little-noticed non-bank financial company. More than rivals, Ambani is sitting on a treasure trove of data to assess the credit worthiness of borrowers. As a home-grown tycoon, Ambani has a better chance of success than other late entrants to financial services. On Oct. 21, Reliance revealed plans to spin off Reliance Strategic and rename it Jio Financial Services.

☆ Op-ed: FTX crash shows cryptocurrency market needs bank-like regulation
▼ + stars: | 2022-12-05 | by ( Rob Nichols | Dennis Kelleher | ) www.cnbc.com time to read: +6 min

Instead, many crypto-asset customers had accounts at nonbank crypto firms. This is very similar to what happened at nonbank financial firms during the 2008 financial crash and would have happened when the 2020 pandemic hit if the Fed had not acted so quickly. Finally, this principle doesn't mean that a company has to be a bank to offer financial products or services. Innovation in the financial sector is critical to maximizing benefits for consumers, and fair, properly and consistently regulated competition can drive this process forward. But consumers also expect that the rules that govern providers — whether bank or nonbank — protect them and financial stability.

☆ Singapore's inflation may have eased slightly, but central bank warns pain likely to linger
▼ + stars: | 2022-11-25 | by ( Jihye Lee | ) www.cnbc.com time to read: +1 min

Singapore's economy is likely to face persistent pain from global financial concerns, even though the country's core inflation eased somewhat in October. "Amid weakening external demand, the Singapore economy is projected to slow to a below-trend pace in 2023," the central bank said in its latest Financial Stability Review report. "Inflation is expected to remain elevated, underpinned by a strong labour market and continued pass-through from high imported inflation." Warning of contagion risk from global markets, the central bank said the nation's corporate, household, and financial sectors should "stay vigilant" amid the macroeconomic challenges that lie ahead. While still at 14-year highs, Singapore's core consumer price index rose 5.1% for the month compared with a year ago, slightly lower than 5.3% in September.

☆ At November Fed meeting, officials flagged market resilience amid volatile conditions
▼ + stars: | 2022-11-23 | by ( Michael S. Derby | ) www.reuters.com time to read: +3 min

Those concerns were aired in meeting minutes for the rate-setting Federal Open Market Committee’s Nov. 1-2 policy meeting, released Wednesday. Thus far, the Treasury market, which serves as the backbone of the world’s credit system, has held together, although there has been ample concern about low liquidity that’s made trading difficult. Fed officials have thus far described the market as resilient. Fed staff briefing officials concurred,The minutes flagged recent events in Britain as a point of concern. The Fed's top financial stability official, Vice Chair for Supervision Michael Barr, last week told Congress he was worried about "blowback" to the wider financial system from crypto-related failures.

REUTERS/Maja Smiejkowska/File PhotoCommodity trade finance covers many types of loans, typically from banks, that facilitate global movement of goods from wheat to gasoline. Most trade finance loans are short-term, less than a year. Traders’ credit lines became strained last year when natural gas prices sky-rocketed in the fourth quarter. ‘DESIRE TO DIVERSIFY’Lending for commodity trade finance has become more diverse, with non-bank financial institutions (NBFI) stepping in. The underlying issue was the retreat of major banks from commodity financing after some 2020 defaults in the sector while Russian banks Sberbank and Gazprombank that were set to expand have now been shut out of Europe.

Commodity trade finance covers many types of loans, typically from banks, that facilitate global movement of goods from wheat to gasoline. Most trade finance loans are short-term, less than a year. The involvement of hedge funds in commodity trade finance has created a lifeline for smaller firms, deemed to be higher risk for banks due to strict capital requirements and clean energy goals. 'DESIRE TO DIVERSIFY'Lending for commodity trade finance has become more diverse, with non-bank financial institutions (NBFI) stepping in. The Swiss firm specialises in financing small to mid-sized commodity merchants and has achieved returns between 6% to 10% over the last 10 years.

☆ G20 watchdog in step-by-step approach to funds sector 'vulnerabilities'
▼ + stars: | 2022-11-10 | by ( Huw Jones | ) www.reuters.com time to read: +3 min

Central banks had to inject liquidity when money market funds ran into difficulties as economies went into lockdown in March 2020. The collapse of investment house Archegos also drew attention to "hidden leverage" in the vast non-bank financial intermediation (NBFI) sector, according to a report and policy proposals from the G20's Financial Stability Board on Thursday. "The policy proposals involve largely repurposing existing policy tools rather than creating new ones," the FSB report, sent to G20 leaders ahead of their meeting next week, said. FSB non-banks graphic November 2022Sharply rising interest rates and looming recession underscore the need to scrutinise non-banks, which include hedge funds, pension funds and insurers. It has no power to impose rules but its members - regulators, central banks and treasury officials from G20 economies - commit to implementing finalised policies.

☆ More transparency needed for 'non banks' after gilts turmoil, says Bank of England
▼ + stars: | 2022-11-07 | by ( Huw Jones | ) www.reuters.com time to read: +3 min

It shone a light on the sprawling and less regulated 'non-bank' financial sector which is made up of pension funds, insurers and different types of investment funds, and spans borders. The onus for building resilience in the non-bank system sits first and foremost with the firms themselves," Breeden added. "Beyond improving transparency, regulators will need to consider how best to ensure leverage is well managed. Banks and non-banks also need to improve stress-testing for risks, she added. Reporting by Huw Jones Editing by Gareth Jones and Toby ChopraOur Standards: The Thomson Reuters Trust Principles.

☆ More transparency in 'non banks' a first step after gilts turmoil, says Bank of England
▼ + stars: | 2022-11-07 | by ( ) www.reuters.com time to read: +1 min

LONDON, Nov 7 (Reuters) - Improving transparency of 'non-banks' such as pension funds is a first step in applying lessons from recent turmoil in Britain's government bond market, Bank of England executive director Sarah Breeden said on Monday. It shone a light on the sprawling and less regulated 'non-bank' financial sector made up of pension funds, insurers and different types of investment funds. Breeden said the LDI issues were a reminder of the "systemic risks" posed by poorly-managed leverage in the non-bank financial system where there is "all too often" excessive risk taking alongside improper liquidity risk management. "Transparency is an important first step. Reporting by Huw Jones Editing by Gareth Jones and Toby ChopraOur Standards: The Thomson Reuters Trust Principles.

☆ Britain to go it alone for now on reining in 'shadow banking'
▼ + stars: | 2022-11-02 | by ( Huw Jones | ) www.reuters.com time to read: +5 min

Britain hopes the LDI crisis creates momentum for comprehensive global reform to improve data and liquidity in the sector. In Britain the Financial Conduct Authority (FCA) regulates UK-based managers of LDI funds, and The Pensions Regulator (TPR) regulates pension schemes. UK regulators face pushing ahead alone, for now, hoping global reforms eventually pressure others to follow suit. Most LDI funds are listed in European Union states like Luxembourg and Ireland, meaning structural changes would rely on the bloc. The Central Bank of Ireland said it has stepped up data collection, analysis and engagement with LDI funds.

Search resuls for: "Bank Financial"

25 mentions found