Credit World News

FLS scheme introduced by Bank of England and HM Treasury was launched in August 2012. The £80bn scheme aims at boosting the lending industry which is now experiencing a low growth rate. This scheme will encourage banks and housing societies to lend more to houses and businesses. According to this scheme, price of each bank’s borrowing will depend upon the reference period ie ( from end-June 2012 to end-December 2013).The fees for those banks which lend during that period will be 0.25pc per year on the amount borrowed. The increase in the fees will be linear, as it would be adding 0.25pc for each 1pc fall in lending, up to a maximum fee of 1.5pc of the amount borrowed for banks. The participating bank will be able to borrow an amount up to 5%of its stock of existing loans to the UK non financial sector. The new incentive structure will encourage bank to lend more by making them to borrow an extra £5 for every £1they lend. They will be able to borrow £10 in 2014 for every £1 ...

The failure of Europe could be the success of Asia ! The recent BRICS summit held at Durban showed signs of Asia being hopeful about its economic growth, which is very significant in the global economic slowdown. With mounting criticism from the West for its snail pace, BRICS managed to set up guidelines for the growth of BRICS region. Concept of the New Development Bank got a global attention. Spokesperson for Development Bank of South Africa hold the wish that South Africa will get needed funding for its infrastructure development. South Africa will surely need a large amount of funding for their stability, since their ally China is accused of exploiting South Africa’ s mineral resources. The BRICS Interbank collaboration concluded on two agreements. The BRICS Multilateral Infrastructure Co-Financing affirmation for Africa and The BRICS Multilateral collaboration and Co-Financing affirmation for Sustainable Development. These two affirmations will give more investme...

South Africa hosted the 5 th BRICS summit on March 27, 2013 in Durban . This is a joint effort by BRICS countries for the Development, Integration and Industrialization among BRICS members. This is the first ever BRICS summit to be hosted in an African country. This summit coincided with the 50 th celebration of African Unity/African Amalgamation. The BRICS agreed for the establishment of a New Development Bank and indicated that the primary capital assistance to the bank should be substantial and adequate for the infrastructure. In addition to that, the leaders concurred in the establishment of the Contingent Book Arrangement (CRA) with a prime dimension of US $ 100 billion. The CRA would help BRICS nations to overcome short-term liquidity issues and for stronger economic steadiness. It would also aid to strengthen the worldwide economic security and support current economical issues. For this, BRICS leaders concurred to reassess the advancement made in these ini...

     Bad debt crisis is hovering Asia region. In 2012 South East Asia’s total debt was US$22.9 billion. In 2011 it was $14.6 billion. ICICI bank sold 500 million Yuan of 2015 bonds in September 2012, 83% more than of 2011.This was issued in India and Asia pacific countries. These figures show how much Asia will need debt management programs. May be Asia is going the European way! These signs are warning signals for people as well as governments to take preventive measures. The burden of the debt can make life stressful.   Enrolling in a debt management plan would be wise if you are in a financial crunch. Debt Management Plans are a systematic approach to clear off the debts. This structured workout proposal is an agreement between client and creditors. A third-party provides this service and they work in terms with the creditors. If your total debts   come around $7893 from 2 different cards and the other sources, and the current monthly instalments ...

Appreciate or criticize? Economists worldwide is confused when Japan ’s 20 year old monetary policy was replaced by quantitative easing. The decision taken by Mr. Haruhiko Kudera , the governor of the   Bank of Japan has brought mixed reaction throughout the world . This decision has been quiet revolutionary since household savings in the country was in a deep slumber all these years. Central Bank will be buying 70% of government’s current Japanese Government Bond issuance & the rate of investor money will be rising to huge levels. Nobody knows where all that money will go!! Not only Japan , but the whole of Asia might benefit out of this. Quantitative Easing has been applied in   the US and other European countries in the past and Asia was a beneficiary. Some economists think that this sudden flow of money may not help the Asian credit segment. Southeast Asia has witnessed a fresh level of high yielding bond issuance along with Chinese property issuers. The pr...

Requirement of credit counseling occurs when your monthly payment exec 20% of your monthly income, excluding mortgage and rent.   Credit management has its own role in Asia region since it is the part of a larger world and a big portion of the investments are from the west. Debt level in Asia is higher than that was in the past 6 or 7 years and hence credit counseling has so much to do in Asia Pacific. This may help the region from falling into a crisis which the west is experiencing now. However the region of Asia has shown a positive attitude towards the credit counseling. Banks like Bank Negara have started their credit counseling departments. As we say prevention is better than cure, better we prepare to face the crisis. The idea of credit counseling is being tested and proved success in major economies. It’s time for Asia Pacific to go and get benefit out of this scheme. Asian leaders keep the hope in public debt management plans. During the Third Asian Regional Pub...