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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: THE ANT who wrote (7215)	6/14/2006 12:04:41 PM
From: elmatador	Respond to of 218012

Basel capital adequacy rules Washington regulators unite to win backing for Basel II in the USLONDON, June 12 (Global Risk Regulator) -- Top Washington bank regulators have begun pitching hard to win public support for the adoption of the new Basel capital adequacy rules in the US. John Dugan, the new head of the Office of the Comptroller of the Currency (OCC), an agency that has often been critical of the internationally-negotiated new rules to bolster bank safety (Basel II), gave strong backing to US implementation at a dinner for bankers in London on Wednesday evening. Describing the Basel II capital accord as “one of the most significant recent developments in the financial sector,” Comptroller Dugan said he “strongly” agreed with the thrust of the new rules. His comments follow similarly strong backing for Basel II from Ben Bernanke, the new chairman of the Federal Reserve Board, in Chicago in mid-May. The chairman said it was time to move forward to the next stage of implementing Basel II. “This framework will modernize bank supervision and bring supervisory practice into line with best industry practice. Substantial benefits will ensue -- most importantly, a safer and sounder banking system,” Bernanke said. This strong support from the two most senior regulators comes as an extended period of public comment on the proposed rules gets under way in the US. Four US regulatory agencies – the Fed, OCC, Federal Deposit Insurance Corporation (FDIC) and Office of Thrift Supervision (OTS) – have jointly developed a Notice of Proposed Rulemaking (NPR), which is the next step in the process of adoption of the US version of Basel II. The Fed has already made the NPR publicly available. The formal comment period will start shortly, when the Office of Management and Budget has completed an economic impact analysis of the rulemaking.

To: THE ANT who wrote (7215)	6/15/2006 6:30:16 AM
From: elmatador	Read Replies (1) \| Respond to of 218012

Stability brings credit to Brazil's working class. Klaser the country learnt how to live with high interest rates. Stability brings credit to Brazil's working class June 15, 2006 By Terry Wade SAO PAULO, Brazil (Reuters) - Like thousands of working-class Brazilians, Henrique do Carmo, a 20-year-old bill collector, used to spend hours each day commuting by bus in this sprawling city of nearly 20 million. It was costly, slow and uncomfortable. Now he zips across town on a new Honda motorcycle, enjoying the wheels that have opened up a world of freedom and dating. Thanks to economic stability, a 12-year low for interest rates on personal loans and new banking rules that broaden the supply of credit, millions of people in Latin America's largest country are becoming first-time borrowers. In turn, they are supporting a structural shift in Brazil's economy by sustaining manufacturers of expensive, long-lasting goods like motorcycles and refrigerators. "Credit has become more accessible," Carmo said. Interest rates in Brazil, where the benchmark lending rate is 15.25 percent a year, are still among the highest in the world and the typical personal loan carries an interest rate of 57.8 percent a year, according to the central bank. But for many workers interest rates on personal loans have fallen enough to make monthly payments affordable. Carmo will pay 265 reais ($115) a month for three years to buy his motorcycle. The payments will total 9,450 reais, nearly double the listed price of the motorcycle. In many countries, borrowers would refuse such interest rates and Carmo's loan might violate usury laws. But his purchase of the small 125cc motorcycle made financial sense. He used to spend 180 reais a month, or six reais a day, on bus fares. For an extra 85 reais a month, he bought a motorcycle that halved the time he spent commuting and allowed him to take joy rides in his spare time. Banks allow people like Carmo to borrow as much as they want so long as their monthly payment does not exceed a third of monthly income. "Ninety percent of my sales today are done on credit and half our clients are buying to avoid traffic and bus fares," said Carlos Cesar Daniel, sales manager at a Honda dealership in Sao Paulo's Santo Amaro neighborhood. Nationwide, motorcycle sales rose 27.9 percent in May from the same month last year, according to Brazil's association of motorbike manufacturers. Stronger sales buoyed motorcycle production, which rose 29.3 percent in May from a year earlier. Brazilians are forecast to buy a record 1.34 million motorcycles this year. The volume of personal loans grew 33 percent in the 12 months through April to 206.5 billion reais, central bank data show. Brazil has lots of room for credit expansion. Its ratio of credit to gross domestic product is only 32 percent, two or three times less than many developed economies. Importantly, in the past year, the average interest rate has fallen nearly twice as fast as the central bank's benchmark lending rate because of heightened competition among lenders and a more efficient credit system. Additional loan growth is expected as banks expand their consumer finance units and stronger economic fundamentals encourage more and cheaper credit. "People now have both the desire to buy and the ability to pay," said Honda's Daniel.