سمحت ستارتشارت برفع الحصص في ذراع سوق رأس المال وافقت الحكومة على اقتراح من بنك ستاندرد تشارترد لضخ 2،06 مليار روبية في ذراعها الهندي العاملة في مجال وساطة الأسهم والخدمات المصرفية الاستثمارية وخدمات إدارة المحافظ. والاقتراح هو رفع الاستثمار الأجنبي المباشر من 74.9 إلى 100 وسوف يجذب بريس نوت 1 لعام 2005. وكانت خطة ستاندرد تشارترد جزءا من المقترحات ال 14 البالغ مجموعها 7. 32 مليار روبية، التي وافقت عليها وزارة المالية، بناء على توصيات مجلس تشجيع الاستثمار الأجنبي (فيب). كما قامت وزارة المالية بتطهير خطة من قبل شركة إعادة إعمار الأصول الهندية المحدودة (أرسيل) لاستثمار 2.23 مليار روبية هندية في شركة تعمل في أنشطة إعادة إعمار الأصول لزيادة الاستثمار الأجنبي المباشر من 14.66 إلى 16.01. ندتف ليفستيلز اقتراح استثمار Rs2.52bn لإدخال متعاون أجنبي إضافي وإصدار أسهم جديدة للشريك في الخارج. نمط الحياة ندتف هو غير المستندة إلى المستهلك، قناة الشؤون غير الجارية من مجموعة ندتف المستندة إلى المستهلك. وحدات النفط الخام النفطية تحصل على 120 مليار روبية نقدا من فينمين تلقت وزارة البترول مبلغ 120 مليار روبية كدعم نقدي من وزارة المالية لتعويض شركات تسويق النفط في القطاع العام لبيع الوقود دون سعر السوق. وقال سوندارشان، السكرتير الخاص بوزارة البترول، "لقد حصلنا عليها، وقد صرفناها. لكن الدعم الحالي أقل من نصف ما سعت وزارة البترول من وزارة المالية. وقد سعت وزارة البترول للحصول على إعانة بقيمة 317 مليار روبية في الوقت الذي من المتوقع أن تخسر فيه اللجنة الأوقيانوغرافية الحكومية الدولية - اللجنة الأوقيانوغرافية الحكومية الدولية (أوك) و (بكل) و (هكل) مبلغا قدره 450 مليار روبية في السنة المالية الحالية. وكانت الحكومة تصدر سندات إلى شركات النفط المتوسطية لبيع النفط بأسعار مدعومة. لكن المركز توقف عن إصدار سندات النفط ذات التصنيف العالي بعد أن توقف بنك الاحتياطي الهندي عن شراءها بسبب العجز المالي المتزاوج. نعم البنك يرفع مبلغ 225 مليون دولار أمريكي من خلال برنامج "كيب" نعم قام البنك برفع مبلغ 225 مليون دولار أمريكي (11.4 مليار روبية) عن طريق وضع أسهم مع مؤسسات (كيب)، حيث يسعى إلى زيادة نمو القروض بنسبة 50 خلال العامين المقبلين. ونقلت الصحيفة عن رانا كابور العضو المنتدب قوله إن حجم برنامج الاستثمار المشترك تم رفعه من 150 مليون دولار أمريكي كان مخططا في البداية بسبب الطلب القوي من المستثمرين العالميين. وقال إنه مع استجابة جيدة من المستثمرين عقدا طويلا في الولايات المتحدة وأوروبا وآسيا، قمنا بتطوير الصفقة في US225mn وأغلق في ذلك، كما قال. وقال كابور ان سعر ال كيب هو 269.50 روبية للسهم الواحد ويمثل تخفيف حقوق الملكية من 11.25. وقال كابور ان الاموال التى تم جمعها من خلال برنامج الاستثمار الدولى ستستخدم لتسريع نمو القروض بمقدار النصف على مدى العامين القادمين. ويهدف البنك إلى تعزيز الإقراض للشركات التجارية المتوسطة والمتوسطة إلى 30-35 في غضون خمس سنوات من 4 الآن. ويف نهاية ديسمرب 2009، بلغ اإجمايل حمفظة القروش بنضف 187 مليار روبية، بزيادة 71.1 عن العام املاسي. وشكلت الشركات الكبيرة 72 من قروض البنوك. وقال كابور ان البنك قد يبدأ مشروع اسهم خاصة فى السنة المالية القادمة. يحدد الأيام الأولى لصندوق الأسهم الخاصة. قد يكون في السنة المالية القادمة سوف ننظر في إطلاق نعم فينتوريس، مبادرة الأسهم الخاصة لدينا، وقال انه قال في قناة أخبار الأعمال. استعدت الهند لاستعادة قوية: اقتصاد مصرف التنمية الآسيوي في الهند يستعد الانتعاش القوي في عام 2010 مع تلاشي الأزمة المالية العالمية، ولكن واضعي السياسات بحاجة إلى معالجة التضخم واتساع العجز المالي لتخفيفه من تأثير الصدمات العالمية في المستقبل، وفقا لدراسة جديدة بتكليف من مصرف التنمية الآسيوي. وقالت الدراسة، األثر واالستجابات السياسية في الهند، إن االقتصاد الهندي قد خرج من األزمة دون أن يتأثر نسبيا، وسرعان ما استعاد زخم النمو بفضل إجراءات التحفيز الخاصة به، واإلصالحات السابقة، والبنوك 146 تعرض محدود لألجزاء المضطربة من النظام المالي العالمي، فضلا عن الهند 146S قوية الاستهلاك المحلي. وكانت هذه التطورات الإيجابية هي علامات على زيادة التضخم وتفاقم العجز التجاري في الجزء الأخير من عام 2009. وبالإضافة إلى ذلك، ظلت طبيعة ومدى الانتعاش العالمي هشة وغير مؤكدة، مع الأسواق المتقدمة مثل الولايات المتحدة وأوروبا بعد تظهر دليلا على تحول اقتصادي مستدام يقوده القطاع الخاص. وقالت الدراسة إن الهند محظوظة لأن الأزمة لم تطول، الأمر الذي كان سيختبر قدرة الحكومة على مواصلة إجراءات التحفيز المالي لفترة طويلة، وربما يضر بجهودها الرامية إلى تعزيز الاقتصاد. واضافت ان الهند سوف تتحرك قدما، وستحاول تحسين وضعها المالى من خلال ادارة مالية اكثر انضباطا. ارتفع الائتمان المصرفي بمقدار 795.14 مليار روبية. نما الائتمان المصرفي بمبلغ 795.15 مليار روبية ليصل إجماليها إلى 3020207 روبية روبية في الأسبوعين المنتهيين في 1 يناير 2010، وفقا لما ذكره بنك الاحتياطى الهندى. وبلغت الزيادة في الائتمان على أساس سنوي في التقرير نصف السنوي 13.66 مقارنة ب 11.25 في الأسبوع السابق. ويعتبر هذا النمو كبيرا بالنظر إلى متوسط معدل الائتمان البالغ 210 مليار روبية في السنتين الماضيتين. على الرغم من أن البنوك تتوقع أن يرتفع الائتمان في الجزء المتبقي من الربع، إلا أنهم غير واثقين من تحقيق نمو الائتمان 18 المتوقع من قبل بنك الاحتياطي الاسترالي. وكان البنك المركزي في استعراضه للربع الثاني في تشرين الأول / أكتوبر قد خفض تقديرات الائتمان غير الغذائي في الفترة 2009-2010 إلى 18 من 20. كما في 1 يناير، ارتفع الائتمان المصرفي في حوالي 14 فقط مقارنة بالفترة المقابلة من العام الماضي. وفي السنة المالية 2008-2009، نما الائتمان المصرفي عند 17.5. أيضا، كان هذا هو آخر أسبوعين من الربع عندما البنوك عادة ما تميل إلى دفع المصروفات لتعزيز كتبهم. وازدادت الودائع بأقصى سرعة لها منذ يناير 2008 في نهاية الأسبوع المنتهي في 1 يناير / كانون الثاني. وارتفعت الودائع بمقدار 827.68 مليار روبية إلى 4264.640 كرور روبية. وارتفعت الاستثمارات بمقدار 679 مليار روبية إلى 14،12،798 كرور روبية. وفي الأسبوعين السابقين، تقلصت الودائع المصرفية بمقدار 218.73 مليار روبية بسبب مدفوعات ضريبية مسبقة من قبل الشركات. الهيئة الفرعية للتنفيذ لرفع ما يصل إلى 3.4 مليار دولار أمريكي عن طريق إصدار حقوق خطط الهيئة الفرعية للتنفيذ رفع ما يصل إلى 3.4 مليار دولار أمريكي من خلال قضية حقوق الملكية في 2010-2011. ونقل عن الرئيس قوله ان البنك يحتاج الى حوالى نصف المبلغ للحفاظ على النمو خلال السنوات الخمس القادمة. وقال ب. بهات أن البنك سيحتاج إلى رفع 8.6 مليار دولار أمريكي لتغذية الطلب على القروض على مدى 5 سنوات في الاقتصاد سريع النمو. واضاف انه يمكننا ان نرفع نصفها في اي وقت خلال ال 12-18 شهرا القادمة، سيكون كبيرا. وسيحتاج مبلغ 100 مليار روبية إلى 200 مليون روبية من حقوق الملكية إلى دعم من الحكومة التي تمتلك نحو 60 مصرفا. بنك إيسيسي يرفع أسعار الفائدة على الودائع من 25 إلى 50 نقطة أساس رفع البنك الدولي إيسيسي أسعار الفائدة على الودائع من آجال استحقاق محددة بنسبة 25 إلى 50 نقطة أساس (نقطة أساس). ونقلت الوكالة عن راهول فيركار قوله ان الاسعار الجديدة دخلت حيز التنفيذ اعتبارا من 25 فبراير. وقال المتحدث ان اسعار الفائدة على الودائع المستحقة خلال 390 يوما و 590 يوما ارتفعت بواقع 25 نقطة اساس و 50 نقطة اساس على التوالى. وأضاف أن كلا الإيداعات ستكتسب الآن 6.75 فائدة. وقد حان هذه الخطوة بعد رفع بنك هدفك بعض معدل الودائع بنسبة 0.50 إلى 1.50 من 19 فبراير. دعابة القروض المنزلية. البنوك ترفض أخمص بنك الاحتياطي الفدرالي (ربي) رفضت البنوك رفض البنك الاحتياطي الهندي (ربي) اقتراح منح قروض منزلية أرخص للعملاء الحاليين، مشيرا إلى أن هذه الخطوة ستصل إلى مستوياتها الدنيا. ونقلت الوكالة عن مسؤول بجمعية البنوك الهندية قوله انه ليس من الممكن ان تقوم البنوك بتغيير معدلات الودائع الخاصة بها لتعويض خسارة ايرادات الفوائد الناجمة عن خفض معدلات قروض المنازل للمقترضين الحاليين. وسوف تناقش الرابطة خطابات البنك المركزي الاخير فى اجتماع اللجنة الادارية يوم 26 فبراير وفقا لما ذكرته التقارير. وفي كانون الثاني / يناير، أعرب بنك الاحتياطي الاسترالي عن مخاوفه بشأن ما يسمى بمعدلات القروض المنزلية الداعمة. وفي وقت لاحق، قال البنك المركزي إنه ينبغي توسيع معدلات القروض المنزلية الرخيصة إلى المقترضين الحاليين أيضا. ويعتقد ان ربي ارسل رسالتين خلال الشهرين الماضيين الى رابطة المحامين الدولية بحثا عن تفسير حول هذه القضية. وقد أثار هذا الموضوع أيضا مع المصرفيين من قبل نائب محافظ بنك الاحتياطي الفيدرالي ك. شاكرابارتي في اجتماع استعراض السياسة النقدية الشهر الماضي. وكانت الهيئة الفرعية للتنفيذ هي الجهة الراسخة في إطلاق معدلات التشويق على القروض المنزلية. ويقدم القرض السكني الخاص بأسعار منخفضة تصل إلى 8 للسنة الأولى. وتزداد هذه المعدلات ارتفاعا طفيفا في السنة الثانية والثالثة قبل أن تنتقل إلى أسعار عائمة مرتبطة بالبلر. كما استحدثت مصارف أخرى في القطاع العام وكذلك القطاع الخاص منتجات مماثلة بعد نجاح مخطط الهيئة الفرعية للتنفيذ. التمويل دون. بنك الاحتياطي الفدرالي يكشف النقاب عن فئة جديدة من بنك البحرين الوطني أصدر مصرف الاحتياطي الهندي إخطارا بإدخال فئة جديدة من شركات التمويل غير المصرفية كشركات تمويل البنية التحتية. والفئات الحالية من هذه الشركات هي شركات تمويل األصول وشركات القروض وشركات االستثمار. وبالإضافة إلى ذلك، وبغية تشجيع زيادة تدفق الأموال إلى قطاع البنية الأساسية الحاسم، تم تعزيز تعرض مصرف دولي للمصارف الدولية إلى 20 صندوقا من رؤوس أمواله الرأسمالية. كما ذكر بنك الاحتياطى الفلبينى فى بيان له انه يتعين على البنوك غير الربحية ايضا نشر ما لا يقل عن 75 من اجمالى الاصول فى قروض البنية التحتية التى يتم الاعتراف بها كمراكز مالية دولية. وقال البنك المركزي إن البنوك غير المصرفية ذات صافي الأموال المملوكة بقيمة 3 مليار روبية أو أعلى مع الحد الأدنى من التصنيف الائتماني 145A146 أو ما يعادلها من كريسيل أو فيتش أو كير أو إكرا أو ما يعادلها من أي وكالات تصنيف معتمدة أخرى يمكن أن تدخل في تمويل البنية التحتية. وخلافا للبنوك التي يتعين عليها المحافظة على نسبة كفاية رأس المال 9، تحتاج المؤسسات المالية الدولية إلى الاحتفاظ بجمهورية أفريقيا الوسطى بنسبة 15، منها 10 على الأقل ينبغي أن تشمل رأس المال من الفئة الأولى. وفقا لإخطار بنك الاحتياطي الأسترالي، لن تخضع المؤسسات المالية الدولية لقيود المقترضين التي تقيد البنوك غير المالية الوطنية من إقراض أي مقترض واحد من قبل 10 من أموالها المملوكة، وأي مجموعة واحدة من المقترضين بنسبة 15 من أموالها المملوكة. كما تعفى هذه الدول من القيود التي تحد من تعرض طرف واحد لخمسة من صافي الأموال المملوكة والمجموعات التي تتعرض لها 10 من صافي الأموال المملوكة. وارتفعت القروض البنكية بنسبة 14.9 في أسبوعين إلى 29 يناير. وارتفعت القروض البنكية في نهاية كانون الثاني / يناير الماضي بمقدار 29.7 مليار روبية، وفقا لأحدث بيانات بنك الاحتياطي الفدرالي. وبلغ إجمالي الائتمان المصرفي 30،29،079 كرور روبية في 29 يناير / كانون الثاني. ومن النمو المتزايد في القروض المصرفية، كان 187،89 مليار روبية للقروض المقدمة للشركات، بينما كان 13.81 مليار روبية لشراء الأغذية. وبلغ معدل نمو القروض البنكية 14.9 مليار ريال في نهاية يناير، وهو أعلى بكثير من أدنى مستوى له في عدة سنوات وهو 9.7 في أكتوبر 2009. وعلى أساس سنوي، كان هذا أعلى نمو سجل منذ 14 أغسطس 2009. في السنة المالية حتى الآن، دفعت البنوك مبلغا إضافيا قدره 680 291 كرور روبية، مما يعني نموا قدره 9.35. وینبغي أن یبلغ معدل نمو القروض للسنة الکاملة حوالي 15. وللوصول إلی الھدف المحدد من 16 قرضا في السنة المالیة 2010، سیتعین علی البنوك صرف مبلغ إضافي قدره 134،134 كرور ریال في الشھرین القادمین. ويترجم ذلك إلى متوسط زيادة كل أسبوعين بمقدار 460 مليار روبية. وارتفعت الودائع بواقع 528 مليار روبية خلال أسبوعين، وهي الآن تنمو عند 17.1 سنة. وتحسنت نسبة القروض إلى الودائع إلى 62.7، وهي نسبة أعلى بكثير من أدنى مستوى لها في 37 أكتوبر 2009. بنك إيسيسي يحصل على امتيازات بنك قطر للتنمية في سنغافورة سمحت سلطة النقد في سنغافورة لبنك إيسيسي بتقديم الخدمات المصرفية للأفراد. وقد منحت الهيئة بنك إيسيسي حالة مصرفية كاملة مؤهلة. بنك إيسيسي الآن لديه إذن لفتح 25 منافذ (فروع أو أجهزة الصراف الآلي) في سنغافورة. وقال تشاندا كوشار، العضو المنتدب والرئيس التنفيذي لبنك إيسيسي: "نحن سعداء بالحصول على هذه الموافقة، حيث أنه سيزيد من تعزيز بصمتنا في مجال الخدمات المصرفية للشركات والتجارية وإدارة الثروات والخدمات المصرفية المباشرة في سنغافورة". ونحن نتوقع أن نرى زيادة كبيرة في قاعدة عملائنا في المنطقة وجود اتصالات الهند قوية. بنك إيسيسي هو الكيان الهندي الثاني للحصول على هذا الترخيص في سنغافورة. وقد منح أكبر مصرف مقرض في الدولة، وهو بنك الدولة في الهند، رخصة مماثلة قبل عامين. ويعتبر هذا الترخيص جزءا من اتفاقية ثنائية بين الهند وسنغافورة لفتح قطاعهما المالى. ومن جانبه، سمح بنك الاحتياطي الاسترالي لبنك دبس، أكبر بنك في سنغافورة، بفتح ثمانية فروع أخرى في البلاد. كما تم منح بنك سنغافوري آخر، البنك المركزي البريطاني، عقدا لتشغيل فرع هنا. وقد استخدمت الهيئة الفرعية للتفويض الترخيص بفتح سبعة فروع و 17 جهاز صراف آلي في ولاية المدينة وبدأت عمليات مصرفية للأفراد. وقال بنك الاتحاد، بنك إدبي للدخول مف بيز الاتحاد بنك الهند أنه قد تعادل مع مجموعة كبك بلجيكا لمشروع مشترك صندوق الاستثمار المشترك. وقال بيان مشترك ان بنك الاتحاد سيملك 51 من شركة جى فى حين سيمتلك بنك كيه بى سى الباقى. ومن جهة اخرى، قال رئيس البنك الذى تديره الدولة م. وقال ناير إن البنك سوف يطلب الحصول على موافقة تنظيمية في بلجيكا لبدء العمليات المصرفية في البلاد. وقد حصلت إدبي بنوك مملوكة بالكامل، إدبي لإدارة الأصول المحدودة (إدبي أمك)، ترخيص لإطلاق عمليات مف من مجلس الأوراق المالية والبورصة في الهند (سيبي). كما أن إطلاق "أم سي سي" لعمليات صناديق الاستثمار المشتركة يعزز من تواجد مجموعات بنك إدبي وهو خطوة إلى الأمام نحو أن تصبح مجموعة الخدمات المالية. إندياس لمدة 10 سنوات G-سيك يثقب 8 علامات عائد السندات الحكومية المعيارية الهندية لمدة 10 سنوات عبر 8 للمرة الأولى منذ أكتوبر 2008 وسط مخاوف من أن التضخم المتصاعد سيجبر بنك الاحتياطي الهندي (ربي) على رفع أسعار الفائدة في أبريل. في نهاية الأسبوع، كان العائد على 6.35 ورقة تنتهي في عام 2020 عند 7.99 في حين بلغ سعر الأمن الكامن عند 88.96 روبية. وفي 5 مارس، أغلق العائد على مؤشر G-سيك القياسي عند 7.97. وقد وضعت ميزانية الاتحاد للفترة 2010-2011، التي عرضت على البرلمان في 26 فبراير / شباط، نغمة عوائد السندات. وينظر إلى الميزانية على أنها تضخمية مع ارتفاع في الإنفاق الحكومي ورسوم الإنتاج. وارتفعت أسعار الوقود بعد الميزانية، مما أدى إلى توقعات بأن التضخم سوف تلمس أرقام مزدوجة في غضون بضعة أسابيع. كما كشف وزير المالية النقاب عن برنامج اقتراض إجمالي قدره 000 ر 457 روبية هندية في السنة المالية 2010-2011. وأوضحت الحکومة أن الاقتراض سيکون محملاً مسبقاً ب 70 من الاقتراض الجاري إنجازه في الفترة الممتدة من نيسان / أبريل إلى أيلول / سبتمبر. وبشكل منفصل، تشير تقارير وسائل الإعلام إلى أن السوق يتحول إلى سندات 7.02 2016 كبديل. وقد تحرك حجم التداول في هذه السندات أعلى من حجم السندات 6.35 2020. وقد اتسعت الفجوة بين سندات 6.35 2020 وسندات 7.02 2016. القروض البنكية تصل إلى ما يقرب من 16 سنة: بيانات بنك الاحتياطي الفيدرالي ارتفعت القروض المصرفية الجديدة بمقدار 15.8 على أساس سنوي في أسبوعين من 26 فبراير، وفقا لأحدث البيانات من بنك الاحتياطي الهندي (ربي). وفي 11.5، تحسن نمو القروض من سنة إلى أخرى (السنة المالية 2010) بشكل تسلسلي بمقدار 130 نقطة أساس خلال الأسبوعين الماضيين. وقد قامت البنوك بصرف قروض جديدة بقيمة 377 مليار روبية في النصف الثاني من شهر فبراير، ولم تتحسن هذه الأرقام إلا على مدى العامين المقبلين. وقال إيفل في مذكرة لزبائنه: "نتوقع أن يصل نمو القروض في العام بأكمله إلى حوالي 15، مدفوعا أساسا بقروض المستهلكين والبنية التحتية". وبصورة تراكمية، قامت البنوك بصرف 3،193 مليار روبية من القروض منذ مارس 2009. ومن إجمالي القروض، تم صرف أكثر من 38 قرضا (1،201 مليار روبية) خلال الفترة من ديسمبر إلى فبراير 2010. وقد خفض بنك الاحتياطي الهندي في السياسة النقدية للربع الثالث من العام الجاري هدف نمو الائتمان إلى 16 سنة على أساس سنوي من 8 سنوات على أساس سنوي، مما يعني ضمنا مبلغا تراكمي قدره 4.4 مليار روبية خلال السنة المالية الحالية. وارتفعت الودائع بنسبة 16.8 على أساس سنوي في الأسبوعين المنتهيين في 26 فبراير. واستعاد نمو الودائع زخما خلال أسبوعين قيد الاستعراض، حيث أضافت البنوك ودائع بقيمة 636 مليار روبية، مقابل 45 مليار روبية فقط في الأسبوعين الماضيين. كما ارتفع سعر الفائدة الإجمالي الإضافي إلى 67.1 مقابل 38 في أكتوبر 2009. الحكومة تتحرك ببطء على قابلية التحويل الكاملة: فم تود الحكومة أن تتحرك ببطء إلى قابلية التحويل الكاملة للروبية الهندية، وفقا لما صرح به وزير المالية براناب موخرجي للبرلمان. إن التحويل الكامل للروبية هو هدفنا النهائي، ونحن نتخذ خطوات تدريجية نحو ذلك. ومع ذلك، يرى أنه لم يحين الوقت للانتقال إلى تلك الوجهة دفعة واحدة، كما قال موخرجي في رد معد على البرلمان. وقال وزير المالية أن النظر في المخاطر التي ينطوي عليها فتح الاقتصاد الهندي بشكل كامل من خلال السماح للتحويل الكامل للروبية والحكومة والمصرف الاحتياطي الهندي قد اعتمدت نهجا معايرة، على حد قول وزير المالية. وتعتزم الحكومة المضي قدما في إمكانية التحويل الكامل لحسابات رأس المال في خطة من ثلاث مراحل تمتد إلى السنة المالية 2010-2011. ومن شأن ذلك أن يسمح بتحرك أكبر لرأس المال داخل وخارج العملة المحلية. وقد كانت الروبية قابلة للتحويل على الحساب الجاري منذ عام 1994. واعتبر موخرجي أن تعزيز أوضاع المالية العامة وانخفاض التضخم ونظام مالي أقوى يعتبر من العلامات الهامة بالنسبة للهند. الحكومة لخفض حصة في الهيئة الفرعية للتنفيذ. مشروع قانون جداول في لس قدمت الحكومة مشروع قانون لتعديل قانون بنك الدولة في الهند في البرلمان وتسعى للحصول على موافقة للسماح الهيئة الفرعية للتنفيذ لبيع أسهم تفضيلية وتخفيض عقدها في البنك إلى 51. وقال بيان مشروع القانون 146S من الأشياء والأسباب أن كان التشريع يهدف إلى السماح باقتطاع حصة الحكومة المركزية من 55 إلى 51 من أسهم رأس المال المصدر. ولكن عدل قانون الهيئة الفرعية للتنفيذ لعام 1955 في عام 1993 لتمكين المصرف من الوصول إلى سوق رأس المال. وعلى الرغم من أن الهيئة الفرعية للتنفيذ يمكنها الوصول إلى سوق رأس المال عن طريق إصدار أسهم أو سندات أسهم أو أسهم أسهم وسندات، إلا أنه لا يوجد نص صريح بموجب قانون الهيئة الفرعية للتنفيذ لتمكين البنك من إصدار أسهم تفضيلية وأسهم منحة أيضا. وقال بيل إن مشروع قانون التعديل يسعى إلى تعزيز رأس مال الهيئة الفرعية للتنفيذ من خلال إصدار أسهم تفضيلية لتمكينها من جمع الموارد من السوق عن طريق إصدار عام أو تخصيص تفضيلي أو إيداع خاص. وأضاف أن المشروع يهدف أيضا إلى توفير المرونة في إدارة البنك. وسوف ينص مشروع القانون على زيادة رأس المال المأذون به للهيئة الفرعية للتنفيذ إلى 50 مليار روبية، وتمكين الحكومة المركزية من زيادة رأس المال المأذون به أو تخفيضه بالتشاور مع مصرف الاحتياطي الهندي (ربي). وسيعطي إقرار مشروع القانون الهيئة الفرعية للتنفيذ الركيزة لزيادة رأس المال. وبالسعر الحالي، فإن هذا يعني تعبئة 200 مليار روبية. ستحتاج الهيئة الفرعية للتنفيذ إلى جمع ما يقرب من 400 مليار روبية على مدى السنوات الخمس المقبلة للحفاظ على زخم النمو، وفقا لما ذكره الرئيس أوب بهات. سعر الفائدة الأساسي يبدأ من 1 يوليو: قال بنك الاحتياطي الهندي (ربي) إن سعر الإقراض الأساسي الجديد للبنوك سيصبح ساري المفعول اعتبارا من 1 يوليو. في منتصف فبراير، قال بنك الاحتياطي الفدرالي أنه سيعرف سعر الفائدة الأساسي من ابريل. ووفقا لمشروع المبادئ التوجيهية المتعلقة بالموقع الشبكي للمصارف المركزية، فإن سعر الإقراض الفعلي المحمل على المقترضين سيكون هو المعدل الأساسي بالإضافة إلى الرسوم الخاصة بالمقترض، بما في ذلك تكاليف التشغيل الخاصة بالمنتج، علاوة مخاطر الائتمان، علاوة التأمين. وقال رئيس بنك الدولة الهندى بشكل منفصل اليوم ان سعر الاقراض الرئيسى الاساسى وسعر الفائدة الاساسى سيستمران حتى التنفيذ الكامل للمعدل الاساسى الجديد. وقال رئيس بنك البلاد العام أكبر بنك في القطاع العام أن سعر الفائدة هو مخصص للمقترضين الجدد، وعلينا أن نهتم بالمقترضين القدامى أيضا. وقال إن أسعار الفائدة على القروض من غير المرجح أن تقفز حتى شهر مايو، وسوف يقوم البنك بمراجعة أسعار قروض السكن بحلول 31 مارس. ارتفاع أسعار البنوك الخاصة على السيارات والقروض المنزلية رفع إيسيسي البنك معدلات قروض السيارات بنسبة 25-50 نقطة أساس (ب) والقطاعات اعتبارا من 5 مارس. كما أوقف البنك إيسيسي سعر القرض السكني الخاص من 8.25 لمدة عامين. وسوف يتقاضى البنك حاليا 8.75 قرضا تصل قيمتها إلى 3 ملايين روبية، و 9 قروض بقيمة 3 ملايين روبية إلى 5 ملايين روبية، و 9.5 قروضا بقيمة 5 ر 5 مليون روبية. كما رفع بنك هدفك وكوتاك ماهيندرا أسعار الفائدة على قروض المنازل والسيارات. وقد عادت أسعار قروض الإسكان المنزلي إلى 8.75 للحصول على قروض تصل إلى 3 ملايين روبية، و 9 قروض بقيمة 3 ملايين روبية و 5 ملايين روبية، و 9.25 قروضا بقيمة 5 ر 5 مليون روبية. وحتى الشهر الماضي، كان يقدم القروض بمعدل ثابت قدره 8.25 حتى 31 مارس 2012، وبعد ذلك يعود القرض إلى السعر العائم السائد. وفي الشهر الماضي، أوقف كوتاك ماهيندرا خطة القروض المنزلية ذات الفائدة الثابتة التي تم طرحها في ديسمبر / كانون الأول. كما قام البنك في الشهر الماضي بزيادة أسعار الفائدة على القروض المنزلية بأسعار فائدة متغيرة بمقدار 50 نقطة أساس. هو الآن في نطاق 8.50-9. كما ارتفعت المعدلات على القروض الشخصية بمقدار 50 نقطة أساس لتصل إلى حوالي 18.5. وقد رفعت هذه المصارف الخاصة أسعار الإقراض بما يصل إلى 100 نقطة أساس، بعد تقلب أسعار السوق حتى مع امتناع بنك الاحتياطي الاسترالي عن ترقيع أسعار الفائدة حتى الآن. وفي اجتماع السياسة الأخير الذي عقده في يناير / كانون الثاني، رفع البنك المركزي نسبة الاحتياطي النقدي بمقدار 75 نقطة أساس. وتقوم المصارف برفع أسعار الإقراض للحفاظ على ربحيتها بعد أن رفعت أسعار الفائدة على الودائع في الأشهر القليلة الماضية لجذب الأموال. توقعات صندوق النقد الدولي بشأن نمو الناتج المحلي الإجمالي في الهند من المتوقع أن ينمو الاقتصاد الهندي بنسبة 8.75 في عام 2010 و 8.5 في عام 2011، وفقا لتقرير توقعات الاقتصاد العالمي (2010) الصادر عن صندوق النقد الدولي. وفي عام 2009، تباطأ النمو الاقتصادي في الهند إلى 5.7 بسبب الانكماش الاقتصادي العالمي. وقال صندوق النقد الدولى فى تقريره الاقتصادى العالمى نصف السنوي ان الاستهلاك فى الهند سيعزز مع تحسن سوق العمل. وأضافت أن الاستثمارات سوف تحصل على دفعة من أرباح الشركات القوية، وزيادة ثقة الأعمال، وظروف التمويل المواتية. وقال صندوق النقد الدولى ان قوة الطلب المحلى فى الهند والصين سيكون لها اثر ايجابى على الاقتصادات الاسيوية الاخرى. ومن المتوقع ان ينمو اقتصاد اسيا 146 و 6.9 فى عامى 2010 و 2011 على التوالى حسبما ذكر صندوق النقد الدولى. وقال صندوق النقد الدولى ان الاقتصاد الاقتصادى مثل الهند التى تعتبر اكثر اغلاقا نسبيا والتى تعتمد على التحفيز لدعم النمو سيكون التحدي الرئيسى لضمان تدعيم المالية العامة بشكل دائم بما فى ذلك تنفيذ الاصلاحات المالية والهيكلية الاخرى. الائتمان المصرفي ينمو بنسبة 17 على أساس سنوي: بيانات بنك الاحتياطي الفيدرالي ارتفع إجمالي القروض المصرفية بنحو 17.05 من مستوى العام الماضي في نهاية الأسبوع المنتهي في 9 أبريل / نيسان، وفقا للبيانات المؤقتة الصادرة عن بنك الاحتياطي الهندي (ربي). كما في 9 أبريل، بلغ إجمالي القروض المصرفية القائمة 32.41 تريليون روبية مقابل 27.69 تريليون روبية في نفس الفترة من العام الماضي. وخلال النصفين الماضيين، صرفت المصارف قروضا بقيمة 8.26 مليار روبية. ومن المتوقع أن يظل نمو الائتمان النظامي فاترا في أول شهرين أو ثلاثة أشهر من السنة المالية، مع تحسن تدريجي في الجزء المتبقي من العام مع ازدياد النشاط الاقتصادي. في السياسة النقدية السنوية التي تم إصدارها مؤخرا، قدرت ربي نمو سنوي قدره 20 في الائتمان المصرفي للسنة المالية 2011. وفي الوقت نفسه، ارتفع إجمالي الودائع المصرفية بنسبة 15.98 من العام السابق في نهاية الأسبوع المنتهي في 9 أبريل / نيسان 9، وفقا للبيانات الصادرة عن بنك الاحتياطي الفدرالي الذي صدر أمس. وحشدت المصارف ودائع بقيمة 4،35 مليار روبية خلال فترة أسبوعين قيد النظر. ووفقا للسياسة النقدية السنوية، من المتوقع أن ينمو إجمالي الودائع المصرفية بمقدار 18 في السنة المالية 2011. وارتفعت استثمارات البنوك في الأوراق المالية الحكومية بمقدار 718.47 مليار روبية خلال الأسبوعين المنتهيين في 9 أبريل / نيسان، وفقا لبيانات بنك الاحتياطي الفدرالي. وقد ارتفع الائتمان المصرفي بنسبة 16.7 والودائع بنسبة 17 على أساس سنوي اعتبارا من 26 مارس. مجلس الوزراء يطبق خطة إعادة الرسملة لبنوك وحدة دعم المشروع وافق مجلس الوزراء الاتحاد على اقتراح لضخ 150 مليار روبية لإعادة رسملة بنوك القطاع العام في السنة المالية الحالية. وقالت الحكومة فى بيان ان ضخ رأس المال من الفئة الاولى من قبل المركز سيعزز الاقراض من البنوك الحكومية فى السنة المالية 2011 بمقدار 1.85 تريليون روبية. وافقت هيئة الأوراق المالية المركزية على إعادة الرسملة في بنك فيجايا وبنك دينا وبنك أوكو وبنك النقابة وبنك بارودا والبنك المركزي الهندي وبنك ماهاراشترا. وافق مجلس الوزراء على توفير رأس المال لمصارف القطاع العام خلال السنة المالية 2011 والسنة المالية 2012 لتمكينها من الاحتفاظ بحد أدنى 8 من رأس المال من الفئة الأولى. وقالت الحكومة انه سيتم تحديد المبلغ المحدد وطريقة الرسملة وغيرها من الشروط والأحكام بالتشاور مع البنوك وقت التسريب. وبالنسبة للسنة المالیة 2012، سیتم وضع متطلبات رأس مال إضافیة، إن وجدت، بالتشاور مع شرکات القطاع العام بناء علی نتائج الربع الثالث للعام المالي 2011. واضافت الحكومة انه من المحتمل ان تستفيد القطاعات الاضافية الموجهة للعمالة من التمويل الاضافى وخاصة الزراعة والمشروعات الصغيرة الصغيرة والتصدير ورجال الاعمال وما الى ذلك فى تعزيز انشطتها الاقتصادية التى ستسهم بدورها فى نمو الاقتصاد بشكل كبير. وتفاوضت الحكومة مع البنك الدولي على قرضين لدعم القطاع المصرفي بلغ مجموعهما 3.2 مليار دولار أمريكي. وقد تم بالفعل استكمال الإجراءات المتعلقة بالشریحة الأولی من القرض الذي تبلغ قیمتھ 2 ملیار دولار أمریکي. هدفك إعادة إطلاق برنامج قرض دعابة تمويل الإسكان هدفك الكبرى إعادة إدخال نظام القروض المنزلية معدل مزدوج جديد، وهو متاح فقط حتى نهاية أبريل. وبموجب هذا النظام، فإن المعدل الثابت سيكون 8.25 حتى مارس 2011. في السنة التالية (2011-12)، سيتم تحديد سعر الفائدة في 9. اعتبارا من السنة الثالثة (2012-13) فإن مخطط جذب العائمة السائدة معدل ما تبقى من مدة القرض. وستطبق المعدلات العائمة في إطار لوحتين للقروض تصل إلى 3 ملايين روبية، وسيكون المعدل 9، أما بالنسبة للقروض التي تزيد قيمتها عن 3 مليون روبية فسيكون المعدل 9.25. كما قال الصندوق اليوم أن منتجه القائم على أسعار فائدة عائمة سيستمر دون أي تغيير حيث تبلغ المعدلات 8.75 للقروض التي تصل إلى 3 مليون روبية و 9 قروض للقروض تتراوح بين 3 مليون روبية و 5 روبية و 9.25 قروضا بأكثر من 5 ر 5 مليون روبية. وقد قدم المخطط السابق للمؤسسة المذكورة قروضا منزلية بنسبة 8.25 في المائة ثابتة للسنتين الأوليين وبعد ذلك، بسعر الفائدة العائم السائد آنذاك. ومن الواضح أن الخطة المنقحة لمقدمي القروض المنزلية 146 كانت رد فعل على بنك الدولة الهندي (سبي) الذي يمدد مخططه الخاص حتى نهاية هذا الشهر. وقال رينو سود كرناد، العضو المنتدب، هدفك على الرغم من أن هناك زيادة هامشية في سعر الفائدة مقارنة مع العرض السابق، هدفك معدل فعال على مدى فترة 15-20 سنة جذابة للغاية. وقال هدفك هذا هو منتج مرن مع معدلات مزدوجة. وتسري الأسعار الثابتة على جميع القروض الجديدة بغض النظر عن قيمة القرض. وتتحمل الهيئة الفرعية للتنفيذ رسوما ثابتة تبلغ 8 سنوات عن السنة الأولى و 8.5 ثابتة للسنتين اللاحقتين بموجب نظامها الخاص للقروض التي تصل قيمتها إلى 5 ملايين روبية. الائتمان الائتمان المصرفي لتسجيل. يلبي هدف بنك الاحتياطي الاسترالي سجل مبلغ قياسي من نافذة خلع الملابس من قبل البنوك لهم رقما قياسيا من حيث نمو الائتمان كل أسبوعين، وفقا للبيانات الصادرة عن بنك الاحتياطي الهندي (ربي) أظهرت. ولم تتمكن البنوك من ذلك فقط من تجاوز هدف السنة المالية للبنوك المركزية المتمثل في نمو القروض غير الغذائية بنسبة 16 عاما على أساس سنوي. في الأسبوعين المنتهي في 26 مارس، ارتفع الائتمان المصرفي بقيمة 15،548 كرور روبية، وفقا للبيانات الصادرة عن بنك الاحتياطي الفيدرالي أمس. وهذه هي المرة الخامسة على التوالي التي توسع فيها الائتمان المصرفي. وكما في 26 مارس، بلغت القروض القائمة على البنوك 32،40،398.52 كرور روبية. وازداد الائتمان البنكي بمقدار 16.74 مليون روبية أو 644.449 كرور روبية في السنة المالية 2010، متجاوزا الرقم المستهدف المتوقع لنمو الائتمان غير الغذائي الذي حدده بنك الاحتياطي الفيدرالي والبالغ 16 نقطة في السنة المالية. وانخفض نمو الائتمان في النظام المصرفي، الذي كان لا يقل عن 27.6 في السنة المالية 2007، إلى 21.6 في السنة المالية 2008 وإلى 17.3 في السنة المالية 2009، قبل أن ينخفض إلى أدنى مستوى في 12 عاما من 9.49 في أكتوبر 2009. ومنذ ذلك الحين، فإن سياسة المال سهلة من ربي ، إلى جانب حزم التحفيز من الحكومة، دفعت تدريجيا نمو الائتمان. مرتين خلال السنة المالية 2010، تراجع بنك الاحتياطي الاسترالي تراجع توقعات نمو الائتمان. خفض البنك المركزي من 20 إلى 18 في النصف الأول ثم إلى 16 في النصف الثاني. وفي الوقت نفسه، ارتفعت الودائع بمقدار 83،630.57 كرور روبية إلى 44،86،573.66 كرور روبية في الأسبوعين المنتهيين في 26 مارس. وعلى أساس سنوي، نمت الودائع بنسبة 17.1 - بالكاد تحقق هدف البنك الاحتياطي الاسترالي البالغ 17 هدفا للسنة المالية 2010. وانخفضت استثمارات البنوك في الأوراق المالية الحكومية وغيرها من الأوراق المالية المعتمدة بمقدار 4،253،29 كرور روبية إلى 13،82،683.58 كرور روبية. ملفات ستاندرد تشارترد أعلنت شركة درهب للهند المدرجة في قائمة ستاندرد تشارترد بي إل سي أنها تدرس مسألة وإدراج في الهند إيصالات الإيداع الهندية التي تمثل الأسهم العادية الجديدة الكامنة في الشركة. وقد قدمت الشركة اليوم مسودة نشرة إصدار الرنجة الحمراء (درهب) مع مجلس الأوراق المالية والبورصة في الهند (سيبي) فيما يتعلق بهذا الاقتراح. وتخضع قائمة حقوق السحب الدولية لظروف السوق ومزيد من الموافقات التنظيمية. ومن المتوقع أن تكون قائمة إدرس هي الأولى من قبل شركة في الخارج. الهند هي واحدة من الأسواق الآسيوية الرئيسية ستاندرد تشارتردز - توليد أكثر من US1bn في الربح - وإدراج يوفر للمقيمين الهنود فرصة للاستثمار في الشركة والمشاركة في نموها. ستاندرد تشارترد إدر اشتركت أكثر من مرتين تلقت إيصالات الإيداع الهندية (إدر) من ستاندرد تشارترد بي إل سي استجابة صامتة، وتم الاكتتاب في نهاية المطاف أكثر من مرتين يوم الجمعة، والذي كان آخر يوم من بناء الكتب. تم فتح القضية للاكتتاب العام في 25 مايو. وسوف يستفيد المستثمرون الأفراد والموظفون المؤهلون الذين يتقاضون رواتب إدرس في إطار قطاع التجزئة والجزء الموظف على التوالي، والتي لا يتجاوز مبلغ عطاءها 100،000 روبية، من 5 خصم آخر إلى سعر الإصدار النهائي . سوف تمثل عشرة معامالت معفاة من حقوق الملكية حصة أساسية من أسهم الشركة، وستشكل األسهم الجديدة المصدرة إجمالا 1.16 من رأس المال المدفوع بعد إصدار الشركة. على أساس الخميس سعر إغلاق لندن من 1،682 بنس، وتحويل العملات، التي تقدر كل إدر عند حوالي Rs114 اعتبارا من صباح يوم الجمعة، نحو نهاية عالية من النطاق السعري العروض. عرض البنك حوالي 240 مليون روبية هندية من 100 روبية إلى 115 روبية لكل منهما. وباعت الشركة 15 من العرض لما يسمى بالمستثمرين الرئيسيين بما في ذلك إيسيسي برودنتيال أسيت ماناجيمنت Co. و ريليانس كابيتال المحدودة مقابل Rs104 سهم، وفقا لإيداع تنظيمي هذا الأسبوع. إيسيسي بنك البورصة نسبة التبادل الاندماج ثابتة في 25: 118 دخلت إيسيسي البنك في اتفاق مع عائلة تايال لدمج بنك راجستان (البور) معها. واتخذت البنوك قرارا بهذا الشأن يوم 18 مايو. وفقا لبنك إيسيسي، تم تثبيت نسبة تبادل الأسهم في 25 سهم ل 118 سهم من البور. ويستند ذلك إلى تحليل داخلي للقيمة الاستراتيجية للاندماج المقترح، ومتوسط القيمة السوقية لكل فرع من فروع البنوك الخاصة القديمة والمعاملات السابقة ذات الصلة، وفقا لما ذكره بنك إيسيسي في بيان. وقال ان إكتيسي المقترح سيعزز بشكل كبير شبكة الفروع والتواجد في شمال وغرب الهند. وفي نسبة مقايضة األسهم المقترحة، فإن السعر اإلرشادي للمكتب يناهز 18.84 روبية للسهم الواحد، وهو ما يعكس عالوة على 89 سعر السهم الختامي في 18 مايو. وتقدر قيمة الصفقة بواقع 2.9 مرة من قيمتها الدفترية، مقارنة بمتوسط الصناعة البالغ 1.84. وقد وافق مجلس المحافظين على الصفقة التي ستكون خاضعة لموافقات تنظيمية. وسوف يجتمع مجلس إدارتها مرة أخرى يوم 23 مايو لمناقشة عرض البنك إيسيسي. وقد بدأ بنك إيسيسي ممارسة العناية الواجبة على المجلس. تم اعتماد الموافقة المبدئية على دمج البنك مع بنك إيسيسي. ويتطلع معظم المساهمين إلى مبادلة مساهمته الرسمية من 28.60 مع أسهم البنك إيسيسي. وسيتم تحديد تفاصيل أخرى عن التقييم وتبادل الأسهم في 24 مايو، وقال بور بور أمب الرئيس التنفيذي G. بادمانابهان. تم تعيينه من قبل بنك الاحتياطي الفيدرالي، بعد أن صفع البنك المركزي غرامة 2.5 مليون روبية على بور لانتهاك مزعوم من مختلف المعايير. These included irregularities in transactions and misrepresentation of documents, norms pertaining to anti-money laundering, Know Your Customer and irregularities in the conduct of accounts of a corporate group. The RBI also appointed Deloitte Haskins amp Sells to conduct a special audit of the bank, which recently submitted its interim report to the central bank. In March, SEBI banned 100 entities, including Tayal Group firms from all stock market-related activities for fraudulently hiking the promoter holding in Bank of Rajasthan, while conveying the impression they were reducing their shareholding. Though BoR promoters say they hold a 28.60 stake in the bank, SEBI has put the promoter shareholding at 55.01. Standard Chartered IDR to open on May 25 The Indian Depositary Receipts (IDRs) of Standard Chartered Plc, the countrys first such issue, will open on May 25 and will close on May 28, top officials of the Anglo-Asian bank said in Mumbai. Standard Chartered will issue 240 million IDRs, with every 10 IDRs representing one share of Standard Chartered Plc. according to its red herring prospectus. Standard Chartered hopes to raise about US600mn. Standard Chartered had previously said it planned to raise up to US750mn with an Indian share listing this year. Standard Chartered is currently listed in Hong Kong and London. The bank has hired UBS AG, Goldman Sachs, JM Financial Consultants, Bank of America-Merrill Lynch, Kotak Mahindra Capital and SBI Capital Markets to manage the offering. StanChart has appointed its STCI Capital Markets unit as a co-book running lead manager. Banks loans, deposits fall in fortnight to April 23 Bank loans and deposits declined in the fortnight ended April 23, according to the latest RBI data, but bankers are optimistic on credit growth over the remaining part of the fiscal year and will be looking to raise resources to fund the same. During the fortnight under review, total bank loans dipped by Rs264.83bn to Rs14,37,363 crores. Food credit and loans to individuals and businesses dipped by Rs1.7bn and Rs263.13bn, respectively. Deposits were down Rs233.28bn to Rs45,06,747 crores during the fortnight ended April 23. Demand deposits and term deposits fell by Rs208.34bn and Rs24.94bn, respectively, during the fortnight. Bank loans rose about 17.13 on year as of April 23, according to the provisional data released by the RBI. Deposits were up 14.97 from a year earlier, the RBI data showed. Bank credit had risen 17 and deposits were up 16 on year as of April 9. The final figures for the week ended April 24 would be released by the RBI its weekly statistical supplement on May 7. Investments in government and other approved securities were down by Rs171.69bn to Rs14,37,363 crores during the fortnight. Bank of Rajasthan in merger talks with private banks: report Bank of Rajasthan (BoR) shares jumped on reports the banks promoters have begun talks with large private sector banks for a possible merger. Tayals, the promoters of BoR are reported to have had preliminary discussions with ICICI Bank, and a few other banks to explore the possibility of merger. According to a business daily, Tayals had also approached the HDFC group for a possible deal with HDFC Bank. However, HDFC Bank did not evince any interest, the financial newspaper said. ICICI Bank is reported to have indicated that it is willing to pay more than BoRs present market valuation. But the BoRs promoters are looking for a better deal. As per reports, ICICI Bank will propose a share-swap deal with BoR. Tayals, who acquired BoR a decade ago, are reportedly under pressure to sell the old private bank amid alleged regulatory violations. SEBI and the RBI. In March, SEBI banned 100 entities allegedly holding BoR shares on behalf of the promoters from all stock market activities. The RBI slapped a penalty of Rs2.5mn on the bank for a string of violations like deletion of records in the banks IT system, irregular property deals and lapses in the accounts of a corporate group. HDFC Bank appoints CM Vasudev as Chairman The Board of Directors of HDFC Bank Ltd. approved the appointment of CM Vasudev as its Non-Executive Chairman from July 6. Vasudev succeeds Jagdish Capoor who retires on July 5 on the completion of his term. The appointment of Vasudev is subject to regulatory and shareholder approvals. Vasudev has been an Independent Director of the Bank since October 2006. A retired IAS officer, Vasudev has had an illustrious career in the civil services and has held several key positions in India and overseas. These include Finance Secretary, Government of India and Executive Director, the World Bank. He has also been the Government nominee on the Boards of many companies in the financial sector including State Bank of India, IDBI, ICICI, IDFC and NABARD. A former Deputy Governor of the Reserve Bank of India, Capoor had been the Non-Executive Chairman of HDFC Bank since July 6, 2001. ING exits from Kotak Mahindra Bank Dutch financial major ING sold its entire investment in Kotak Mahindra Bank by selling a 3.07 stake through a bulk deal on the NSE for Rs8.01bn (US172.5mn). As per VCCircle estimates, ING took a haircut of 17 on its two-and-half-year-old investment (excluding dividend earnings on the shares). ING operates the ING Vysya Bank in the country. ING Bank NV Singapore Branch had originally bought around 2.5 stake in Kotak Mahindra Bank in October 2007 through a qualified institutional placement (QIP). The deal was struck at around Rs950 per share and ING had sunk in around Rs8.12bn. . Rabobank sells 11 in Yes Bank Rabobank reduced its stake in Yes Bank by selling 11 to a group of domestic and foreign institutional investors for an estimated Rs9.9-10bn (US210mn). That paved the way for an imminent entry of the Dutch lender into retail banking business in India. The Netherlands-based Rabobank still holds 4.9 in Yes Bank. The shares were sold in a series of bulk deals at an average price of Rs 263 per share, amounting to over Rs10bn. According to reports, the buyers included Life Insurance Corporation of India (LIC), SBI Life, Templeton and Carmignac - a French fund. Rabobank was one of the initial investors in Yes Bank, founded in 2004, in which Rana Kapoor and Ashok Kapoor were the Indian partners. RBI to buy back govt securities worth Rs100bn The Reserve Bank of India (RBI) offered to buy back government bonds for up to Rs200bn to increase liquidity in the banking system. Payments towards advance taxes, licence fees for 3G telecom spectrum and broadband wireless access have taken cash out of the banking system. As a first step, the RBI will offer to repurchase bonds for up to Rs100bn, the central bank said. The repurchase will be funded from the current account surplus of the Government. There was short-term mismatch in funds, it added. The RBI will offer to repurchase 12.25 government bonds maturing in 2010, 11.30 2010 bonds and 6.57 2011 bonds on June 18. The RBI will retain the right to vary the amount it may accept, or even reject all offers, it said. On May 27, the central bank permitted banks to borrow an additional amount up to half a percentage point of their SLR (statutory liquidity ratio) holdings. The measures were to be in effect from May 28 to July 2. Banks have been raising an average Rs450bn from the RBI every day. The money market will see a shortfall of at least Rs1 trillion, according to reports and nobody knows how long the crunch will continue. Bank loans fall by 0.2 in May: RBI Indian banks have reportedly registered a decline in outstanding loans in the first three weeks in May from the previous month while investments rose, Reserve Bank India said. The on-year credit growth was quite robust at 18, mostly due to a low base and in line with the central banks projection of 20 credit growth for 2010-11, RBI said. Loan growth fell by 0.2, to Rs32.3 trillion as on May 21 from the end of April, while banks investment in government bonds and other approved securities rose 1.42, to Rs 14.44 trillion. SBI gets nod to acquire State Bank of Indore The Union Cabinet approved the acquisition of State Bank of Indore by State Bank of India (SBI) and also accorded in-principle146 approval to introduce a Bill in the Parliament for making consequential amendments in the State Bank of India (Subsidiary Banks) Act, 1959, to remove references of State Bank of Indore. Acquisition of State Bank of Indore by SBI would allow economies of scale in terms of footprint, manpower and other resources. Acquisition of State Bank of Indore will also help SBI in spreading its credit risk. Besides, keeping in view the growing economy, State Bank of Indore would require larger equity capital to support a growing balance sheet. In the event of its acquisition, the increased capital requirement can be taken care of by SBI. Indian Bank hikes fixed deposit rates by 50bps Indian Bank has hiked the interest rates on deposits of Rs five crore and below, with a maturity period of two years and above, by 50 basis points from 7.25 to 7.75. The new rates are effective August 15. The bank also introduced two new fixed maturity deposit products, Indouble and Indouble Senior, which doubles the principal amount in 100 months and 108 months, respectively. All other facilities including nomination, premature withdrawal and loan against deposits to normal fixed deposits have also been extended to these products. RBI clears BOR merger with ICICI Bank The Reserve Bank of India (RBI) approved the Scheme of Amalgamation of Bank of Rajasthan Ltd with ICICI Bank with effect from the close of business on August 12. All branches of Bank of Rajasthan will function as branches of ICICI Bank with effect from August 13. The Scheme was sanctioned in exercise of the powers contained in Sub-section (4) of Section 44A of the Banking Regulation Act, 1949. The Scheme will come into force with effect from close of business on August 12, 2010. RBI pulls up deputy governor for media remarks The RBI snatched key portfolios from deputy governor K. C. Chakrabarty after the former PNB chairman reportedly told a few media persons that the central bank should be more aggressive in tackling inflation. Chakrabartys ill-timed comments led to the 10-year bond sliding by close to 35 paisa last Thursday. The comments came a couple of days after the RBI raised the repo rate by 25 bps and the reverse repo rate by 50 bps. According to reports, Chakrabarty had said the monetary policy action was inadequate. Chakrabarty has been divested of the most important portfolios he handled such as Human Resources Development, department of administrative and personnel management, besides urban banks department and rural planning and credit department. These will now be managed by another deputy governor, Subir Gokarn, whose primary responsibility so far was monetary policy and economic analysis and research. More banks hike lending rates, deposit rates Bank of Baroda (BoB) said that it has hiked its Benchmark Prime Lending Rate (BPLR) by 50 basis points. The public sector banks existing BPLR stands at 12. It had earlier announced 25-50 bps hike in deposit rates. Earlier in the week, IDBI Bank hiked its BPLR by 50 bps to 13.25. IDBI bank also hiked interest rates on retail term deposits by 25-75 bps in different maturity brackets. Corporation Bank also revised its BPLR by 50 bps to 12.5. Last week, Punjab National Bank (PNB) had increased its BPLR by a steep 75 basis points to 11.75. A clutch of banks have also increased their deposit rates in recent days. They include Kotak Mahindra Bank, ICICI Bank, Union Bank of India, PNB, HDFC Bank, Central Bank of India, Allahabad Bank, Lakshmi Vilas Bank and South Indian Bank. The increase in BPLR and deposit rates was widely expected after the Reserve Bank of India (RBI) increased repo rate and reverse repo rate on July 27 in a bid to rein in double-digit inflation. The repo rate was hiked by 25 bps to 5.75 while the reverse repo rate was upped by 50 bps to 4.5. RBI looking into deregulation of savings rate The Reserve Bank of India (RBI) will set up a committee to look into the issue of deregulating interest rates on the savings bank accounts. quotA working group will soon be set up to examine the possibility of deregulating of interest rates, quot RBI Deputy Governor Usha Thorat said while addressing a banking conference organised by FICCI and IBA. quotWe have to examine whether the de-regulation can help bring more people into the formal banking system, quot Thorat said. She also said that there is a need for a higher number of tie-ups between banks and the non-bank finance companies (NBFCs) to have better delivery systems and to ensure better last mile connectivity. The central bank is in the process of tweaking regulations on securitisation to ensure the growth of the securitised market in an orderly manner, Thorat said. She called on the banks to ensure that there is no excessive borrowing, besides asking the lenders to do more forward looking provisions to cover their non-performing assets (NPAs) in future. Indian banks wont be hit by Basel III norms: Subbarao Indian banks will not be affected by the higher capital requirements under the Basel 3 norms, the Reserve Bank of India (RBI) governor Duvvuri Subbarao said. He also said that leverage in the Indian banking system was moderate. In a speech at the FICCI-IBA Conference on 145Global Banking, Subbarao said that the Indian banking system is better-placed to adhere to the Basel III norms which will soon come into effect internationally. Separately, State Bank of India (SBI) Chairman O. P. Bhatt said today that loan quality in the Indian banking sector has deteriorated in the last two years. HDFC Bank hikes lending rates HDFC Bank said it had raised its benchmark lending rate by 50 basis points to 16.25. The new benchmark prime lending rate will come into effect from this week. Separately, HDFC introduced Dual Rate Home Loan - 4 (DRHL - 4). This offer is applicable to all new home loan customers who apply on or before 30th September 2010 and take at least part disbursement before 31st October. Under this offer, Home loans will be available at a fixed rate of 8.50 p. a. up to 31st March, 2011, 9.50 pa for period between 1st April, 2011 and 31st March, 2012 and the applicable floating rate for the balance term. These rates are applicable for all new home loans irrespective of the loan amount. SBI retail bond issue oversubscribed 17 times State Bank of Indias (SBI) retail bond issue was subscribed 17.3 times. SBI received applications worth around Rs85bn on Day One itself, although it had planned to collect just Rs10bn. Given the overwhelming response, SBI could come out with another such issue in the next three months, reports said. The bank is planning to close the issue before October 25. SBI floated a public issue of lower Tier II bonds worth Rs10bn, including Rs5 bn greenshoe. The QIB portion was subscribed more than 46 times. while the Non-Institutional (HNI) section was subscribed 18 times and Retail by twice the amount of bonds allotted to them. India to grow by 8.5 in FY2010: ADB India146s economy is set to expand by 8.5 in the fiscal year to March 2011 (FY2010) but persistently high inflation and a rising rupee could undermine future strong growth, says the Asian Development Bank (ADB) in a major new report. The Asian Development Outlook 2010 Update (ADO Update), raised its gross domestic product (GDP) growth figure for FY2010 to 8.5 from ADB146s April projection of 8.2, while retaining its FY2011 estimate at 8.7. Growth is being supported by robust investment, increased capital inflows, and stronger industrial output, buoyed by rising consumer demand. The current account deficit forecast was also adjusted to 2.7 of GDP in FY2010, from 1.5 previously to reflect a sharp pickup in trade flows, with exports projected to grow by 18 in FY2010, and imports by around 20. At the same time, ADB raised its forecast for annual average inflation in FY2010 to 7.5, up from 5 in April, warning that high food prices remain a near-term concern. SBI, PNB hike deposit rates by up to 75 bps State Bank of India (SBI) revised upwards deposit rates by 25-75 basis points (bps) across various maturities, effective from October 1. But, the countrys largest bank left the base rate unchanged at 7.50 p. a. As per the RBI norms, banks have to review their base rates every quarter. This is the first quarterly review of the base rates since it was introduced in July this year. For 91-180 days term deposits, SBI has increased the interest rate by 75 bps to 5.5. Fixed deposits with maturity period between 1 year and 554 days has been raised by 25 bps to 7. Interest rate on deposits for 555 days would be 7.5. Interest rate on term deposits of between 556 days and 1,000 days, under different slabs, has been increased by 50 bps, up to 7.75, SBI said. PNB said that taking note of the negative real rates to the savers, in view of high inflation, interest on fixed deposit have been increased by 25-50 bps across various maturities. The maximum rates offered by PNB now is 8 for deposits of maturity between 8 years and 10 years. For 1-3 years term deposits, the interest rate will be 7.5 interest, an increase of 25 bps. Fixed deposits with maturity of between 271 days to 1 year has been raised by 50 bps to 6, while deposits of 5-8 years would be paid interest rate of 7.75. PNB has decided to raise the base rate from 8.00 to 8.50 w. e.f. October 1, but the BPLR will remain intact at 11.75. The base rate is the minimum lending rate below which bank cannot offer loans. CRISIL puts 12 MFI on negative watch CRISIL has placed its outstanding ratings on the debt instruments of 12 microfinance institutions (MFIs) on 145Rating Watch with Negative Implications146. Six of these MFIs have ratings that are in the 145BB146 category or below. The implementation of the Andhra Pradesh (Andhra) ordinance has triggered a chain of events that can permanently damage the business models of MFIs, by impairing their growth, asset quality, profitability, and capital-raising ability. The Rs. 250 billion (as on March 31, 2010) microfinance industry plays an important role in extending formal financial services to 28 million of India146s under-served rural poor with the decline of the sector, the flow of credit to this segment of the population will be curtailed. The Andhra ordinance has been highly unfavourable for the industry resulting in a precipitous drop in the collection efficiency and profitability of MFIs, especially those operating in Andhra. Further, the flow of funding to the entire sector from the banking system has been severely constrained. Consequently, the liquidity position and growth prospects of many MFIs, including those operating outside Andhra Pradesh have been affected. Structurally, the regulatory jurisdiction and framework for MFIs remains unclear, with actions by multiple authorities increasing the challenges for the industry. Read More SKS Microfinance tumbles on falling collections Shares of troubled microfinance giant SKS Microfinance took a fresh pounding on Nov. 18 after saying that the collections are lower than normal on account of transition from weekly to monthly collection cycle and the related change in MIS, Passbook and member communication. One month has passed since the date of the Andhra Pradesh Ordinance. SKS microfinance commenced collection in those centres where it did not collect in the last 30 days. SKS Microfinance warned that if this is not redressed satisfactorily, the resultant reduction in collections in AP is likely to have a material impact on the companys revenues and asset quality of the AP portfolio. SKS Microfinance holds sanctioned credit limit of Rs 25bn from various banks and also confirms that seven banks have disbursed a sum of Rs 2.92bn post the AP Ordinance. SKS Microfinance disbursed Rs 10.48bn in October. SKS Microfinance said it was not able to conduct village centre meeting in 54 of the centres in AP for the week ended October 29. For the week ended November 12, the company was able to hold 97 of the centre meetings in AP. However, as the Andhra Pradesh Micro Finance Institution Ordinance, stipulated that the periodicity of the loan repayment should not be less than a month, no collection or disbursement was done in the said meetings. Axis Bank to buy Enams broking, investment banking biz Axis Bank Ltd. said that it will acquire the equity broking and investment banking businesses of Enam Securities Pvt Ltd in an all stock deal worth Rs 20.67bn, in a bid to complete its portfolio of financial services offerings. Enams Asset Management (AMC), Portfolio Management (PMS) and insurance broking businesses are not part of the deal, Shikha Sharma, CEO of Axis Bank said at a news conference in Mumbai. As part of the deal, Enam shareholders will receive 5.7 shares of Axis Bank for every one share held. Enam will own 3.3 of Axis Bank after the completion of the transaction. Post the deal, Enam will be a 100 subsidiary of Axis Bank, and will be headed by Enam director Manish Chokani. Vallabh Bhansali of Enam is likely to be inducted on the Axis Bank Board. The deal is subject to the approval of the RBI, SEBI, Stock Exchanges, High Courts and other statutory authorities, Bhansali said. On non-compete agreement, Bhansali said that Enam will not compete on any ground that has been transferred for a period of five years. He added that the shares will be subject to statutory lock-in as well. He also said that the total income of Enam Securities for the April1 to October 20, 2010, period stood at Rs. 1.82bn and the profit before tax (PBT) stood at Rs. 770mn. SKS Microfinance cuts interest rate further SKS Microfinance said it has agreed to a set of proactive measures recommended by the Microfinance Institution Network (MFIN), of which the Company is a member in good standing, to address the concerns raised by the AP State Government. In AP, the Company has already reduced interest rates to effectively 24.55 and shall take steps to further reduce it to effectively 24. The Company is also planning to reduce interest rates in other States to effectively 24 in due course. The Ordinance and its implementation will have material impact on the Companys operations in AP. The Company started holding centre meetings from November 8, onwards to communicate the changes, carry out necessary modifications and collect data like ration card numbers and SHG borrowing details as required by the Ordinance. اقرأ أكثر. SKS falls as AP assembly passes MFI bill The Andhra Pradesh state assembly approved a legislation to regulate the microfinance sector. The state assembly passed the Bill to regulate the working of microfinance institutions (MFIs) in the state. Shares of SKS Microfinance fell on reports of the Andhra Pradesh assembly passing a law to regulate Microfinance interest rates. Also, Citigroup downgraded its rating on SKS to quotsellquot from a quotholdquot. Citigroup said the current regulatory imbroglio has unraveled more sharply than expected and will likely leave a trail of impact on earnings, growth and asset quality even if resolved quickly. quotIf it prolongs, the impact could be higher, with possibilities of further downsides to the stock, quot Citigroup said in its report. Citigroup has cut earnings 41-52 over FY11-13E to factor in reduced lending rates, higher funding costs, lower growth and increasing credit cost requirements medium term. Mid-Term Review: Indias economy could grow 9 in FY11 That the Indian economy could grow at 9 this fiscal year was amply clear after the announcement of the second-quarter GDP data last week, but the same view on Tuesday received an official backing of sorts, with the Government saying that GDP in FY11 could cross 9. quotIt is estimated that growth in 2010-11 will be 8.75 with 0.35 variation on either side. The range indicates the possibility of crossing the 9 mark this year itself, quot according to the Mid-Term Economic Review tabled by Finance Minister Pranab Mukherjee in Parliament. The new range is wider than the earlier estimate owing to higher risk factors, including a possible deterioration in the economic situation in the eurozone, the Government said in its Mid-Term Review. It expects the fiscal deficit to remain within its budgeted range of 5.5 of GDP in FY11. quotSustaining such high levels of growth for a number of years, however, will require significant deepening of reforms initiative, quot said the Mid-Term Economic Review. Inflation has started coming down and stood at 8.6 in October compared to 11 in April 2010, as per the Mid-Term assessment of the Indian economy. Indias average headline inflation is seen at around 9 in the year ending March 2011. quotI am hoping that inflation will come down to 6 by March 2011,quot Mukherjee told reporters in New Delhi today after tabling the report in Parliament. During the quarter ended September 30, the Indian economy expanded by 8.9, taking the overall growth rate to the same level in the first half of FY11. Indias economic growth rate had slipped to 6.7 in FY09 on account of the global financial meltdown after having grown by over 9 in the preceding three years. GDP growth rate, however, picked up to 7.4 in FY10 as the Government unleashed a combination of fiscal cum monetary stimulus measures to mitigate the fallout from the global financial crisis on India. Banks jack up deposit rates amid cash crunch State Bank of India (SBI) and Bank of India (BoI) announced an increase in their deposit rates by 1 and 1.5, respectively, following similar moves by ICICI Bank, Punjab National Bank and Syndicate Bank. SBI is now offering 7.75 on its 1-year deposit compared to 7 it offered earlier. Other banks are expected to follow. Unlike HDFC and ICICI Bank however, SBI and BoI have left their lending rates untouched. Over the weekend, HDFC and ICICI Bank raised their lending rates by 50-75 basis points. ICICI Bank announced an increase in interest rates for various tenors of retail fixed deposits by 0.25 to 0.50 with effect from December 6. ICICI Bank also announced an increase of 0.50 in its benchmark prime-lending rate (BPLR) and in its Floating Reference Rate (FRR) for consumer loans (including home loans) with effect from December 6. The fixed rate customers will not be impacted by the above increase and their contracted rates will remain unchanged. With effect from July 1, interest rate on new loans and advances including consumer loans is determined with reference to ICICI Bank Base Rate (I-Base). I-Base is currently at 7.75 p. a. Banks are being forced to raise deposit rates because of shortage of money in the system. This lack of cash will tighten further when companies and individuals pay their advance taxes for the third quarter in mid-December. Earlier, the RBI governor had suggested that banks should increase the deposit rates to offer better returns to the depositors. Indian banks wont face problems adjusting to Basel III: RBI The Reserve Bank of India (RBI) Governor D. Subbarao said that Indian banks were well capitalised and can comfortably adjust to the new Basel III norms on capital, liquidity, disclosures and risk management. quotAt the aggregate level Indian banks will not have any problem in adjusting to the new capital rules both in terms of quantum and quality, quot Subbarao said in his Inaugural Address at 145BANCON 2010146 in Mumbai. quotWe expect to have a more accurate picture when banks review their Basel III compliance position following the publication of the final Basel III rules scheduled around the year end, quot he added. Indian banks are comfortably placed in terms of compliance with the new capital rules, Subbarao said, adding that a few individual banks may fall short of the Basel III norms and will have to augment their capital. However, as the phase-in time allowed is long enough, these banks should be able to make a comfortable adjustment to the enhanced requirement, the RBI Governor said in a statement. The central bank chief also said that there was a strong case to review and recast the countrys banking legislation. quotThe current statutory arrangement we have is a baffling plethora of laws governing different segments of the banking industry, quot Subbarao said referring to a slew of legislations governing Indian banks. However, he added that notwithstanding this wide array of legislations of varying vintage, the statutory arrangement has served the system well by helping maintain an orderly banking system. Govt announces recapitalisation of Public Sector Banks The Union Cabinet approved a proposal to provide an additional amount of Rs 60bn, in addition to the Rs 150bn already provided in the Budget, to ensure Tier I CRAR (Capital to Risk Weighted Assets) of all Public Sector Banks (PSBs) at 7 and also to raise the Government of Indias shareholding in all PSBs to 58. The exact amount, mode of capitalization and other terms and conditions would be decided in consultation with the banks at the time of infusion. The proposed capital infusion would enhance the lending capacity of the PSBs to meet the credit requirement of the economy in order to maintain and accelerate the economic growth momentum. quotThis additional availability of capital is likely to benefit employment oriented sectors, especially agriculture, micro amp small enterprises, export, entrepreneurs etc. in promotion of their economic activities which would, in turn, contribute substantially to the growth of the economy, quot the Government said in a statement. Read More ICICI Bank, HDFC to discontinue teaser home loans ICICI Bank said that it has discontinued the so-called teaser home loan schemes with immediate effect. HDFC also announced that it will not extend its special home loan schemes. With teaser home loans customers get credit at concessional rates for the first few years and rates start heading north from the fourth year. Under teaser rate, HDFC offered home loans at a fixed rate of 8.5 up to March 31, 2011, 9.5 for a period between April 1, 2011 and March 31, 2012 and the applicable floating rate for the balance term. Similarly, ICICI Bank had offered a rate of 8.5 in the first year, 9.25 in the second year and 1.5 over and above the base rate in the third year. It may be recalled that in its policy review meeting last month, the RBI had voiced concern over the high risk of default on loans offered at teaser rates. In fact, the central bank had increased the standard asset provisioning for dual rate loan schemes five times to 2 - a move seen as a clampdown on teaser loan products. RBI gets wide ranging comments on new bank licences The Reserve Bank of India (RBI) released the gist of the comments on the Discussion Paper on quotEntry of New Banks in the Private Sectorquot. The range of comments received has been very wide and does not indicate consensus on any of the issues, the central bank said. The comments received are reflective of sectoral positions, i. e. of banks, NBFCs and industrial houses. Comments from others also spanned a wide range, the RBI said. Incumbent banks are opposed to the idea of allowing industrial/business houses to promote new banks, as the large capital buffer that would be available to them would create an uneven playing field. Moreover, having financial licence and having industrial activity implies there could be connected lending. Allowing industrial houses to own banks will also exacerbate the concentration of economic power and political influence, argued some stakeholders. However, as an experiment, a couple of industrial houses could be allowed to own restricted small banks. Those who favour giving licence to industrial/business houses say that financial inclusion requires higher scale of operations that the business houses would be able to achieve by deploying large capital. Furthermore, these entities have the entrepreneurial and managerial talent that could be gainfully harnessed in the banking sector. On the eligibility criteria for granting licence to industrial/business houses, the suggestion is that only entities with diversified and transparent shareholding structure should be permitted to set up banks. On the issue of minimum capital requirement, the federations/ associations of industry/ banks favoured a high start-up capital of Rs 10bn, which could be raised up to Rs 15-20bn over a period of time, so that they can make investments in technology for financial inclusion and scale up operations. On the issue of promoters shareholding in new banks, while the federations/ associations of industry suggested a range of 40-51, the NBFC/MFI sector suggested a lower range of 30-40. The minimum promoters contribution to be retained after dilution of stake over a period of 5-10 years ranged from 5-26. On permitting conversion of NBFC into banks or promoting new banks, existing banks were in favour of allowing only standalone NBFCs to promote banks and at the same time debarring NBFCs sponsored by industrial/business houses. Most respondents felt foreign shareholding should be capped at the current level of 74. Some favoured the removal of all restrictions, while a few suggested that the apex bank should put a cap of 50. Bernanke weathers storm. gets 2nd term as Fed chief After several days of uncertainty and conjecture over the fate of Ben S. Bernanke, the US Senate gave a green light for his appointment as the chairman of the Federal Reserve for a second term. Bernanke survived hard-core opposition by some Senate Republicans and Democrats to his handling of the financial crisis and the questionable conduct of the American central bank in the years leading up to the financial crisis. The 70-to-30 vote was the weakest endorsement ever extended to a chairman in the Fed146s 96-year history. The confirmation was a victory for US President Barack Obama, who had called Bernanke an architect of the recovery. Bernanke cleared the procedural vote easily, ultimately winning 77 votes. The final vote was a bit closer. Only a week ago Bernankes nomination looked a bit uncertain after the Senate delayed his consideration for a second term, fueling speculation that the Fed chief might lose support amid a growing outrage over the hugely unpopular bank bailouts. Bernankes term was set to expire on Jan. 31. He had originally been appointed by President George W. Bush. He rejoined the Fed, as chairman, in 2006, and Obama re-nominated him last year. World Bank sees modest recovery in 2009 The global economy will witness a moderate rebound this year following the worst financial crisis in several decades, but chances of another dip cannot be ruled out once policymakers start unwinding some of the emergency stimulus measures, the World Bank said. Global gross domestic product (GDP), which declined by 2.2 in 2009, is expected to grow 2.7 this year and by 3.2 in 2011, according to the World Banks annual Global Economic Prospects report for 2010. The projected growth this year in developing countries should reach 5.2 and rise slowly to 5.8 next year, compared to 1.2 in 2009, the World Bank said. China is leading the recovery with its economy set to expand by 9 this year and next. Industrialised countries will show the weakest recovery at just 1.8 this year, versus a contraction of 3.3 in 2009, the World Bank said. Their recovery is likely to strengthen by a tepid 2.3 in 2011, the multilateral agency said. Earlier this week, the International Monetary Fund (IMF) chief, Dominique Strauss Khan said that the global economic recovery is stronger than expected and projected that growth rate in 2010 is likely to beat the forecast of 3. Obama slaps bailout tax on financial firms US President Barack Obama proposed a plan to tax financial companies that took bailout funds from Washington to keep them from collapsing like Lehman Brothers. The legislation is necessary to make sure Wall Street banks return the money they accepted in full. As per the Obama proposal, Wall Street banks are liable to pay up to US117bn to reimburse taxpayers for the financial bailout, as he slammed bankers for their massive profits and obscene bonuses. quotMy commitment is to recover every single dime the American people are owed, quot Obama said at the White House yesterday, flanked by members of his economic team. quotWe want our money back and we are going to get it, quot he said. quotMy determination to achieve this goal is only heightened when I see reports of massive profits and obscene bonuses at some of the very firms who owe their continued existence to the American people, quot Obama told reporters. The fee calls for a levy of 0.15 of a percentage point on the balance sheets of companies with assets exceeding US50bn. It is also aimed at helping to reduce the ballooning US budget deficit. The assessment on excess liabilities at big firms is designed to raise about US90bn over 10 years. It would remain in place for at least 10 years, or until all losses from the Troubled Asset Relief Program (TARP) were repaid. Ten firms will pay 60 of the tax. The fee would need to be approved by Congress. Full details of the fee proposal will not be laid out until Obama delivers his budget for fiscal 2011 in early February. The special assessment would apply to about 50 companies - including banks, bank holding companies, thrifts, insurance companies, and broker-dealers. The fee would not apply to hedge funds or mutual funds. AIG will be subject to the fee, but mortgage lenders Fannie Mae and Freddie Mac, which are under government conservatorship, will be excluded. The fee would also not apply to General Motors Co. and Chrysler, the still-ailing US automakers that got bailout money. China surprises with 50 bps hike in reserve ratio The Peoples Bank of China (PBOC) increased bank reserve ratios and nudged interest rates higher in the interbank market for the second time in a week in a clear sign that policymakers are trying to cool the rapid economic growth. Authorities in Beijing seem to be concerned about the dangers that inflation poses to the worlds fastest-growing major economy. The central bank ordered a boost in the yuan reserve requirement ratio for banks by 50 basis points, or half a percentage point, effective Jan. 18, according to a statement on its Web site. The current ratio is 15.5 for large banks and 13.5 for smaller banks. It was the first increase in the reserve-requirement ratio since Beijing began a massive economic stimulus program in November 2008. The announcement came after the financial markets in China had closed on January 12. The PBOC didnt give a reason for its decision to raise the reserve ratio, but the move signals that Beijing is increasingly worried that the rapid increase in lending could fuel asset bubbles and raise the risk of inflation. In a statement posted on its Web site, the PBOC said that the proportion of funds that rural credit cooperatives must deposit with the central bank will remain unchanged, to help support spring farming. The announcement follows the Chinese central banks decision to raise the yield on its one-year bills on January 12 for the first time in five months after a similar move on another benchmark sale on January 7. ECB leaves rates steady at record low The European Central Bank (ECB) kept interest rates for the euro area at record lows. The ECB Governing Council voted to hold its key interest rates unchanged, leaving its benchmark lending rate at a record low of 1. The euro-zone economy is likely to grow at only a moderate pace in 2010 and the recovery may remain uneven, ECB President Jean-Claude Trichet said at his monthly news conference in Frankfurt. The eurozones economic recovery is likely to be laborious, with highs and lows from one quarter to the next, Trichet said. Thanks to the intervention of central banks and governments a serious recession was averted, but the recovery will be difficult, chaotic in some sense, he added. Great turbulence in the financial sector is unlikely and the ECB will do everything to assure a financial environment as positive as possible for confidence and growth, Trichet said. Fed continues to see slow recovery for US Recovery in the US, the worlds largest economy, will be a gradual one despite tell-tale signs of improvement in the key data points, according to the minutes from the Federal Reserves last policy meeting in December. Incoming data started to take a more positive tone in the weeks prior to the Feds policy meeting on Dec. 15-16. After the meeting, the Fed held policy steady and made only cosmetic changes to its policy statement. Fed officials welcomed the better news but said it did not change their outlook. And, although the November employment report was better than expected, Fed officials observed that more good news is needed on this front to provide convincing evidence of a sound recovery in the labor market. Fed policymakers were split about the forecast for inflation in the longer-term, but on the whole inflation is not a major concern for the US central bankers at the moment. The Fed staff expects core inflation to slow down over the next two years. Bank of England leaves interest rates steady Interest rates were left unchanged at 0.5 by the Bank of England (BOE), as the Monetary Policy Committee (MPC) kept the price of money at record lows to stimulate the flagging economy. Members of the committee said they intended to continue with the 200bn programme of quantitative easing, pumping cash into the financial system until the completion of the scheme next month. Interest rates have been at the record low of 0.5 since March last year. The MPC146s decision was essentially as expected, shifting the focus to next month, when the BOE will know how the UK performed in the fourth quarter of last year and will have to decide whether to continue pumping billions in liquidity. Global February 2010 Fed not in a hurry to raise rates: Bernanke Federal Reserve chairman Ben S. Bernanke reassured common Americans, corporates and world markets that he will keep interest rates at record low for the foreseeable future, as the economic recovery in the US is still fragile. In his first day on Capitol Hill this week, Bernanke told the House Financial Services Committee that while the economic recovery is moving along, the job market remains weak. Against this backdrop, the Fed is unlikely to lift the fed funds rate, the key overnight bank lending rate, anytime soon. However, he did imply that the Fed will at some point need to raise the fed funds rate. Bernanke was scheduled to appear before the Senate on Thursday. Investors are looking for more on how and when the Fed plans to unwind emergency programs that were put in place at the height of the financial crisis. The Fed boosted the discount rate - the emergency bank lending rate - by 25 basis points to 0.75. It was a largely symbolic move in a rate that is rarely used by banks, but it was also the first rise in rates in over a year and the first move in any direction for rates in over two years. Bernankes prepared testimony had hardly any surprises, and he gave no new clues regarding the future of monetary policy. As a result, Fed watchers maintained their own forecasts for monetary policy. Many see the first rate hikes coming in the fall of 2010 others see no move until next year. Financial markets, which have been rattled of late amid mounting worries about an impending reversal in loose money policy, heaved a sigh of relief. Markets seemed happy that Bernanke wasnt hawkish. Fed to look into Goldman-Greece dealing: Bernanke Federal Reserve Chairman Ben Bernanke announced that the US central bank was looking into Goldman Sachs dealings with the Greek government. Reports stated that the European Union has demanded that the Greek government provide details of how it used currency swaps and other instruments. Bernanke said that the Fed was looking into trading of credit default swaps (CDS) that allow financial firms and investors to bet that Greece will default on its debt, report adds. quotWe are looking into a number of questions related to Goldman Sachs and other companies and their derivatives arrangements with Greece, quot Bernanke said in a testimony before the Senate Banking Committee in Washington. Bernanke was responding to a question from Senator Christopher Dodd, a Connecticut Democrat, who asked if there should be limits on the use of credit default swaps to prevent runs against governments. Greek bonds slid amid concern that the country146s credit ratings may be cut. IMF to sell 191 tons of gold. prices edge lower The International Monetary Fund (IMF) said that it plans to sell 191.3 tonnes of gold to raise new resources, pushing spot prices and gold-miner shares lower. The value of the planned sales would be worth about US6.2bn at current prices, according to some estimates. The sales would follow the unloading of 212 tons of IMF gold to three central banks, part of a program approved by the executive board in September. Those transactions under the previous tranche of the IMF gold-sale program consisted of a 200-ton sale to the Reserve Bank of India (RBI) in October, followed by November sales of two tons to the Bank of Mauritius and 10 tons to the Central Bank of Sri Lanka. The latest planned sales would complete the IMFs program to reduce its holdings of the precious metal by about one-eighth. The IMF announced last year that it would sell 403.3 tonnes of gold, about one-eighth of its total stock, to diversify its sources of income and increase low-cost lending to poor. The world lender said that the open-market sales will be conducted in a phased manner over time to avoid disruptions of the gold market. BOJ leaves key rate unchanged As widely expected, the Bank of Japan (BOJ) left its benchmark interest rate unchanged at 0.1. The policy-setting board of Japans central bank voted unanimously to leave borrowing costs steady. The BOJ also maintained its overall view for the worlds second-largest economy, and didnt issue any new policy initiatives, though it repeated the pledge to do all it could to pull Japan out of deflation. The policy board kept the loan facility for commercial banks and monthly purchases of government bonds unchanged, keeping the powder dry just in case it faces dire situation on deflation going forward. Given the fiscal deterioration, the BOJ will face increasing pressure to tackle deflation. Prime Minister Yukio Hatoyama146s government may find little room to maneuver fiscal spending and instead put more heat on the central bank to prop up the economy ahead of a July election. Finance Minister Naoto Kan said this week in parliament that Japan should adopt a policy target of achieving 1 inflation and the government wants to work with the bank to spur prices. The policy board kept its assessment of the Japanese economy unchanged at the meeting, saying that it is picking up. There is not yet sufficient momentum to support a self-sustaining recovery, the BOJ said. It also reiterated that beating deflation is a critical challenge for the economy and the bank will aim to maintain the extremely accommodative financial environment. China surprises. raises bank reserve requirement again In an unexpected move, Chinas central bank once again sought to check the unbridled loan growth in that nation by asking banks to increase their reserves for the second time this year. The move once again rattled markets around the globe. From Feb. 25 Chinese banks will be required to set aside an additional 0.5 of deposits as reserves, the Peoples Bank of China said. After the hike major banks will be required to set aside 16.5 of deposits. Smaller banks are currently required to set aside 14 of deposits. The announcement came after the close of financial markets in Shanghai and on the eve of the week-long Chinese New Year holiday. On January 12, the Chinese central bank had increased banks146 reserve requirements for the first time since June 2008. Chinese policy makers are becoming more concerned about containing inflationary expectations and managing the risk of asset price bubbles. Policy makers are reining in credit growth after banks extended 19 of this year146s 7.5 trillion yuan (US1.1 trillion) lending target in January and property prices climbed the most in 21 months. Economic data this week showed property prices across 70 cities surged 9.5 in January, exports climbed and producer-price inflation accelerated. Bank lending of 1.39 trillion yuan topped the total for the previous three months combined. The central bank said on Feb. 11 that it plans to gradually normalise monetary conditions from a crisis mode after gross domestic product (GDP) grew by 10.7 in the fourth quarter, the fastest pace in two years. The move doesn146t alter the central bank146s moderately loose monetary policy, local media reports cited an unnamed official as saying. Concerns about possible asset bubbles in China, and what action the Beijing government may take to prevent or deflate them, have mounted this year. Oil, copper and European stocks fell on concerns that tighter lending in China will hurt the fragile global recovery. BOE and ECB hold rates steady The Bank of England (BOE) and the European Central Bank (ECB) kept interest rates at record lows as financial markets looked for guidance on growing eurozone debt problems. The ECB maintained its main lending rate at one percent while the BOE rate stayed at 0.5. The BOE, however decided to halt its programme of quantitative easing. Since March 2009 it has injected 200bn (US320bn) of money into the economy by buying assets, mainly gilts. Markets had widely anticipated the decisions and were far more concerned by debt-ridden Greece and other countries with soaring public deficits that have pushed the eurozone into its worst-ever crisis. Ireland, Portugal, Greece and Spain are threatened by big deficits and slumping competitiveness exacerbated by the global economic crisis, while debt-laden Italy completes the group of eurozone members fueling fears on financial markets. Fed reiterates pledge to keep rates at record low In a widely expected move, the Federal Reserve announced plans to hold its benchmark interest rate at historic lows near zero percent, the level at which the rate has been since Dec. 2008. Echoing past statements, the Fed policymakers said that rates will remain quotexceptionally lowquot for an quotextended periodquot of time. Economic conditions continue to improve and that the job market is stabilizing, the FOMC said in a statement. While the Fed expects economic growth to be quotmoderatequot in the short run, the bankers said activity could pick up in the future as inflation remains tame. Although the Fed did nothing on its ultra loose monetary policy it did offer a more optimistic assessment on the state of the labour market. Fed policymakers said they have seen some progress in the economic recovery, but not nearly enough for it to even hint at raising interest rates. Thomas Hoenig, president of the Federal Reserve Bank of Kansas City, was the one dissenting vote. Hoenig, who was also the sole dissenter at the Fed meeting in January, is concerned that keeping rates low indefinitely could be creating new bubbles in financial markets. As previously announced, the Fed said its plan to buy US1.25 trillion in mortgage-backed securities will end later this month. The Fed closed four emergency backstop lending programs in February. The Fed may increase the discount rate, charged on direct loans to banks, before the next meeting of the FOMC on April 28, economists said. Last month, the Fed announced the first increase in the discount rate in more than three years, widening the spread over the benchmark federal funds rate to 0.5. BOJ loosens monetary policy further The Bank of Japan (BOJ) announced plans to double the scale of low-interest loans available to the money markets introduced in December 2009 while leaving its key policy interest rate unchanged. A split BOJ board members voted five to two to increase the scope of the fund-supplying operation. The BOJs policy board said that it will offer another 10 trillion in three-month cash at a 0.1 fixed rate to financial institutions, on top of the 10 trillion yen it offered in December 2009. Miyako Suda and Tadao Noda opposed the decision. The Japanese central bank also left the unsecured overnight call loan rate unchanged at 0.1 - the level it has been since December 2008. Japanese stocks and the yen extended gains after the BOJ announcement, which was mostly in line with market expectations. quotGiven the expiry of separate steps to facilitate corporate financing, the bank will expand the measure to encourage a decline in longer-term interest rates by substantially increasing the amount of funds to be provided through the fixed-rate operation, quot BOJ said in a statement. The Japanese central bank refrained from calling the action monetary easing. The bank left unchanged its assessment that the economy is picking up. China bank lending falls in Feb from January Fresh lending in China fell in February after the government told banks to limit credit growth and raised reserve requirements. Banks extended 700.1 billion yuan (US103bn) of local-currency loans, down from 1.39 trillion yuan in January and 1.07 trillion yuan a year earlier, the People146s Bank of China said. M2, the broadest measure of money supply, rose 25.5. The figures beat median forecasts for lending growth of 675 billion yuan and an M2 expansion of 25, according to economists. A seasonal factor may have contributed to the lower loan number. Chinese markets and most businesses closed for the weeklong Lunar New Year holiday, which was in January last year and February in 2010. BOE leaves key rate steady The Bank of England (BOE) kept its main lending rate at a record low 0.5 besides also leaving its money-printing, quantitative-easing program on hold, at least for now. The British central bank has made it clear that it expects the spike in consumer prices to prove temporary. The large degree of spare capacity left by the deep recession will bear down on prices over the long run, eventually pulling inflation below the 2 target, the BOE said in its quarterly inflation report in February. That means the BOE will not raise rates any time soon. If the BOE does act in the near term, it would most likely be to revive the quantitative-easing program, which was placed on hold in February after completing 200 billion pounds (US301.3bn) of asset purchases. Minutes of the monthly meeting of the banks nine-member Monetary Policy Committee will be released March 17. ECB too keeps rates steady The European Central Bank (ECB) kept the region146s key interest rate unchanged and extended some economic stimulus measures to cement the recovery. The ECB did however phase out some of the emergency tools used to fight the financial crisis. The bank will tighten the terms of its three-month market operations in April by returning to the pre-crisis practice of offering the funds at a variable rate. In its main seven-day operations, it will keep lending commercial banks as much money as they need at its benchmark rate for at least seven months. The ECB left that rate at a record low of 1. US launches Federal probe against Goldman Sachs US Federal prosecutors are reportedly looking into whether Goldman Sachs has committed securities fraud. The Securities and Exchange Committee (SEC) referred its investigation of Goldman to the Justice Department for possible criminal prosecution, according to several media reports. quotGiven the recent focus on the firm, we are not surprised by the report of an inquiry, quot said Samuel Robinson, a spokesperson for Goldman. quotWe would fully cooperate with any requests for information. quot The SEC, the Justice Department and the US Attorneys office all declined to comment. Earlier this month, the SEC charged Goldman with securities fraud for failing to tell investors that hedge fund Paulson amp Co. helped select securities for a portfolio it was also betting against. Goldman has denied the allegations. . Goldman execs grilled in Senate Seven current and former Goldman Sachs executives, including CEO Lloyd Blankfein, faced an extensive and intense cross-examination from the US lawmakers about the firms role in the financial crisis. The Senate hearing that lasted more than 10 hours. Goldman Sachs has been accused by Levins committee of betting aggressively against the US housing market, making as much as US3.7bn in the process. Documents released by the panel this week also showed that Goldman Sachs may have been engaging in other questionable practices. Goldman Sachs has maintained that it too got hit when the US housing market collapsed, losing some US1.2bn in 2007 and 2008. It has also rejected charges that it bet against US homeowners or against its own clients. Meanwhile, Blankfein said he was humbled by the Senate hearing. quotIt was quite a humbling experience to be in a position where Goldman Sachs, which prides itself on the role it performs in the US economy had to defend itself against some of the charges that were made, quot Blankfein said. Senators did not produce any evidence of wrongdoing, but Blankfein was embarrassed by a leaked e-mail that showed him boasting about the money Goldman Sachs had made by betting against the housing market. US Senate starts debate on financial reform The US Senate has begun debate on a bill to overhaul Americas financial system in what would be the most far-reaching reform since the Great Depression of the 1930s. Twice this week the Republicans scuttled the start of the proposed debate before finally agreeing to kick off discussions on the legislation to overhaul US financial regulations. The Democrat-sponsored financial reform bill seeks to boost consumer protections in the financial industry, strengthen regulation and oversight of financial firms, limit the risk-taking ability of banks and other institutions, and establish a procedure for the federal government to liquidate financial firms that become insolvent. A key concept promoted by the bills sponsors is transparency. The Republicans were joined in their initial opposition by Ben Nelson, a Democrat from Nebraska, who wanted to remove an amendment requiring existing derivative contracts to be backed with cash as collateral. Such a move would hurt companies like Warren Buffett146s Berkshire Hathaway, which is based in Nelson146s home state and holds US63bn in derivatives. Republicans still could hold up a final vote on the legislation. Fed leaves rates steady sees strength in US economy The US Federal Reserve said that economic activity in the worlds largest economy is picking up, and that it would hold a key short-term interest rate steady for an extended period of time. In its statement, the FOMC said it quotwill maintain the target range for the federal funds rate at 0 to 0.25 and continues to anticipate that economic conditions, including low rates of resource utilization, subdued inflation trends, and stable inflation expectations, are likely to warrant exceptionally low levels of the federal funds rate for an extended period. quot The Fed has kept interest rates near zero at every meeting since December 2008. The fed funds rate, the central banks key overnight lending rate, is a benchmark used to set interest rates on a wide variety of consumer and business lending. In December 2008, the Fed cut the rate to near 0 in an effort to spur economic activity, and has left it there ever since. Once again, Federal Reserve Governor Thomas M. Hoenig dissented, objecting to the quotextended periodquot phrase on worries about inflationary concerns. Hoenig argued that such a forecast could feed the growth of future asset bubbles, like the housing bubble. Other Fed policymakers said they are still concerned that the economic recovery will stay modest in the near term and therefore they need to maintain a status quo on interest rates to help the economy get fully back on track. BOJ mulls new efforts to bolster growth As expected, the Bank of Japan (BOJ) voted unanimously to keep its policy interest rate and special monetary stimulus programs unchanged but surprisingly said it needed to make quotnew effortsquot to help strengthen the worlds second largest economy. In an unusual statement, the BOJ said that members of its policy board shared the view that it was necessary for the Japanese central bank to make new efforts to contribute to strengthening the foundations for economic growth. The BOJ said implied that it will announce a change to policy at a later date as new data underlined the challenges facing the central bank. But, BOJ Governor Masaaki Shirakawa said there was no need for further monetary easing now. Shirakawa said new measures that the central bank is considering are aimed at helping private banks boost Japans economic growth. The Japanese central bank also raised its forecasts for core consumer prices and said they will rise in the fiscal 2011-12. Bank of Canada to hike rates in June The Bank of Canada hinted that it might raise interest rates in June, which would make it the first central bank in the G7 to do so. Canadas central bank held its key interest rate at a record low 0.25. The Bank of Canada said it is withdrawing its conditional commitment to keep the rate steady until July. The bank said the need for such extraordinary policy is now passing and it is appropriate to begin to lessen the degree of monetary stimulus. That sets the stage for a rate hike on June 1 when the central bank next meets. The central bank said that the economy is growing somewhat more rapidly than it expected. The bank now projects the economy will grow 3.7 this year, well above the 2.9 expansion it had forecast in January. The Canadian dollar moved back above parity with the US dollar after the Bank of Canada signaled it will raise rates soon. Bernanke sees moderate recovery in US Federal Reserve chairman Ben S. Bernanke testified before a joint session of Congress on the economic outlook, saying that private-sector demand would be sufficient to spur moderate recovery in coming months, but more time is needed to reverse the job losses. The US economy would continue to recover at a moderate pace in coming quarters, bolstered by a return of business and consumer spending, the Fed chairman told the Joint Economic Committee of Congress. Private demand would be sufficient to replace the diminishing government stimulus and inventory adjustment that have spurred growth in the past six months, he said. Bernanke said that consumer spending could continue in coming months, aided by a gradual pickup in jobs and the recovery of household wealth from recent lows. He also pointed to a few challenges facing the US economy. Bernanke noted that the housing market still appears sluggish and that state and local governments are grappling with severe budget shortfalls. Growth in bank credit remains muted despite improving financial conditions, Bernanke said. Separately, the Fed released its Beige Book report, which said that economic activity expanded somewhat in 11 of the central banks 12 districts. Overall economic activity in the US has increased since mid-March, according to the latest Fed assessment on the economy. IMF raises global growth projection: reports The International Monetary Fund (IMF) has reportedly raised the forecast for global economic growth. As per a draft of its next World Economic Outlook, the global economy could grow 4.1 this year, up 0.2 over the previous forecast. The US economy is now expected to grow 3 in 2010, instead of the 2.7 forecast in the IMFs January report, according to published reports. The IMF is due to publish its next World Economic Outlook on April 21. The euro zone growth this year is now forecast to be 0.8, down 0.1 from Januarys estimate. In 2011, the figure is seen at 1.5, also down 0.1, the reports said. Europes biggest economy, Germany, is expected to report a 1.2 rise in GDP in 2010 and 1.7 in 2011, the IMF draft says. Those figures are down 0.3 and 0.2, respectively from the January forecast. ECB keeps rates steady. Trichet plays down Greece worries As anticipated, the European Central Bank (ECB) also left its key lending rate unchanged at 1. At a monthly news conference in Frankfurt, ECB President Jean-Claude Trichet attempted to shore up confidence in the eurozones rescue plan for Greece as shares on the Athens stock market tumbled and the countrys borrowing costs soared. Trichet stressed that eurozone leaders are very seriously committed to help Greece if needed, and nobody should take this pledge lightly. A debt default, the ECB president added, was not an issue for Greece. Trichet suggested that interest rates charged on emergency loans to Greece could be as low as the rate at which other eurozone governments borrowed themselves. Greece stocks slumped, with its broad index down 3. The yield on ten-year Greek government bonds jumped sharply, pushing Greece146s premium over German bonds to the highest level since Greece joined the euro in 2001. Confidence in Greece has plummeted because of the lack of detail over how the proposed eurozone rescue package, which would involve the IMF also, would work. There is uncertainty over the borrowing costs that would be imposed. BOJ too stands pat on rates As expected, the Bank of Japans (BOJ) policy board unanimously voted to keep its key interest-rate target steady at 0.1. The policy interest rate has remained unchanged since December 2008. In its accompanying policy statement, the Japanese central bank maintained its overall upbeat view of the worlds second largest economy. quotThe Japanese economy has been picking up, mainly due to improvement in overseas economic conditions and to various policy measures, quot the BOJ said. quotBut, domestic private demand lacks sufficient momentum to support a self-sustaining recovery, quot it added. The BOJ pledged that it would aim to maintain the extremely accommodative financial environment. The Japanese central bank refrained from expanding measures to fight deflation and Governor Masaaki Shirakawa said that a return to recession is unlikely as the recovery begins to sustain itself. quotWe have confirmed that the economy is currently picking up steadily and on top of that, we are seeing some signs of future progress, quot Shirakawa said at a news conference in Tokyo. BOJ holds rates steady, raises economic outlook As expected, the Bank of Japan (BOJ) decided to keep its key policy rate unchanged at 0.1 while adding that the worlds second-largest economy was now recovering moderately. The Japanese central bank also detailed new measures to encourage lending and defeat deflation, as was mentioned at its April 30 meeting. The BOJ said that it would expand lending to private financial institutions, allowing new one-year loans that can be rolled over. The amount on offer will depend on banks lending levels, it added. The Japanese economy is starting to recover moderately, induced by improvement in overseas economic conditions, the BOJ said in a statement. A government report showed GDP growing at an annual 4.9 rate last quarter, slower than economists forecast. More than half of the expansion came from trade as domestic demand remained subdued, underscoring Japan146s vulnerability to any global slowdown. The policy board said that it is watching the development of the fiscal situation in Europe and how it might affect the global economy. The BOJ pumped 1 trillion yen (US11bn) of same-day funds into the banking system to boost liquidity, the third such addition since May 7. BOE leaves key rate, bond-purchase plan on hold The Bank of England (BOE) said that its Monetary Policy Committee left its key lending rate unchanged at a record low 0.5 and kept its 200bn (US297.1bn) asset-purchase plan on hold. Both moves were in line with consensus market expectations. The BOEs May policy meeting was deferred last week due to Thursdays general election in the UK. The Conservatives, led by David Cameron, won 306 seats, not enough to command a majority in Parliament. Prime Minister Gordon Brown146s Labour Party retained 258 seats, while Nick Clegg146s Liberal Democrats held 57. Conservative and Liberal Democrat negotiators are holding a fourth round of coalition talks today as they struggle to form a government. ECB holds rates steady as debt crisis escalates As expected, the European Central Bank (ECB) held its key interest rate at record low for a 13th consecutive month amid persistent fears that the debt crisis, which forced Greece to take loans from the EU and IMF, could spread to other heavily indebted nations in Southern Europe. The move came just days after the EU and IMF jointly decided to lend 128110bn to euro-zone member Greece. The Greek parliament votes later on Thursday on whether to accept the rescue package, and other euro-zone nations needs to ratify it as well. This was the first rate decision by the ECB since dropping rules on the collateral that Greek banks can provide in return for loans. The euro has nose-dived since that decision and plunged to a 14-month low on May 5. The move was regarded as a lifeline for Greek banks, which have used their holdings of government debt to raise much-needed cash. Had other ratings agencies followed Standard amp Poor146s in downgrading Greek bonds to junk status, the paper would have no longer been eligible as collateral under the usual ECB rules. The ECB could also reverse the withdrawal of emergency lending measures used to fight last year146s recession, dilute collateral rules further and even resort to government bond purchases to restore confidence in markets and lower borrowing costs. ECB council member Axel Weber said that the threat of contagion doesn146t merit using every means, rejecting calls for the central bank to consider buying government bonds. quotMeasures that damage the fundamental principles of the currency union and the trust of the people would be mistaken and more expensive for the economy in the longer term, quot he said. Australia central bank ups policy rate by 25 bps The Reserve Bank of Australia raised the benchmark cash rate by a quarter of a percentage point. The rate now stands at 4.5. The RBA raised the cash rate in March and April by 25 basis points, having already lifted it by 75 basis points between October and December last year. The central bank has increased its benchmark rate by 150 basis points since early October. RBA governor Glenn Stevens has said that, with the economy having recovered, the cash rate should be quotnormalquot in a range of 4.5 to 5. Stevens said that interest rates for most borrowers will now be around average levels. Stronger growth and higher borrowing costs have pushed the Australian dollar up 26 in the past year. Australia146s economy has accelerated, stoking inflation and property prices, which surged more than 20 in the 12 months through March. Policy makers are less concerned about factors such as Greece146s debt turmoil, which Stevens cited as a reason for keeping rates unchanged in February. BOJ offers 3 trillion yen in new lending The Bank of Japan (BOJ) said that it would offer as much as 3 trillion yen (US33bn) in new lending to financial institutions in a bid to expand credit available to companies. The BOJ made the announcement in a statement in Tokyo. The Japanese central bank also left its key policy rate unchanged at 0.1 as had been widely expected by economists. The new lending facility will be temporary, with funds possibly available by about the end of August, the BOJ said today. Each counter-party will be allowed to borrow up to 150 billion yen on a one-year basis and will be able to roll over the loans up to three times, it said. The BOJ also said that the Japanese economy shows further signs of a moderate recovery, induced by improvement in overseas economic conditions. ECB holds rate steady As expected, the European Central Bank (ECB) left its key lending rate unchanged at a record low 1. With this, the ECB has held interest rates unchanged for 10 successive months. The move came a day after EU finance ministers met to discuss cuts in budget deficits across the continent. The ECB will continue to purchase euro-zone government bonds and will hold off on withdrawing crucial short-term liquidity from the financial system due to ongoing tensions in the money markets, President Jean-Claude Trichet said. The central banker downplayed divisions within the banks 22-member Governing Council over the bond plan, which was announced last month. Separately, some ECB members said that the euro zone does not risk relapsing into recession and markets are overly pessimistic about Europes common currency. The Bank of England (BOE) maintained status quo on its bond-purchase programme and left its benchmark interest rates unchanged at a record low amid concerns that sharp spending cuts planned by the new government would hurt the UK economy. The decision was widely expected. The British central bank provided no further details of the Monetary Policy Committees decision. Minutes of the meeting will be released on June 23. The BOE move comes after several inflation reports came in ahead of the MPC146s medium-term target of 2. Inflation, as measured by the Consumer Price Index (CPI), rose in April at an annualised rate of 3.4. Basel Committee relaxes new bank rules The Basel Committee on Banking Supervision softened some provisions in Basel III, a set of rules being drawn up to govern banks146 capital requirements and liquidity standards. The modifications water down earlier definitions of capital and include a long phase-in period to comply with new requirements about leverage and liquidity ratios. The final package of reforms is expected to be presented to the G20 leaders146 meeting in Seoul in November. The Basel Committee, operating from the headquarters of the Bank for International Settlements (BIS) in Basel, Switzerland, agreed on a complex set of compromises to adjust a number of measures. The goal is to put in place stricter global banking regulations known as Basel III to ensure capital adequacy and liquidity in the worlds banking system. A list with all the exact changes is available on the BIS website. ADB upgrades forecast for developing Asia The Asian Development Bank (ADB) upgraded its economic forecast for developing Asia after first-quarter data showed broad-based growth driven by buoyant exports, strong private demand, and sustained stimulus policy effects. In a special assessment of the region released this week, ADB said that it now expects developing Asia to grow by an aggregate 7.9 in 2010, up from the 7.5 predicted in its Asian Development Outlook (ADO) 2010 published in April. ADB warns downside risks in the second half of the year including uncertain global environment, unpredictable private domestic demand, and the risks of dramatic capital flows and exchange rate fluctuations. As such, the growth outlook for 2011 is kept unchanged at 7.3. Developing Asia comprises 45 member countries of ADB and covers Central Asia, East Asia, South Asia, Southeast Asia and the Pacific. اقرأ أكثر. BOJ keeps key rate steady The Bank of Japan (BOJ) left its key interest rate unchanged at 0.1. The unsecured overnight call loan rate has been left unchanged since December 2008. The policy boards vote was unanimous. The Japanese central bank hiked fiscal year real GDP view to 2.6 from its previous estimate of 1.8. quotGrowth prospects will likely be higher for fiscal 2010, mainly due to acceleration of growth in emerging economies, quot the BOJ said in a statement. It left the overall economic assessment unchanged, saying that the countrys economy shows further signs of a moderate recovery. The BOJ expects next years GDP growth to slow to 1.9, down from the previously estimated reading of a 2.0 rise. The BOJ also slightly altered its price expectations to show more moderate deflation this fiscal year. The BOJ raised fiscal year core CPI outlook to a 0.4 fall from the previously estimated 0.5 drop. It maintained its median forecast for the next fiscal year for a 0.1 decline in core CPI. IMF lifts global growth projection to 4.6 The International Monetary Fund (IMF) raised its forecast for global economic growth this year, reflecting a stronger-than-expected first half, while warning that over the next 18 months the momentum is widely expected to fall below the pace of the first half of 2010. Releasing its latest update to the World Economic Outlook in Hong Kong, the IMF predicted that the world economy will expand by 4.6 in 2010, the biggest gain since 2007, compared with an April projection of 4.2. But, expansion will decline to 4.3 next year, unchanged from the April forecast, the Washington-based fund said. Canada and the US are leading advanced economies out of the worst recession since World War II, trailed by euro-area countries that need additional measures to boost confidence in their banks, the fund said. Faster expansions in Brazil, China and India are helping to protect the global recovery as a sovereign-debt crisis weighs on Europe, it added. quotThe overarching policy challenge is to restore financial-market confidence without choking the recovery, quot the IMF said. quotThe new forecasts hinge on implementation of policies to rebuild confidence and stability, particularly in the euro area. quot quotRecent turbulence in financial markets - reflecting a drop in confidence about fiscal sustainability, policy responses, and future growth prospects - has cast a cloud over the outlook, quot the IMF said. While there is little evidence of negative spillovers from the financial stress, some countries are facing high levels of public debt, unemployment, and in some cases, constrained bank lending, it said. ECB holds key rate steady The European Central Bank (ECB) held interest rates unchanged at record low, as the central bank continues to be wary of the regional sovereign debt problems hurting economic growth. Policy makers meeting in Frankfurt kept the benchmark rate at 1, as predicted by most economists. ECB President Jean-Claude Trichet said that Europe146s economy is stronger than some investors think and signaled that the central bank doesn146t intend to do more to fight the sovereign debt crisis for now. Trichet stressed that the ECB was not changing its official growth forecasts and that it remained cautious and prudent. quotIt is too early to declare that the financial crisis is over but budget cuts by governments will not hinder economic growth, quot Trichet said later at a conference in Frankfurt. While cautioning that it will continue to keep a close eye on bond markets, Trichet said that the central bank146s governing council had the feeling that what is needed for intervention on its part is diminishing progressively. EU bank regulator to stress-test 91 banks Europes banking supervisor said that 91 banks will take part in the financial sector stress tests that will check their resilience to further market and credit risks. The Committee of European Banking Supervisors also laid out the key features included in the tests. quotThe exercise is being conducted on a bank-by-bank basis using commonly agreed macro-economic scenarios, quot the CEBS said. The scenarios would show a different impact on the various European Union member states, said CEBS. It also envisages adverse conditions in financial markets and a shock on interest rates to capture an increase in risk premium in bond markets, said London-based CEBS. The adverse scenario assumes a 3 decline in GDP from European Commission forecasts for 2010 and 2011, and tests for resilience to sovereign risk at a level beyond the market conditions experienced in early May 2010. The EU expects its economy to expand 1 this year and 1.75 in 2011. The scope of the tests was also extended to include shocks from sovereign debt defaults. Banks being tested represent 65 of the EU banking sector and at least 50 of national banking sector in terms of assets, the regulator said. Most of Europes large banks that operate in more than one country are on the list. Many German and Spanish regional banks, which are thought to be among the weakest, are also on the list. Results of the tests will be disclosed on July 23. The list covers banks such as BNP Paribas, HSBC, Deutsche Bank, Santander, UniCredit and ING. A markdown of 16 to 17 off the market price would be applied to Greek debt, according to some media reports. Greeces 10-year bonds are trading at about 75 of their par value at present. No markdown would be applied to German sovereign bonds, the reports said. A 0.7 markdown would be applied to French sovereign bonds, according to reports. Government bonds of Portugal, Spain, Italy and Ireland would see more significant markdowns, the reports said. Bank of Japan leaves key rate unchanged The Bank of Japan (BOJ) left the key rate unchanged while also keeping the economic outlook unchanged. The Japanese central bank voted unanimously to leave its policy interest rate unchanged, as was widely expected, while also refraining from announcing new major monetary easing moves. quotJapans economy shows further signs of a moderate recovery, induced by improvement in overseas economic conditions, quot the BOJ said in a statement. But it added that Japan faces the critical challenge of overcoming deflation and returning to a sustainable growth path with price stability. In the conduct of monetary policy, the BOJ said it will aim to maintain the extremely accommodative financial environment. BOJ Governor Masaaki Shirakawa said that Japans economic recovery has been resilient, notwithstanding the yen146s rise against major rivals. quotWe are well aware that the yen146s strength is a downside risk for corporate sentiment, quot Shirakawa told reporters after the central banks rate announcement. quotOn the other hand, we have to assess the currency146s effect on the economy in a well-balanced manner, quot Shirakawa said. BOE, ECB leave rates, stimulus steady The Bank of England (BOE) left its monetary policy unchanged, maintaining status quo on interest rates as well as on its quantitative easing program. The UK central bank said that its Monetary Policy Committee voted to leave the lending rate at record low of 0.5. The MPC also left its 200 billion pound (US318 billion) bond-purchase program on hold. Both decisions were widely expected by the markets. The minutes of the meeting will be released later this month. The European Central Banks (ECB) Governing Council decided that the interest rate on the main refinancing operations and the interest rates on the marginal lending facility and the deposit facility will remain unchanged at 1, 1.75 and 0.25 respectively. Though ECB president Jean-Claude Trichet noted progress in the economy and stability in markets he maintained that it was too early to declare victory. Trichet said that while the euro-zone economy is strengthening, current expansion rates are unlikely to be sustained after the summer. Though ECB may go ahead with a gradual exit, rates will stay at record low. The UK too is likely to keep rates at all-time low for an extended period. Fed leaves rates steady ready to add stimulus The Federal Reserve policymakers left interest rates at record low and refrained from announcing any new asset purchase plan but reiterated its pledge to provide more accommodation in case the US economic situation worsens. The FOMC said it continues to anticipate that economic conditions are likely to warrant exceptionally low levels for the federal funds rate for an extended period. The FOMC also said that it will maintain its existing policy of reinvesting principal payments from its securities holdings. The Fed policymakers said that they are prepared to provide additional accommodation if needed to support the economic recovery and to return inflation. quotInformation received since the Federal Open Market Committee met in August indicates that the pace of recovery in output and employment has slowed in recent months, quot the FOMC said in a statement. On inflation, the Fed policymakers said that measures of underlying inflation are currently at levels somewhat below those the Committee judges most consistent, over the longer run, with its mandate to promote maximum employment and price stability. inflation is likely to remain subdued for some time before rising to levels the FOMC considers consistent with its mandate, it added. Basel Committee unveils new global banking rules The Basel Committee on Banking Supervision decided to significantly increase the amount of capital banks must set aside against potential losses, but allowed lenders more time to adapt to the new rules. The Basel panel, representing regulators from 27 nations, more than doubled its capital requirements for banks, giving lenders as long as eight years to comply in full, as part of efforts to prevent another financial crisis. Global banking regulators in Basel, Switzerland increased the key capital ratio for the world146s banks to 7. The global bankers raised core Tier 1 from 2 to 4.5 starting in phase from January 2013 to complete by January 2015. In addition, banks will have to set aside another 2.5 for future periods of stress. The minimum core capital cushion is the funds banks accumulate by selling stock and retaining profits. Tier 1 capital, whose definition has been narrowed by the Basel committee, includes common equity and perpetual preferred stock. If ratified by the Group of 20 nations later this year, the rules will require banks to bolster the amount of low-risk assets they hold in reserve as a cushion against market shocks. اقرأ أكثر. BOJ maintains status quo on rates, stimulus The Bank of Japan (BOJ) kept borrowing costs and the size of its monetary stimulus unchanged, as it pauses to watch the movement in the yen and global economic data after boosting its credit program last week. Governor Masaaki Shirakawa and his board colleagues voted to hold its overnight call rate at 0.1 and said that the economy appears to be recovering moderately, helped by a pick-up in business fixed investments. The BOJ decision was unanimous. It may be recalled that last week146s expansion of the credit program was opposed by board member Miyako Suda. The Japanese central bank said that conditions in the labor market remain severe, but added that there has been some improvement. The BOJ also left the bank-loan facility at 30 trillion yen (US356bn) after boosting it by 10 trillion yen at an Aug. 30 emergency meeting. The policy rate has been at 0.1 since December 2008. The BOJ has been under pressure to do more to rein in deflation and shore up economic growth. Further strengthening of the yen and declines in stock prices may also force it to consider more stimulus measures. Gains in Japan146s currency have moderated since the BOJ eased policy at its emergency meeting. BOE leaves rates, bond buying unchanged yet again The Bank of England (BOE) on Thursday left its benchmark lending rate at record low besides also leaving the bong purchase program unchanged, as it awaits more clarity on the ongoing slowdown in the global economy. The nine-member Monetary Policy Committee, led by Governor Mervyn King, kept the key interest rate at 0.5, as forecast by economists. The central bank policymakers also held the target for bond holdings at 200 billion pounds (US308bn). UK gilts declined and the pound stayed lower against the dollar after the BOE announcement. The UK economy grew at the fastest pace in almost a decade in the second quarter but the momentum is beginning to falter. Services, manufacturing and construction activity lost steam in August and policy makers have said that growth may moderate further as the government implements the biggest public spending cuts since World War II and the global economy cools. Most economists expect the BOEs nine-member monetary policy committee to keep interest rates on hold into 2011. The minutes of the BOE meeting will be released on Sept. 22. The minutes are expected to show that Andrew Sentance voted for the fourth consecutive month to hike the key lending rate to contain inflation. Australia keeps rates unchanged Australias central bank left its benchmark rate unchanged as it awaits more clarity on the outlook for the global economy in the wake of the recent downbeat data, especially out of the US. The Reserve Bank of Australia kept its key cash rate at 4.50 for a fourth consecutive month, saying that growth in the near term is likely to be close to trend, inflation close to target and the global market remains somewhat uncertain. The move matched most economists146 forecasts. The central bank said that the Australian economy has been growing at around trend pace, helped by high levels of public spending, and added that private demand has been firming. Business credit has stabilized and evidence of more willingness to lend is slowly emerging, the RBA said. ECB extends bank lending program, leaves rates steady The European Central Bank (ECB) extended its program of emergency loans to the regions banks into early 2011, while the central bank staff raised their estimates for economic growth. ECB President Jean-Claude Trichet said the central bank will continue to conduct its main refinancing operations as fixed-rate tender procedures with full allotment for as long as necessary, and at least into January. That means the central bank will fully meet demand for the collateralized one-month and one-week loans at an interest rate of 1. Three-month refinancing operations will also be provided with full allotment, although the interest rate will be set according to the average of the ECBs benchmark rate. In addition, the central bank decided to carry out three additional fine-tuning operations when the central banks 6-month and 12-month refinancing operations mature. The ECB previously discontinued the 6- and 12-month measures. Earlier, the ECBs the Governing Council kept its benchmark interest rate unchanged at a record low 1 at a meeting in Frankfurt, as expected. The central bank also revised higher its euro-zone growth estimates, with forecasts of 1.4 to 1.8 for 2010 and a range of 0.5 to 2.3 for 2011. That raised the midpoint of the staff projection for this year to 1.6 from a previous estimate of 1, while the midpoint of the 2011 forecast now stands at 1.4 versus 1.2. BOJ keeps rates steady. extends lending program The Bank of Japan (BOJ) left its key interest rate unchanged but extended its lending program, as it moved to check further gains in the yen and boost its export oriented economy. The BOJ held an emergency board meeting today, as the yen146s surge to a 15-year high against the US dollar forced policy makers to find ways to support the nation146s slowing expansion. The BOJ will boost the amount of funds in the facility by 10 trillion (US116bn) to a total of 30 trillion, the central bank said in a statement after an emergency meeting in Tokyo. The BOJ decided that it would expand the terms of its current 20 trillion (US233bn) quantitative-easing lending program to six months from three months, to help support the ongoing economic recovery. Board member Miyako Suda dissented with her eight colleagues in today146s vote, the BOJ said. Red More. . BOJ leaves rate steady On Thursday, the Bank of Japan decided to maintain its easy monetary policy, and released its latest semiannual outlook report on the economy and prices. It expects core consumer prices to fall 0.4 this fiscal year, then rise 0.1 in the year through March 2012. The jobless rate for September showed modest improvement, falling to 5 in September from August146s 5.1. Another set of data showed that household spending was flat in September from the same month a year earlier in price-adjusted terms, compared with a Reuters146 forecast for a 0.8 rise. New bank rules will be phased in: Basel panel The Basel Committee on Banking Supervision said that the new liquidity rules for global banks will be phased in via an quotobservation periodquot instead of fixed, mandatory deadlines. The new bank rules will also include clauses that allow regulators to address any unintended consequences. The planned liquidity coverage ratio will require banks to have enough highly liquid assets to cover cash outflows for a 30 day period. The planned net stable funding ratio, which covers liquidity over longer periods, will also be phased, the committee said. quotThe Committee agreed on key details of the liquidity coverage ratio, quot the Committee said following a meeting in South Korea. quotIt confirmed that both the LCR and the net stable funding ratio will be subject to an observation period and will include a review clause to address any unintended consequences, quot the Committee said. The Committee committed to issuing the new rules by the end of the year. New regulations on minimum liquidity holdings aim to raise the buffer of high-quality liquid assets so that a bank can withstand a period of stress. New rules also set a minimum amount of funding that is expected to be stable under conditions of extended stress, called the net stable funding ratio. Stan Chart to raise US5.3bn via rights issue Standard Chartered Plc said it plans to raise about 3.258 billion pounds (US5.1 billion) through a rights issue of shares to bolster its capital as it prepares for the proposed new but stricter global capital rules. The one-for-eight rights issue has been priced at 1,280 pence per share, a discount of 32.9 to its closing price on Oct. 12. The issue price for Hong Kong shareholders is 156.82 Hong Kong dollars (US20.1), the Anglo-Asian bank said. StanChart reported a core tier one capital ratio of 9 on June 30, comfortably above the new requirement of 7. StanChart said this would rise to approximately 11. However, under the new Basel rules the definition of core tier one will be tightened. Common equity and retained earnings will account for the bulk of a banks capital base. As a result, many banks core tier one capital ratios will reduce substantially under the new capital rules. StanChart said that Singapore state investor Temasek, its biggest shareholder with about an 18 stake, will support the rights issue. Developed world growth tepid EMs shining: IMF The International Monetary Fund (IMF) said that economic recovery in the advanced nations is losing steam even as the emerging economies continue to race ahead. IMF chief economist said that some emerging nations need more market-oriented currency policies, while wealthy nations need to cut budget deficits. IMF officials said that the world economy will expand 4.8 this year and slow down slightly next year. Emerging economies will expand more than 7 this year, while developed nations can expect to grow just 2.7. Industrialised nations are projected to grow by 2.2 in 2011, the IMF said. Although the global recovery is uneven and fragile, IMF chief economist Olivier Blanchard said that the world is not likely to slip back into a recession. Still, he urged policy-makers around the globe to take tough actions. China is expected to grow at a faster rate 10.5 in 2010 and 9.6 in 2011, the IMF said in its latest World Economic Outlook report. The advanced economies by contrast are projected to grow slowly. GDP growth in the US, for instance, is projected to be 2.6 in 2010 and 2.3 in 2011. The Advanced European countries - the UK, Germany, France, Italy, Spain and some others - are projected to grow at 1.7 in 2010 and 1.6 in 2011. Latin America has recovered strongly, with real GDP growth at about 7. The recovery in Latin America is being led by Brazil, where real GDP growth has been close to 10 since the third quarter of 2009 and the economy is now showing signs of overheating, the IMF said. Global trade is forecast to expand by 4.8 in 2010 and by 4.2 in 2011, the IMF said, adding that there would a temporary slowdown during the second half of 2010 and the first half of 2011. The IMF also revised its estimate for the total of bank write-downs and loan provisions related to the financial crisis. It said these would amount to US2.2 trillion between 2007 and 2010, down from US2.3 trillion in April. The fund put the value of write-downs still to be realised at roughly US550bn. Bank of Japan unexpectedly cuts key rates The Bank of Japan (BOJ) surprised the world markets and economists as it cut its benchmark interest rate to prop up a struggling economy and curtail gains in the yen. The BOJ policy board unanimously voted to cut its key overnight call rate range to between zero and 0.1, from 0.1 previously. The Japanese central bank also pledged to maintain its easy monetary policy until prices stabilize. The BOJ said it would set up a fund to buy Japanese government bonds, corporate debt, exchange-traded funds and other funds. The central bank said that while the Japanese economy is showing signs of a moderate recovery, the pace of the recovery is weakening and growth will likely be slower than it predicted in its July outlook. The BOJ decision came after a two-day meeting of the banks nine-member policy board and is the first change of Japans key rate since December 2008. The central bank had been under political pressure to intervene to boost growth. The yen fell briefly against the dollar on the news but soon bounced back. BOE holds rates and stimulus unchanged The Bank of England (BOE) maintained a status quo on its monetary stimulus besides leaving the key interest rates unchanged at record low amid a growing clamour to take more steps in propping up the global economy. The BOEs nine-member Monetary Policy Committee voted to hold rates steady at 0.5 and held the target for bond holdings at 200bn (US319bn). Both the decisions were widely anticipated. The pound rose to an eight-month high against the dollar after the decision and traded above US1.60 for the first time since early February. The currency climbed from a five-month low against the euro. The panel debated adding stimulus in September and will revisit it in a month using new economic forecasts. By then, they will also have more details of public-spending cuts and the US Federal Reserve146s asset-purchase plans. The MPCs decision came amid conflicting evidence about the health of the UK economy. Recent private sector surveys on manufacturing as well as services showed that demand is growing more slowly than earlier in the year. UBS, Credit Suisse asked to hold more capital Swiss banking giants UBS and Credit Suisse need to maintain a much higher level of capital on their balance sheets against risk-weighted assets in order to sail through another financial meltdown, a government-appointed panel said. The Swiss banking committee is recommending the countrys two major banks to hold 19 of risk-weighed assets on their balance sheets compared with 10.5level the Basel Committee on Banking Supervision announced last month. Of that, 10 will have to be held in the form of common equity compared with 7 required under Basel III rules, and the rest in contingent capital. The panel was examining the role of the so-called quottoo big to failquot banks in the wake of the 2008 global financial crisis. The committee said that the deadlines set by Basel III will apply to the two top Swiss banks. Switzerland asked the panel of bankers, regulators and other experts to propose ways of avoiding future bailouts. The two banks146 total assets of 2.6 trillion Swiss francs (US2.64 trillion) are more than four times the size of the Swiss economy. The proposals have to be endorsed by the government and approved by Parliament. China hikes reserve requirement ratio by 50 bps The Peoples Bank of China (PBOC) announced that it would increase the banks reserve requirement ratio by 50 basis points (bps) effective November 29 to strengthen liquidity management and control credit distribution. This was the fifth increase in the reserve ratio by the Chinese central bank. Chinas official reserve requirement ratio for most banks will rise to 18.5 from Nov. 29. The reserve ratio may vary among banks. The move comes after Chinas consumer price index (CPI) rose 4.4 in October from a year earlier, its fastest pace in two years. The PBOC last raised banks reserve requirement ratio by half a percentage point on Nov. 10 as part of its efforts to tighten liquidity. This followed a combined interest rate and reserve requirement hike in September. On Nov. 17, the cabinet announced measures to counter surging prices, including orders to stabilize natural gas prices, crack down on speculation in agricultural goods, ensure food supplies, and use price controls if necessary. Chinese stocks and commodities have tumbled in recent days on speculation that efforts to curb prices will hurt growth, which surpassed Japan for a second consecutive quarter between July and September. The Shanghai Composite Index plunged 5.2 on Nov. 12, the steepest decline in more than a year, and lost 3.2 this week as investors speculated that an interest-rate increase was imminent. World Bank raises Chinas 2010 GDP growth The World Bank raised Chinas economic growth forecast for 2010 to 10 from 9.5. The World Bank further added that the economic prospects remain sound while it continues to expand at a still healthy pace, albeit with a shifting composition. The World Bank expects Chinas economy to grow by 8.7 in 2011, before easing somewhat further in the medium term, adds report. The World Bank also said that China should raise interest rates and allow its currency to appreciate more freely to rein in inflation, besides putting in place safeguards to counter relentless inflow of overseas capital. quotFurther normalisation of the macroeconomic stance is needed to guard against macro risks, quot the World Bank said in a periodic report on the Chinese economy, citing asset-price gains, bad loans and strained local-government finances. quotInterest rates will need to rise further, quot it added. Funds pouring money into Asia because of ultra-loose monetary policies adopted by central banks in developed countries should not deter China from raising rates, the World Bank said. China146s controls over capital have proven effective so far, it said, adding that officials can tighten regulations and use exchange-rate flexibility to limit inflows, the multilateral lender said in its report. Chinas central bank hikes reserve ratio by 50 bps Chinas central bank hiked the reserve requirement ratio by 50 basis points (bps) as it continues its efforts to rein in spiraling inflation in a rapidly expanding economy. The increase in the banks reserve requirement ratio is with effect from December 20. The announcement from the Peoples Bank of China (PBOC) came after the markets were shut. The Shanghai SE Composite index rose by 30 points or about 1 today to end at 2,841. Inflation in China is accelerating following an unprecedented credit expansion, which is an outcome of governments efforts last year to protect the economy from the global financial meltdown and the ensuing recession. Consumer prices rose 4.4 in October from a year earlier, the fastest pace in two years. PBOC raised the lenders146 reserve requirements twice last month and announced in October the first interest-rate increase since 2007. BOE keeps rates, bond purchase plan unchanged No surprises here. The Bank of England (BOE) left its benchmark interest rate steady and the bond purchase programme unchanged amid some signs of resilience in the British economy. At the end of a two-day meeting, the nine-member Monetary Policy Committee, led by Governor Mervyn King, held its bond-purchase plan at 200 billion pounds (315 billion). The UK central bank also kept its main interest rate at a record low of 0.5. The minutes of the latest meeting will be published on Dec. 22. The minutes from its previous meeting showed a three-way split over the direction of monetary policy, with seven members voting for no change, while one called for an increase in interest rates and another voted for further easing. ECB extends liquidity support measures The European Central Bank (ECB) said that it will continue its stimulus measures by extending the liquidity support to the banking system but refrained from boosting the bond purchase program. ECB President Jean-Claude Trichet said that the central bank would keep offering banks access to emergency loans through the first quarter, helping to assuage some of the concerns over the sovereign debt troubles. The comments, and word that the ECB was in the market buying peripheral euro-zone debt, helped lift the euro against the dollar. There was a bit of relief in the markets that the ECB was not going to withdraw liquidity. The Stoxx 600 index snapped a three-session losing streak on Dec. 1 on speculation that European policy makers may intervene more aggressively to halt the sovereign-debt crisis that has engulfed Greece and Ireland and is increasingly threatening Portugal and Spain. The ECB left its benchmark interest rate unchanged at 1, as widely predicted, and Trichet declined to comment on speculation that the central bank may boost its bond purchase program. The ECB146s only move was to delay plans to withdraw emergency liquidity measures in order to combat the market strain. The announcement of a large expansion in the bond purchase program the markets had been hoping for didn146t happen. Still, there were reports that the ECB was a large buyer in peripheral euro-zone bond markets, helping to further narrow spreads between peripheral and German bonds. The ECB began buying bonds on open markets in May to halt a run on Greek debt. Purchases slowed after July but they have recently risen again. Also, a successful Spanish bond auction propped up the mood. IIFL Centre, 2nd Floor, Kamala City, Senapati Bapat Marg, Lower Parel (W), Mumbai - 400 013 E-mail: editorindiainfoline Indias most popular website for business and investing. Copyright 2010, India Infoline Ltd India Infoline takes no legal responsibility for accuracy or completeness of information or advice given. 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