RBI Cash Move Seen Targeting Slide in Short-Term Borrowing Costs
The Indian central bank's decision to drain liquidity from the financial system is likely intended to prevent a further decline in overnight borrowing costs, according to analysts.
The Reserve Bank of India announced plans on Tuesday to withdraw one trillion rupees ($11.6 billion) through a variable rate reverse repo auction on June 27. The move comes as key funding and short-term rates stayed below the central bank's main policy rate for a few months — a trend that could lead to asset mispricing.
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Yahoo
an hour ago
- Yahoo
Brazil's reshaping of the Latin American subscription economy
Brazil has quietly built one of the most successful real-time payment systems in the world over the past five years. Launched in late 2020 by the Central Bank of Brazil, Pix enables instant, free payments between individuals and businesses. Today, over two-thirds of the Brazilian population use Pix regularly, with people saying 'Pix me' instead of 'pay me back', and surpassing both credit and debit cards in transaction volume according to the Central Bank. Pix is now taking a significant step forward in the recurring payments space with the introduction of Pix Automático, a major upgrade that enables automated, pre-approved recurring payments. Building on the success of Pix, this new feature introduces a streamlined experience for subscription-based services and recurring charges. It promises to elevate an already trusted and efficient payment method into a powerful tool for sustained digital commerce, providing a blueprint for other countries in Latin America and beyond to follow. As Brazil's economy has modernised, more and more international companies that rely on subscription services have entered the South American country. In fact, subscription box services alone generate over $170 million annually. But until now, recurring payments typically relied on manual processes. With just 40% of Brazilians owning a credit card -and over 75% using Pix-, subscriptions must be paid manually every month using Pix or Boleto Bancário. Pix Automatico is set to reflect the adaptability and success of Pix in a card-scarce environment. It's a natural next step as a technical evolution that brings automation, simplicity, and reliability to recurring payments, all while building on the strong consumer trust Pix already enjoys. Pix Automático changes the equation. It allows consumers to authorise recurring debits directly from their existing bank or wallet accounts, eliminating the need for credit cards, repeated QR code scans, or monthly reminders. The process begins with a one-time enrolment, often via QR code or app interface, which serves solely to authorise future charges. The result is a smoother, more trustworthy experience that remains user-controlled through opt-in and cancellation features. For businesses, the implications are enormous. It offers them a more predictable cash flow, lower churn, and higher customer lifetime value, especially important in a market where flexibility and simplicity are key. Now, companies that rely on subscription models can reach Brazil's large unbanked and underbanked populations—people who were previously excluded from the digital economy due to a lack of access to traditional banking. Neobanks like Nubank (with over 104 million customers across Latin America) and Banco Inter (30 million in Brazil) offer simple, accessible alternatives. Digital wallets such as PicPay and Mercado Pago are also widely used, helping millions manage money and make payments without a traditional bank. For these consumers, Pix Automático doesn't just improve convenience—it represents inclusion. Banks and fintechs are also poised to benefit. Beyond media subscriptions and digital content, Pix Automático can power recurring use cases like insurance premiums, utility bills, gym memberships, and even automated savings or micro-investments. The infrastructure opens the door for new financial products that are simple, real-time, and inclusive by design. There's growing speculation that Pix Automático could even displace traditional direct debits in Brazil. Unlike legacy debit arrangements, which are slow to set up and can be bank-specific, Pix Automático offers real-time settlement and works across institutions. Pix Automatico isn't a new alternative form of payment in the Brazilian market, rather a continuation of the country's bold leadership in digital payments. Pix is already the country's most used payment method, deeply embedded in the lives of consumers and businesses alike. Pix Automático builds on this maturity, adding functionality that makes recurring payments easier, more consistent, and better aligned with both consumer behaviour and business needs. For companies looking to grow in Brazil, integrating Pix Automático will require collaboration with payment processors, updated user flows, and strong customer education. But the return is clear - stronger conversions, more predictable revenue, and a deeper connection to one of the world's most innovative digital economies. Brazil has already proven that game-changing financial innovation can come from central bankers, not just tech giants. Pix Automático is the next chapter in that story, reminding us that the future of fintech may be written not only in code, but also in Portuguese. Federico Mazzoli is VP of Product at dLocal "Brazil's reshaping of the Latin American subscription economy " was originally created and published by Electronic Payments International, a GlobalData owned brand. 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Washington Post
an hour ago
- Washington Post
Big banks all pass the Federal Reserve's stress tests, but the tests were less vigorous this year
NEW YORK — All the major banks passed the Federal Reserve's annual 'stress tests' of the financial system, the central bank said Friday, but the test conducted by the central bank was notably less vigorous than it had been in previous years. All 22 banks tested this year would have remained solvent and above the minimum thresholds to continue to operate, the Fed said, despite absorbing roughly $550 billion in theoretical losses. In the Fed's scenario, there would be less of a rise in unemployment, less of a severe economic contraction, less of a drop in commercial real estate prices, less of a drop in housing prices, among other metrics compared to what they tested in 2024. All of these less harmful, but simulated, drops mean there would be less damage to these banks' balance sheets and less risk of these banks of potentially failing. Since the banks passed the 2024 tests, it was expected that the banks would pass the 2025 tests. 'Large banks remain well capitalized and resilient to a range of severe outcomes,' said Michelle Bowman, the bank's vice chair for supervision, in a statement. An appointee of President Trump, Bowman became the Fed's vice chair of supervision earlier this month. The Fed said it went with a less vigorous test because the global economy has weakened since last year, and therefore the test tends to weaken. Further, the bank said previous tests had shown 'unintended volatility' in the results and it plans to seek public and industry comment to adjust stress tests in future years. The Fed also chose to not test the banks as heavily on their exposure to private equity assets, arguing that private equity assets are typically held for the long term and are not typically sold at times of distress. The Fed also didn't test for any bank exposure to private credit, a $2 trillion asset class that even Fed researchers themselves have observed to be growing alarmingly quickly . The Federal Reserve Bank of Boston recently pointed out that private credit could be a systemic risk to the financial system under a severe adverse scenario, which is exactly what the stress tests are supposed to test for. There was no wording or phrasing in the Fed's press release, reports or methodology about testing or measuring private credit or private debt in this year's test. The Fed did do what it calls an 'exploratory analysis' of the private credit market, which concluded the major banks were 'generally well-positioned' to withstand losses in the private credit market. That analysis was entirely separate and not part of this year's test. The Fed's 'stress tests' were created after the 2008 financial crisis as a way to gauge whether the nation's 'too big to fail' banks could withstand another financial crisis like the once that happened nearly 20 years ago. The tests are effectively an academic exercise, where the Fed simulates a scenario in the global economy and measures what that scenario would do to bank balance sheets. The 22 banks that are tested are the biggest names in the business, such as JPMorgan Chase, Citigroup, Bank of America, Morgan Stanley and Goldman Sachs, which hold hundreds of billions of dollars in assets and have wide-ranging businesses that touch every part of the U.S. and global economy. Under this year's hypothetical scenario, a major global recession would have caused a 30% decline in commercial real estate prices and a 33% decline in housing prices. The unemployment rate would rise to 10% and stock prices would fall 50%. In 2024, the hypothetical scenario was a 40% decline in commercial real estate prices, a 55% decline in stock prices and a 36% decline in housing prices. With their passing grades, the major banks will be allowed to issue dividends to shareholders and buy back shares of stock to return proceeds to investors. Those dividend plans will be announced next week.
Yahoo
2 hours ago
- Yahoo
YouTube's mobile video editor is coming to iOS
Google is preparing to bring YouTube Create to iOS devices nearly two years after the video editing app launched exclusively on Android. Job listings reviewed by TechCrunch reveal the company is actively hiring engineers in India for the iOS development project. The job postings show Google is recruiting software engineers in Bengaluru specifically to build the iOS version. The original Android app debuted in the U.S. and seven other markets in September 2023, then expanded to 13 more markets by February 2024. YouTube Create provides free mobile video editing tools designed for content creators, offering features like stickers, GIFs, and effects for both YouTube Shorts and longer-form videos. Google developed the app after consulting with 3,000 creators to ensure it met their needs. The app is Google's attempt to compete with ByteDance's popular CapCut editor. But exclusive Sensor Tower data shared with TechCrunch shows YouTube Create is quite far behind CapCut and another established competitor, InShot. The competition isn't even close. In the second quarter of this year, CapCut and InShot have been downloaded 66 million and 21 million times, respectively, on Android devices. In contrast, YouTube Create has seen fewer than 500,000 downloads this quarter, and just 4 million downloads since its launch. The user engagement gap is even more pronounced. CapCut boasts more than 442 million monthly active users on Android app in Q2, while InShot claims 92 million. YouTube Create lags far behind with fewer than one million monthly active users. On iOS — the platform YouTube Create is now targeting — the competition is just as fierce. CapCut leads with 194 million monthly active users in Q2, followed by InShot with 25 million. Meanwhile, CapCut and Instagram's Edit have dominated iOS downloads this quarter, with 28 million and 7 million downloads, respectively. Despite lagging in the numbers, YouTube Create shows some momentum, with a 28% year-over-year increase in monthly active users in Q2, outpacing a 9% rise for CapCut and a 7% decline for InShot, per the Sensor Tower data. 'While boasting solid user growth on a year-over-year basis, YouTube Create has struggled to keep up with some of its larger, more established peers such as CapCut, with the latter having more than 10x the number of monthly active users,' said Abe Yousef, a senior insights analyst at Sensor Tower. YouTube Create may be building a more loyal user base, Yousef suggested. Rising active user numbers alongside declining downloads could indicate that people who previously tried the app are returning to use it regularly. 'CapCut coming out many years ago, coupled with the fact that it's seamlessly integrated with its sister app, TikTok, likely plays into this material size difference with YouTube Create,' said Yousef. Still, YouTube Create is facing some retention issues. Its 90-day retention rate — the percentage of users who downloaded the app and still use it 90 days later — was roughly 1% in Q1, far below CapCut's 7% and InShot's 4%. Engagement metrics highlight the gap, too. Users spend an average of 38 minutes per month on YouTube Create, compared to 62 minutes for CapCut users. CapCut users also open the app more often, averaging 23 sessions monthly versus 11 for YouTube Create. Geographically, YouTube Create's user base is diversifying. India represented 67% of total monthly active users on YouTube Create in the second quarter of last year, but that share has dropped to 51% this quarter as the app gains traction elsewhere. Still, YouTube Create appears to be gaining stickiness in India, with daily-to-monthly active user ratios improving from 9% last year to, so far, 12% this year. In addition to India, Indonesia has emerged as YouTube Create's second-largest market, representing 21% of its global monthly active users. Germany (5%), Brazil (4%), and the UK (3%) round out the top markets. The app is showing particularly strong growth in several other markets, too, with year-over-year monthly active user increases of 119% in Spain, 91% in South Korea, 89% in France, and 71% in Singapore. 'An iOS release of YouTube Create could absolutely help the platform grow its market share, though fierce competition in the space both from other social media-backed video editing platforms and native video editors will persist,' Yousef said. Google did not respond to requests for comment. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
