Latest news with #bankloans
Bloomberg
7 days ago
- Business
- Bloomberg
The $135 Billion Bond Market Luring Issuers Too Risky for Banks
Oil and coal issuers struggling to get bank loans are increasingly turning to a little-known corner of the bond market hidden away in one of the planet's greenest economic zones. When Australia-based Pembroke Resources experienced 'a gap in funding' earlier this year, the specialist in steelmaking coal turned to the €120 billion ($135 billion) Nordic corporate bond market where it successfully raised debt, Chief Executive Officer Barry Tudor said in an interview.
Zawya
26-05-2025
- Business
- Zawya
Why is Oman still a debt society?
Many people in Oman are still falling into a debt trap taking banks loans far more than they can afford just to keep up with their lavish lifestyles. According to the official statistics, local banks extended a total credit of OMR14.7 billion to private consumers by the end of March this year, which is 7 percent higher than the same period last year. There are no statistics available how private consumers spend the borrowed money. But looking at the trend, car purchasing certainly is on top of the list followed by holidays and domestic buying like furniture. No wonder local financial institutions never record a loss. Their profits are always on the rise year on year, thanks to the high impact of consumerism in the country. But there are some questions when you take a look at the population of Oman. Out of roughly 5 million people, about a million of them are manual workers employed in sectors like constructions, factories and domestic labour. School children and students in higher education are roughly about one and half million while the total number of pensioners are another 600,000. There are just roughly just two million people left who can afford a bank loan. That means too much money is burdening a quarter of the population, out of their own faults. You may argue that, it is good for consumerism but what about inflation? But when you look at the inflationary rates in the country, you see a small rise month by month. We are missing something here. Unless a lot of money borrowed from the local banks is being repatriated abroad. If so, then where is it going? Certainly, the inflationary rate is not giving us a clue. It is not the monetary system or local financial regulations are at fault. In any healthy, financial environment, banking systems need to thrive and grow. And local banks get the right support since the sector employs thousands of people in different parts of the country. Perhaps there should be some kinds of mechanism to educate consumers in the habit of spending. For example, if they don't have the cash to splash out, then they should be cautious taking out unsustainable bank loans. Without any doubt, it is not sustainable for them to rely heavily on loan taking, both for the country or personally. But who to blame? Obviously, lavish lifestyle encourages excessive borrowing. Also, easy credits from the banks. The latter, is also a problem where local financial institutions make it easier to borrow money that encourages the trend. Maybe there should be a limit where consumers are limited only 15 times their salaries and payable over 24 months as a condition for taking a loan. I am sure that would help to contain the problem of overspending the money that does not really belong to them. No wonder many people scratch their heads when the burden is too much. Unfortunately, banks do not write-off the loans once you have borrowed from them. I have not seen the statistics from the courts but I am sure there are thousands of cases pending of people who cannot repay their liabilities. © Muscat Media Group Provided by SyndiGate Media Inc. (
Times of Oman
25-05-2025
- Business
- Times of Oman
Monday column: Why is Oman still a debt society?
Many people in Oman are still falling into a debt trap taking banks loans far more than they can afford just to keep up with their lavish lifestyles. According to the official statistics, local banks extended a total credit of OMR14.7 billion to private consumers by the end of March this year, which is 7 percent higher than the same period last year. There are no statistics available how private consumers spend the borrowed money. But looking at the trend, car purchasing certainly is on top of the list followed by holidays and domestic buying like furniture. No wonder local financial institutions never record a loss. Their profits are always on the rise year on year, thanks to the high impact of consumerism in the country. But there are some questions when you take a look at the population of Oman. Out of roughly 5 million people, about a million of them are manual workers employed in sectors like constructions, factories and domestic labour. School children and students in higher education are roughly about one and half million while the total number of pensioners are another 600,000. There are just roughly just two million people left who can afford a bank loan. That means too much money is burdening a quarter of the population, out of their own faults. You may argue that, it is good for consumerism but what about inflation? But when you look at the inflationary rates in the country, you see a small rise month by month. We are missing something here. Unless a lot of money borrowed from the local banks is being repatriated abroad. If so, then where is it going? Certainly, the inflationary rate is not giving us a clue. It is not the monetary system or local financial regulations are at fault. In any healthy, financial environment, banking systems need to thrive and grow. And local banks get the right support since the sector employs thousands of people in different parts of the country. Perhaps there should be some kinds of mechanism to educate consumers in the habit of spending. For example, if they don't have the cash to splash out, then they should be cautious taking out unsustainable bank loans. Without any doubt, it is not sustainable for them to rely heavily on loan taking, both for the country or personally. But who to blame? Obviously, lavish lifestyle encourages excessive borrowing. Also, easy credits from the banks. The latter, is also a problem where local financial institutions make it easier to borrow money that encourages the trend. Maybe there should be a limit where consumers are limited only 15 times their salaries and payable over 24 months as a condition for taking a loan. I am sure that would help to contain the problem of overspending the money that does not really belong to them. No wonder many people scratch their heads when the burden is too much. Unfortunately, banks do not write-off the loans once you have borrowed from them. I have not seen the statistics from the courts but I am sure there are thousands of cases pending of people who cannot repay their liabilities.
Reuters
14-05-2025
- Business
- Reuters
China April bank lending tumbles more than expected amid trade war
BEIJING, May 14 (Reuters) - China's new bank loans tumbled more than expected in April as a protracted trade war with the United States further eroded the market's appetite during a typically slow month for loan demand. Chinese banks extended 280 billion yuan ($38.87 billion) in new yuan loans in April, below analysts' forecasts and plummeting from March's 3.64 trillion yuan, according to Reuters calculations based on data released by the People's Bank of China. In a Reuters poll, analysts had expected April new yuan loans would reach 700 billion yuan, compared with 730 billion yuan a year earlier. Total outstanding yuan loans rose 7.2% in April from a year earlier, Analysts had expected growth of 7.4%, unchanged from March. The central bank does not provide monthly breakdowns. Reuters calculated the April figures based on the bank's January-April data released on Wednesday and earlier reported January-March figures. Banks extended a total of 10.06 trillion yuan in new loans in the first four months, down from 10.19 trillion yuan in the same period last year. Lending is typically slow in April as Chinese banks front-load it at the beginning of the year to win high-quality customers and gain market share. On the whole, however, borrowers' confidence has been undermined by a prolonged property crisis, local government debt and deflationary pressures. In April, the trade war with the United States escalated, shrinking credit appetite further and adding to an already cautious mood among households and businesses. China's economy expanded at a faster-than-expected pace in the first quarter, and the government has maintained a growth target of around 5% this year, but analysts fear U.S. tariffs could shift momentum sharply lower. Last week, the central bank stepped up efforts to cushion the impact of a trade stand-off with Washington, announcing a raft of stimulus measures, including interest rate cuts and a major liquidity injection. Since then, a meeting between U.S. and Chinese officials in Switzerland this weekend offered markets some hope that a conflict disrupting the global economy could be resolved. The U.S. administration said on Monday the two sides had agreed to a 90-day pause under which both Washington and Beijing would cut their import tariffs. Wednesday's central bank data showed broad M2 money supply grew 8.0% from a year earlier, ahead of analysts' 7.3% forecast in a Reuters poll and 7.0% growth in March. The narrower M1 money supply rose 1.5% year-on-year, compared with 1.6% in March. Outstanding total social financing (TSF), a broad measure of credit and liquidity in the economy, grew 8.7%, up from 8.4% in March. More government bond issuance aimed at boosting the economy helped TSF growth. TSF includes off-balance sheet forms of financing that exist outside the conventional bank lending system, such as initial public offerings, loans from trust companies, and bond sales.
Bloomberg
14-05-2025
- Business
- Bloomberg
Chinese Companies Turn to Bank Loans Amid Market Turmoil
Chinese companies are favoring bank loans as an alternate source of funding, as they seek to lower costs amid market uncertainty. State-owned developer Poly Property Group is the latest borrower to seek a $500 million-equivalent offshore loan to repay a 4% fixed-rate note due in November, according to people familiar with the matter.
