Latest news with #depositors
Bloomberg
2 days ago
- Business
- Bloomberg
EU Strikes Deal on Failed-Lenders Rules
The European Union agreed on rules to ease winding down smaller lenders in trouble, part of an effort to bring closer banking sectors of its member states. The legislation will facilitate access for failing banks to deposit guarantee funds to supplement lender's own loss-absorption buffers without bailing in their depositors, according to a statement by member states after they reached an agreement with the European Parliament late on Wednesday.
LBCI
18-06-2025
- Business
- LBCI
BDL raises withdrawal limits under Circulars 158 and 166
The Banque du Liban (BDL) announced an increase in monthly cash withdrawal limits, as outlined in Circulars 158 and 166, citing ongoing economic and financial hardship, as well as the urgent financial and humanitarian needs of depositors. In a statement on Wednesday, BDL said Circular 158's monthly cash withdrawal limit will rise from $500 to $800, while Circular 166's limit will increase from $250 to $400. These new limits will take effect on July 1, 2025, and will remain in place for one year, renewable through July 1, 2026. The decision also includes an extension of both circulars, originally set to expire on June 30, 2025. BDL emphasized the importance of swiftly passing legislation that ensures the return of depositors' funds. It added that it is actively coordinating with the Lebanese government and Parliament to achieve this goal. Read the full decisions on Circulars 158 and 166.
Bloomberg
29-05-2025
- Business
- Bloomberg
Chinese Banks Face Liquidity Test on Deposit Exodus, Maturities
Chinese banks are set for a liquidity test in June as they face record debt maturities and a potential exodus from deposits. The lenders are on the hook to repay a record 4.2 trillion yuan ($583 billion) of negotiable certificates of deposit, which are short-term debt instruments, next month. That comes at a time when regular savings deposits are shrinking as interest rate cuts prompt investors to turn to products with higher returns, with some analysts projecting the withdrawals to reach trillions of yuan.
Bloomberg
26-05-2025
- Business
- Bloomberg
Ring-Fencing Was a Good Idea That UK Banking No Longer Needs
UK banks want the government to abolish a key piece of post-financial crisis regulation that forces them to keep ordinary depositors' money legally separate from their trading and investment-banking business. This uniquely British setup, known as ring-fencing, limits the kind of lending banks can do and raises their costs. Well, most lenders don't like it. Barclays Plc alone is happy with the rules, which may be because it is uniquely placed to benefit from any protections they afford. I was always a big supporter of the idea behind this separation, but I'm no longer convinced the setup achieves much at all — for depositors or for Barclays.
Bloomberg
20-05-2025
- Business
- Bloomberg
US Set to Hit Deposit Insurance Fund Target Ratio by End of 2025
The US government's bedrock fund meant to protect depositors in the event of a bank failure is poised to reach its legal target ratio by the end of 2025 — about three years ahead of schedule. The Federal Deposit Insurance Corp., which manages the fund by levying assessments on banks, is required by law to ensure the pool of money meets a reserve ratio of at least 1.35%. At the end of 2024, the agency said the balance stood at $137.1 billion and had reached a reserve ratio of 1.28%.
