Global Banking Directory
Press Release Distribution Service
Add Bank | Banking Forum | Scam Alerts!
Earn up to 18% annually on cryptocurrency deposits!
BanksDaily Twitter BanksDaily FaceBook BanksDaily LinkedIn

Financial and Banking News

Moody's downgrades credit ratings of 28 Spanish banks

Moody's is cutting its credit ratings on 28 Spanish banks, saying the weakening finances of Spain's government is making it more difficult for the country to support its lenders.

The agency also said the banks are vulnerable to losses from Spain's burst real estate bubble.

The announcement came on the same day that Spain's government formally asked for help from its European neighbours in cleaning up its stricken banking sector. However the request left many questions unanswered, including how much of a $125bn loan package Spain would ask for.

That uncertainty led to losses on Monday in stock markets in Europe and the US. Bond investors pushed Spain's borrowing costs higher, a sign of lagging confidence in the country's ability to support its banks.

The downgrades are a measure of Moody's view on the ability of the 28 banks to repay their debts. Moody's said the downgrades stemmed from its lowering of Spain's credit rating by three notches earlier this month.

A downgrade usually means that banks will have to pay more for their debt. Investors demand higher interest for riskier debt, which is what the downgrades represent. However, with interest rates already at rock-bottom levels, the lower ratings may not significantly affect the cost of funding for the banks.

Spain formally asked the European Union on Monday for rescue loans to help clean up its troubled banking industry. The Spanish economy, the fourth-largest of the 17 countries that use the euro, is suffering from the aftershocks of the burst property bubble, which has devastated families as well as banks. Unemployment is nearly 25%.

The financial strength of Spain's government hinges on that of the country's banks. Two-thirds of Spain's government bonds are owned by Spanish banks, pension funds and insurance companies.

Moody's said in a statement that it was encouraged by the broad measures being introduced by Spain to support its banks.

The credit ratings agency made its move four days after downgrading some of the world's biggest banks, including Bank of America, JP Morgan Chase and Goldman Sachs, reflecting concern over their exposure to the violent swings in global financial markets. Moody's also cut the ratings on seven German and three Austrian banks this month.

The series of downgrades weren't a surprise. But they come at a time of great uncertainty in the global economy. Europe's 17-nation currency union is under threat, the US economy is slowing and the economies of India, Brazil and China are cooling.

EU leaders are meeting on Thursday and Friday in Brussels for another summit aimed at reining in Europe's debt crisis. Greece is looking to renegotiate some of the budget-cutting measures it has agreed to in exchange for continued support from international lenders. The summit comes just a week after Greece's new coalition government was formed following months of political turmoil and two inconclusive elections.

Spanish government officials haven't said how much they will seek from the loan package offered by the EU 9 June. Two international audits last week found that as much as $77bn could be needed. Spain wants the loans to go directly to the banks so that the government wouldn't be responsible for repayment. That idea has met with resistance, however.Steep losses stung stock markets on both sides of the Atlantic Monday. The Dow Jones industrial average dropped 138 points to close at 12,502.66, a loss of 1.1%. The broader Standard & Poor's 500 index fell by 1.6%.

Many analysts believe big banks, including those in the US, would be the first to feel the hit of a freeze-up in Europe's financial system if Spain isn't able to convince bond markets that it can rescue its hobbled banks.

The uncertainty pushed borrowing costs higher for Spain's government. Its stock market plunged 3.7%.

Source: Guardian
Date: 26.06.2012 [323]

Financial and Banking News
 UK bank bans cryptocurrency amid fraud concerns with Binance and Kraken

TSB Banking Group Plc. is set to ban more than 5 million customers from buying cryptocurrencies amid fears over "excessively high" fraud rates on trading platforms, according to a report by the U.K.’s Telegraph newspaper.

 How Women Can Impact the Middle Eastern Financial Industry: Layal Haykal Success Story

We’re in the 21st century and women are still mistreated in some parts of the world. Their rights are violated. They don’t have the opportunity to work on equal terms with men. They’re being kidnapped and sold no matter their age. This phenomenon is highly prevalent in the Middle East. The world is evolving from globalization to technological innovations while women there are still repressed and exploited. The same image women had several decades ago hasn’t changed heavily in our present times.

 Citigroup to exit 13 global consumer banking markets, including India and China

Citigroup announced April 15 it will exit 13 international consumer banking markets, shifting its focus to wealth management and away from retail banking in places where it is small.

 In-person GISEC 2021 to spark industry collaboration against cybercrime spike

GISEC, the most influential cybersecurity event in the Middle East and Africa, will provide an in-person meeting point for the cybersecurity ecosystem from 31st May-2nd June at Dubai World Trade Centre (DWTC). 13.04.2021 | Source: Dubai World Trade Centre

 Federally chartered banks can facilitate stablecoin payments, issue their own

The Office of the Comptroller of the Currency (OCC) today published a letter clarifying national banks’ and federal savings associations’ authority to participate in independent node verification networks (INVN) and use stablecoins to conduct payment activities and other bank-permissible functions. 04.01.2021 | Source: Office of the Comptroller of the Currency

 📰 News Archive
Get your content published on BanksDaily.com with the PrNews platform in just a few clicks.

2007-2021 © BanksDaily.com Banking and Finance