Private Banking – Pivdencom Bank Thu, 13 Jan 2022 02:49:49 +0000 en-US hourly 1 Private Banking – Pivdencom Bank 32 32 Big banks brace for support as staff shortages hit Thu, 13 Jan 2022 02:23:00 +0000

“I went to a well known restaurant in Melbourne last week which is closed now this week, and they had to cut the menu down to four items,” he said.

“They cut the menu down to a handful of items – and I’ve seen this in several restaurants – then take three or four hours to get your meal due to the lack of staff in the kitchen, lack of waiters. It really is a chronic problem.

Mike Vacy-Lyle, banking director of the Commonwealth Bank of Australia group, said hospitality, transport, tourism and leisure were the hardest hit.

“We also know that the current environment presents challenges for businesses across the country, including staff shortages due to high infection rates and the flow of trade impact, as well as chain disruptions. supply, ”he said.

“So far we’ve seen that the impact on businesses varies depending on the industry, geographic location and stage of a business’s life. Overall, we see the hospitality, transport, tourism and leisure sectors most affected. “

But with more and more workers staying at home on state government advice and largely deserted city streets, concerns are growing about consumer spending as well.

“For discretionary spending, people are thinking a bit more about whether to go out and whether they need to go out – so I think there’s going to be a bit of muted demand. There will certainly be supply impacts of labor shortages, ”said Mr. Irvine.

Mr Irvine said signs from abroad suggest the current wave may peak soon, meaning any impact will be short-term.

“We are all hoping this is something that will work on its own and from a global perspective we are now seeing a significant drop in omicron in the UK and South Africa. The hope is that it will be a cycle and we will all go through it in the not too distant future, ”Mr. Irvine said.

Mr Vacy Lyle said the majority of businesses remain in good shape, following good trading conditions in October, November and early December for many sectors, the combination of government stimulus measures and proactive support from banks.

“We continue to see the majority of Australian businesses remaining resilient to the omicron variant of the coronavirus. Our clients have also taken steps over the past two years to ensure their financial resilience, ”said Mr. Vacy-Lyle.

“Whether it’s preserving working capital or accessing financial support like JobKeeper, loan repayment deferrals, CBA merchant fee waivers, or financing through the loan program. to SMEs, ”said Mr. Vacy-Lyle.

An ANZ spokesperson said the Melbourne-based bank had yet to see a “material” increase in requests for support from businesses.

“We know that many of our corporate clients face personnel and supply chain challenges, with recent spending data indicating a decrease in consumer activity. At this point, we are not seeing a significant increase in requests for help with difficulties from our business customers, ”she said.

“The use of corporate overdrafts remains relatively low and deposit volumes are stable. This suggests that many businesses continue to navigate the current difficult COVID environment. “

BUSINESSMEN Sun, 09 Jan 2022 09:10:59 +0000


HoganTaylor has named Merri Barden, Tabatha Broussard, Lindsey Callery, Kevin Hearn and David Stiles as partners.


Nikki Pfleger has been promoted to Executive Vice President, Director of Corporate Banking Solutions for Encore Bank.

The Board of Directors of Farmers and Merchants Bank and Bank of Fayetteville have announced the promotion of Sarah Salsbury to Head of Private Banking.


Jessyka Hanna, Assistant General Manager and Director of Operations of Magic Springs Theme and Water Park, has been promoted to General Manager.


Mitchell, Williams, Selig, Gates & Woodyard, PLLC, elected lawyers Brytne Kitchin, Casey Dorman Lawson, Allison Raley and Lindsey Vechik as members of the firm.


The Arkansas Department of Parks, Heritage, and Tourism has hired Jeff LeMaster as its chief communications officer.


Notices of managerial promotions, new hires or job changes should be sent to: People Editor; Business News Service; Arkansas Democrat-Gazette; P.O. Box 2221; Little Rock, AR 72203, or by email at Reviews should be limited to a few paragraphs and may be accompanied by a photograph, preferably in glossy black and white, which will be used depending on available space. Photos cannot be returned.

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Wilmington Trust Adds Mark Maggioncalda as Senior Wealth Advisor to Radnor’s Office Fri, 07 Jan 2022 16:15:00 +0000

WILMINGTON, Del., January 7, 2022 / PRNewswire / – Wilmington Trust, a leader in wealth management and business and institutional services, said today that Marc Maggioncalda was hired as a Senior Wealth Advisor in his Radnor, Pennsylvania, Office.

In her new role, Maggioncalda will be responsible for providing comprehensive wealth management advice to high net worth individuals and families, entrepreneurs, business owners and foundations and endowments in the Central Atlantic region. He will work closely with clients and their advisors to develop financial strategies to help them meet their current needs and long-term goals. Maggioncalda will also coordinate the various unique services its clients require, including investment management, planning, trust, private banking and family office services.

The hiring of Maggioncalda is one of several that Wilmington Trust has recently announced in its business units. The firm is also committed to adding a significant number of new professionals, to broadening its expertise, and will double the number of its colleagues in contact with clients over the next two years.

“It is exciting to welcome Mark to our growing team. Its sectoral and regional experience will provide valuable information to our clients, ”said Colleen Marais, Regional Director of Wealth Management for Wilmington Trust. “Mark’s knowledge of topics ranging from investment management to family governance and business succession planning will help clients grow their portfolios and plan for the future. “

Maggioncalda has over 28 years of experience in the financial services industry. Prior to joining Wilmington Trust, he spent 16 years with BNY Mellon Wealth Management, where he held various positions involving business development and relationship management. Earlier in his career, he was Vice President of Investments for Wachovia Securities.

“I am delighted to join this growing team in the Philadelphia cream domain and provide my regional expertise to help clients overcome the hurdles of today and tomorrow, ”said Maggioncalda. “Wilmington Trust has a rich history of serving clients for generations, and this is a unique opportunity to provide information to these clients from a holistic perspective.”

Maggioncalda holds a license from Franklin and Marshall College in Lancaster, PA. Active in his community, he is involved with Legatus of Bucks County, the guest chef program for the Ronald McDonald House of Philadelphia, the Northwoods Association, the Inspira Foundation, the Bucks County Estate Planning Council, the Philadelphia Estate Planning Council, and Catholic business leaders.


Wilmington Trust Wealth management offers a wide range of personal trust, planning, fiduciary, asset management, private banking and family office services designed to help high net worth individuals and families develop, preserve and transfer their wealth. Wilmington Trust is focused on serving families with whom it can build long-term relationships, many of which span generations.

Wilmington Trust also provides Corporate and institutional services for customers all over the world.

Wilmington Trust has clients in all 50 states and many countries, with offices throughout United States and internationally in London, Dublin, Paris, and Frankfurt. For more information visit

CONTACT WITH THE MEDIA: Pat fitzgibbons, Senior Director of Public Relations, Wilmington Trust, [email protected]

Wilmington Trust is a registered service mark used in connection with various fiduciary and non-fiduciary services offered by certain subsidiaries of M&T Bank Corporation including, but not limited to Manufacturers & Traders Trust Company (M&T Bank), Wilmington Trust Company (WTC) operating in Delaware only, Wilmington Trust, NA (WTNA), Wilmington Trust Investment Advisors, Inc. (WTIA), Wilmington Funds Management Corporation (WFMC) and Wilmington Trust Investment Management, LLC (WTIM). These services include trustee, custody, agency, investment management and other services. International business and institutional services are offered by international subsidiaries of M&T Bank Corporation. Loans, credit cards, retail and business deposits, and other business and personal banking services and products are offered by M&T Bank, member of the FDIC.

This publication is provided for informational purposes only and is not intended as an offer or a solicitation for the sale of any financial product. Investors should seek financial advice regarding the suitability of investment strategies according to their objectives, financial situation and particular needs.

Investments: • ARE NOT FDIC insured • HAVE NO bank guarantees • May lose value

© 2022 M&T Bank Corporation and its subsidiaries. All rights reserved.

SOURCE Wilmington Trust

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“We are extremely happy to welcome Merrilee Matchett to our national board of directors, ”said Forest T. Harper, Jr., President and CEO, INROADS, Inc. “Since 1990, INROADS and MetLife have partnered to advance a diverse talent pool and this will be amplified by Merrilee’s experience and commitment to diversity, equity and inclusion. “

Matchett leads a team of more than 10,000 operations management associates and service teams that support and enable MetLife’s business in more than 40 global markets.

She has championed diversity and women in financial services throughout her 30-year career. She sits on MetLife’s Global Diversity, Equity and Inclusion (DCI) Global Board of Directors due to her driven leadership and commitment to championing the DCI.

“Part of promoting a meaningful diversity, equity and inclusion strategy is driving the lasting change that people feel,” said Matchett. “Supporting equity through career progression is one of the many ways to achieve this, which is why I am so excited to continue the mission of INROADS and MetLife’s commitment to create a more inclusive and equitable workforce and society. ”

Matchett has been recognized with numerous market awards for its outstanding performance in service and operation. She joined MetLife in 2021 from Bank of America, where she was responsible for execution and operations for global wealth management, private banking, and institutional and personal retirement businesses. There, she founded the “Asia Women in Technology & Operations” inclusion network, which has since grown into one of the largest enterprise inclusion networks in the financial services industry.

For more information on MetLife’s commitment to diversity, equity and inclusion, visit

Founded in 1970, INROADS offers innovative programs and creative solutions that identify, accelerate and enhance the development of under-represented talent throughout their careers. Through this development, students become equipped for corporate and community leadership that affects community renewal, social change, and elevates economic status and quality of life. INROADS has more than 30,000 alumni, more than 900 interns and serves more than 4,000 students and 200 corporate clients. Learn more at and connect with us on Facebook, Twitter, Instagram and LinkedIn: @INROADSInc.


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The Board of Directors of CNB Financial Corporation elected Michael Peduzzi, President and COO of CNB Bank, to the Board of Directors of CNB Bank effective January 1, 2022.

Mr. Peduzzi was hired as President and Chief Operating Officer of CNB Bank in August 2021. In this capacity, Mr. Peduzzi leads the bank in the execution of the strategic plan. He works with the CEO and Board of Directors of CNB to develop and lead the financial policies and practices of the retail, commercial, wealth management and private banking divisions of the bank to ensure that financial objectives , institutional growth goals and targets are met. . Along with other members of CNB’s management team, he will develop and implement bank-wide strategies aimed at achieving the growth and profitability necessary to deliver optimal shareholder returns while complying with regulations. government and sound financial practices.

Commenting on the announcement, Peter F. Smith, Chairman of the Board of Directors of CNB Bank, said: “I am very excited about the talent and enthusiasm Mike brings to CNB. His new leadership will take CNB to the next level.

Mr. Peduzzi has over 34 years of experience in banking and financial services, most recently serving as senior executive vice president and chief financial officer of a community bank in Pennsylvania. During this time, he served on the board of directors of the Pennsylvania Association of Community Bankers.

A native of Ebensburg, Pa., Mr. Peduzzi is a graduate of Bishop Carroll High School. He then graduated from Pennsylvania State University with a Bachelor of Science in Accounting. Mr. Peduzzi is a member of the American Institute of Certified Public Accountants (AICPA) and the Pennsylvania Institute of Certified Public Accountants (PICPA). He served a three-year term on the PICPA State Committee on Professional Ethics and a four-year term on the PICPA State Committee on Internal Audit, including a term as Chairman. Mr. Peduzzi has also been a member of the Pennsylvania State University – York Advisory Board since 2016.

Mr. Peduzzi’s appointment is the culmination of an active leadership succession planning process that the Board initiated several years ago to ensure an orderly leadership transition. The Board of Directors looks forward to working with Mr. Peduzzi to continue the bank’s growth and leadership in the communities it serves while upholding the rich heritage and tradition of superior service to its customers.


CNB Financial Corporation published this content on 01 January 2022 and is solely responsible for the information it contains. Distributed by Public, unedited and unmodified, on 03 January 2022 04:28:06 PM UTC.

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How Banks Made Millions From Shady Stock Transactions Sat, 01 Jan 2022 16:30:00 +0000

Private-sector lender Premier Bank, which was recently penalized for investing in unwanted, rule-breaking stocks, saw 1,008% year-on-year growth in portfolio income from January to September 2021, according to the Bank of Canada. Bangladesh.

The bank was fined Tk 50,000 by the Bangladesh Bank for violating guidelines for stock market investments under the Special Liquidity Support Program, but made a profit of Tk 28 crore through to its investment in stocks at the end of September. year ended. The bank’s portfolio income was Tk 2.53 crore in the corresponding period a year ago.

Another private bank, NRB Bank, which was fined by the central bank last September for manipulating stock prices, recorded 15,108% growth in profits on portfolio investments in the first three quarters of last year.

The bank was fined Tk 49.50 lakh for manipulating a company’s stock price, while its equity investment income stood at around Tk 20 crore at the end of September. 2021, compared to only 13 lakh Tk during the same period of the previous year.

These two examples illustrate how banks fueled stock prices by investing aggressively and making huge profits.

The fact that some banks got involved in excessive investment and price manipulation recently caught the attention of the Bangladesh Bank, prompting the regulator to take strict action.

Bank balance sheets – which show their profit on equity investments, saw robust growth in the July-September 2021 quarter – also bear evidence of aggressive equity investing

Profits of private commercial banks from investments in the stock market jumped to Tk 481 crore in the first nine months of 2021, up 568% from the Tk 72 crore earned in the same period there. is one year old, according to the Bangladesh Bank in its July-September quarterly report of last year.

The banking sector grew 10% year-on-year from January to September of last year while its stock profits rose 267%, according to the central bank report.

The share of banks’ income from equity investments to their total non-interest income more than doubled to 7.5% in the first nine months of last year, from 3.6% in the last year. same period of the previous year, according to data from the Bangladesh Bank.

The banking sector’s overall profit in the stock market was Tk 960 crore at the end of September last year, of which Tk 514 crore was portfolio income and Tk 447 crore was dividend income. . The total profit of banks in the stock market was Tk 377 crore in the same period of the previous year.

Some private banks recorded unusually high profit growth from equity investments last year.

For example, Mercantile Bank posted a 1,48,867% growth in profits in the stock market. Its profit in this segment was Tk 44 crore in the first nine months of last year, which was a paltry lakh of Tk3 in the same period of the previous year.

Some new generation banks also made good profits on portfolio investments last year. For example, the South Bangla Agriculture Bank earned 9 crore Tk from portfolio investments in January-September last year, which was zero in the same period of the previous year.

Another new generation bank, Padma Bank, earned around Tk 6million from portfolio investments in September of last year, although it had no segment income during the same period there. is one year old.

The Bangladesh Bank recently discovered that nine banks were involved in aggressive investments in stocks, some of which were involved in manipulating the stock prices of small-cap companies.

The banks are Agrani Bank, Premier Bank, Exim Bank, NRB Bank, Southeast Bank, Eastern Bank, NRB Commercial Bank, NRB Global Bank and Union Bank. Five of these banks were sanctioned by the regulator and the rest received warnings.

Most of these banks have shown more than 100% growth in profits from their portfolio investments, according to data from the Bangladesh Bank.

Salehuddin Ahmed, former governor of the Bank of Bangladesh, told The Business Standard that monetary penalties alone are not enough to prevent banks from overinvesting in stocks.

Noting that banks, through excessive investments in stocks, put public money at risk when the profit they derive from it is not sustainable, the seasoned banker said the Bangladesh Bank can take action. drastic, such as the imposition of sanctions on refinancing, the opening of branches, the reappointment. of the managing director, which will discourage banks from overplaying on the stock market.

The central bank should also research the banks’ sources of profit before allowing them to pay dividends or withholding provisions, he added.

Bank excess contributed to unusual increases in unwanted stock prices, pushing price indexes to their highest levels in the July-September quarter.

Some banks have invested in stocks exceeding the equity investment limit of 25% of their capital set by banking law, while others have invested under the special liquidity program of Tk 200 crore for each bank, in violation of central bank guidelines.

In the past year, when overall economic activity has remained stagnant, only the stock market has been vibrant. The stock prices of 140 listed companies, mostly small-cap and low-quality companies, rose 100 to 1,200% in one year until September of last year, putting retail investors at risk.

The manipulation of stock prices in the insurance industry has been widely discussed among stock market investors.

According to the Dhaka Stock Exchange (DSE), shares of 48 of the 53 listed insurance companies have gained prices between 100% and 750% in one year until September 2021.

However, the equity market saw a massive correction after the Bangladesh Bank took strict action against banks’ overexploitation of stocks.

DSEX, the benchmark for DSE, has lost more than 500 points in the past two months, according to the exchange.

Stock market performance

The Bangladesh Bank, in its quarterly report, observes that the strong performance of the capital market continued during the July-September quarter of last year, as evidenced by the strong growth of the price indexes, the dynamism of the turnover and expansion of market capitalization.

Global developed and emerging market capital markets as measured by the MSCI index showed some correction during the quarter while the Bangladesh capital markets index rose significantly.

The key capital market indicators, the DSE DEX Broad Index and the DSE-30 Index reached their highest level of 7,329 and 2,710.5, respectively, in the quarter since their inception in 2013.

During the period July-September 2021, the DSEX index increased by 19.2% and 47.7% compared to April-June 2021 and July-September 2020, respectively.

In the third quarter of 2021, the DSE-30 index rose 22.7% and 59.8% respectively compared to April-June 2021 and July-September 2020, according to the central bank’s quarterly report.

In 2021, the Bangladesh stock market was ranked fifth in terms of returns until mid-December among Asian frontier markets, according to the latest report from Asian Frontier Capital (AFC) which invests funds in these markets. .

The Dhaka Stock Exchange, with its cumulative return of 26% since the start of the year, was only behind Mongolia, Sri Lanka, Vietnam and Kazakhstan, ahead of Iraq, Indonesia and, of course. , negative yielding markets such as the Philippines, China, Pakistan and Malaysia. .

DSEX has beaten the global averages of frontier markets and also emerging markets, which have developing economies and thriving financial markets.

Investors like AFC Frontier Fund tend to invest in blue chip companies at attractive prices.

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Bad debts could rise to 8.1% by September 2022, unless stress eases Wed, 29 Dec 2021 13:39:31 +0000

MUMBAI Bad loans in the banking sector could reach 8.1% of total advances by September 2022 in the baseline scenario, up 120 basis points (bps) from September this year, said on Wednesday the Reserve Bank of India (RBI).

The macro stress tests for credit risk also show that the gross non-performing asset ratio (GNPA) could drop from 6.9% in September 2021 to 9.5% in September 2022 in a severe stress scenario, RBI said in its semi-annual financial stability report. The baseline scenario uses expected values ​​of macroeconomic variables such as gross domestic product (GDP) growth, combined budget deficit-to-GDP ratio, and retail sales inflation, among others.

However, RBI said that if the stressful conditions do not materialize and the situation improves from the baseline scenario, banks’ gross NPA ratio may moderate.

In the last report released in July, RBI said the bad debt ratio could be 9.8% by March 2022, in the baseline scenario.

The central bank assesses the resilience of bank balance sheets to unforeseen external shocks using macro-stress tests and forecasts depreciation and capital ratios over a one-year horizon. Wednesday’s report comes with a caveat that adverse scenarios are rigorous and conservative assessments under “hypothetical adverse economic conditions” and, therefore, these model results should not be interpreted as forecasts.

“As highlighted in this issue of the Financial Stability Report, financial institutions in India have remained resilient amid the pandemic and stability prevails in financial markets, dampened by political and regulatory support,” Governor Shaktikanta Das wrote. in the foreword to the report, adding that the bank’s balance sheets remain strong and capital and liquidity cushions are strengthened to mitigate future shocks.

Among the different categories of banks, the gross NPA ratio of public sector banks at 8.8% in September 2021 could deteriorate to 10.5% by September 2022 in the baseline scenario; for private banks, the bad debt rate can drop from 4.6% to 5.2%; and for foreign banks, it should drop from 3.2% to 3.9% over the same period.

Stress tests also showed that the system-level capital adequacy ratio could decline to 15.4% by September 2022 in the baseline scenario and to 14.7% and 13.8% in the medium and severe stress scenarios, respectively. The solvency ratio at the end of the September quarter of the current fiscal year was 16.3%.

“Stress tests show that all banks would be able to comply with minimum capital requirements even under severe stress scenarios,” RBI said.

In addition to macro stress tests, RBI also used stock market indicators to measure systemic risk in the banking sector and found that systemic risk in the banking sector declined in 2021 from its high level in the first wave of the pandemic.

Regarding the macroeconomic environment, Das wrote that consumer confidence and business optimism are on the rise as the spread and scale of vaccination expands.

The outlook, he said, is gradually improving, although there are headwinds due to global developments and more recently Omicron.

“The anchoring of the recovery depends on the revival of private investment and the strengthening of private consumption, which remain below their pre-pandemic levels. Inflation remains a concern shaken by the build-up of cost pressures, ”Das said.

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Associated Banc: Michelle Long, CFP® AEP® joins the wealth management team of Associated Bank in Chicago Mon, 27 Dec 2021 15:57:04 +0000

CHICAGO – December 27, 2021 – Michelle Long, CFP® AEP® has joined Associated Bank as Vice President and Senior Financial Planner, Wealth Management. She is responsible for working with private bankers, portfolio managers, trust administrators, lawyers, CPAs and insurance specialists to create personalized financial plans for clients.

Long brings over 25 years of financial planning and wealth management experience to Associated. Previously, she held the position of Senior Wealth Planning Advisor and Director at BMO Private Banking.

Long holds a Bachelor of Science degree from Northwestern University. She is also a Certified Financial Planner®, Accredited Estate Planner® and a member of the Chicago Estate Planning Council.

It is located at 525 W. Monroe St.

# # #


Associated Banc-Corp (NYSE: ASB) has total assets of $ 34 billion and is Wisconsin’s largest banking holding company. Headquartered in Green Bay, Wis., Associated is one of the Midwest’s premier banking franchises, offering a full range of financial products and services from more than 200 banking locations serving more than 100 communities across Wisconsin, the Illinois and Minnesota, and commercial financial services in Indiana, Michigan. , Missouri, Ohio and Texas. Associated Bank, NA is an Equal Housing Lender, Equal Opportunity Lender, and a member of the FDIC. Further information on Associated Banc-Corp is available at


Banc-Corp associated published this content on December 27, 2021 and is solely responsible for the information it contains. Distributed by Public, unedited and unmodified, on December 27, 2021 03:56:03 PM UTC.

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RBI checks into the board of directors of RBL Bank; CEO goes on leave Sun, 26 Dec 2021 00:17:00 +0000 MUMBAI: RBL Bank saw a series of senior management changes on Saturday, starting with the Reserve Bank of India’s appointment of Yogesh K Dayal as additional director. The bank’s board of directors also accepted the request of Managing Director and CEO Vishwavir Ahuja to take leave with immediate effect. Furthermore, the Board of Directors approved the appointment of Rajeev Ahuja, Executive Director, as Interim Managing Director and CEO with immediate effect.
Although neither the regulator nor the private lender has given any indication as to the reasons for the changes, this is seen as a major event by the banks as RBI had only accepted a one-year term for the CEO of Ahuja Bank in June 2021. Ahuja is 62 years old. and in terms of age, he has leeway to continue until he is 70 years old.
Veteran banker Ahuja, who was CEO of Bank of America in India for eight years until 2008, led the transformation of the 100-year-old Ratnakar Bank, attracting new investors and new leadership. The private lender was renamed and repositioned as a next generation bank that was listed following an IPO in 2016. Ahuja had a 3% stake before the IPO, which fell to 1 % after capital dilution and sale of shares. More recently, the bank has partnered with fintechs and offers Banking as a Service (BaaS).
Dayal, who has been appointed director for a two-year term, is the chief managing director at the Reserve Bank of India in charge of the communications department. Previously, he worked in the Department of Monetary Policy and the Department of Banking Supervision.
This is not the first time that RBI has exercised its right to appoint an additional director to the board of directors of the private bank. In the past, RBI had appointed a director to the boards of Yes Bank, Ujjivan Small Finance Bank and Dhanlaxmi Bank. RBL Bank shares fell 3% on Friday.
In December 2020, RBL raised funds of Rs 1,556 crore through a preferential allocation. However, the quarter ended in September saw the bank’s net profit drop 93% to Rs 9.7 crore. The bank’s profits fell after a 33% increase in provisions. This was after a loss of Rs 459 crore in the first quarter of FY22.
Reassuring investors of the bank’s strength, RBL said the bank’s business and financial trajectory continues to be on an improving trend, having absorbed the challenges of the Covid 2 pandemic.
“The Bank’s financial data remains strong with a healthy capital adequacy of 16.3%, high levels of liquidity as evidenced by the liquidity coverage ratio of 155%, a stable net NPA of 2.14%, a credit deposit ratio of 7.1% and a leverage ratio of 10.0% for the quarter ended September 30, 202, ”the bank said in a press release. Source link

China set to default on US trade commitments by year-end Fri, 24 Dec 2021 02:05:06 +0000

Sino-U.S. Trade tensions could erupt again as it appears China will default on its obligations under a near-expired deal that emerged from a dispute under the administration of former US President Donald Trump, said analysts.

The Economic and Trade Agreement signed by the two superpowers in January 2020 is due to end on December 31. Trade observers say China broke a clause that requires it to purchase imports of manufactured goods, agricultural products, energy products and certain services from the United States totaling $ 200 billion. dollars more than 2017 total. China bought $ 186 billion worth of goods and services in 2017 before the trade war, according to US government figures.

China has struggled to comply due to delays in Chinese aircraft orders from the United States and setbacks related to the pandemic, said Matthew Goodman, senior vice president of economics at the Center for Strategic & International Studies, a Washington-based research group.

“I think the Biden administration is going to follow through on this deal and hold China to account,” Goodman told VOA. “I see no reason why they are going to change course.”

FILE – A cargo truck rolls amidst stacked shipping containers in the port of Yangshan in Shanghai, China, March 29, 2018.

China had only reached 62% of its import purchase target in October, according to an analysis by Chad Bown, Principal Investigator at the Peterson Institute for International Economics, another research organization in Washington.

U.S. manufacturers may also lack the capacity to meet demand for goods destined for China, said Bashar Malkawi, a University of Arizona law professor specializing in commerce. The closure of China’s borders during the pandemic era further hurt U.S. exports, he said.

Trump’s nearly four-year trade dispute over the China-U.S. Trade imbalance has imposed tariffs on $ 550 billion in goods, including $ 350 billion from China. The dispute also led to a cooling of the broader two-way relations that would run throughout Trump’s tenure.

“The environment between these two countries is toxic,” said Malkawi. “The trade war and mistrust have raged since 2018 and will not abate for the foreseeable future.”

And after

The U.S. trade representative’s office did not respond to a question for this report asking whether China has honored the agreement. Its website does not indicate what could happen in 2022.

FILE - In this file photo from September 29, 2021, U.S. Trade Representative Katherine Tai speaks at the start of the "Workforce management in.  Technical jobs" panel discussion at the inaugural US-EU Trade and Technology Council meeting in Pittsburgh.

FILE – In this file photo from September 29, 2021, U.S. Trade Representative Katherine Tai speaks at the start of the “Workforce Management in Tech Jobs” panel discussion at the inaugural meeting of the US-EU Business and Technology Council in Pittsburgh.

United States Trade Representative Katherine Tai said in a speech at the Center for Strategic & International Studies in October that the US government will discuss with China its “performance” and that under the agreement, China had “made” commitments that benefit certain US industries, including agriculture , which we must enforce “.

The US side “will work to uphold the terms of the first phase,” she added, referring to the terms of the agreement.

Tai said the United States has yet to review the deal.

China hopes the US government “will create favorable conditions for the two nations to expand trade cooperation,” Commerce Ministry spokesman Gao Feng said on Thursday. China daily news site.

Gao Feng, spokesperson for China's Ministry of Commerce, speaks at a late-night press conference on a China-Europe investment deal at the Ministry of Commerce in Beijing, December 30, 2020.

Gao Feng, spokesperson for China’s Ministry of Commerce, speaks at a late-night press conference on a China-Europe investment deal at the Ministry of Commerce in Beijing, December 30, 2020.

Gao said China had “made strenuous efforts to offset the negative impact of factors such as the COVID-19 pandemic, global economic recession and supply chain constraint” to bring the deal to fruition. , according to the website.

China is the United States’ largest merchandise trading partner, with $ 559.2 billion going both ways in 2020, according to the sales representative office.

The United States’ trade in goods and services with China totaled about $ 615.2 billion in 2020, with imports of $ 450.4 billion.

The expiration of the trade deal potentially gives China an opening to negotiate the purchase of the American goods it needs, said Song Seng Wun, an economist in the private banking unit of Malaysian bank CIMB. China traditionally buys American food products, civilian airplanes and aircraft parts. Its tech companies also depended on US supplies before the trade war.

“I guess it always comes down to what China wants to buy and what the United States wants to sell,” Song said. “China can be more selective in its purchases. Politics matters more at this point.”

Chinese officials could consider asking to buy the US goods China needs most, possibly swapping those in today’s deal, said Stuart Orr, director of the Melbourne Institute of Technology’s School of Business. in Australia.

“I think China is probably going to have to try to renegotiate, and the reason that will probably motivate it will be the volume of supplies of some of the things it really needs,” he said.

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