Page 2 - Global Central Banks

S African Reserve Bank applies to court to liquidate Habib Overseas Bank

The South African Reserve Bank (SARB) on Friday launched proceedings in the High Court for an order for the final winding up of the local subsidiary of Pakistan-based Habib Overseas Bank Limited (HOB). The application, brought by SARB together with the Prudential Authority (PA), is to be heard on August 8, 2023, or as soon thereafter as determined by the Court, SARB confirmed in a statement. This follows the decision by the Minister of Finance, on the recommendation by the PA, to place HOB under curatorship in March 2023. HOB was placed under curatorship to deal with its governance, compliance and operational failures. Since the curatorship, in-depth assessments undertaken by the curator found that HOB's financial position was significantly worse than that reported by the bank's management. The findings by the curator concluded that HOB is insolvent. In accordance with the requirements of the Banks Act 94 of 1990 (Banks Act), Craig du Plessis, who is the appointed representative

Central banks set to diverge on rates as stubborn inflation stalks Fed, ECB

With another hike in interest rates anticipated by the Federal Reserve and the European Central Bank for July, and some peers on a similar track

IMF working hard on global central bank digital currency platform

The IMF wants central banks to agree on a common regulatory framework for digital currencies that will allow global interoperability

Global central banks stick to rate hikes with eye on market turmoil

Overall, 10 developed economies have raised rates by a combined 3,290 basis points (bp) in this cycle to date

6 central banks to boost flow of US dollar through global financial system

Central banks have moved globally to keep credit flowing after an unsettled period in the US banking sector and the Credit Suisse merger

India to continue with rate hikes despite global cenbank rethink: Analysts

India's headline and core inflation has been unrelenting, with data post market close showing annual retail inflation remained above the Reserve Bank of India's (RBI) upper limit, easing only slightly

Best of BS Opinion: Hindenburg flames again, the case for baby RBIs & more

India's stock markets face a big shock. And should the central bank be unbundled? Our weekend fare

The case for baby RBIs

Despite its admirable competence and proven track record, the Reserve Bank of India doesn't have the capacity to supervise an economy that's growing so fast and becoming larger by the year

Digital lenders seek cap on default loss guarantee models from RBI

They suggested that the central bank could look at a reasonable cap to the FLDG models, given RBI's concerns of around build-up of systemic risk and 100% risk transfer rather than banning it outright

24 hours of jumbo interest-rate hikes to cap year of soaring inflation

More than 50 central banks have gone for 75-bp increases, with over 275 rate hikes this year

Emerging markets face risk of policy error amid conflicting priorities

Emerging markets have witnessed an investor exodus this year despite having raised interest rates at an unprecedented pace

Global central banks extend rate hike push in Nov as inflation soars

The latest moves have brought total rate hikes in 2022 from G10 central banks to 2,400 bps

Inflation makes humbled central bankers scale back their ambitions

The first step for the newly humbled monetary policymakers is getting prices back under control without creating economic havoc

Policy transmission disjointed in bond market: RBI deputy governor Patra

The Deputy Governor flagged instances of wild swings in sovereign bond yields in response to factors such as the announcement of the government's borrowing programme and interest rate changes

Who are the mystery buyers responsible for central bank gold boom?

Almost 400 tons were scooped up by central banks in the third quarter, more than quadruple the amount a year earlier, according to the World Gold Council

Will IT stocks survive recession fears?

Despite a bleak global outlook, top Indian IT giants wrapped up their Q2 earnings in line with the Street's expectations. What do Q2 results indicate for the IT sector amid growing fears of recession?

Morgan Stanley-led banks face $500 million loss on Twitter debt to Musk

When banks led by Morgan Stanley agreed in April to help finance Elon Musk's purchase of Twitter Inc., they were eager to aid an important client, the richest person in the world

Aggressive rate hikes may be counterproductive in short run: Emkay Wealth

Aggressive rate hikes by central banks globally to tame soaring inflation may prove counterproductive in the short run, Emkay Wealth Management said on Wednesday. Underlining that geopolitical tensions, soaring crude oil prices and worries around recession in the developed countries are some of the major risks threatening the markets, Emkay Wealth Management however said India fears no major risks. However, there are risks related to slowing of exports and currency depreciation, the company said during a webinar. The Indian rupee plunged to an all-time low of Rs 81.93 per dollar on Wednesday. "Inflation has become a concern for most major economies, and central banks are resorting to aggressive rate hikes. This move could push up inflationary pressures, proving counterproductive in the short run. The dollar index and crude are the two key indicators to watch out for in the next few quarters," Joseph K Thomas, Head of Research, Emkay Wealth Management said. Central banks across th

Equities, gold, FDs: Where should you invest as global headwinds blow?

The sharp reversal in the interest rate regime by global central banks and high inflation has eroded returns from equities. Where should an investor, with a surplus investable amount, put their money?

Which sectors are worth your money as RBI mulls another rate hike?

As the global consensus towards aggressive monetary tightening gathers momentum, will the RBI also echo a similar tone this week? Which sectors and stocks look attractive at this point in time?