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European banks ‘extremely solid’: French central bank chief

European banks are in “extremely solid” shape, unlike some US lenders, due to the effectiveness of the Basel III rules, said Francois Villeroy de Galhau, France’s central bank chief and a member of the European Central Bank’s governing council. Troubled European banking giant Credit Suisse was a “special case” due to business model difficulties and internal control system failures, he said. The ECB is ready to provide liquidity to ensure financial system stability, but the priority remains the fight against inflation, Villeroy de Galhau added.

Redditors highlight challenges faced by elderly hawkers in retiring due to increasing rental and living costs in Singapore

Redditors express concerns about hawkers’ struggles with inflation, rental hikes, and the hesitation to raise prices due to fears of losing loyal customers amid rising living costs in Singapore.

Strike grips Sri Lanka as unions protest IMF bailout

Sri Lanka saw hospitals, ports, and banks crippled by a nationwide strike over high-income taxes imposed as a precondition for an IMF bailout. Armed troops were deployed, but protests continued despite a ban, and talks with authorities failed. The IMF is expected to release a $2.9 billion loan in nine tranches over four years to help Sri Lanka, which has seen an unprecedented economic crisis since late 2021.

Markets mixed as traders weigh US support after SVB collapse

US promises to protect troubled lenders eased concerns about the financial sector following the closure of two banks over the weekend, as equity markets were mixed. Silicon Valley Bank’s collapse and the sale of securities caused its shares to plummet 60%, leading regulators to close the bank. Meanwhile, New York regulators closed Signature Bank. The Federal Reserve, Treasury Department, and Federal Deposit Insurance Corp. pledged to protect depositors and lenders struggling to find cash. SVB is the largest retail bank to fail since the 2008 financial crisis.

HSBC buys failed US bank SVB’s UK arm for £1

HSBC has bought the UK arm of Silicon Valley Bank for just £1 in a rescue deal that ensures customer deposits remain protected and unaffected. The acquisition will allow HSBC to expand its ability to support fast-growing firms, particularly those in the tech and life sciences sectors. The deal comes after SVB collapsed last Friday due to customers making large withdrawals, making it the largest bank failure since 2008.

China premier warns 2023 growth target ‘no easy task’

China’s premier, Li Qiang, warned that achieving the country’s 5% growth target for 2023 would be challenging, as the government wrapped up a week of meetings. Last year, China posted 3% growth, missing its target of around 5.5%. Li cited new challenges to growth, but said people cared more about specific issues such as housing, employment, income, education and health. He also called for cooperation with the US, and warned that “encirclement and suppression” were not beneficial to anyone. President Xi emphasised the need to strengthen national security, consolidate stability in Hong Kong, and unify Taiwan.

US regulators rush to contain SVB fallout, as a second bank fails

US authorities have unveiled measures to rescue depositors’ money in full from failed Silicon Valley Bank and to promise other institutions help in meeting customers’ needs, as they announced a second tech-friendly bank had been closed by regulators. Deposit guarantees will ensure that all customers receive their money back in full. The Federal Reserve will also make extra funding available to banks to help them meet the needs of depositors, which would include withdrawals.

Yellen rules out SVB bailout but US said to weigh protecting deposits

US officials are reportedly considering safeguarding all uninsured deposits at Silicon Valley Bank (SVB) after the bank’s collapse left billions in deposits up in the air. Treasury Secretary Janet Yellen said the government wants to avoid financial “contagion” from the implosion, but ruled out a bailout. SVB was taken over by regulators on Friday after a huge run on deposits left the medium-sized bank unable to stay afloat on its own. The bank’s failure has caused concerns about possible ripple effects on technology and life science companies, as well as the cryptocurrency world.

Anwar’s Budget 2023 praised by financial institutions for being in touch with the real hardship faced by the people

Malaysia’s Parliament passed Budget 2023, the largest in the country’s history at RM388.1 billion (US$87.5bn), with initiatives and policies aimed at reducing the cost of living. The budget was praised for its relevance to post-pandemic challenges, with financial institutions looking forward to its implementation. However, measures such as the potential capital gains tax on unlisted shares were cautioned by Ernst & Young. Fitch Solutions predicted Malaysia is likely to achieve fiscal consolidation in the post-pandemic era, with the budget shortfall in 2023 expected to decrease.

Sri Lanka president says China agrees to restructure loans

China has agreed to restructure its loans to Sri Lanka, clearing the final hurdle to an IMF bailout. The IMF is expected to release the first tranche of its $2.9bn rescue package within the month.