Financial Safety Advice

With issues of exchange rate adjustment currency and establishing a financial safety net.

The regulation aims to point either through market mechanisms which could avoid possible artificial devaluation of national currencies.

The organizing committee of the Summit reported that the deputy ministers of Finance and the Sherpa group (comprising representatives of the G-20) are trying to reach an agreement after a commitment by its leaders hours before.

A spokesman for South Korean President Lee Myung-bak, said the president urged at the first session to maintain solidarity on economic issues because cooperation is important for future growth.

The leaders welcomed the agreement on quota reform and governance structure of the International Monetary Fund (IMF), reached in the meeting of finance ministers and central bank governors last month in Gyeongju.

As the global network of financial security, the leaders welcomed the fruits as strengthening lending regulations to prevent financial crisis by the IMF.

At the conclusion of this Summit, the leaders have reached a compromise with an improved version of the consensus reached in Gyeongju, agreed to move towards a system change that reflects economic progress and halt the devaluation.

From the hand of the European Central Bank (ECB) know the data for loans granted by financial institutions to the resident private sector. According to these data, credits increased by 1.2% in August over the same month last year.

Loans to companies grew against the previous month, but remained negative figures in annual terms, down 1.1%.

In this regard, the European business sector financing glimpse the light at the end of the tunnel between February and May, before returning to negative rates.

In contrast, loans to households grew by 2.9% from 2.7% in July. By type of financing, home loans rose by 3.5% in July rose 3.4% and consumer loans, not living its best, fell 0.4% in July was -0.6 %.

Finally, money supply, called M3, rose by 1.1% on-year in August, compared to 0.2% in July. Read the rest of this entry →

70% of the population of Brazil, Russia, India and China have no bank account. But how many have cell phones (it is estimated that there are nearly one billion people in all emerging markets)? That’s why investors put eyes on mobile payments. Last week, Actis bought chipmaker MSCC egipicia to dig deep in the activity.

Arthur D. Little predicts that the mobile payments market will be worth 60,000 million for 2015. Anticipates that within five years, the number of people who serve the mobile banking will rise from 32 million today to 290 million. That means there will be more than a million new users per week.

Ambitious goal, no doubt, but mobile payments are a solid foundation.
First, as suggested above, this should allow banks to reach new consumers. The insertion of mobile phones is improving access in Mexico and emerging countries. Thus it is possible that nearly 40% of the population has telephones, but still without access to the bank.

Second, banks can expand very economically. As noted by the FT editor, Sharlene Goff, a few weeks ago, banks can reduce up to 50% of their costs if [for their operations] are based on devices, rather than branches. Read the rest of this entry →