Page 3 - Central Banks

Central banks need to incorporate climate-related risks: RBI dy guv

Central banks need to incorporate climate-related risks into their supervisory frameworks in order to contribute to the development of frameworks and standards for green finance, said RBI Deputy Governor M Rajeshwar Rao. Participating in a panel discussion on 'Climate Implications for Central Banking', he stressed that financing the new green ventures alone will not be enough and there is a need for credible transition plans for existing emitting firms without compromising their output or growth. "For this to materialise, central banks can incorporate climate-related risks into their supervisory frameworks and can contribute to the development of frameworks and standards for green finance. These frameworks can help promote transparency, standardization, and integrity in the green finance market," he said. On Tuesday RBI released the remarks of Rao at the panel discussion organised by the IMF and Center for Social and Economic Forum on July 19 in New Delhi. The deputy governor furth

No question of taking money out of mkt: Aditya Birla Sun Life AMC MD & CEO

"Any rebalancing must not be done entirely out of the equity market but through a mix of exposure to equity and debt. It is prudent to look at it from the prism of an asset class mix"

Central banks set to diverge on rates as stubborn inflation stalks Fed, ECB

With another hike in interest rates anticipated by the Federal Reserve and the European Central Bank for July, and some peers on a similar track

Rupee likely to face stronger headwinds this month: Business Standard poll

Analysts expect dollar index to rise with more rate hikes in the US

I-T dept finds discrepancies in SFT reports filed by certain banks

The Income Tax Department on Friday said it has found discrepancies in Statement of Specified Financial Transaction (SFT) reports filed by some banks with regard to high value financial transactions. Under SFT, specified institutions are required to furnish the details of certain financial transactions or any reportable account maintained by them during the year. The last date for filing an SFT for a fiscal is May 31 of the subsequent fiscal. The reporting entities which are required to file SFT returns with tax authorities include forex dealers, banks, sub-registrar, NBFC, post offices, issuer of bonds/debentures, mutual fund trustees, company paying dividend or buying back shares. In a statement, the Central Board of Direct Taxes (CBDT) said, recently the department carried out "verification" of a Tamil Nadu-based "prominent bank" to address Reporting Entity compliance issues. "In the recent past too, verification was conducted by the department on 2 cooperative banks in Uttarak

M-cap of 6 of valued firms erodes by Rs 1 trn, Reliance takes biggest hit

Six of the top-10 most valued domestic firms suffered a combined erosion of Rs 1,02,280.51 crore in market valuation last week, amid a weak trend in equities, with Reliance Industries taking the biggest hit. Last week, the BSE benchmark fell 405.21 points or 0.63 per cent amid a bearish trend in global equities and concerns over rate hikes by central banks of various countries. From the top-10 pack, Reliance Industries, ICICI Bank, Hindustan Unilever, ITC, Infosys and State Bank of India faced erosion from their market capitalisation (mcap). However, Tata Consultancy Services (TCS), HDFC Bank, HDFC and Bharti Airtel emerged as the gainers. The market valuation of Reliance Industries tumbled Rs 40,695.15 crore to Rs 17,01,720.32 crore. Hindustan Unilever's mcap diminished by Rs 17,222.5 crore to Rs 6,20,797.26 crore. State Bank's valuation fell by Rs 14,814.86 crore to Rs 4,95,048.22 crore and that of Infosys declined by Rs 11,204.66 crore to Rs 5,25,228.89 crore. The mcap of ITC

Bank of Japan's new chief keeps ultra-low rates, embarks on policy review

Revamps guidance, removes pledge to keep rates at low levels; quarterly report projects inflation to hit 1.6% in fiscal 2025

Inflation and its discontents

Central banks are incapable of dealing with the political and economic outcomes of inflation, and the sooner this is recognised, the less dangerous the consequences will be going forward

Interest from central banks for rupee trade: RBI deputy guv T Rabi Sankar

The stakeholders on either side are getting adjusted to it, said RBI Governor Shaktikanta Das

Int'l banking system is headed for more trouble, says Raghuram Rajan

His comments add to warnings that the troubles at SVB and Credit Suisse are indicative of deeper underlying problems in the financial system

You make the tea or the tea makes you?

Move over Reserve Bank of India. It's the commercial banks, which are creating money and moving the economy

New Zealand's central bank hikes key interest rate by 50 bps to 5.25%

New Zealand's central bank surprised economists on Wednesday by imposing an aggressive half-point rate rise to bring its benchmark interest rate to 5.25%. It was the Reserve Bank of New Zealand's 11th straight rate hike as it tries to cool inflation, which is running at 7.2%, far above the bank's target level of around 2%. It brings the key rate to its highest level since the Global Financial Crisis in 2008. New Zealand's benchmark rate is now among the highest in the developed world, and the bank's aggressive action stood in contrast to Australia's central bank, which on Tuesday decided to pause its round of rate hikes and leave its benchmark rate at 3.6%. Most economists had expected the Reserve Bank of New Zealand to impose a more modest quarter-point rise after the nation's economy contracted in the December quarter and a destructive cyclone hit in February, killing 11 people and causing billions of dollars in damage to homes and infrastructure. The currency rose on the ...

Banking crisis raises concerns about leverage lurking in financial system

More than a dozen regulators, bankers, asset managers and former central bank officials say shadow debt and its links to lenders are becoming a major cause for concern

6 central banks to boost flow of US dollar through global financial system

Central banks have moved globally to keep credit flowing after an unsettled period in the US banking sector and the Credit Suisse merger

Central banks try to calm markets after UBS deal to buy Credit Suisse

Soon after the announcement late on Sunday, the US Federal Reserve, European Central Bank and other major central banks came out with statements to reassure markets

Urban infrastructure principles on the cards in July G20 meeting

The dates for the Gandhinagar meeting have not been finalised

Inflation: Central banks can't fix the mess that politicians have created

Only politicians can fix the problem because, contrary to public belief, it is they who create money, not central banks

Major central banks return to rate hikes to fight inflation in February

Policy makers in Australia, Sweden, New Zealand and Britain joined the U.S. Federal Reserve and the European Central Bank in lifting key lending rates by a total of 250 basis points (bps)

UPI, PayNow tie-up: In payments, like geopolitics, India seeks a third way

Indian policy makers believe that the UPI and allied elements of what it calls "digital public infrastructure" are one of their biggest recent innovations

Central banks, including RBI, may raise interest rates to combat inflation

ECB President Christine Lagarde has already said the bank till hike rates, if needed