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Business Standard
21 hours ago
- Business
- Business Standard
Indian scheduled commercial banks' gross NPA ratio at 15-year low
Private sector banks' gross NPA ratio was stable at 2.8 per cent while foreign banks saw a decline to 0.9 per cent from 1.2 per cent Subrata Panda Listen to This Article The Indian scheduled commercial banks' (SCBs') asset quality continues to improve, with gross and net non-performing asset (NPA) ratios at a multi-year low, according to the Reserve Bank of India's (RBI's) latest Financial Stability report. While overall gross NPAs were lower at 2.3 per cent (of gross advances) as of March 31, 2025, compared to 2.8 per cent a year ago, public-sector banks saw a sharp reduction from 3.7 per cent in March 2024 to 2.8 per cent in March 2025. Private-sector banks' gross NPA ratio was stable at 2.8 per cent, while foreign banks declined to 0.9 per cent
Scoop
7 days ago
- Business
- Scoop
Snapshot Highlights Banks' Efforts To Reduce Unnecessary Barriers For Māori
The Reserve Bank of New Zealand – Te Pūtea Matua has published a primarily qualitative snapshot that offers a comparison of how banks are working to remove unnecessary barriers to Māori Access to Capital (MA2K). The Māori contribution to the New Zealand economy has grown to $32 billion (production GDP) in 2023. However, Māori businesses are more likely to face capital access challenges due to common factors like being younger, smaller, or more rural, as well as specific issues such as lending on whenua Māori and lower trust or awareness with the banking system. Acting Assistant Governor Financial Stability, Angus McGregor says that the snapshot will improve data and understanding across the Aotearoa banking system. 'The measures in the snapshot show the steps some banks are taking to remove unnecessary barriers for Māori, helping to lift the entire sector in supporting MA2K and financial inclusion more broadly,' says Mr McGregor. Findings from the snapshot show that participating banks who volunteered to collaborate on this project, have introduced Māori-focused roles and strategies, supported by organisation-wide training to strengthen understanding of te reo, tikanga, and the Māori economy. The snapshot findings also suggests that banks recognise the value of Māori leadership and customer understanding and have products to support lending on whenua Māori. Some banks have initiatives specifically supporting Māori businesses and offer financial literacy programmes that incorporate te reo and/or tikanga. Māori employee representation varies between banks, with an average of 8% across all banks. However, there remains plenty of work to be done to continue to reduce any unnecessary barriers for Māori and we encourage banks to improve their data relating to Māori access to capital and enhance their practices around Māori business identification. Improved data on MA2K is an important step in tracking progress of the banking sector and builds on the momentum developed by the sector's actions. 'This work is in line with the 2025 Letter of Expectations from the Minister of Finance for the Reserve Bank to continue its collaboration with industry stakeholders to pursue competition-enhancing initiatives, including reducing barriers to lending for housing on Māori freehold land,' says Governor Christian Hawkesby. This snapshot was developed in collaboration with Tāwhia the Māori Bankers Rōpū and continues the 2022 MA2K work programme as part of our broader te ao Māori and financial inclusion workstreams. Impact requires a whole of sector approach, so we furthermore welcome the opportunity to work with other organisations to support this ongoing work programme.
Reuters
25-06-2025
- Business
- Reuters
Brussels set to disregard ECB warnings over stablecoin rules, FT reports
June 25 (Reuters) - The European Commission is set to announce new rules for the fast-growing stablecoin market in the coming days, despite warnings from the European Central Bank (ECB) that the proposed standards could destabilise the region's banks during periods of market volatility, the Financial Times reported on Wednesday. The European Union's executive arm is planning to issue formal guidance proposing that stablecoins issued outside the bloc are treated as interchangeable with same-branded versions allowed only on EU markets, the newspaper said, citing people briefed on its contents. The announcement of the guidance has been scheduled for the next few days, the FT reported, citing one unnamed source. Reuters could not immediately confirm the report. Brussels proposed legislation on the creation of a digital euro, a so-called central bank digital currency, in June 2023, but not much has happened since. The ECB sees a digital euro as a response to U.S. President Donald Trump's push to promote stablecoins, a type of cryptocurrency typically pegged to the U.S. dollar. ECB President Christine Lagarde on Monday renewed her plea in the European Parliament, describing the digital euro as key to Europe's financial autonomy. She took aim at competing, privately issued stablecoins, saying they posed "risks for monetary policy and financial stability" because they could lure deposits away from banks and did not always maintain their fixed value. A European Commission spokesperson told the FT that "a run on a well-governed and fully collateralised stablecoin is very unlikely". Even if it were to happen, "foreign holders would redeem their tokens in (for example) the U.S., where the majority of the tokens circulate and the majority of the reserves are held", the spokesperson was quoted as saying. The Commission did not immediately respond to a request for comment.
Bloomberg
19-06-2025
- Business
- Bloomberg
BOE's Lombardelli on Rate Cut, Labor Market, Inflation
00:00 We've had the decision from the MPC to keep interest rates unchanged by a margin of 6 to 3, a bit closer than some had expected. Just take us through the thinking there. So we decided to hold rates at 4.25%. Today, we have been able to cut rates four times over the last year. But given the uncertainty facing the economy, we decided to hold at this event. And one of those uncertainties, of course, are the unfolding events in the Middle East and the impact that could have on the oil price. At what point would that become a concern to you? And have there been conversations with the government, for example, on the unfolding crisis and what it could mean? So the events in the Middle East are tragic and they are deeply worrying. As you would expect, we are monitoring carefully those events and the impact that those will have. We've seen oil prices, for example, increase since the attacks. But we are thinking about and focused on the impact for UK inflation. And so we're monitoring and carefully assessing those events. And has there been any conversations with government in terms of thinking about the impacts that could be in the actions that might need to be taken? There's been no specific conversations about the impacts for monetary stability or financial stability. I mean, you've had a lot to consider at this meeting. And one of the things that is front and center in the in the government's quote as well is the changes in the labour market. And when we look at your agents survey, some of them are quite explicit about how this links to policy changes in the government, national Insurance exchange, etc.. To your mind, what's behind the current weakening of the labour market, the slowing of wage growth? How much of it is down to things like National Insurance and National Living Wage? And how does that tell you with your expectations? So we are seeing some poor weakening in the labour market. I mean, this is in line with what we expected and actually quite similar to what we set out in our latest monetary policy report in May. But it is important that we consider those changes. We factor them in. The questions for us all, to what extent that weakening in the labour market will feed through into the prices that people are paying. And there seems to be less pass through in terms of prices, but more of a burden going on to wage growth is like that. There's lots of factors that are changing in the labour market. We are seeing some pass through to prices, we are seeing some pass through to wages. We're also seeing some adjustment of margins and some changes to employment intentions. So you take those together and we're monitoring that carefully. And as you say, our agents around the country talking to a lot of businesses about how they are responding to all the changes that they're seeing in prices across across their businesses. And it's quite an issue. We've got quite weak growth outlook built in to your forecast. And it sounds like more you're saying the underlying pattern is still pretty stagnant. Yeah, we've got growth returning and increasing next year and beyond. So we do see sort of growth increasing, but it is at low, low rates relative to historical standards. Now, six weeks is a long time. A lot can change. But as things stand at the moment, markets are expecting you to cut interest rates come August. Does that seem like a likely scenario? We will decide interest rates in August, in six weeks time. I'm not going to predict what it is we're going to do. We have said that we expect interest rates to be on a gradually downward path in general. But of course we need to be careful and think about all of the factors playing in. I mean, inflation is still too high and that is painful for people. And services, inflation particular points for them. Yet we've seen a rise in the number of elements of inflation. Actually, you're right, services inflation is proving to be quite sticky. But we've also seen recent rises in energy prices, other regulated prices like transport, like phones and of course food prices have risen as well. And all of that, taken together, is obviously difficult for people.
Reuters
19-06-2025
- Business
- Reuters
South African rand slips as risk appetite wanes, focus on central bank review
JOHANNESBURG, June 19 (Reuters) - The rand weakened in early trade on Thursday, weighed down by risk-off sentiment as the Iran-Israel conflict continued into a seventh day and as investors awaited the South African Reserve Bank's (SARB) Financial Stability Review. At 0651 GMT, the rand traded at 18.1075 against the U.S. dollar , roughly down 0.5% on Wednesday's close, and at it's lowest level in a month. This was in line with other emerging market peers as investors fled to safe haven assets while weighing the possibility of U.S. involvement in the Iran-Israel conflict. Later on Thursday, domestic investor attention will shift to the central bank's June Financial Stability Review, in which it evaluates risks to the country's financial stability and outlines the policy actions taken to mitigate them. Last month, the SARB cut its main lending rate, but stressed that U.S. President Donald Trump's trade war and elevated uncertainty were likely to pose risks. South Africa's benchmark 2035 government bond was weaker in early deals, with the yield rising 4 basis points to 10.16%.
