Posts for 'Banks' Category

Top finance officials in Afghanistan are trying to reassure depositors that their money is safe. This comes after reports that the nation’s biggest bank was in trouble.

Last week, Kabul Bank’s chairman and chief executive quit to comply with new rules that shareholders in a bank could not hold those positions. However, the Washington Post newspaper reported that the bank was in financial trouble due to millions of dollars in unrecorded loans made to allies of President Hamid Karzai, including the president’s brother. The newspaper reported the money was used to buy villas in Dubai.

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Queues formed at branches of Afghanistan's biggest bank on Sunday as customers clamoured to withdraw their savings, though lines were shorter days after corruption allegations appeared in US newspapers. Security appeared to have been stepped up at the head office of Kabul Bank, with armoured vehicles parked outside as crowds thronged the banking chamber. Many customers said they wished to withdraw their money because they had lost trust in the bank, though others said they simply needed cash ahead of this week's Eid holiday marking the end of the Muslim Ramadan fasting month. Waheed Shirzoi, 26, said: "I am withdrawing my money because I am taking a trip and I also believe my money will not be safe in this bank.

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Tata Steel, India’s largest producer of the alloy, is in talks with banks for £3.5 billion ($5.4 billion) in loans for its UK unit, said four persons with direct knowledge of the matter. BNP Paribas SA, Credit Agricole CIB, HSBC Holdings and Royal Bank of Scotland Group are among the 11 banks that may lend £2.5 billion over five years, the sources said, declining to be identified before an official announcement.

Citigroup, Deutsche Bank AG, Standard Chartered and ING Vysya Bank may also provide funds, said one of the persons. State Bank of India may arrange a £1-billion loan over seven years, the sources added.

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The federal bank regulator demanded the money which it said represented the capital shortfall at Colonial Bank when it was seized in the biggest bank failure of 2009. The case could potentially impact other bank holding companies which have filed for bankruptcy after their lending business was taken over by regulators.

The Colonial case stems from a memorandum of understanding in 2008 between the bank and regulators in which the bank agreed to try to increase its capital. The FDIC pursued a claim for $905 million, which it estimated was the gap between Colonial's required capital and what it actually had when it failed.

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MCB Bank, Maybank Malaysia Helping Flood Victims: To provide relief to the people affected by the recent floods in Pakistan, MCB Bank Limited and their Malaysian shareholders, Maybank (Malayan Banking Berhad) have taken major initiatives. Maybank, having 20% stake in MCB Bank, has launched a fund raising campaign in Malaysia. The proceeds from “Maybank Pakistan Relief Fund” will be forwarded to MCB Bank, who would disburse the contributions to the needy people of Pakistan. Maybank has also encouraged its staff to contribute voluntarily for this worthy cause and to lend a hand to the victims of this disaster in their times of critical need. This is a first initiative of a foreign bank to launch a “Pakistan Flood Relief Campaign” in its home country.

The board of MCB has also approved a contribution of Rs 30 million for relief efforts. To improve the conditions of the effected families, Rs 12.5 million have already been donated, where as Rs 17.5 million would be distributed in the next few days. MCB employees are also actively participating in these relief efforts. MCB employee’s contribution fund account has been opened and contributions are being poured in. Some of MCB’s staff members, on their own initiative are visiting affected areas of Muzzafargarh & Nowshera to distribute relief goods and are providing voluntary services to the effectees. In addition to monetary aid, MCB is also facilitating a number of leading NGO’s for relief efforts, including Abdul Sattar Edhi Foundation, Imran Khan Flood Relief Programme, Shaukat Khanum Cancer Hospital & Research Centre, Al-khidmat Foundation, Aurat Foundation, Rural Support Program Network (RSPN), Alamgir Trust, Mir Khalil-ur-Rehman Foundation etc.

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Stephen Green, the chairman of both HSBC and the British Bankers' Association (BBA), wrote to George Osborne over the weekend outlining the taskforce's remit. Mr Green, who will chair the group, told the Chancellor that it will report back in early October with its findings.

In the letter, Mr Green said: "We believe there is a real need to make sure that viable businesses are able to obtain the finance they need to support the recovery of the UK economy. A variety of factors have an impact on this and we recognise the collective role we have to play."

The formation of the top-flight group - first mooted in a Green Paper last month - comes as new research shows that the number of complaints from small businesses to the Financial Ombudsman Service (FOS) about the lack of availability of bank loans has risen by nearly 120pc over the past year. It also comes days after UK banks revealed bumper profits of £15bn.

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With a market capitalisation of Rs 16,000 crore, Union Bank of India is among the top public sector banks. The bank has reported a robust performance in the quarter ended June 30, 2010 on the back of higher growth in loan book and return on assets.

We had recommended the stock eight months back and since then, the stock has surged 11% compared with 4% rise in the broad-based Sensex. The current quarter results have shown that the bank can give higher returns to investors going forward.

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State-owned Agricultural Bank of China Ltd. held steady in its trading debut Thursday after raising up to $22.1 billion in a mammoth initial public offering despite the global crisis and concern about its profitability. The IPO went ahead in the face of uncertain global conditions after regulators told China's banks to raise new capital following a lending boom last year in support of Beijing's stimulus. Other banks also plan share sales to raise billions of dollars.

Agricultural Bank failed to enjoy the double-digit first day bounce that some new Chinese listings get. It was down 1.1 percent at midday on the Shanghai Stock Exchange -- a minimal change by the volatile standards of China's markets, where prices routinely swing by up to 10 percent a day.

The Shanghai market is off-limits to most foreign investors. Trading starts Friday in Hong Kong, a Chinese territory where the stock market is open to foreign buyers. "The market is not specifically excited about Agricultural Bank," said Zhang Jixiu, a banking industry analyst for Hongyuan Securities in Beijing. "The stock price is very stable."

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Bank of China (Hong Kong) stands to benefit long-term from a pact between China and Hong Kong to expand the scope of yuan-based business in the city, Market Talk says. According to a person familiar with the situation, China and Hong Kong plan to sign the agreement next week.

The People’s Bank of China and the Hong Kong Monetary Authority will sign the pact in Hong Kong on Monday, the person added. HKMA Chief Executive Norman Chan said June 18 that the plan will allow banks in the city to introduce yuan-denominated insurance, securities.

And fund products locally amid rising demand for yuan business. Yuan settlements in Hong Kong have increased in recent months after authorities allowed non-mainland Chinese banks and companies to issue yuan-denominated bonds in Hong Kong in February.

The Bank of England is due to give its latest verdict on interest rates as inflation concerns vie with fears over a double-dip recession among its policymakers. The Monetary Policy Committee's (MPC) Andrew Sentance voted to hike rates last month to tackle inflation, although fellow members have warned it is too early to act with the recovery still fragile.

The MPC's leading "hawk" is set to stick to his guns this month, although the wider committee should vote to hold rates at a record-low 0.5% and quantitative easing unchanged at £200 billion. Mr Sentance believes there are enough recovery signs in the economy to absorb a rate hike, but recent survey data has flagged up slowing growth among manufacturers and services firms.

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