| Uganda: Speed Up Credit Reference Bureau
ONLINE trading, an important aspect of business has continued to suffer as banks remain reluctant to issue credit cards. Of the 14 bank operating in the country only Barclays Bank offers credit cards and the service is limited to its prestige-banking customers who are those with a monthly income of more than one million. .
RBC takes $160M subprime charge
Two of Canada's biggest banks took big charges Tuesday reflecting troubles in the U.S. mortgage business and corporate credit markets, but also booked gains from their stake in the restructuring Visa credit card company. Royal Bank of Canada (TSX: RY) said it will record a $360-million charge related to losses in the U.S. subprime mortgage market, but will also post a $325-million gain for Visa credit card restructuring. Canada's largest bank said Tuesday it "expects its fourth-quarter earnings to be only modestly affected by these items due to largely offsetting impacts." Meanwhile, Scotiabank disclosed it will book writedowns totalling $190 million on non-bank asset-backed commercial paper and structured credit instruments. The writedowns amount to about $135 million after tax.
(AFX UK Focus) 2007-11-21 09:30 GMT: TFN NEWS BRIEFING: Banking and insurance highlights to 09:15 GMT
2007-11-21 09:12:28 Japan's Mitsubishi UFJ H1 net profit falls 49 pct TOKYO (Thomson Financial) - Mitsubishi UFJ Financial Group Inc, Japan's largest banking group, said Wednesday its first-half net profit fell 49 percent, reflecting writedowns for its struggling credit card business and losses related to its subprime loan exposure. 2007-11-21 08:54:22 EU mortgage reform white paper to propose making early repayment easier - report FRANKFURT (Thomson Financial) - The European Commission's long-awaited white paper on the mortgage industry will make it easier for customers to pay off their mortgages early, a report in German daily Boersen-Zeitung says. 2007-11-21 08:49:35 Swiss Re CEO sees no 'fundamental changes' at Financial Services ops ZURICH (Thomson Financial) - Swiss Re chief executive Jacques Aigrain said he sees no "fundamental reason" for a change in the reinsurer's strategy regarding its Financial Services segment but pledged to more closely monitor risks.
TFN NEWS BRIEFING: Banking and insurance highlights to 09:15 GMT
2007-11-21 09:12:28 Japan's Mitsubishi UFJ H1 net profit falls 49 pct TOKYO (Thomson Financial) - Mitsubishi UFJ Financial Group Inc, Japan's largest banking group, said Wednesday its first-half net profit fell 49 percent, reflecting writedowns for its struggling credit card business and losses related to its subprime loan exposure. 2007-11-21 08:54:22 EU mortgage reform white paper to propose making early repayment easier - report FRANKFURT (Thomson Financial) - The European Commission's long-awaited white paper on the mortgage industry will make it easier for customers to pay off their mortgages early, a report in German daily Boersen-Zeitung says. 2007-11-21 08:49:35 Swiss Re CEO sees no 'fundamental changes' at Financial Services ops ZURICH (Thomson Financial) - Swiss Re chief executive Jacques Aigrain said he sees no "fundamental reason" for a change in the reinsurer's strategy regarding its Financial Services segment but pledged to more closely monitor risks.
Virgin plans ahead as Rock boss quits
The chief executive of crisis-hit mortgage lender Northern Rock last night (fri) announced his resignation.Adam Applegarth will leave by the end of January when a way forward for the beleaguered group has been resolved.The bank also announced that four non-executive directors - Sir Derek Wanless, Nichola Pease, Adam Fenwick and Rosemary Radcliffe - were stepping down with immediate effect.News of Mr Applegarth's exit came as Virgin Group issued a statement giving further details of its bid for the troubled bank. Virgin said that Sir Brian Pitman, the former chairman of Lloyds TSB, would chair Northern Rock if it bought the bank.Virgin, intends to run Northern Rock as a going concern and merge it with its Norwich based credit card and insurance business Virgin Money.Virgin said that it intended to repay a "significant proportion" of Northern Rock's loan from the Bank of England immediately, with a clear timetable for full repayment.
UPDATE: Credit Card Firms Seen Preparing For Spreading Credit Crunch
SAN FRANCISCO (Dow Jones) -- As shares of Citigroup Inc. tumbled on Monday, analysts pointed to signs that the mortgage meltdown could be spreading to the banking giant and other major credit card players. "We're starting to see signs within the industry that credit quality is dropping," said Justin McHenry, research director at market tracker IndexCreditCards.com. "That's causing major credit card companies to at least consider taking out larger reserves to protect themselves against more people defaulting in the future." In downgrading Citigroup (C) , Goldman Sachs analyst William Tanona raised issues related to an ongoing search for a new chief executive and expectations of more write-downs related to mortgage lending. But he also forecast an erosion in Citigroup's credit card business.
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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