Friday 29th August 2014
slib33
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.
Europe

According to the European Venture Capital Association (EVCA) new statistical report, 2013 was a year of strong exit activity in the CEE region, the third highest on record. However, unlike the previous two record years, was not dominated by one or two large disposals. Some 88 investments in companies were exited, the highest number in the past seven years. Even so, both fundraising and investment activity fell relative to 2012. Despite this, the number of firms in the region receiving private equity backing continues to increase (a trend that has been consistent since 2010).

Read more...

Although much attention has been given to the economic state of peripheral European countries, it is becoming increasingly clear that some key central countries are just as susceptible to the current climate. One such nation experiencing problematic macroeconomic symptoms is France, where the structural economic situation has sparked a number of concerning trends.

While some policy measures have been taken to remedy the situation, it is difficult to say whether the difference they make will be enough to correct it. In order to ascertain what further measures may be necessary going forward, we must first identify France’s ‘symptoms’ and their respective causes, and secondly balance existing measures against their consequences.

Read more...

Active investment manager RWC, which has around $9bn in assets under management, says Rash Patel has joined the company from MFS International, where he looked after institutional investor relations. Previously Patel worked at Barclays Global Investors for seven years following several years at UBS, as well as Mercer and Fidelity.

 

Read more...

A new risk-based approach to pensions regulation currently under consideration would result in adverse unintended consequences for long-term pension investors, according to a study by Allianz Global Investors; affecting both returns and investment strategies. Scaremongering? Or does the thesis have substance?

Read more...

Rather like Japan earlier this week, the eurozone GDP growth figures for Q2 have disappointed. Zero growth? Well, it’s better than contraction, but the important question in hand right now is: what’s really holding back the advanced economies of Europe? Eurozone GDP in the second quarter added up to nothing: but does the eurozone add up to something? If so, what is it?

Read more...

Prudential has posted an operating profit of £1,521m in the first six months of 2014, noting strong performances from its US and Asia businesses. The figure is a rise of 17 % compared to the same period last year.

Read more...

The European Commission has informed Bulgarian Energy Holding (BEH) of its preliminary view that territorial restrictions on resale contained in BEH's electricity supply contracts with traders on the non-regulated Bulgarian wholesale electricity market may breach EU antitrust rules. Such restrictions limit purchasers' freedom to choose where to resell the electricity bought from BEH. The sending of a Statement of Objections does not prejudge the final outcome of the investigation. The Commission has concerns that BEH, the incumbent state-owned vertically-integrated energy company in Bulgaria, might be hindering competition on the non-regulated wholesale electricity market in Bulgaria by imposing restrictions on where the electricity supplied by BEH may be resold.

Read more...

BATS Global Markets (BATS) says its US equity market share jumped to 20.3% in July, higher than 9.6% a year ago and 19.2% in June. 

Read more...
Page 1 of 161

Current IssueSpecial Report

Tweets by @DataLend

DataLend is a global securities finance market data provider covering 42,000+ unique securities globally with a total on-loan value of more than $1.8 trillion.

What do our tweets mean? See: http://bit.ly/18YlGjP

White Paper

Internationalizing the Renminbi: Weaving a Web for the Next World Currency

Internationalizing the Renminbi: Weaving a Web for the Next World Currency

pdf Download PDF View all Whitepapers

Blogs

  • Monday, 18 August 2014 13:17 The shift to oversight risk
    When the FCA’s outsourcing in asset management thematic review was published in November last year, the focus was very much on resilience risk: what will…
  • Wednesday, 27 August 2014 09:24 SEC Releases Form PF Report
    The SEC published its second annual report regarding its use of data collected on Form PF, noting that it continues to use the data in examinations and…
  • Tuesday, 12 August 2014 15:01 Review of Emerging Markets Eurobonds for July 2014
    by Dmitriy Alekseev
    By mid-summer, offering activity in the EM primary market has declined, but remains fairly high nonetheless. Demand for risk and strong UST levels allowed African…