credit lending

Digital needs of asset and wealth managers

The Economy of Digital Money

By issuing digital money, the central banks could provide an answer for the substitution of jobs by robotization, or solve the problem of excessive public debt, easing the increasing pressure on finances from burdens like pensions.

capital requirements

Spanish banks may thrive in ECB capital requirements harmonisation

The Corner | February 25, 2015 | European banks will have to raise more and better quality capital to meet the single supervisor’s requirements, ECB’s Danièle Nouy warned on Tuesday, since the absence of a common regulation is one of the  industry’s main challenges. “That would be positive for Spanish banks since regulation in our country is one of the strictest in Europe,” experts at ACF commented.

No Picture

ECB: credit standards on EZ loans eased for the first time since 2007

MADRID | The Corner | A further sign of a recovery in credit: standards on loans within the eurozone have been eased for the first time in the 2Q in seven years, just before the financial crisis bursted, the ECB said in its regular Banking Lending Survey released on Wednesday. Net demand continues to recover for both household and enterprise borrowing. However, as we reported, the open bar announced by Mr Draghi won’t have an impact on loans until 2015 and, meanwhile, credit fall continues to accelerate in some peripheral countries, especially in Spain and Italy.

china credit

China embraces credit expansion

MADRID | The Corner | The world’s second economy is entering an enthusiastic summer period, with credit lending indicators rising in June. New loans denominated in yuan grew up by 1.08 bn CNY in China, aggregate financing went up by 1.97 bn CNY and the M2 monetary offer, in 14.7% year on year in June. All these data exceeded market expectations and show that the authorities are favoring the expansion of credit to boost growth.

No Picture

ECB takes the reins in a historic move- but where’s the QE?

MADRID | By Julia Pastor | In a historic move, the ECB cut the benchmark rate to 0.15 percent from 0.25 percent, and reduced the deposit rate to minus 0.10 percent from zero, becoming the world’s first major central bank to use a negative rate and pushing entities to increase credit lending. Spanish Ibex35 reacted to the news with a 0,8% increase. 


A diabolic loop of stagnation

MADRID | By Francisco López |  Spanish banks face into the new era of banking union with their homework successfully completed, both in terms of adjustments and efficiency in the stress tests. Their balance sheets are healthy, although now a new challenge awaits: how to improve profitability in an adverse economic cycle, with rates close to 0% and with credit lending remaining worryingly low.