Friday 29th August 2014
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South Africa’s central bank has disagreed with a ratings decision by Moody’s to downgrade Capitec Bank Limited (Capitec) by two notches, and place it on review for a further downgrade. The central bank says it respects the independent opinion of rating agencies but that it does not “agree with the rationale given in taking this step”. Two reasons are given for the rating action: a lower likelihood of sovereign systemic support based on decisions recently taken in relation to African Bank Limited (African Bank), and heightened concerns regarding the risk inherent in Capitec’s consumer lending focus. “With regard to the first point, it is important to reiterate that the approach taken by the SARB to any resolution to address systemic risk will always be based on the circumstances and merits of the particular prevailing situation. Decisions will also be informed, as was the case with African Bank, by principles contained in the Key Attributes for Effective Resolution Regimes proposed by the Financial Stability Board (FSB), which have the objective that a bank should be able to fail without affecting the system,” notes the central bank in an official statement. “This is in keeping with evolving international best practice. In the case of African Bank bond holders and wholesale depositors are taking a 10% haircut, which is generally regarded as being very positive given that the trades following the announcement of African Bank's results were taking place at around 40% of par. Therefore in fact substantial support was provided, not reduced. Moreover, all retail depositors were kept whole and are able to access their accounts fully,” it adds - According to the Hong Kong Monetary Authority (HKMA) credit card receivables increased by 2.1% in the second quarter to HKD112, after a reduction of 6.7% in the previous quarter. The total number of credit card accounts edged up by 0.7% to around 16.8m.The rollover amount, which reflects the amount of borrowing by customers using their credit cards, increased by 2.9% during the quarter to HKD19.2bn. The rollover ratio also rose marginally from 17.0% to 17.1% in the same period. The charge-off amount increased to HKD569mduring the quarter from HKD528m in the previous quarter. Correspondingly, the quarterly charge-off ratio rose to 0.51% from 0.46% in the previous quarter. The amount of rescheduled receivables transferred outside the surveyed institutions’ credit card portfolios reduced to HKD94m from HK$109m in the previous quarter. The delinquent amount increased to HKD249m at end-June from HKD239m at end-March. However, the delinquency ratio remained the same at 0.22% because of an increase in total card receivables. The combined delinquent and rescheduled ratio (after taking into account the transfer of rescheduled receivables mentioned above) edged up to 0.29% from 0.28% during the same period - Harkand has been awarded a contract to support Apache with inspection, repair and maintenance work (IRM) as well as light construction (LC) across their assets in the North Sea, following completion of a competitive tender exercise. The award includes the provision of vessels, ROV and diving services for a three-year period, plus two one-year options. The firm will also support offshore marine construction contractor EMAS AMC who have been awarded a separate contract for pipe lay and heavy construction as part of the same tender process. Harkand Europe managing director, David Kerr, said: “This contract is an important step in strengthening our close working relationship and growing our North Sea business with Apache.

Foreign investors still in Spanish stock market, despite continuing crisis

Thursday, 14 June 2012
Foreign investors still in Spanish stock market, despite continuing crisis According to share ownership figures released by Bolsas y Mercados Espanoles (BME), the Spanish stock exchange, non-resident investors still are the main owners of shares in listed Spanish companies, with 40% of their total value, one more point than in 2010 and just a tenth below the 2009 record high, according to the latest report on share ownership structure in Spain released today by BME’S Research Department, with end-2011 data. insurers in the market, at 3.3% of its total value. http://www.ftseglobalmarkets.com/

According to share ownership figures released by Bolsas y Mercados Espanoles (BME), the Spanish stock exchange, non-resident investors still are the main owners of shares in listed Spanish companies, with 40% of their total value, one more point than in 2010 and just a tenth below the 2009 record high, according to the latest report on share ownership structure in Spain released today by BME’S Research Department, with end-2011 data.

insurers in the market, at 3.3% of its total value.

The figure, which is the second highest percentage in history, reflects that despite the worsening conditions surrounding the European sovereign debt market, non-resident investors are gradually taking advantage of the sharp correction in Spanish equities.

According to the study, the Spanish households maintain a solid position in Spanish equities, which are among the main assets in which they put their savings. Although in 2011 the participation of Spanish households decreased by a point to 21.2%, it confirms a trend of stability for the last five years.

One of the conclusions of the report worth highlighting is the stronger presence of banks and saving banks in the stock market, which increased their position by 3 points last year, in contrast with non-financial firms, whose share of Spanish equities went down 4 points. In both cases, the changes are associated with factors linked to the financial crisis.

The financial sector, which comprises banks, saving banks, investment funds and pensions, insurers and non-bank financial advisers, bucked the downward trend initiated in 2007, at 16.3% of the value of Spanish equities, up four points from the figure for 2010.

It is worth mentioning the increased presence of Spanish

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