Reserves

Big Chinese banks reduce bad loans increase profit

CHINA - China's four major state-run commercial banks have all reported strong profit for the first half of the year as they continued to reduce a heavy portfolio of bad loans, however their risk management skills are limited.

Singapore risk management

ARTICLE - G10 central bank study says that consolidation has heightened possibility of systemic risk. Central banks of G10 countries recently released a joint study on the impact of consolidation on financial risk, payment systems and monetary policy,…

Non-bank Chinese institutions need funding

CHINA - China's central bank wants to draw private capital into investing in hundreds of cash-starved non-bank financial institutions to boost their financial strength, according to China Securities.

Korea needs to monitor emerging markets

SOUTH KOREA - BOK Gov. Korea should pay close attention to developments in Latin American markets to prevent shockwaves reaching the peninsula, Bank of Korea (BOK) Gov. Chon Chol-hwan said on 18 July.

Russian major bank ratings improve

RUSSIA - Fitch, the international rating agency, has changed the Outlook to Positive from Stable assigned to the Long-term ratings of 'B' of the Savings Bank of the Russian Federation (Sberbank) and Vneshekonombank (VEB). The banks' Short-term,…

Philippine bank expands dollar hedging facility

PHILIPPINES - The Philippine Central Bank said today, 19 July, its policy- making Monetary Board has approved the expansion of coverage under the currency risk protection program, a hedging facility managed by the monetary authority.

South African currency hit by risk aversion

South Africa - A general increase in risk aversion by international investors constituted a factor which had recently cast a shadow over the South African currency rand, Reserve Bank governor Tito Mboweni said on 13 July.

Decentralized Portfolio Management

RESEARCH - Paulo Coutinho and Benjamin Miranda Tabak at the Central Bank of Brazil have produced an article titled Decentralized Portfolio Management. It is part of the Bank's Working Paper series, June 2001.

Lithuanian c-bank to switch some reserves to euro

LITHUANIA - Lithuania's central bank said on 28 June it would "soon" start exchanging some of its reserves into euro to prepare for the change of the national currency's anchor to the euro from the dollar in February.

People's Bank plans customer protection scheme

CHINA - China plans to set up a deposit insurance system to protect bank customers and reduce increasing risks in the banking sector. Announcing the plan, People's Bank of China (PBOC) Vice-Governor Wu Xialiang, said establishing such a system was an…

Central banks not to blame for weak gold price

According to a study into the gold derivatives market by Professor Anthony Neuberger of the London Business School, the five-fold increase in gold lending since 1990 cannot account for the slump in the gold price over the period.

Central banks could own big chunk of US Tsys-UBSW

RESEARCH - Global central banks could own the entire supply of marketable U.S. debt by the end of 2006 as growing foreign exchange reserves force them to buy more ultra-safe U.S. government debt, according to a survey of central banks conducted by UBS…

CSFB's Crisp sees more central bank gold sales

GOLD - Governments could step up gold sales in the coming decade, with even current non-sellers mobilizing bullion, but would do so with more transparency to a market dogged by uncertainty about central bank disposals, Credit Suisse First Boston's top…

Costs of forex intervention - evidence from Sweden

ARTICLE - Boo Sjoo and Richard Sweeney have published an article "The foreign-exchange costs of central bank intervention: evidence from Sweden" in the latest issue of Journal of International Money and Finance. The study supports the view that the…

Gulf to make dollar peg to monetary union-report

BAHRAIN - Members of the Gulf Cooperation Council have agreed to adopt the U.S. dollar as the sole peg for a proposed single currency for the group, senior GCC official said in remarks published by Bahraini newspapers on Apr 22.

Malaysia concedes IMF role in Asia forex swap deal

MALAYSIA - Malaysia will bow to a majority decision on whether the IMF plays any role in an Asia-wide currency swap safety net aimed at protecting countries facing balance of payments problems, Prime Minister Mahathir Mohamad said.

Tsang fights for Exchange Fund independence

HONG KONG - Financial Secretary Donald Tsang has rejected the Democratic Party's request to freeze a Hong Kong Monetary Authority plan to spend HK$4 billion from the Exchange Fund on new offices.

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