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BRIC countries consider their own multilateral development bank

February 24, 2012 Comments off

globalpost.com

India is proposing the creation of a multilateral bank to exclusively finance projects in BRIC countries, Bloomberg reported.

Bloomberg cited an Indian official who told the news service the plan is likely to be discussed at this weekend’s Group of 20 finance ministers meeting in Mexico City. The official said the plan was in an early, exploratory phase but had been circulated among the BRICs and shared with South African officials, Bloomberg noted.

The BRIC countries are Brazil, Russia, India and China. As it’s described now, the proposed bank would be funded exclusively by developing nations and finance projects in only those nations.

Reuters reported that Brazilian finance minister Guido Mantega is sympathetic to the idea.

Emerging market economies have in recent years become a larger driver of global growth than more established markets. They have been pushing for greater representation at the World Bank and IMF as their clout in the global economy has grown.

Categories: Banks, BRIC Tags: , , , , , ,

IMF sees 200 billion euro capital gap at European banks

September 1, 2011 1 comment

financialpost

BRUSSELS — The International Monetary Fund has estimated European banks could face a capital shortfall of 200 billion euros (US$287 billion), a European source said on Wednesday.

The figure has prompted a fierce response from European officials who said the analysis was misleading, according to the Financial Times.

The newspaper, citing two officials, said the 200 billion euro figure was one estimate of the impact of marking sovereign bonds to market.

The IMF will Read more…

The Central Banks and Gold

August 26, 2011 Comments off

caseyresearch

By Doug Hornig

If the mantra of the wise investor is “Buy low, sell high,” then those who run most of the Western world’s central banks must suffer from dyslexia.

These banks sold off their gold reserves for years, right into the teeth of a generation-long bear market. The last year before the sales began – i.e., during which central banks were net buyers of gold – was 1988, when the price of the metal fell from $485/oz. in early January to $410 at year’s end.

From then and right through the end of the century, they continued to sell as gold dropped steadily to its modern low of $250. The banks were in such haste to divest themselves of this disrespected relic – their single tangible asset – that it was deemed necessary to Read more…

Why Debt Crises Destroy Banks

August 17, 2011 Comments off

wealthcycles.com

After the U.S. downgrade by S&P, many pundits simply guffawed that the downgrade was a sideshow—a simple distraction from the true issues of debt and default. And that’s true to a certain extent—but if people actually think the downgrade is an issue—it may actually become one. A nation’s debt and the state of its banking system are intimately related. When there is a problem in one, you can be pretty sure there is a problem in the other. Any old notion of a “risk-free” government bond has quickly been laid to rest.

In the wake of Standard & Poor’s downgrade, the stability of other “AAA” sovereigns like the United Kingdom and France has been called into question. This, of course, has repercussions in the financial markets, where countries may suddenly find that their costs have gone skyward.

France, with the worst financial Read more…

Categories: Banks Tags: , , ,

Report: Global smart card shipments will overtake mag-stripe by 2015

August 10, 2011 Comments off

atmmarketplace

Smart card shipments, which include contactless payment cards, EMV and non-EMV payment cards, will reach one billion during 2011, according to a recently released report from ABI Research, a market intelligence company specializing in global connectivity and emerging technology.

SBI Cards, a joint venture between State Bank of India and GE Capital, has announced that is has migrated to the EMV platform for the majority of its new customers and cards. It is the first credit card company in India to do so.

“The launch of the EMV chip-based cards for over 85 percent of our new cards will help our customers with greater security features and also help us launch more relevant offers for our customers. We will move to EMV for 100 percent of all new customers and cards within a few weeks,” said Kadambi Narahari, CEO, SBI Cards.

ABI Research forecasts that smart card shipments will overtake mag-stripe card shipments by 2015. Smart cards are being endorsed over mag-stripe cards, especially in developing countries, because of the enhanced security and widespread adoption.

“The entire banking population worldwide is Read more…

Central Banks Continue Buying Gold To Diversify Portfolios

August 5, 2011 Comments off

kitco

Gold purchases by South Korea and Thailand this summer continue a trend in which central banks are net purchasers of the metal as they look to diversify their foreign-exchange reserves.

“So far in 2011, central banks in the emerging markets have already bought more than double the gold they bought in all of 2010, and we’ve got almost five months to go for the rest of the year,” said Jeff Clark, senior precious-metals analyst with Casey Research.

This buying has occurred despite historically high prices. “So apparently, central banks don’t regard the gold price as too high,” Clark said.

For the year to date, net purchases by the world’s central banks are 203.5 metric tons, which already is a 168% increase from 76 tons for all of 2010, said Natalie Dempster, director, government affairs, with the World Gold Council.

Most of the data is gleamed international financial statistics released by the International Monetary Fund at the beginning of each month. Additionally, some central banks—such as Read more…

If Central Banks Believe in Paper Money Why Are They Loading Up On Gold?

July 8, 2011 Comments off

zerohedge.com

I’ve been warning for years that an inflationary storm was coming. I’ve recently tailored my forecast to allow for a resurgence in deflation based on QE 2 ending and the economy diving, but my long-term forecast remains the same: inflation WILL be exploding in the years to come.

Indeed, even the biggest proponents of paper money (central banks) have begun to realize that their grand experiment is coming to an end. Central banks officially became net buyers of Gold last year. And we now find that they have acquired the most Gold in over a decade.

The Financial Times reports:

Central banks have pulled 635 tonnes of gold from the Bank for International Settlements in the past year, the largest withdrawal in more than a decade.

 The move, disclosed in the BIS’s annual report, marks a sharp reversal from the previous year, when central banks added to deposits of gold at the Read more…