Front Page

  • 2016-10-24 03:03

    By David Robinson

    LONDON (MNI) - Bank of England Deputy Governor Nemat Shafik said deploying macroprudential tools can reduce the risk of financial crises and that international cooperation can further lower the likelihood of a bust.

    The globalisation of the financial system entails that regulators need to coordinate their approaches to create global shock absorbers, according to Shafik's comments, made in a speech in Hong Kong.

    "Macroprudential tools offer us a way of reducing risks from rapid credit growth or building resilience of the financial system that should lower the frequency of financial busts, and reduce the risk that a downturn becomes a crisis," Shafik said.

    She cited countercyclical capital buffers, which force banks to build-up capital in the good

  • 2016-10-23 22:05

    TOKYO (MNI) - The Bank of Japan said in its semi-annual Financial System Report Monday that interest rate risks arising from holding yen bonds and foreign currencies have increased for domestic banks.

    The BOJ also repeated its view that "signs of overheating, such as excessive risk taking and credit growth, have not been observed" under the aggressive easing it launched more than three years ago.

    Looking ahead, it said, "Although the real estate market currently does not appear to show signs of overheating on the whole, some developments at the margin warrant attention."

    On the overall health of the domestic financial system, the BOJ said, "The amount of financial institutions' credit risk has decreased compared to the previous report due to an improvement in asset

  • 2016-10-23 21:25

    BEIJING (MNI) - The People's Bank of China injected a total of CNY170 billion via open market operations Monday, traders said.

    The central bank injected CNY70 billion through a seven-day reverse repo, CNY60 billion via a 14-day reverse repo, and CNY40 billion through a 28-day repo.

    This resulted in a net injection of CNY80 billion at OMOs for the day.

    The central bank injected a net CNY95.5 billion at OMOs last week.

    The benchmark seven-day repo opened at 2.25%, unchanged from Friday.

    --MNI Beijing Bureau; +86 (10) 8532-5998; email:
    --MNI Singapore Bureau; tel: +65 9189-5705; email:

    [TOPICS: MMQPB$,M$A$$$,M$Q$$$,M$$FI$,MN$MM$,MN$RP$]

  • 2016-10-23 20:23

    TOKYO (MNI) - Corporate demand for financing via bank loans in October posted the first quarter-on-quarter rise in three quarters, reflecting higher sales and capital investment, according to the Bank of Japan's quarterly survey of senior loan officers at 50 banks released Monday.

    The index for corporate fund demand - which is calculated by subtracting the number of banks reporting a decline in lending from the number of those reporting an increase - stood at +6 in October after falling to +4 in July from +5 in April.

    The index for fund demand expected for the next three months stood at +3, down from +4 in the previous survey.

    By contrast, the index showing household demand for funds fell to +10 in October from +14 in July in the wake of lower housing investment and

  • 2016-10-23 20:10

    TOKYO (MNI) - Trade statistics from the Ministry of Finance released Monday.

    * Japan's September exports -6.9% on year (the median forecast: -10.4%), the 12th straight drop after -9.6% in August, led by lower shipments of automobiles, steel and semiconductors.

    * Both the government and the Bank of Japan expect exports to remain largely flat for now in light of slower global growth and the yen's relative strength.

    * Imports -16.3% on year (the median forecast: -16.6%), the 21st straight fall after -17.2% in August due mainly to continued year-on-year drops in oil and gas prices.

    * The September trade balance: a surplus of Y498.3 billion, the first surplus in two months following a deficit of Y19.2 billion in August and compared with a deficit of Y121.3 billion

  • 2016-10-21 16:17

    --Debate At Fed About Size of Balance Sheet
    --'No Question' Wage Growth Picking Up

    WASHINGTON (MNI) - The Federal Reserve will continue to reinvest the proceeds on the $4 trillion worth of bonds it accumulated during the financial crisis until "interest rates are well away from zero," San Francisco Fed President John Williams said Friday, but over time the balance sheet will shrink.

    There has been a lot of discussion among academics and at the Fed over whether it should keep a "somewhat larger balance sheet than normal at all times" so as to give the Fed more flexibility around its policy choices, Williams said, but the baseline plan is "at some point to allow -- over time and organically -- the balance sheet to shrink back to the level appropriate."

    "In my

  • 2016-10-21 14:30

    By Jean Yung

    WASHINGTON (MNI) - San Francisco Federal Reserve Bank President John Williams on Friday repeated much of the same speech he made more than a month ago, arguing for gradual rate hikes given the economy is at full employment and prices are within sight of the Fed's inflation target.

    "In the context of a strong economy with good momentum, it makes sense to get back to a pace of gradual rate increases, preferably sooner rather than later," Williams said in a speech prepared for the Federal Home Loan Bank of San Francisco's annual members conference.

  • 2016-10-21 09:17

    BRUSSELS (MNI) - The European Union has yet to reach final agreement on a free trade agreement with Canada, but negotiations are ongoing, senior European Union officials said Friday.

    Speaking at a press conference at the end of the European Council meting in Brussels, Council President Donald Tusk said no deal had yet been reached on a deal with Canada, but negotiations were ongoing.

    European officials had hoped to sign off on a free trade agreement with Canada at this week's Council meeting.

  • 2016-10-21 06:06

    By Johanna Treeck

    FRANKFURT (MNI) - A negative outcome for the Government to Italy's constitutional reform referendum in December would not be the end of the world, Italian Finance Minister Finance Minister Pier Carlo Padoan said Friday.

    "In financial markets there is the idea that the referendum is the end of the world. Well it is not," Padoan asserted. Even in the "unfortunate" case that a no-vote prevails, Italy will continue to reform as it already has, Padoan said.

    However, Padoan stated that he expects the yes-vote to prevail and "further boost the reform efforts."

    The overall boost to confidence and political willingness to embark on reforms while new rules would accelerated the process legislation, Padoan suggested.

  • 2016-10-21 05:52

    TOKYO (MNI) - Japan must increase its labor market mobility and seek a better work-life balance to overcome labor shortages and compete in global markets, Bank of Japan Governor Haruhiko Kuroda said Friday.

    Whether Japan's economy will grow in the long-run depends on whether the country's labor market can adapt to advances in technological innovation, globalization and demographic change, he told an economic conference.

    BOJ officials have been saying raising the economy's low growth potential and turning people's deflationary mindset into higher inflation expectations are crucial in boosting Japan's zero inflation to the bank's 2% price stability target.

    Technological progress increases income and purchasing power, as well as demand for new goods and services; furth