Banking system Financial News

Covid pandemic and this has helped the Indian economy to be the bright spot amid global economic meltdown, Reserve Bank of India Governor Shaktikanta Das said. «The remarkable turnaround in the Indian banking system has been a cornerstone of India’s success story in the recent years. Today, the Indian banking system is well-placed to support India’s growth story in the years ahead,» Das said Thursday at Mint BFSI summit in Mumbai. He said that the trust on the banking and financial system that is built over a period of time through sustained efforts needs to be preserved. «The Reserve Bank has committed itself to safeguard the trust factor of the Indian financial system.

Keki Mistry, Former VC & CEO, HDFC, says “there is a massive potential to grow, not just for mortgages, but for every single financial service product. If you look at retail credit to GDP in India, we are at around 18%. If you look at credit card penetration in India, it is extremely low by global standards. So whichever way, whichever product you look at, the growth opportunities in the banking system are phenomenal.” Banking is a bit of a cyclical business, where do you think we are in this cycle? Are we past the peak or at least very close to the peak? What is your analysis? Keki Mistry: I do not think we are anywhere even remotely close to the peak. The growth opportunities which are there for the economy as a whole and the banking sector is obviously part of the economy is phenomenal. I do not think any country in the world today has the potential to grow the way India has the potential to grow. We have demonstrated that consecutively year after year.

UBS Group CEO Sergio Ermotti says the «incredible» market demand for the bank's recent issuance of AT1 (additional tier one) bonds is a «signal to the Swiss banking system.»

By Dharamraj Dhutia

Liquidity in the banking system has slipped into its deepest deficit in almost six months, inflating borrowing costs, as outflows due to corporate advance taxes and the Reserve Bank of India's likely actions to stabilise the rupee have drained lenders of funds. As of September 16, the RBI infused ₹68,785.94 crore into the banking system, the most since March 24, central bank data showed. An injection of funds by the RBI into the banking system indicates tight liquidity conditions. An ET report last week said advance tax collections in the first half of this fiscal year have increased 20% on-year to ₹3.54 trillion. «Advance taxes have gone out and GST is coming up, so there can be some tightness of liquidity. Having said that, in about 10 days or so, liquidity will be coming back into the system. In our view, the RBI would be happy with a liquidity range of say minus ₹50,000 crore to plus ₹50,000 crore from a broader perspective,» Indranil Pan, chief economist, Yes Bank, said. «While the advance tax outflows and the GST are relatively normal factors where the flows will come back into the system, the bigger concern from a structural liquidity perspective is the currency sale by the RBI,» Pan said.

El Salvador may be the most enthusiastic country to adopt Bitcoin. In addition to declaring it legal tender and investing in Bitcoin mining, the country now allows Bitcoin to serve as collateral for mortgages.

₹2000 banknotes that were in circulation on May 19 have been returned to banks. The ₹2,000 banknotes in circulation as of August 31 stood at ₹0.24 lakh crore, RBI said in its circular on the status of withdrawal of ₹2000 denomination banknotes. The total value of ₹2000 banknotes in circulation was ₹3.56 lakh crore at the close of business on May 19, 2023 - when the RBI decided to withdraw the banknote.

The Federal Deposit Insurance Corporation (FDIC) has highlighted potential risks associated with crypto-assets to the U.S. financial framework. This insight emerged from the FDIC's 2023 Risk Review, which, for the first time, included a segment on bitcoin. The report characterized the challenges posed by digital assets as both novel and intricate.

banking system has slipped into a deficit for the first time in FY24 as the Reserve Bank of India's (RBI) decision to impound a chunk of banks' extra funds — and hence reduce inflation risks — has led to a cash shortfall amid tax outflows. Daily central bank data showed that the RBI injected funds worth ₹23,644.4 crore into the banking system on August 21, marking the first infusion of cash since March 27. An injection of funds by the RBI reflects deficit liquidity conditions in the banking system. In its last policy statement on August 10, the RBI announced an incremental cash reserve ratio (ICRR) of 10% that banks must maintain on the rise in their deposits from May 19 to July 28.

India's banking system liquidity has slipped into deficit for the first time this financial year after the Reserve Bank of India's temporary liquidity withdrawal move and tax outflows. Banking system liquidity stood at a deficit or 236 billion rupees ($2.84 billion) as of Aug.

On a warm Friday afternoon on Aug. 17, 1923, a determined mother of two boys — one five, the other four — left her home in Toronto’s Cabbagetown and headed to the bank. Mrs. Hill was fretting about the coming winter, paying for coal and winter clothes for the boys she still called her “babies.” Her husband worked “odd jobs” and had “nearly starved himself” to save the $40 Mrs. Hill had tucked away in her purse. Last winter it was her parents that came through with money for coal and clothes. This winter her family would pay their way, she thought.

RBI) Governor Shaktikanta Das found a smarter option to absorb surplus liquidity in the banking system — the imposition of incremental CRR. Banking industry analysts say the move will suck out additional liquidity worth around Rs 90,000-95,000 crore from the system.

banking system after Moody’s cut the credit ratings for 10 smaller and midsized lenders. The S&P 500 fell 19.06, or 0.4%, at 4,499.38. The Dow Jones Industrial Average dropped 158.64, or 0.4%, at 35,314.49.

₹2,000 currency notes, 77% of them have returned to the banking system, according to the finance ministry. The number of ₹2,000 notes in circulation fell to 41.80 crore in volume terms on 30 June, from 177.93 crore on 19 May, it said, and the value of these notes in circulation fell to ₹0.84 lakh crore on 30 June from ₹3.56 lakh crore on 19 May.

Narendra Modi said on Saturday that greed for power overrode national interest during the UPA government, wreaking havoc on the banking sector, but his dispensation has nursed it back to good financial health. Addressing a Rozgar Mela, Modi took an apparent swipe at the Gandhi family, saying a few powerful politicians close to a particular family would get loans of thousands of crores of rupees to their favourites by calling up banks and those loans were never meant to be returned.

Binance.US customers will no longer be able to use U.S. dollars to buy crypto on the platform as early as June 13, hobbling the exchange's ability to do business in the United States, after both payment and banking partners «signaled their intent to pause USD fiat channels,» the exchange said.

Share prices of several United States regional banks tanked in after-hours trading Wednesday, despite Federal Reserve Chairman Jerome Powell calling the banking sector “sound” and “resilient" just hours before.

Tether, the firm behind the largest stablecoin by market capitalization, reportedly allowed its clients to send funds through Signature Bank’s payments platform — granting the firm access to United States banks.

Europe learned its lessons after the financial crisis and is now in a strong position to weather further stress in its banking system, several economists and policymakers say.

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