Biz confidence back as slowdown slows down Nov 20, 2009
While the government has made it clear that rolling back of stimulus measures will start from next year, the Reserve Bank of India (RBI) has already signalled a hardening of its monetary policy stance, with a one percentage point increase in the statutory liquidity ratio last month. While the business confidence index continued on the upward trajectory, the political confidence index released by NCAER showed a slight dip from the previous quarter. (India Times)
Nigeria: 'Only Three Banks Sick Last December' Nov 16, 2009
com: Nigeria: Only Three Banks Sick Last December - NDIC (Page 1 of 1). Only Three Banks Sick Last December - NDIC. (allAfrica.com)
Banks need to bring down deposit growth Nov 16, 2009
Since interest rates have reached a plateau, as evident by the recent 1% hike in statutory liquidity ratio (SLR) by RBI, it seems that making money through treasury profits on g-sec investment is unlikely. Given that the credit growth is not likely to see a sharp rebound and g-sec investments are piling up, banks will have to bring down the deposits growth in the coming months. (India Times)
Festive cheer pumps up IIP output Nov 13, 2009
Prime Minister Manmohan Singh said last week that the government would start rolling back the stimulus measures from the next year and RBI has already signalled a hardening of its monetary policy stance with a 100-basis point increase in the statutory liquidity ratio. The government expects the economy to grow at 6. (India Times)
India May Lead G-20 in Fiscal Stimulus Exit as Singh Signals Withdrawal Nov 9, 2009
The Reserve Bank of India on Oct. 27 ordered lenders to keep more cash in government bonds, raising the statutory liquidity ratio to 25 percent from 24 percent. Governor said it was appropriate for the central bank to exit monetary stimulus in a calibrated way. (Bloomberg -- UK)
Time for investors to realign portfolios Nov 8, 2009
While in the monetary policy most of the key rates such as repo rate, reverse repo and cash reserve ratio remained the same, the statutory liquidity ratio was raised from 24% to 25. Also, the Reserve Bank of India (RBI) made it more expensive to lend money to the real estate sector. (India Times)
Bank profits to be under pressure in next 6 months Nov 7, 2009
The central bank restored the statutory liquidity ratio (SLR) to 25% from 24%, in a bid to reduce the liquidity in the banking system and send out a signal that a further softening of rates is ruled out. Interestingly, banks have piled up investments in G-secs. (India Times)
Nigeria: Central Bank Raises Alarm On Rising Cases of Bank Fraud Nov 5, 2009
"Most of the banks reported increased earnings and profitability due to increased lending and business diversification. The crisis in the capital market threatened the liquidity in the banking system due to banks' exposure to margin loans. The CBN took some actions, such as the stoppage of liquidity mop-up and reduction of liquidity ratio from 40 per cent to 30 percent, to assist banks in their liquidity management. "Some of the banks had their foreign lines reviewed downward by their foreign... (allAfrica.com)
Correction in stock markets was overdue Nov 2, 2009
Don't blame the hike in statutory liquidity ratio, a correction in the stock markets, anyway, was overdue. Investors shun index heavyweights | Mid-term picks. (India Times)
Is the debt option good now? Nov 1, 2009
However, the statutory liquidity ratio (SLR) was restored back to 25 percent from the earlier 24 percent. While the change in SLR is hardly expected to have any impact on the liquidity situation, analysts feel the next policy review could bring in a hike in the key rates. (India Times)
Interest rates to remain stable Nov 1, 2009
As such, apart from a hike in the statutory liquidity ratio (SLR) - the amount of deposit that commercial banks are to park in government securities - the central bank left other key policy rates and ratios unchanged. The one percentage point hike in SLR could draw over Rs 30,000 crores from the system. (India Times)
D-St Preview Oct 31, 2009
He left key policy rates unchanged but raised the statutory liquidity ratio (SLR), which prescribes the percentage of deposits that banks are required to invest in government debt, to 25 per cent from 24 per cent.. The RBI also raised its inflation forecast for fiscal 2009-10 to 6. (India Times)
Inflation rises 1.5% on costlier food items Oct 29, 2009
The apex bank had raised Statutory Liquidity Ratio (SLR), the amount of deposits that banks are to keep in government securities, cash and gold, by one percentage point to 25 per cent.. Topics. (India Times, India)
As RBI toughens stance, debt, equity players must revisit portfolio Oct 29, 2009
RBI may not have hiked cash reserve ratio, repo or reverse repo rates and only increased statutory liquidity ratio, but the tone of the policy clearly indicates that rates may go up in the near future,'' says Mukesh Dedhia, director, Ghalla ali Securities. The SLR hike impact would be temporary, but there is a general feeling that the RBI may hike key rates in its next policy review in three months. (India Times)
ICICI sees minor impact from RBI steps Oct 28, 2009
The Reserve Bank also raised the statutory liquidity ratio by 1 percent, reversing a cut made last November, although banks already hold government securities in excess of the requirement. The RBI, which left key interest rates unchanged at the review, said there were signs of excess liquidity feeding into asset prices. (India Times)
RBI raises SLR by 100 bps to 25% Oct 28, 2009
The statutory liquidity ratio is now once again 25. As most banks have invested more than 25% in government securities, this decision will not have an immediate impact on the availability of funds, but these measures indicate the RBIs intent to discontinue the accommodative monetary policy. (India Times, India -- Intl Business)
Bond yields ease on RBI move Oct 28, 2009
On Tuesday, the Reserve Bank of India (RBI) raised the Statutory Liquidity Ratio (SLR) or the proportion of deposits banks h 00004000 ave to hold in approved government securities by 100 basis points to 25 per cent while keeping all other rates unchanged. At 10:05 am (0535 GMT), the 10-year benchmark bond yield was at 7. (India Times)
Bank stocks reel under NPA shock Oct 28, 2009
The 1% rise in statutory liquidity ratio to 25%, needed to be maintained by banks at all times, will not have any major effect as most banks have an SLR of around 27. Investors should start buying private banks as they will benefit the most from faster growth than PSU banks, said Mr Agrawal. (India Times)
India Begins Exit From Monetary Stimulus With Order to Buy Government Debt Oct 27, 2009
Governor increased the statutory liquidity ratio to 25 percent from 24 percent after raising the inflation forecast to 6. 5 percent from 5 percent, according to a statement in Mumbai today. (Bloomberg -- Asia)
Bond yields down; Re up post policy Oct 27, 2009
Bond dealers said a hike in the statutory liquidity ratio for banks' bond holdings cheered sentiment for the bond market. At 11:20 a.m. (0550 GMT), the 10-year benchmark bond yield was at 7. (India Times)
Industry reactions Oct 27, 2009
It raised the statutory liquidity ratio of commercial banks to 25 percent from 24 percent effective Nov. 7, and said the collateralised borrowing and lending obligation liabilities of banks would be subject to cash reserve ratio requirements from Nov. 21. As expected, the RBI left the repo rate at 4. (India Times)
RBI leaves key rates unchanged Oct 27, 2009
Barring the hike in Statutory Liquidity Ratio, the deposits that commercial banks are to park in government securities, the central bank left other key policy rates and ratios unchanged. Although the one percentage point hike in SLR could suck up over Rs 30,000 crore from the system, the average SLR of banks is already at 27. (India Times)
India's central bank holds interest rates Oct 27, 2009
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India's central bank holds rates Oct 27, 2009
However, the RBI restored the statutory liquidity ratio (SLR) -- the minimum share of bank deposits to be held in government bonds, cash and gold -- for commercial banks to 25 percent, from 24 percent. "Reversing conventional measures is not appropriate for now, but the unconventional measures can be reversed immediately," said Subbarao after the half-yearly review of monetary policy. (Sydney Morning Herald -- World)
RBI may hike CRR: Experts Oct 26, 2009
DBS Bank said the statutory liquidity ratio (SLR), the minimum share of bank deposits to be held in government bonds, cash, gold, could be hiked as early as next week by one percentage point. "We do not rule out a one percentage point hike in the SLR rate to 25% reversing the 1 point cut implemented in November 08," it said in a report. (India Times, India -- Intl Business)
RBI likely to retain policy rates Oct 25, 2009
DBS Bank said the statutory liquidity ratio (SLR), the minimum share of bank deposits to be held in government bonds, cash, gold, could be hiked as early as next week by one per centage point. "We do not rule out a one percentage point hike in the SLR rate to 25 per cent reversing the 1 point cut implemented in November 08," it said in a report. (India Times)
Leave it to the banks! Oct 23, 2009
So, telling banks how they should arrive at their Base Rate using clearly-defined common cost elements that include the card interest rate on retail deposits (deposits below Rs 15 lakh) with one year maturity (adjusted for current account and savings account deposits); adjustment for the negative carry in respect of cash reserve ratio (CRR) and statutory liquidity ratio (SLR); unallocable overhead cost for banks which would comprise a minimum set of overhead cost elements; and average... (India Times)
Impact of the Global Financial Crisis and Its Implications for the East Asian Economy, Keynote Speech by Mr. Takatoshi Kato, Deputy Managing Director, International Monetary Fund, At the Korea International Financial Association, First International Conference Oct 22, 2009
In response to this, the Basel Committee and the G20 plan to introduce a longer-term structural liquidity ratio. As you know, the excessive reliance on wholesale funding has also been an issue in some Asian countries, particularly in Korea, Australia, and New Zealand. (IMF News)
Let easy money stay: Bankers to RBI Sep 19, 2009
The bank chiefs also urged the central banker to hike the statutory liquidity ratio (SLR) and the share of government securities that can be parked in the held-to-maturity (HTM) basket. As of now, banks have to invest 24% of their deposits (demand and time liability ) in government securities. (India Times)
Norms for repo in corp bonds ready Sep 18, 2009
RBI added that the amount borrowed in repo by selling of corporate debt securities would be considered as borrowings for computation of cash reserve ratio and statutory liquidity ratio by banks. The central bank added that the security acquired under repo should not be sold by the repo buyer, lender of the funds, during the period of repo. (India Times)
Cascade Bancorp (Oregon) Enters Into Agreement With FDIC Sep 1, 2009
Under the agreement, the Bank agreed to certain measures to improve its capital position, maintain liquidity ratios, reduce its level of non-performing assets, and reduce its loan concentrations in certain portfolios, improve management practices and to assure that its allowance for loan losses is maintained at an appropriate level ... The regulators have stipulated a primary liquidity ratio of at least 15 ... At June 30, 2009 the Bank had a primary liquidity ratio of 18. (PR Newswire)
Standard & Poor's Announces an Update to the U.S. Indices Liquidity Criteria and a Change to U.S. Index Aug 19, 2009
Effective today, additions to the S&P 500, S&P MidCap 400, and S&P SmallCap 600 indices should have a float adjusted liquidity ratio of 1 ... For inclusion in the S&P Total Market Index, additions should have a float adjusted liquidity ratio of 0. (PR Newswire)
Nigeria: If a Bank is Sick, the Signs Are Self-Evident, Says Sanusi Aug 18, 2009
People put money there not because they know anything about the balance sheet or liquidity ratio. It is because they have an understanding that if a Nigerian government has allowed the bank, they must have done everything they need to do to make sure that the system works so that a man can carry his life savings and put in this institution and go to sleep. (allAfrica.com)
RBI lives up to its reputation Jul 29, 2009
Its actions since September last have already resulted in an actual/potential liquidity injection of Rs 561,000 crore (excluding Rs 40,000 crore freed up as a consequence of the 1% reduction in SLR statutory liquidity ratio). Year-on-year broad money growth is 20% and likely to grow further as a consequence of the RBIs open market operations. (India Times)
No change in key policy rates: RBI Jul 28, 2009
Statutory liquidity ratio unchanged at 24 percent. Inflation forecast hiked to 5 percent from 4 percent. (India Times, India)
Banks violated RBI guidelines: Pranab Jul 25, 2009
The alleged violations include non-adherence of know-your-customer (KYC) norms, failure of internal controls in initial public offerings, violation of foreign exchange management guidelines and non-maintenance of prescribed cash reserve ratio (CRR) and statutory liquidity ratio (SLR), finance minister Pranab Mukherjee informed the Lok Sabha in a written reply. Bank of Baroda, ICICI Bank, State Bank of Bikaner r, Centurion Bank of Panjab, Dena Bank, Bank of India, Deutsche Bank, Yes Bank,... (India Times)
Nigeria: CBN Relaxes Lending Guidelines to Boost Liquidity Jul 21, 2009
com: Nigeria: CBN Relaxes Lending Guidelines to Boost Liquidity (Page 1 of 1). Nigeria: CBN Relaxes Lending Guidelines to Boost Liquidity. (allAfrica.com)
Keep debt office on hold Jul 15, 2009
Recourse to instruments like the Statutory Liquidity Ratio (SLR) that compels banks t 00004000 o hold a part of their liabilities in government securities is part of this regimen. The idea was that in course of time as government's borrowing needs come down and revenues rise, the RBI could divest this responsibility to a separate DMO.. (India Times)
The ‘Ins and ‘Outs of Loan Modifications: Protecting Yourself and Your Real Estate May 28, 2009
Banks have something called a liquidity ratio and a capital ratio, essentially they have to have their own capital and they can then lend multiples of that. Their capital had gotten depleted, so they needed to sure up their capital, meaning put money in their accounts, that way they could lend more money. (RealtyTimes)
Can there be an ideal PLR? May 6, 2009
To this we need to subtract the return on investments, which would be earned on the deposits over and above the Rs 100 that have to be garnered to be able to lend Rs 100 as 30% of the deposits have to be set aside for cash reserve ratio (CRR) and statutory liquidity ratio (SLR) on which the latter earns this return. Based on the performance of scheduled commercial banks in FY08, certain thumb rules can be ascertained. (India Times)
Banks deposit funds with MFs on poor loan offtake May 5, 2009
These investments are termed statutory liquidity ratio (SLR) investments. As of April 10, banks had invested 7% extra (31% of deposits) in government bonds. (India Times)
RBI to keep rates on hold: STCI Apr 17, 2009
The primary dealer doesn't expect a cut in cash reserve ratio (CRR) and statutory liquidity ratio (SLR), citing huge cash surpluses in the banking system and the fact that banks are already holding bonds more than stipulated. After a 4 percentage point cut since early October, the CRR is currently at 5 percent. (India Times)
The BPLR debate Apr 10, 2009
If PSBs are reluctant to lower their BPLRs it is because their cost of deposits is still high, thanks to pre-emptions like cash reserve ratio and statutory liquidity ratio and the substantial share of fixed deposits raised at higher interest rates earlier. Unlike a reduction in BPLR that promptly translates into lower lending rates, a reduction in deposit rates does not lower overall costs immediately since lower rates apply to only new deposits. (India Times)
Nigeria: Central Bank Boosts Economy Apr 9, 2009
IN apparent bid to douse the scarcity of funds in the economy, the Central Bank (CBN) yesterday injected about N955 billion into the banking industry as it reduced bank's liquidity ratio and cash reserve requirement to 25 per cent and 1 ... The liquidity ratio is the portion of banks' total assets that are kept in liquid assets such as treasury bills and government bonds; while the cash reserve requirement is the portion of banks total assets that they must keep in cash ... Following the meeting... (allAfrica.com)
Nigeria: CBN Cuts Interest Rate to Boost Lending Apr 9, 2009
The banking watchdog also announced a downward review of both the Cash Reserve Ratio (CRR) and Minimum Liquidity Ratio (MLR) of banks from 2 to 1 per cent and 30 to 25 per cent respectively - effective from Tuesday, April 14, 2009. Briefing newsmen in Abuja on the outcome of the meeting of the Monetary Policy Committee (MPC), CBN Governor, Prof. (allAfrica.com)
Banks say sub-PLR lending a liability Apr 9, 2009
However, banks maintained that given their cost structure of raising deposits, maintaining cash reserve ratio (CRR) and statutory liquidity ratio (SLR), they would not be in a position to lower lending rates. The resistance to lower lending rates immediately is also because most PSU banks, except for State Bank of India (SBI), have lowered lending rates with effect from April 1. (India Times)
'Blueprint to tackle slump impact ready' Mar 23, 2009
5% over the last few months apart from reducing the statutory liquidity ratio the ratio of deposits that commercial banks are required to invest in government securities to 24% from 25% on November 1. According to official estimates, the central bank has released Rs 3,60,000 crore in the banking system through several measures since the financial crisis started unfolding in mid-September last year. (India Times)
RBI to shrink rates by 50 bps Mar 21, 2009
However, the officials said the central bank may not bring down key reserve ratios such as cash reserve ratio part of deposits that banks are required to keep with RBI and statutory liquidity ratio part of deposits that the banks are required to invest in specified instruments such as government securities. The thinking within RBI is that cuts in repo rate and reverse repo rate the rates at which the central bank lends to and borrows from banks will encourage banks to lend... (India Times)
Public Information Notice: IMF Executive Board Concludes 2008 Article IV Consultation with India Mar 18, 2009
The Reserve Bank of India s (RBI s) measures including cutting policy rates, lowering the cash reserve ratio and the statutory liquidity ratio, and easing controls on capital inflows have eased the domestic liquidity pressures that appeared in September and October and brought down interbank rates significantly. Nevertheless, the TED and commercial paper spreads remain elevated and commercial lending rates have fallen much less than policy rates. (IMF News)
Is this the market bottom? Mar 13, 2009
At about half the expected deposit accretion in the banking system and twice the statutory liquidity ratio, government borrowing of this magnitude will inevitably lead to choking of credit to the private sector in addition to bidding up interest rates. Continued. (India Times)
Fourth Quarter Results Propel Home Capital to Record Performance in 2008: Earnings per Share Rise by 20% for the Year; Return on Equity was 27.8% Feb 17, 2009
The Company's liquidity ratio is the total of liquid assets, adjusted by the estimates in each scenario, divided by the adjusted liabilities. At December 31, 2008 liquid assets amounted to 147% under the immediate scenario, and 134% under the ongoing scenario, in excess of industry recommended levels of 120. (Canada Newswire)
