Tisco bank will shun risky lending as the economy slows. (Bangkok Post photo) Tisco Financial Group Plc, Thailand’s top performing bank stock this year, is becoming wary of risky lending practices as the economy slows.The bank is focused on asset quality and may fail to achieve its 2019 loan growth target of 5% amid intense competition in the car credit sector and central bank mortgage curbs, Chief Executive Officer Suthas Ruangmanamongkol said. “The competition in retail lending is unreasonable and risky, with firms offering zero down-payment and low-rate loans,” Mr Suthas said in an interview in Bangkok on Monday. “Asset size and loan growth is not our priority. We’re trying to prevent risky lending that could cause major problems.” The Bank of Thailand has repeatedly flagged concerns about financial stability following an extended period of low borrowing costs, and is expected to refrain from cutting rates on … [Read more...] about Top-performing Tisco bank will shun risky lending amid slowdown
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The next 3 years: ‘The best is yet to come’ What seemed inconceivable for some skeptics in seeing how President Duterte’s drug war could translate to economic prosperity is now coming into fruition. Last month, international credit rating agency Standard & Poor’s Global upgraded the country’s credit rating to “BBB+” with a stable outlook – making the Philippines just a notch shy of the coveted “A-” rating. According to the latest research conducted by the Switzerland-based business school International Institute for Management Development (IMD), the Philippines’ competitiveness moved up to 46th from 50th last year owing to its impressive economic performance and higher labor force. In determining the rankings, the IMD looked into economic performance, infrastructure development, government efficiency and business efficiency, and evaluated “the extent to which a country … [Read more...] about The next 3 years: ‘The best is yet to come’
Mr Didier Rabattu is a limited partner of the Lombard Odier Group. Before joining the group in 2011, he was a partner at Amber Capital and portfolio manager of a fund that focused on agriculture and the consumer and retail sectors.Previously, he was a partner at Talaris Capital and co-managed a global fund from 2007 to 2009 and worked at Deutsche Bank as global co-manager of the consumer/retail sectors in the investment bank from 1995 to 2006. Please subscribe or log in to continue reading the full article. Learn more about ST PREMIUM. Enjoy unlimited access to ST's best work Exclusive stories and features on multiple devicesIn-depth analyses and opinion piecesePaper and award-winning multimedia content Subscribe Now … [Read more...] about Real rates likely to stay negative for prolonged time
Major Philippine banks are still hoping that a cut in reserve requirement ratios, currently at 18 percent, will be decided keeping with the current condition of local and global financial markets. In March and June last year, the Bangko Sentral ng Pilipinas (BSP) allowed banks to bring down reserve ratios twice, from 20 percent to the current 18 percent by 100 basis points each, to free up about P200 billion for increased lending and bank investments. It was supposed to start a gradual easing in recognition of a slowdown in the entry of foreign investment funds to the country and the recovery of the US market and other major world economies. However, an escalation of inflation resulting from manipulated rice and food shortages in the local economy, with commodity prices rising by an average of 4.3 percent in the first half of 2018, led the BSP to temporarily hold back further reserve ratio reductions. Instead, the BSP continued with increasing its interest rates throughout the year in … [Read more...] about Time to bring down bank reserve ratios?
WASHINGTON -- The US central bank opened its third policy meeting of the year on Tuesday under renewed attack from President Donald Trump, who called on officials to reverse course and cut interest rates. Trump slammed the Federal Reserve for "incessantly" raising interest rates and said cutting rates by a full percentage point would make the economy surge. The Fed raised rates 4 times last year -- and has done so a total of nine times since December 2015 -- moving from zero in the aftermath of the global financial crisis to the current range of 2.25 percent to 2.5 percent. But this year the Fed has been on hold and signaled clearly that it has no intention of moving monetary policy anytime soon as it grapples with conflicting signs on the economy. Trump's call for a rate cut of a full point would reverse all of the Fed moves last year and likely undermine any credibility the central bank has with financial markets. And if Trump continues to browbeat the Fed in public comments, central … [Read more...] about News Fed opens meeting as Trump calls for deep rate cut