| South Africa: Standard to Raise Transaction Charges
Standard Bank would increase its transactional bank charges an average 4,65% from January, its CEO for personal and business banking for SA, Sim Tshabalala, said yesterday. Tshabalala said charges on transaction products would rise 4,33% while those for savings and investment products would be increased 1,9%. Charges on the bank's Mzansi and E-Plan products would rise 2,3% and 4,4%, respectively. .
Second bank may seek emergency funding as Northern Rock shares nose-dive again
Specialist buy-to-let lender Paragon suffered further share price misery today as its funding woes sent the stock tumbling another 21%. The mortgage group's shares have lost more than half their value since yesterday's news it may have to turn to shareholders for emergency funding and could close to new business if it cannot secure new credit. Shares in Northern Rock also took another dive today as the crisis-torn bank said that its advisers had begun talks with 'a number' of interested parties over rescue plans for the business. Northern Rock said: "The company is aware that all stakeholders want clarity on the outcome of the strategic review as soon as possible and is therefore progressing the process as quickly as possible." Scroll down for more...
BofA to split up its marketing work
Bank of America Corp. is changing its five-year-old strategy of working with just one advertising holding company for all of its marketing needs.The new approach means the Charlotte bank will look to work with firms from multiple holding companies as it seeks to attract more customers to its broad array of businesses. It's a key move because the bank, which had $73 billion in revenues last year, spends more than $2 billion per year on marketing. The change will start in March after the bank's contract ends with Omnicom Group Inc., spokesman Joe Goode said. Bank of America has been with the New York-based firm since 2005 when it switched from Interpublic Group of Cos. Inc. The bank is asking Omnicom subsidiary BBDO Worldwide to prepare a plan for serving as its lead agency and coordinating work with other firms, Goode said.
Sumitomo Trust, Aozora Bank to form broad business tie-up
Sumitomo Trust & Banking Co. and Aozora Bank announced Tuesday they will form a comprehensive business tie-up in the three fields of real estate, trust and asset management. The two banks made the decision to survive intensifying competition from megabanks, but they stressed they will not form a capital tie-up. By offering services and financial products to each other's customers, the two banks plan to strengthen their foundation for higher profitability. The two banks said they will first set up a "tie-up promotion committee" consisting of senior officials of both banks. The committee will decide on the details of the tie-up by March next year, including a possible expansion of the alliance beyond the three fields. According to the agreement between the two banks, an Aozora group company with strength in collecting debts will support the rehabilitation of Sumitomo Trust's debt-ridden client companies using their real estate.
Oil wealth takes Islamic banking mainstream
Citigroup, HSBC and Deutsche Bank, as well as financial capitals like London, Tokyo and Hong Kong, are all going into the Islamic banking business. Today, an estimated 300 Islamic financial institutions hold at least $500 billion in assets, and deposits are increasing more than 10 percent each year. In addition to Islamic loans, there are Islamic bonds, Islamic credit cards and even Islamic derivatives. Loans and bonds that conform to the Koran are already available in the United States. And Britain, Japan and Thailand are contemplating issuing Islamic bonds of their own. In Islamic banking, financiers are required to share borrowers' risks, meaning that depositors are treated more like shareholders, earning a portion of profits. Financing deals resemble lease-to-own arrangements, layaway plans, joint purchase and sale agreements, or partnerships.
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