Page 2 - Financial Crisis

FM tells PSBs to diversify deposit, asset base amid global financial stress

Use the crisis to frame detailed crisis management strategies, FM to bankers

Central banks in spotlight as US authorities focus on financial stability

SVB's collapse kicked off a tumultuous 10 days for banks which led to the 3 billion Swiss franc ($3.2 billion) Swiss regulator-engineered takeover of Credit Suisse by rival UBS

Who are the owners of the risky, worthless Credit Suisse's AT1 bonds?

Big money managers such as Pacific Investment Management Co. and Invesco Ltd. are among the largest holders, owning around $807 million and $370 million, respectively

Silicon Valley Bank Financial must wait to get back $2 billion from FDIC

The FDIC's decision to lock down the $2 billion creates jeopardy in the bankruptcy case, said Tom Lauria, a lawyer representing a large bondholder, Appaloosa LP

Silicon Valley Bank's loans to insiders tripled to $219 mn before it failed

The surge in loans to high-up figures may draw scrutiny as the Federal Reserve and Congress investigate the breakdown of Silicon Valley Bank, the biggest US bank collapse in more than a decade

US, Europe banking woes likely to hit Indian IT companies' growth

Indian IT players like TCS, Infosys, Wipro, HCL Technologies, Mphasis, and LTIMindtree have exposure to some of the troubled banks

Top headlines: UBS needs RBI nod for C-Suisse, windfall tax on oil slashed

Business Standard brings you top headlines at this hour

US officials study ways to guarantee all bank deposits if crisis expands

One legal framework under discussion for expanding FDIC insurance would use the Treasury Department's authority to take emergency action and lean on the Exchange Stabilization Fund, the people said

Fear of financial crisis keeps investors away from stock exchanges

A number of American banks had failed recently or came under pressure

Assessing contagion: 'Little, then lottle', like ketchup coming out of bottle

In every systemic crisis, there are initial soothing noises from regulators and commentators: There won't be contagion. Except that eventually there is contagion more often than not, writes T N Ninan

Employees dumbfounded by how SVB CEO publicly acknowledged financial crisis

"They were being very transparent. It's the exact opposite of what you'd normally see in a scandal. But their transparency and forthright-ness did them in," one employee said

SVB crisis: How a little-known bank plunged markets globally into chaos

Honda shuts plant in Pak amid crisis, cites supply chain disruptions

Amid the ongoing financial crunch in Pakistan, another car maker company Honda on Wednesday announced to close its plant citing severe disruption in supply chain as major reason, reported Geo News

In final stages of negotiations with IMF on bailout package: SL President

President Ranil Wickremesinghe on Thursday said Sri Lanka was in the final stages of negotiations with the IMF on the much-awaited USD 2.9 billion bailout package that could help the debt-trapped island nation recover from the unprecedented economic crisis. Wickremesinghe also said that his government was having "direct discussions" with Beijing to restructure the country's debts with China. The International Monetary Fund (IMF) in September last year approved Sri Lanka the USD 2.9 billion bailout package for over 4 years pending the island nation's ability to restructure its debt with creditors -- both bilateral and sovereign bond holders. By the end of June 2022, Sri Lanka owed nearly USD 40 billion to bilateral, multilateral and commercial loans, according to the figures released by the Sri Lankan Treasury. With assurances from creditors, the USD 2.9 billion facility could get the IMF board approval in March, officials said. The IMF facility would enable Sri Lanka to obtain ...

90% pledges by international community in form of 'loans': Pak minister

Pak's finance minister said that almost 90 per cent of pledges made by the international community for the flood-hit country were project loans that will be rolled out over the next three years

Cash-strapped Mizoram gets Bangla refugee influx; border talks with Assam

Already overburdened with Kuki-Chin refugees from strife-torn Myanmar, Mizoram, which is reeling under a financial crisis, received a fresh stream of displaced people from the Chittagong Hill Tracts of Bangladesh this year. More than 300 Kuki-Chin refugees from CHT took shelter in the northeastern state following armed clashes between Bangladesh Army and insurgents belonging to the Kuki-Chin National Army (KNA). The state now hosts a total of 40,000 refugees from Myanmar and Bangladesh. Mizos share ethnic ties with the Kuki-Chin people. The Zoramthanga administration is reeling under a severe financial crunch due to the COVID-19 pandemic and delay by the Centre in releasing the state's share of taxes and grants. The crisis has resulted in delays in timely payment of salaries to government employees, and pensions to retirees, besides clearance of bills. However, the state government hopes that the crisis will be resolved in 2023 with the release of more funds from the ...

For tech industry, 2022 was a year of mass layoffs; 2023 likely to be worse

The tech layoffs this year have exceeded the job cuts the sector faced globally during the financial crisis of 2008-2009 triggered by the Lehman Brothers' collapse

Costs and benefits

Cryptos are speculative but underlying tech has merits

Next financial crisis will come from crypto: RBI Guv Das at BFSI summit

Business Standard BFSI Insight Summit 2022: Das said that these currencies have "no underlying whatsoever" and pose a threat to macroeconomic stability

Kerala facing 'unprecedented financial crisis', says finance minister

Kerala Finance Minister K N Balagopal on Tuesday said the state is reeling under unprecedented financial crisis and attributed the "distorted" financial policies of the Centre, the outbreak of COVID-19 pandemic and recurring natural disasters as reason for the poor economic condition. The minister, however, made it clear that the Left government was moving ahead with a "clear road map" and financial discipline to overcome the crisis and resolve the issues. He was replying to a question during the Question Hour session in the state Assembly. "It is true that the state is facing an unprecedented financial crisis. However, the reasons contributing to the crisis are beyond the control of the state...that is the fact," Balagopal said. Compared to the previous financial year, there was a dip of Rs 6716 crore in the revenue deficit grant (released to the state by the Centre) during the ongoing financial year, he informed the House. However, the minister replied in negative to a question