Global Banking Directory
Press Release Distribution Service
Add Bank | Banking Forum | Scam emails!
Advertise Your Business Here
BanksDaily Twitter BanksDaily FaceBook BanksDaily LinkedIn

Financial and Banking News

French Bank to Repay Government Bailout

Crédit Agricole, the French bank, said Wednesday that it would repay the €3 billion of debt the government bought last December, becoming the latest big bank to pay back a bailout.

The lender said it would pay back the $4.5 billion on Oct. 27, making it the last French bank to outline how it would return state funds that propped up its capital reserves during the financial crisis.

Unlike other major banks in France, Crédit Agricole did not opt to give the state preferred shares for a second tranche of aid in May. In the past several months, the bank said, it has issued subordinated notes in the institutional market in Europe and the United States, in a sense preparing to replace those bought by the state last year.

A subordinated note is debt that gets repaid last when a borrower has trouble, and in such cases, lenders can receive only a fraction of what they loaned. Such debt counts as part of a bank's Tier 1 capital, but not its core Tier 1, two different capital ratios that reflect a lender’s robustness.

Other banks have taken a different tack, selling new stock to raise funds. Société Générale said last week that it aimed to raise €4.8 billion, or $7.1 billion, by issuing new shares in order to pay back aid, and BNP Paribas, the largest French bank, made a similar announcement last month.

If Crédit Agricole is forgoing the sale of shares, which would count toward its core Tier 1 ratio, it is because the bank thinks, by that measure, that it is strong enough already, said Eric Hazart, banking analyst at Exane Paribas. "They say they’ve got a stronger financial structure," he said.

Crédit Agricole is not the only French bank to decide against an equity issue lately. On Monday, BPCE, the lender formed by the merger of Banque Populaire and Caisse d'Epargne this summer, announced that it, too, would tap investors with an offer of subordinated notes, another sign that banks and debt markets are continuing their slow march back to normalization.

"We've seen spreads go down," said Alain Dupis, bank analyst at Oddo, referring to the difference between yields on government and corporate debt. A large spread can mean the market expects more bankruptcies. With a lower one, he said, "we're talking recovery."

Source: New York Times
Date: 14.10.2009 [233]

Financial and Banking News
 Trump blasts Bitcoin, Libra, demands they face banking regulations

U.S. President Donald Trump on Thursday criticized Bitcoin, Facebook's proposed Libra digital coin and other cryptocurrencies and demanded that companies seek a banking charter and make themselves subject to U.S. and global regulations if they wanted to "become a bank." 11.07.2019 | Source: Reuters

 25th World Islamic Banking Conference announces 4th series of WIBC Leaderboard

Top performing Islamic Financial Institutions from Bahrain, Egypt, Indonesia, Jordan, Kuwait, Malaysia, Oman, Pakistan, Turkey, UAE and Saudi Arabia are vying for the WIBC Awards recognizing the Best Performing Banks at the Global and Regional level. 28.10.2018 | Source: MEGA

 Financial technologies are need of the hour for Banks in India

The Indian FinTech space is expected to reach $2.4 billion by 2020 and 2018 will be a critical year in that journey because 52 % of India's digitally active consumers are adopting FinTech and are the driving force for new technology adoptions. 02.03.2018 | Source: Explore Exhibitions and Conference

 📰 News Archive

2019 © Global Bank Directory