Corporate Updates - Bangladesh’s Post

According to the latest update by the RBI, 93% of ₹ 2,000 in circulation has been returned to the RBI. The last date to exchange the remaining currency notes of ₹ 2,000 is 30th September 2023. The maximum limit to exchange is set at ₹ 20,000 by the RBI. Hurry up and exchange the currency notes today! #KarbonBusiness #Banking #Finance #FinancialService #CurrencyExchange #RBIUpdate #FundsExchange #DeadlineAlert

This in turn ascertains that the depositor’s money is safe and helps in increasing their confidence in the bank. SLR is used to regulate inflation and maintain cash flow in the economy. When there is inflation, RBI increases the SLR to restrict the lending capacity of the bank. And when there is a need to infuse cash into the system, RBI reduces the SLR to help banks offer loans at better rates and improve borrowings.CRR:

THE CURS OF BANKs 1. Banks are biggest vultures of this corrupt system. 2. Banks are suppose to fuel the economy by providing credit to small businesses and new businesses. 3. Banks take the easy route by not providing this credit to private businesses instead they lend 80% to Govt. 4. As a custodian of money they do not involve depositer actual owner of the money in theses lending decisions. 5. provide nominal returns to depositors. If banks do their function properly real economy can flourish.

This policy note discusses the causes, #financialstability implications and policy implications of the exceptional speed and scale of bank runs in March 2023. While some of the factors that contribute to the increased #volatility of deposits can and should be contained through policy measures, others, like the intensified competition between banks will inevitably stay, and bank balance sheet management and #liquidity regulation need to accept the new normal of somewhat less stable and more expensive sight deposits. #banks #deposits #policy #management #finance #balancesheet

The SA Reserve Bank has released data on the current account of the balance of payments (BOP) for 2023Q2 – a summary of transactions between SA residents and the rest of the world. It includes trade in goods and services, income and current transfers.The deficit on the current account of the balance of payments widened to R160.7 billion (2.3% of GDP) in 2023Q2 from R63.7 billion (0.9% of GDP) in 2023Q1. To view the full statement on the current account of the balance of payments for 2023Q2, click here: https://bit.ly/3Z6FbpK

Banks are the largest holders of government bonds. Due to liquidity crunch because of elections, Government is now buying back its bonds from the banks, i.e. exchanging cash for the bonds they hold.   This move is aimed towards injecting liquidity in the banking system. During elections, Government faces an expenditure deficit. So, Government’s cash balances increase and banking sector faces a shortage in cash circulation. Therefore, government plans to buyback its bonds ensuring liquidity in the financial market & also easing future obligations of repayment along with maintaining a threshold for interest.   But the RBI,acting on behalf of the government, is rejecting a major of the portion to be bought back on the grounds that the market players are offering the bonds at a higher price. If RBI accepts their offer, it will bring down short term yields which the government is not interested in doing when it is still fighting against inflation.   In the three rounds of the buy back, the amount notified and the amount bought back falls far apart which shows how the central bank is in a pickle to choose it government side or its banking side. #rbi #governmentbonds #bankingsystem #trc

The SA Reserve Bank has released data on the current account of the balance of payments (BOP) for 2023Q2 – a summary of transactions between SA residents and the rest of the world. It includes trade in goods and services, income and current transfers. The deficit on the current account of the balance of payments widened to R160.7 billion (2.3% of GDP) in 2023Q2 from R63.7 billion (0.9% of GDP) in 2023Q1. To view the full statement on the current account of the balance of payments for 2023Q2, click here: https://bit.ly/3Z6FbpK

The ten-year treasury continues its rise! On August 31st, the rate sat at 4.09% it moved a whopping 44 basis points to 4.55%. With treasury rates rising rapidly, banks continue to figure out pricing. It's amazing how rates can differ so much between lending institutions. I often see Quoted rates 100 bps - 250 higher than my lowest rate. #Finance #Commercialrealestate #ABRCM