US Treasury Secretary Steven Mnuchin said changes in lending policies at the World Bank will free up more resources for poorer countries. (Photo: AFP/Brendan Smialowski) World Bank President Jim Yong Kim said neither China nor any middle income countries was happy about the prospect of paying more for loans, but they agreed because of the overall increase in funds available. The agreement, which also increase shares and voting power to large emerging market countries like China, was "a tremendous vote of confidence" in the institution that came after three years of tough negotiations, Kim said. "World Bank Group bureaucrats don't often jump around and high-five and hug each other," Kim told a small group of reporters following the Spring meeting. He said the increase was needed because even with the end of the global financial crisis, the bank has been called on to provide funding to address a new series of challenges facing poor countries, like climate change, refugees, pandemics, … [Read more...] about World Bank shareholders approve US$13 billion capital increase
Banking crisis
Digital storm sweeping through banking industry
EY’s Global Banking Outlook 2018 shows that 85 per cent of banks name the implementation of a digital transformation programme as a business priority for 2018. Duong Nguyen, EY Vietnam partner and leader of Financial Service Organisations and IT Advisory Services Digital transformation, according to EY’s Global Banking Outlook, will see banks pouring resources into investment in technology to drive efficiency, manage evolving risks, and benefit from growth opportunities. Banks see this as critical for sustainable success. Meanwhile, addressing cybersecurity is the top priority for global banks (89 per cent) in 2018, replacing last year’s managing reputational, conduct, and culture risks, which fell to the sixth place this year. Recruiting, developing, and retaining key talent (83 per cent) also garners significant attention as banks strive to integrate cyber experts into their organisations amidst a skillset shortage. The report also reveals that banks are seeking … [Read more...] about Digital storm sweeping through banking industry
IMF warns of risks as central banks tighten
The International Monetary Fund issues warnings about risky behaviour in global financial markets that could create problems as interest rates start to rise. (AFP/SAUL LOEB) The fund cautioned that investors and financial markets expect a steady approach to monetary tightening based on the belief inflation will remain relatively tame. But the IMF pointed to some fragilities in global finance after a lengthy period of easy money policies and low interest rates, including a flood of high-risk bonds, record-high debt levels and lofty prices for risky assets. If conditions change abruptly that could even derail the economic recovery, the fund warned. "Financial vulnerabilities, which have accumulated during years of extremely low rates and volatility, could make the road ahead bumpy and could put growth at risk," the IMF said in its Global Financial Stability Report, a twice-annual analysis that also called for global coordination to regulate cryptocurrencies. A sudden acceleration of … [Read more...] about IMF warns of risks as central banks tighten
Oil markets tense on Middle East crisis, but rising US supplies weigh
Oil markets remained tense on Thursday on concerns of a military escalation in Syria, although prices remained some way off Wednesday's highest since late 2014 as bulging American supplies weighed. Brent crude futures were at $72.30 per barrel at 0244 GMT, up 24 cents, or 0.3 percent from their last close. U.S. WTI crude futures were at $67.09 a barrel, up 27 cents, or 0.4 percent from their last settlement. In China, Shanghai crude futures were also up, rising 8.9 yuan to $427.1 yuan ($427.10) per barrel, with record volumes traded on the product that was only launched in late March. Both Brent and WTI hit highest since late 2014 of $73.09 and $67.45 per barrel on Wednesday, respectively, after Saudi Arabia said it intercepted missiles over Riyadh and U.S. President Donald Trump warned Russia of imminent military action in Syria. "Geopolitical risks outweighed an unexpected rise in inventories in the U.S.," ANZ bank said on Thursday. U.S. crude oil inventories rose by 3.3 million … [Read more...] about Oil markets tense on Middle East crisis, but rising US supplies weigh
Crisis hit Deutsche Bank replaces British CEO
Trouble-plagued Deutsche Bank on Sunday (Apr 8) ousted its British CEO John Cryan, replacing him with one of his deputies in a bid to get Germany's biggest lender back on track after years in crisis. File photo of Christian Sewing, former private client and board member of Deutsche Bank and deputy CEO and head of private banking. (Susann Prautsch/dpa/AFP) Following weeks of speculation, the bank announced that German Christian Sewing, 47, would succeed Cryan who has been at the helm since 2015 with Sewing as deputy CEO and head of private banking. "The supervisory board of Deutsche Bank has named Christian Sewing to the position of CEO, effective immediately, to succeed John Cryan who will leave the bank at the end of the month," the Frankfurt-based bank said in a statement. Deutsche Bank said earlier it was calling the surprise supervisory board meeting "to discuss the chairmanship and to take a decision the same day." Although Cryan's contract was due to run until 2020, … [Read more...] about Crisis hit Deutsche Bank replaces British CEO