Credit conditions
Official inquiry finds ‘evidence of misconduct’ by Australia’s largest banks
Four largest banks may have continuously breached credit issuance legislation
Upgraded Moody’s outlook puts Sarb rate cut bank on the menu
Lower inflation and an appreciating rand mean the South African Reserve Bank could cut rates at its meeting next week, but analysts think it might be too soon
Public debt in low-income countries rising to risky levels – IMF
The fund recommends official creditors co-ordinate their response to debt crises
Kenyan central bank condemns interest rate cap legislation
Rules introduced in 2016 have restricted access to credit for small firms and impaired the central bank’s ability to conduct monetary policy
European Commission calls for action on NPLs
Commission’s proposals differ from ECB’s October document
Return of volatility helps shatter market illusions – BIS’s Borio
Quarterly review focuses on recent market gyrations; researchers outline new early warning indicators for financial stress
Paper warns emerging markets of pitfalls of credit easing
While the effects of credit easing are benign for advanced economies, developing and emerging countries may experience macroeconomic repercussions
IMF official backtracks on Kenya funding comments
Mikkelsen says Kenya has continued to have access to IMF resources “subject to policy understandings”
Fintech lenders increase efficiency of US mortgage lending, research says
Digital credit providers offer faster services, reliable risk assessments and flexible business models, New York Fed research finds
Credit constraints hits smaller eurozone firms’ investment – Spanish paper
Researcher finds credit constraints have less impact on working capital and growth
China feels tighter financial conditions ahead of new year
Record-breaking bank loans contrast with slower broad credit growth, amid shift away from shadow banking
China’s shadow banking market dominated by banks
BIS researchers map the Chinese shadow banking system and its evolution over time, finding it contrasts with the market-based shadow banking of the US
State Bank of Vietnam seeks to rein in credit growth
Target of 17% credit growth this year to contain risks
Davos experts weigh risks of future crisis
High debt levels, a rise in real interest rates and China are on the agenda for the panellists, who believe another financial crisis is inevitable
Central Bank of Brazil survey shows poor savings habits
More than half of respondents had no spare earnings over past year to put aside, which could put them at risk if “unforeseen expenses” arise
‘Decisive’ action needed to deflate China’s credit boom – IMF paper
Lack of reliance on foreign financing, low government debt, and state control help to mitigate effects of credit boom, but buffers should not be relied upon in the long run
Tanzania revokes licence of five banks
Rising NPLs and insufficient capital ratios in small banks source of concern, IMF says
Macro-pru tools helped offset taper tantrum – paper
Macro-prudential measures helped reduce the impact on cross-border lending growth, say authors
MAS expands consumer debt management toolkit
New measure caps “unsecured credit” that banks can offer indebted borrowers; it is a “pre-emptive measure”, says MAS official
EBA publishes NPL standards in bid to foster market
Reporting templates ask for granular data in bid to establish EU dataset
Credit no longer supporting Chinese growth – research
China’s economy has become “saturated with credit”, argues IMF research paper, with fiscal stimulus primarily boosting manufacturing
High private debt imperils financial stability in Norway, research finds
Households most at risk of shrinking their expenditure account for 50% of private consumption
Implementation of new ECB rules on NPLs may be delayed
Daniele Nouy dismisses criticisms as “myths and misinterpretations”
European recovery may be stronger than previously thought
If the great recession and sovereign debt crisis are considered a single shock, “recovery is in line with – or better than – historical patterns”