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Latest news with #liquidity

ECB Must Consider Losses When Deciding on QE, Bundesbank Says
ECB Must Consider Losses When Deciding on QE, Bundesbank Says

Bloomberg

time10 hours ago

  • Business
  • Bloomberg

ECB Must Consider Losses When Deciding on QE, Bundesbank Says

The European Central Bank must consider potential losses when deciding in the future whether to stimulate demand through large-scale bond-buying, according to the Bundesbank. Recent shortfalls — due to higher interest payments on the excess liquidity created by such purchases — have been 'more serious' than expected, Germany's central bank said Wednesday in a report on the ECB's recent assessment of its monetary-policy strategy.

Structural deposit pressure on Indian banks eases due to RBI's liquidity steps: Fitch
Structural deposit pressure on Indian banks eases due to RBI's liquidity steps: Fitch

Times of Oman

time14 hours ago

  • Business
  • Times of Oman

Structural deposit pressure on Indian banks eases due to RBI's liquidity steps: Fitch

New Delhi: Indian banks are seeing a marked easing in structural deposit pressures, helped by the Reserve Bank of India's (RBI) aggressive liquidity support measures in 2025, according to Fitch Ratings. The global credit rating agency noted that since January, the RBI has injected approximately Rs 5.6 trillion, around 2 per cent of total system assets, into the banking system through government securities purchases. This has led to a liquidity surplus since March and significantly softened funding conditions for banks. Fitch believes that these steps have alleviated the intense competition for deposits that Indian banks had been grappling with over the past year. Structural deposit pressures had previously built up as loan growth outpaced deposit mobilization, driving up the loan-to-deposit ratio and forcing banks to raise deposit rates to attract funds. However, the RBI's liquidity easing, combined with a 100 basis point cut in the cash reserve ratio (CRR), is expected to release an additional Rs 2.7 trillion in liquidity in phases, has reversed that trend. The availability of surplus liquidity has already started driving down the cost of fresh deposits. Although Fitch anticipates a 30 basis point contraction in net interest margins for FY26 due to the immediate downward repricing of nearly half of the outstanding loans, it expects margin pressures to ease in FY27 as deposit costs fall further and the benefits of lower CRR requirements take hold. The report also points out that loan growth for FY25 is projected at 11 per cent, slightly above nominal GDP growth of 9.8 per cent, which may reflect rising risk appetite among banks. Despite the relief from structural deposit pressure, Fitch cautions that this could reverse if the RBI tightens liquidity in response to inflation or currency volatility. Such a move could again elevate funding costs and compress margins. In conclusion, Fitch asserts that the RBI's liquidity easing has played a central role in relieving structural deposit pressures in the Indian banking system.

Egypt: CBE returns bank withdrawal cap to $5065
Egypt: CBE returns bank withdrawal cap to $5065

Zawya

timea day ago

  • Business
  • Zawya

Egypt: CBE returns bank withdrawal cap to $5065

The Central Bank of Egypt (CBE) issued an official letter to state-based lenders that the maximum daily cash withdrawal limit from branches has returned to its normal level of EGP 250,000, for both individuals and companies, effective on July 15th. The temporary decision is a part of exceptional measures due to the effects of the Ramses Central fire, which affected the operational systems of some banks. Accordingly, the CBE decided to return to its usual policies to control cash liquidity in the market after telecommunications and internet services resumed operations. On July 8th, the CBE raised the daily limit for cash withdrawals in local currency to EGP 500,000 amid network disruptions. © 2020-2023 Arab Finance For Information Technology. All Rights Reserved. Provided by SyndiGate Media Inc. (

Private Credit Can Bring Risk Along With Liquidity to Commercial Property Finance
Private Credit Can Bring Risk Along With Liquidity to Commercial Property Finance

Wall Street Journal

timea day ago

  • Business
  • Wall Street Journal

Private Credit Can Bring Risk Along With Liquidity to Commercial Property Finance

Private credit's growth is adding liquidity—and risk—to the U.S. commercial real-estate market, according to a report from Moody's Ratings. Interest rates staying higher for longer and recent declines in property values are expected to drive more CRE borrowing to nonbank lenders in the coming years. Against market headwinds, private credit has stepped in to fund borrowers that may not meet traditional banking standards, according to Moody's.

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