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ZURICH (Reuters) -Credit Suisse’s new chairman Antonio Horta-Osorio said he sees the scale of problems facing Switzerland’s second-largest bank as representing his biggest challenge yet.
FILE PHOTO: The logo of Swiss bank Credit Suisse is seen at its headquarters in Zurich, Switzerland March 24, 2021. REUTERS/Arnd Wiegmann/File Photo
Horta-Osorio, who was approved by Credit Suisse shareholders as chairman on Friday, said he intends to look at the bank’s risk management and culture in the wake of two major crises, as well as reviewing the bank’s strategic options.
“Over three and a half decades, I have personally worked at and led several banks in different countries and have lived through many crises,” the former Lloyds chief executive said during Credit Suisse’s webcast annual general meeting.
April 30, 2021
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The second wave of Covid-19 has pulled back the recovery gains with subsequent impact on asset quality, Says the credit rating agency
Credit rating agency CARE Ratings expects credit costs to remain elevated for non-banking finance companies (NBFCs) in FY22 amid the second wave of Covid-19 pandemic.
For FY22, CARE Ratings expects a level of stress, especially in the loan portfolio under restructuring and those which were under moratorium, the impact is likely to be visible in the next one year.
“As such, delinquencies are estimated to rise moderately,” according to a report by the credit rating agency.
The agency observed that NBFCs have been grappling with a succession of uncertain events since 2016 demonetisation, Goods and Service Tax (GST) implementation, liquidity crisis in 2018 and Covid-19 pandemic in 2020.
How to manage credit while interest rates are lower While lower interest rates offer short-term assistance by reducing loan repayments, cheaper credit can also be a risky temptation 28 April 2021 - 13:58 It’s not just the role of the bank to be responsible when it comes to loans or credit; consumers need to be more responsible borrowers too. Image: 123RF/Mimagephotography
Lowered interest rates have helped many South Africans face the challenge of a loss of income while still needing to keep up their repayments on their home, vehicle and personal loans and other credit agreements.
But while lower interest rates offer short-term assistance by reducing loan repayments, cheaper credit can also be a risky temptation. Buli Ndlovu, executive: retail and business banking marketing at Nedbank, says it’s important for consumers and financial institutions to be responsible in the way they use credit in the coming months and years.
Fund V is also Ares’ biggest institutional fundraise yet, having pulled in commitments from nearly 180 investors, including 65 new limited partners.
The firm said its European Direct Lending team has already started investing ACE V using its strategy of providing flexible capital to predominantly mid-market companies. It has been tapped for €1.7bn across 11 investments to date.
Michael Dennis, Ares partner and co-head of European credit, said, “The deployment backdrop remains constructive as middle market companies increasingly seek our flexible capital solutions in an improving economy.
“As a result, our team’s investment activity has been robust, and we have achieved this whilst increasing our selectively rates.
These days, significant debt is harder to avoid, particularly among those just starting out. Most would forgive at least some student debt, although the amount varies by generation.
Millennials said a balance over $12,000 was too much, while Gen X considered $15,000 unacceptable and baby boomers would be understanding of as much as $34,000 in student loans. (In fact, about 7 in 10 college seniors graduate in the red, owing about $30,000 per borrower.)
In general, most people are OK with certain types of borrowing, especially when it comes to securing a house or a car. Post-pandemic, many people were also more forgiving of medical debt.