Investment hit by most awful month
by Dave Nixon
Story link: Investment hit by most awful month
Private investors extracted £550m ($1.08bn) from unit trusts and funds in January, making it the investment industry’s worst month on record.
The “Isa season”, where private investors have conventionally invested in tax-efficient individual savings accounts ahead of the tax-year’s end, also had a meager start, according to the Investment Management Association.
The industry said it suffered its […]
Standard Chartered avoids turmoil
by Dave Nixon
Story link: Standard Chartered avoids turmoil
Standard Chartered hailed the finest year in its recent history as the emerging markets lender said it was in “great shape” to plot a course in an tentative future for the banking sector.
Peter Sands, chief executive, recognized that he did not know how market chaos and an economic hold up in the United States […]
Slender victory for battered UBS chief
by Dave Nixon
Story link: Slender victory for battered UBS chief
Marcel Ospel, UBS’s old hand chairman, on Wednesday experienced one of the most bruising days in his career, as shareholders reluctantly supported steps to raise SFr19bn ($17.8bn) in fresh capital at an epic emergency meeting.
Europe’s principal casualty of the US subprime crisis won support for procedures to bring in Singapore and Saudi Arabia as strategic […]
Aviva profits hit by bad weather
by Richard Kilner
Story link: Aviva profits hit by bad weather
Britain’s turbulent weather has resulted in Aviva, the owner of Norwich Union, seeing a drop in the growth of their profits.
Operating profits in general insurance slumped by 39% to just over a billion pounds last year.
The fall was due to the terrible summer flooding that hit much of the country, and which cost the firm […]
Indian co-ops offer more KCCs than commercial rivals
by Richard Kilner
Story link: Indian co-ops offer more KCCs than commercial rivals
Despite controlling a larger share of agri credit, India’s commercial banks are some way behind their co-operative rivals when it comes to Kisan Credit Cards.
The KCCs have existed for 10 years, and were designed to enable a more flexible form of credit for farmers that would be easy and inexpensive.
Over that decade, the industry has […]
NZ banks start increasing interest rates
by Richard Kilner
Story link: NZ banks start increasing interest rates
A survey conducted by Research New Zealand has discovered that consumers are planning on cutting spending in anticipation of economic difficulties.
Over 50% of respondents indicated that rising petrol prices and interest rates were leading them to lower their own spending.
The news comes as another NZ bank raises its own interest rates.
ASB Bank has increased its […]
Public Bank of Malaysia to launch new fund
by Richard Kilner
Story link: Public Bank of Malaysia to launch new fund
Yesterday Malaysia’s Public Bank announced that it would launch the PB China-ASEAN Equity Fund (PBCAEF).
The fund would be established in order to exploit the growth potential in China and the ASEAN.
It would invest in a portfolio of highly varied areas, and, in so doing, aim for growth in capital over the long and medium term.
At […]
RBS positive on rewards of ABN acquisition
by Gill Montia
Story link: RBS positive on rewards of ABN acquisition
Royal Bank of Scotland (RBS) has confirmed that it will not be facing unexpected exposure to sub-prime related losses as a result of its joint acquisition of Dutch bank, ABN Amro, last year.
RBS chief executive, Sir Fred Goodwin, said: “We are happy we bought what we thought we bought”.
He has also indicated that, following the […]
Small US banks in danger of collapse
by Gill Montia
Story link: Small US banks in danger of collapse
Shares on Wall Street fell yesterday, after the chairman of the US Federal Reserve, Ben Bernanke, spoke publicly on the failings of the US banking system.
The value of the dollar fell sharply in response, to a record low against the euro, which rose above $1.52.
Addressing the Senate Banking Committee, Mr Bernanke rejected suggestions that the […]
Countdown on ISAs
by Gill Montia
Story link: Countdown on ISAs
Savers are being reminded to take advantage of an Individual Savings Account (ISA) before the tax year ends on the 5th April.
The ISA rules are changing in the new tax year but there is still time to invest up to £7,000 in a maxi stocks and shares ISA; £3,000 in a cash mini ISA and […]
Hopes fade for March base rate cut
by Gill Montia
Story link: Hopes fade for March base rate cut
The likelihood of a base rate cut in March is fast receding with a consensus of analysts now expecting interest rates to remain unchanged when the Bank of England’s Monetary Policy Committee (MPC) meets next week.
In both December and February, the committee reduced the base rate by 0.25%, to its current level of 5.25%.
Despite widespread […]
Chip and PIN fraud alert
by Gill Montia
Story link: Chip and PIN fraud alert
Research from the Computer Laboratory at the University of Cambridge suggests that “Chip and PIN” cards may not be as safe as previously thought.
New PIN-entry devices available at supermarkets, service stations and other outlets are causing concern because they can be programmed by a fraudster to capture all the information needed to clone a chip […]
Shinginko bank of Tokyo in crisis
by Richard Kilner
Story link: Shinginko bank of Tokyo in crisis
Since its founding three years ago by Tokyo’s governor, Shintaro Ishihara, the Shinginko Tokyo has accumulated enormous losses culminating in its present crisis.
Ishihara established the bank to fulfil an election promise, but just three years later an injection of 40bn yen of additional capital is being sought.
The metropolitan assembly will approve or deny the request […]
Bank of Israel loses billions
by Richard Kilner
Story link: Bank of Israel loses billions
Over the course of 2007 the Bank of Israel made a loss of NIS 5.3bn, contrasting sharply with its 2006 profits of NIS 83m.
The loss is down to the unfavourable dollar-shekel exchange rate.
Israel’s foreign currency reserves took a battering over the year, losing NIS 7.1bn as the dollar vaired over the twelve months.
The majority of […]
Pudong Bank gets green light from shareholders for issue plan
by Richard Kilner
Story link: Pudong Bank gets green light from shareholders for issue plan
The contentious plan of Shanghai Pudong Development Bank to sell extra shares has been given the green light by shareholders, though it has yet to receive regulatory approval.
Since early 2008 the Shanghai Composite Index has slumped by almost a quarter in value, causing the securities regulator to adopt a more cautious approach.
Yesterday an anonymous insider […]
RBS profits over £10bn
by Richard Kilner
Story link: RBS profits over £10bn
Subprime-related losses have not prevented the Royal Bank of Scotland recording profits of £10.3bn.
Year-on-year profits rose by 9%, as was widely expected.
However, the bank, Britain’s second largest, has revealed that its combined writedowns relating to the recent financial crisis has hit £2.5bn.
RBS itself lost £1.6bn in writedowns, with the remainder lost by the Dutch Bank […]
Islamic Bank of Britain estabishes Birmingham presence
by Gill Montia
Story link: Islamic Bank of Britain estabishes Birmingham presence
The leader of Birmingham’s City Council, Mike Whitby, has pledged to work alongside the city’s Islamic Bank of Britain (IBB), which is committed to building its presence in Birmingham by supporting entrepreneurs.
According to Councillor Whitby: “The real strength and opportunity for this city lies in its diversity and the scope for energy and enterprise that […]
Banking crises cause heart attacks
by Gill Montia
Story link: Banking crises cause heart attacks
A team social epidemiologist from the University of Cambridge has published what it claims to be the first study into the relationship between a banking crisis and mortality.
According to the research, the stress created by a global banking crisis could kill thousands of people around the world.
High-income countries such as the UK and US could […]
Chinese warn foreign banks to obey forex regulations
by Richard Kilner
Story link: Chinese warn foreign banks to obey forex regulations
Yesterday foreign banks were warned against contravening Chinese foreign exchange regulations by the State Administration of Foreign Exchange.
The warning has been seen a possible indicator that the authorities in Beijing may be contemplating restricting the influx of speculative capital.
Deng Xianhong, SAFE’s vice head, stated at a forum that certain foreign banks have ignored the forex […]
$30bn auctioned by the Federal Reserve
by Richard Kilner
Story link: $30bn auctioned by the Federal Reserve
The Federal Reserve has auctioned another $30bn of funds to commercial banks in its continuing effort to ease the effects of the credit crunch.
This time, the sixth such auction, the funds have an interest rate of 3.08%.
Altogether the Federal Reserve has injected $160bn into the system using the auctions.
The method is aimed at loosening up […]
