Category: Bank news

Greece passed a new low that allows non-bank financial institution (NBFIs) to lend money to households and businesses. Regarding non-banking financial institutions that somehow increase the concerns of the European Central Bank may be a just cause. The European Central Bank does not supervise these non-banking financial institutions in Greece. Problems like uncontrolled money lending is a concern but the Greece central bank is the main supervisor of those non-bank financial institutions (NBFIs). ECB says: „The growth of the NBFI sector over the last decade globally, including in Europe, is a source of concern. This is because, in general, the sector is opaque, which means that risks that are not within banking supervisors’ line of sight could be developing. These risks could include the build-up of synthetic and financial leverage,…

Taiwan start (CBDC) research in 2020 and today the central bank of Taiwan has completed a feasibility study for central bank digital currency (CBDC). On Dec. 7. Deputy Governor Mei-Lie Shu says in her speech on banking event that she saw the advantages of (CBDCs) and tokenization. „Central bank currency can serve as the operational basis for tokenization.“ Taiwan central bank has tested a pilot project with consumers and five commercial banks. The goal is to approach to further development of (CBDC) with no timeline for a decision says Mei-Lie Shu. Regarding (CBDC) research Fubon bank has join forces with Ripple and Hong Kong Monetary Authorities in a pilot project using Hong Kong’s e-HKD (CBDC). „But the results of CBDC showed that the application of distributed ledger technology (DLT) had…

Leading Pan-African Payment and Settlement System (PAPSS) has expanded because more banks are willing to join. The significant effort is to reduce expenses with trade in the region. By incorporating 11, more central banks that are African the African Export-Import bank will play significant role in future trading platform for Africa. The main goal of (PAPSS) is transaction in local currency that eliminate the necessity for using other third-party currencies. More the 85% of payments currently pass through European or U.S banking infrastructure and the cost of transaction are more the $5 billion in fees. Africa’s new (PAPSS) system will reduce the costs and help African counties to grove there economy. Central banks of African countries are participants in PAPSS system and they regulate and serve as agents to commercial…

Ripple block chain-tech Company is a new partner who will help the government of Georgia to develop its central bank digital currency (CBDC). New Georgia cryptocurrency (GEL) will help fast and easy cashless payments in the country. In process of selecting Crypto Companies, Ripple was one of technical excellence and experts in field of block-chain technologies says acting Governor of National Bank of Georgia, Natia Turnava. National Bank of Georgia stated that it would prepare the project and its execution plan for the pilot program with Ripple.  Several counties already have selected Ripple as partner in CBDC projects. Few new countries that have signed an agreement with Ripple are Palau and Montenegro to develop a national digital currency strategy. Ripple stated that has discuss 20 new CBDC projects with other…

The preparation phase of digital euro starts in November 2023, and European Central Bank will focus on further development of a digital euro. Digital euro (CBDC) would be an electronic payment available free of charge to everyone. Let’s first talk about money in general. From the beginning of human era there was lots of different money that people have used. First money and first monetary system was established in Rome (753BC – 565AD) Evolution of money:  coins (metal, gold, silver, copper etc.),  paper money,  digital money. The history teaches us many things and some of them are and will be written for our future generation. To understand the differences in our technological advancement we need to understand the history how money is created. As many today use paper money and digital…

European economy stagnates rapidly because of high ECB interest rate. From 2013 to 2023 the interest rate has gone up from 0.75 to 4.75 this month. The interest rate of ECB starts to rise concern over euro zone economy. Borrowing cost of loans have sky rocket and many businesses have felt it paying off loans. The inflation has gone up and many business fail to pay their loan. Aa many economists see the risk of investing there are some who see the opportunity and wait for the perfect moment to make profit. ECB’s decision is to hold rates steady as inflation will slow down but all to the detriment of economic development. We had 10 consecutive hikes of interest rates and the ECB decision was to stop hiking interest rates…

As we know U.S. banks keep losing more then 73 billion dollars every month for the last 12 months. Many prediction may scare consumers and many have bean scared already of future banking crises and the rise of the interest rates. It raises serious question about the banking structure and the crisis that’s gone get worse. What's true behind all this is it intentional or incompetence there is no clear answer to this question. Why U.S. banks hold 3.3 trillion in cash and are we expecting a recession in 2024? There are so many open question and there are not a complete answer to all, but it all started with two regional banks Silicon Valley and Signature bank who failed. The reason those two banks have failed is that they…

ESKONT LOAN Short-term loans In the short-term loans include loans that are usually granted to finance the current needs for working premises and means and, above all, companies for trade in goods and the customs clearance of inventories, and other institutions. The deadline for the use of these credits is one year. One of the oldest banking businesses of investing are escount loan. Its use is particularly in payment traffic of goods from other countries. How it works, the eskont credit. Bank buys from its clients a claim against a third party This receivable is purchased before the deadline their maturity because it is so certain commercial forms. The duty of the banks in the new case is that from the moment of purchase until maturity reject interest and costs incurred…

Loans For a loan, usually related, (cash) of an institution, which gives it to use of customers in a certain period of time under certain conditions. Conditions for obtaining the loan can be varied, and it depends on the type of loan you are applying for. We need to know that every loan that we receive from the institution goes along with the attendant interest, which varies on the type of loan. Loans are usually divided into 3 categories: • Short-term • Medium-Term • Long-term Short-term loans In the short-term loans include loans that are usually granted to finance the current needs for working premises and means and, above all, companies for trade in goods and the customs clearance of inventories, and other institutions. The deadline for the use of…

Fundamentals of interest rates What is interest? Interest is the price paid for the use of bank funds. They are mainly monetary funds. If the interest is expressed as a percentage we are talking about the interest rate. What is interest rate? For interest rate we can say that this percentage is paid to the bank because the use of financial resources. The interest rate is expressed in% (percent) and it will be determined based on the type of loan, the repayment period, the competition, inflation and so on. Today we have many ways to calculate interest rates: 1. Nominal interest rate 2. Conformal interest rate 3. Proportionate interest rate 4. Effective interest rate 5. Default interest rate 6. Compound interest rate What is nominal interest rate? This is the…