The bill for China’s bank-lending spree is coming due. An announcement on 23 February by China’s fifth-largest lender, the Bank of Communications (BoCom), of a 42 billion yuan ($6.15 billion) rights offering, created a stir in Asian financial markets—not because it was unexpected, but because it represents the biggest fund-raising effort by a mainland company [...]
Financial regulation should help those in need and take from those who profited most from the excesses of the past decade The current economic crisis has caused widespread suffering, and the suffering is far from over. We welcome signs of recovery, but this will not end the need for continued sacrifice. A decade of irresponsible [...]
13 Feb. China raised the level of reserves banks must hold for the second time this year today, spooking financial markets on the eve of its New Year holiday by showing it was intent to curb lending and inflation. Although investors had been expecting the People’s Bank of China to push the reserve requirement ratio [...]
Regulation of Banks and Finance: Theory and Policy after the Credit Crisis by Carlos M. Pelaez and Carlos A. Pelaez As the financial crisis engulfs the world economy, there is an ambitous agenda for regulatory reform. This book provides a comprehensive review of the analysis of finance, economics and the law and economics, illuminating past [...]
President Barack Obama told executives from some of the nation’s largest banks yesterday they have a duty to take “extraordinary” steps to boost lending and help the US economy after getting a taxpayer bailout. Financial institutions were rescued from a crisis “largely of their own making,” he said, and now must help homeowners and small [...]
20 Nov. In recent months £200 billion has been injected into the UK economy through quantitative easing. Yet, paradoxically, businesses up and down the country report that it is harder than ever for them to secure bank loans for investment and growth. The big banks, on the one hand, argue that they are ready and [...]