The government is planning an urgent infusion of more capital into public sector banks to push credit flow as it worries that liquidity constraints faced by non-banking finance companies may have hit growth. The amount to be given to the banks could exceed the Rs 42,000 crore left under the capitalisation plan currently being implemented, said a government official aware of the deliberations. “The cabinet may take up the issue on Wednesday. We want to give growth capital to banks so that they can lend to meet and support the demands of the economy,” the official said. The government may increase the capital support to Rs 80,000-100,000 crore so that most banks will benefit. Year-on-year credit growth was 14.9% as of November 9, but the industry has complained that vital sectors such as real estate and micro, small and medium enterprises (MSMEs) have been denied funds. These sectors got the bulk of their credit from NBFCs, which saw their funding drying up after defaults … [Read more...] about More fund infusion likely in public sector banks
Reserve bank of australia
HONG KONG/SYDNEY (Reuters) - Investment bankers the world over are paying close attention to court hearings in Sydney in a landmark legal case that alleges cartel activity by Citigroup and Deutsche Bank employees, with JPMorgan witnesses appearing for the prosecution. FILE PHOTO: A sign is seen outside the headquarters of JP Morgan Chase & Co in New York, United States, September 19, 2013. REUTERS/Mike Segar Many fear the proceedings could lead to increased scrutiny and tougher measures from regulators worldwide. Australian authorities filed criminal charges in June 2018 against the local units of Citigroup (C.N), Deutsche Bank (DBKGn.DE), Australia and New Zealand Banking Group (ANZ.AX) and six bankers over a A$2.5 billion stock sale. JPMorgan (JPM.N), which also advised on the 2015 deal, has been collaborating with the Australian Competition and Consumer Commission(ACCC) since as early as March 2016 in return for immunity from prosecution, a pre-trial hearing heard … [Read more...] about Explainer: Why are banks watching Australia cartel case involving JP Morgan, Citi & Deutsche?
Australian shares closed higher on Friday as news of a potential "phase one" U.S.-China trade deal and a resounding election win for Britain's Conservative Party spurred risk appetite. While trade tensions eased, investor nerves were also calmed by UK Prime Minister Boris Johnson's victory as it was likely to help him take Britain out of the European Union. The S&P/ASX 200 index closed 0.5% higher, or 30.9 points, at 6,739.7. Reuters reported the United States has agreed to reduce some tariffs on Chinese goods and delay a tranche of tariffs as part of a phase one deal. Neither Washington nor Beijing have released any official statements. Damian Rooney, director of equity sales at Argonaut, said he "would love to see more detail" on the deal, though the "feel-good factor" of the news might be enough to buoy domestic equities into a Santa Claus rally. Commodity stocks such as iron ore miners and energy producers dominated gains on the benchmark. Australia's resource-reliant … [Read more...] about Aussie shares close higher on upbeat trade news, fading Brexit worries
TOKYO (Reuters) - The pound hit multi-year highs against peers on Friday after a convincing Conservative Party win in the UK election, which is expected to clear the Brexit political gridlock that has hounded Britain’s markets for years. A British Pound Sterling note is seen in this June 22, 2017 illustration photo. REUTERS/Thomas White/Illustration The lifting of one major cloud hanging over currency markets came amid signs another might be clearing with reports of a possible breakthrough in Sino-U.S. trade negotiations pushing the Chinese yuan to a four-month top and nudging the Australian and New Zealand dollars higher. UK Prime Minister Boris Johnson’s Conservatives have won enough seats to give them an outright majority in parliament, broadcaster ITV said, which would relieve almost four years of uncertainty about when Brexit would take place. “We’ve already seen a strong reaction in the pound from the exit poll,” said Michael McCarthy, … [Read more...] about Pound soars as election clears Brexit fog, yuan up on trade deal
* Graphic: World FX rates in 2019 tmsnrt.rs/2egbfVh * Result of British general election may ease concern about Brexit * U.S.-China trade deal boosts yuan * Safe-haven yen weakens on trade news * Traders brace for wild ride in financial markets By Stanley White TOKYO, Dec 13 (Reuters) - The pound hit multi-year highs against peers on Friday as early UK election results pointed to a convincing Conservative win, which is expected to clear the Brexit political gridlock that has hounded Britain’s markets for years. The lifting of one major cloud hanging over currency markets came amid signs another might be clearing with reports of a breakthrough in Sino-U.S. trade negotiations pushing the Chinese yuan to a four-month top and nudging the Australian and New Zealand dollars higher. The early UK poll results suggest the election will relieve almost four years of uncertainty about when Brexit would take place. “We’ve already seen a strong reaction in the pound from … [Read more...] about FOREX-Pound powers higher as expected Tory win clears Brexit doubts