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FS Daily Bytes: 30th June

India

  1. Midnight launch if GST! Keep watching for 1st day memoirs in our Top News
  2. The ‘on-tap’ licensing initiative of RBI got the first hit today with BR Shetty promoted UAE Exchange & Financial Services Ltd (money exchanger) applying for universal license
  3. RBI launches the Survey on Foreign Liabilities and Assets of Mutual Fund Companies: 2016-17 round
  4. RBI released the sectoral deployment of credit. Key highlights (excerpts from RBI):
    • “Credit to the services sector increased by 4.0 per cent in May 2017, lower than the increase of 9.3 per cent in May 2016”
    • “Credit to industry contracted by 2.1 per cent in May 2017 in contrast with an increase of 0.9 per cent in May 2016”
  5. The latest Financial stability report of RBI highlights the stress that continues to exist in the banking sector primarily with concerns of bad loans & profitability not expect to ebb away very soon
  6. RBI has raised concern & flagged off cyber-attack issue
  7. Karnataka Bank has launched the image debit card where customer can personalize its debit card with the image of his / her choice
  8. Insurance cost is going to increase marginally with increase in the GST service rate to 18% from earlier 15% service charge. For more click here
  9. Viral Acharya, of RBI, defended the 50% provisioning for defaulted loans

 

International

  1. Mark Cuban, a known critic of virtual currency e.g. Bitcoin, now plans to invest in another digital coin (initial coin offering of Unikrn)
  2. Warren Buffet, the investment legend, walks the talk when he famously said ‘Be fearful when others are greedy and greedy when others are fearful”. By March end, Berkshire Hathway will have 30% of financial services in its portfolio
  3. Italy’s financial services problem refuses to go away. Latest in it is Unipol, the largest insurance group. It spoke of a few key decisions:
    • Create an internal bad bank to house the 3BN pound of NPA from its banking operation, Unipol Banca
    • Cut its Bancaassurance agreement with Banco BPM and forge alliance with Bper, best capitalized midsized bank
  4. In a reversal journey, Poland is slowly extending government control over the major players in banking & financial services. This includes stake in Alior, Bank Pekao. Poland had earlier privatized in 1990 but during last financial crisis, however there were questions asked on liquidity availability. But government control can lead to inefficiency, directed (or mis) lending etc & hence private investors are not so happy about it

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