Latest news with #financial system
Bloomberg
a day ago
- Business
- Bloomberg
Risk of Tighter Money Reignites Debate Over the Fed Funds Rate
The amount of spare cash flowing around in the US financial system is poised to shrink over the coming months, rekindling the debate about how to assess money supply tightness and which benchmark rates the Federal Reserve should actually be targeting. A host of voices, including the Cleveland Fed's President Beth Hammack, JPMorgan's Teresa Ho and Wrightson ICAP's Lou Crandall, have pointed out limitations in the fed funds rate, with some suggesting the US central bank should ditch it and use another metric to gauge money supply.
South China Morning Post
17-07-2025
- Business
- South China Morning Post
HKMA dismisses ‘bad bank' rumours, saying industry remains healthy
The Hong Kong Monetary Authority (HKMA) , the city's de facto central bank, said it had no plans to establish a 'bad bank' to absorb troubled debt in the financial system, saying that the local banking sector remained healthy and profitable. Advertisement 'Overall, banks in Hong Kong maintain a healthy balance sheet; their credit risk is manageable and provisions are sufficient,' the authority said in a statement on Thursday. 'The HKMA has no intention to set up the rumoured 'bad bank'. We understand that the relevant banks also do not have such a plan.' The banking regulator saw no need to create a bad bank, as the current provisions for bad debts at banks were already sufficient, an HKMA representative added. The HKMA's statement came hours after a Bloomberg report, citing unnamed sources, indicated that Hang Seng Bank, Bank of Communications, and other lenders were in discussions about creating a bad bank. A bad bank is typically set up to buy non-performing loans and other bad debts to clean up the balance sheets of another bank. The logo of Hong Kong Monetary Authority is seen at its office in Central. Photo: Yik Yeung-man The Bloomberg report, citing Fitch Ratings estimates, said that soured loans in Hong Kong climbed to US$25 billion at the end of March, representing 2 per cent of the total and reaching a two-decade high.
Bloomberg
15-07-2025
- Business
- Bloomberg
Standard Chartered Is First Systemic Bank to Offer Spot Crypto
Standard Chartered Plc said it's the first global systemically-important bank to offer a spot crypto trading service, allowing corporate and institutional clients to buy and sell Bitcoin and Ether. While some of its rivals have steered clear of crypto currencies, Standard Chartered Chief Executive Officer Bill Winters said on Tuesday that digital assets were becoming a 'foundational' part of the world's financial system.
RNZ News
15-07-2025
- Business
- RNZ News
Banking and investment behaviour faces considerable change as the population ages
An RBNZ report said the ageing population will likely force changes in the financial system. (File photo) Photo: Unsplash/ Towfiqu Barbhuiya The country's banking and investment behaviour faces considerable change as the population ages, according to a new report from the Reserve Bank. The central bank said the financial industry needs to understand and get prepared for what may be complex, long term changes, that may also increase risks to the financial system. Report co-author Enzo Cassino said over the next 25 years or so it foresaw higher savings, different investment patterns, affecting interest rates, bank lending, as well as the insurance sector. "Overall we think there'll be lower demand for housing loans and also higher deposits as older people want to hold more in lower risk investments such as term deposits, so this will affect business models that banks are using." He said similar changes would likely affect the insurance sector with increased demand health insurance and lower demand for life insurance. Increased saving would also would put pressure on interest rates and lift the value of assets such as housing and shares. Such a shift might then steer banks to increase lending to other sectors, and with more domestic savings and sources of capital, would reduce borrowing overseas. Cassino said it wanted to alert banks and other financial businesses to potential changes and how it might affect them. "We want to encourage banks and other financial institutions how an older population will impact their business model over the coming decades. "The greatest risk may be that these institutions may not be preparing or necessarily thinking about these changes will affect them." Cassino said the RBNZ was not raising the alarm or concerns for financial stability. The report has been published in advance of its inclusion of the next RBNZ financial stability report due in November. Sign up for Ngā Pitopito Kōrero , a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
Zawya
10-07-2025
- Business
- Zawya
Removing UAE from EU list of high-risk third countries reflects global trust in UAE's financial system: Al Hussaini
Mohamed bin Hadi Al Hussaini, Minister of State for Financial Affairs, stressed that the decision to remove the UAE from the European Union's list of high-risk third countries for money laundering and terrorist financing is a strategic milestone that clearly reflects the international recognition of the UAE's comprehensive efforts being made to strengthen the integrity of its financial system and uphold the highest global standards in this area. This decision, Al Hussaini added, showcases the UAE's position as a trusted global financial hub, one defined by transparency, openness, and alignment with international developments. He added, 'The UAE is committed to strengthening its position as a responsible and proactive international partner in safeguarding the integrity of the global financial system. This decision is the result of tireless efforts and continuous coordination among the relevant national entities, under the leadership of H.H. Sheikh Abdullah bin Zayed Al Nahyan, Deputy Prime Minister, Minister of Foreign Affairs, and Chairman of the Higher Committee Overseeing the National Strategy on Anti-Money Laundering and Countering the Financing of Terrorism, along with the close partnership with the European Union. It reflects the success of the UAE's approach to international cooperation and institutional integration.' He stated that this milestone will further enhance investor and institutional confidence in the UAE's financial landscape, support the continued flow of investment, and further solidify the country's reputation as a leading global destination for finance and investment. "At the Ministry of Finance, in collaboration with our partners across federal and local entities, we will spare no effort to improve the UAE's competitiveness in global finance by strictly adhering to internationally recognised best practices in line with the vision of our wise leadership, seeking to contribute to the nation's sustainable economic development goals,' Al Hussaini said.
