Some major Russian banks have reported a significant increase in credit concentration on corporate borrowers over recent years. However, based on international and Russian experience, even large companies can become insolvent. The potential default of such borrowers may cause banks to lose their financial stability and pose risks to the financial system as a whole. Therefore, the Bank of Russia believes it is important to regulate concentration risks.
At its meeting on 27 June 2024, the National Financial Board (NFB) considered the Bank of Russia Annual Report for 2023, information from the Bank of Russia Board of Directors on key issues of the regulator’s activities in Q1 2024, as well as the report of Limited Liability Company Fund of Banking Sector Consolidation Asset Management Company for 2023.
The Bank of Russia will increase risk-weight add-ons for unsecured consumer loans starting September 1, 2024. This measure aims to curb the rise in household debt and strengthen banks' macroprudential capital buffers.
The Bank of Russia has identified instances of market manipulation in on-exchange trading at Moscow Exchange and PJSC SPB Exchange involving 19 issues of corporate high-yield bonds over the period from December 12, 2018, to April 13, 2023. The issuance of these bonds was organized by Limited Liability Company UniService Capital (LLC USC).
The total cost of credit (TCC) under consumer loan and microloan agreements signed or amended in the third quarter of 2024 may not exceed the market averages calculated by the Bank of Russia for respective loan categories by more than one-third. The market averages of the TCC were published on the regulator’s website in May.
South Africa’s positive net international investment position (IIP) increased from a revised R2 028 billion at the end of December 2023 to R2 537 billion at the end of March 2024. The increase in the positive net IIP in the first quarter of 2024 was due to a significant increase in foreign assets, mainly emanating from strong growth in foreign share market indices, while foreign liabilities decreased during the period.
Today, the Chairman of the House Financial Services Committee, Patrick McHenry (NC-10), issued a statement regarding two landmark Supreme Court decisions. These decisions overturned the deference precedent set forth in Chevron v. Natural Resources Defense Council and reined in the Securities and Exchange Commission’s in-house courts in SEC v. Jarkesy.
Economic activity in South Africa decreased slightly in the first quarter of 2024 as real gross domestic product (GDP) contracted by 0.1% after expanding by a revised 0.3% in the previous quarter. The real gross value added (GVA) by the secondary sector contracted in the first quarter of 2024, along with stagnant economic activity in the tertiary sector, while the real output of the primary sector expanded further. Despite the marginal contraction in the first quarter of 2024, the level of real GDP was 0.5% higher than a year earlier.
Today, the House Financial Services Subcommittee on Capital Markets, led by Chairman Ann Wagner (MO-02), held a hearing entitled “Solutions in Search of a Problem: Chair Gensler’s Equity Market Structure Reforms.”
Today, the House Financial Services Subcommittee on National Security, Illicit Finance, and International Financial Institutions, led by Chairman Blaine Luetkemeyer (MO-03), is holding a hearing entitled “The Role of the Export-Import (Ex-Im) Bank of the United States Amid Intensifying Economic Competition with China.”
The national financial account records transactions involving financial assets and liabilities among resident institutional units and between these units and the rest of the world. By extension, the flow of funds measures financial statistics where both parties to a transaction are shown, as well as the nature of the financial instrument being transacted.
The loan portfolio of microfinance organizations expanded by 7% over the first quarter of 2024 amid high consumer demand. Predominantly medium-term loans were issued. Payday loans, which are traditionally the most expensive ones, accounted for 32% of the total amount of loans granted for several quarters. This is the lowest amount since 2017.
The Integrated Economic Accounts (IEA), as prescribed by the System of National Accounts 2008 (2008 SNA), provide a comprehensive view of the accounts for the total economy, including balance sheets. This framework allows for the principal economic relations and main aggregates to be displayed over a specified period. The IEA consists of three distinct macroeconomic accounts: the current and capital account (CURCAP), the non-financial balance sheet and accumulation account (NFBSAA), and the financial balance sheet and accumulation account (FBSAA). These accounts can also be...
Since January 9, 2024, the Bank of Russia has adhered to a previously announced procedure for conducting transactions in the domestic foreign exchange (FX) market related to replenishing and using the funds of the National Wealth Fund (NWF). This includes all transactions carried out with such funds in 2023. Consequently, the Bank of Russia reports the amounts of transactions performed in the domestic FX market from July 1 to December 28, 2024.
The June 2024 results of the monitoring of maximum interest rates on deposits in Russian rubles by the top ten credit institutions attracting the largest amount of household deposits are as follows:
Today, the House Financial Services Subcommittee on Housing and Insurance, led by Chairman Warren Davidson (OH-08), is holding a hearing entitled “Housing Oversight: Testimony of the HUD and FHFA Inspectors General.”
Today, the House Financial Services Subcommittee on Financial Institutions and Monetary Policy, led by Chairman Andy Barr (KY-06), is holding a hearing entitled “Stress Testing: What’s Inside the Black Box?”
Cheta Nwanze, a Nigerian writer, stated that the Nigerian government arrested two employees of the cryptocurrency exchange Binance to use crypto as a "scapegoat" for the country's economic situation. Nwanze shared his statement on a June 17 episode of the Nigerian Politics Weekly podcast.
According to InFOM’s survey, one-year inflation expectations of households edged up to 11.9% in June 2024 from 11.7% in the previous month. The increase was driven by growing expectations among surveyed respondents with savings. Expectations of respondents without savings edged down but were still around the level of autumn 2023.