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RCB Bank Cyprus latest news: Bank will stop providing banking services to its clients from October 8

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rcb bank cyprus latest news

RCB Bank Cyprus latest news: As of October 8, the bank will cease to provide banking services to its customers. The bank has warned its customers that within two months it will close their accounts. The last day of banking services – October 7, 2022.

In March, RCB Bank, which had close ties with clients from Russia, said it would give up its banking license and transform itself into a management company. In an agreement with the ECB, it stopped attracting new clients.

RCB Bank news today

The bank was planning to negotiate with clients whose liabilities mature after June 2022 about the terms of early repayment with payment of the full amount of the deposit and interest for the period during which the amount was held by the bank.

After all liabilities were fully repaid, RCB planned to transform itself into an asset management company, which would continue to manage the remaining loan portfolio and specialize in providing other services.

At the end of 2020, it had €2.75 billion in deposits, of which €769 million came from retail customers. The Cypriot bank had a combined loan portfolio of 3.5 billion euros. The bank indicated in reports that the most part of the credits were given to organizations which work in Russia and CIS countries.

RCB said in June that it had sold a portfolio of corporate loans worth €356 million to Hellenic Bank. The sale of the loan portfolio will strengthen RCB Bank’s capital and liquidity reserves and create additional reserves that will enable the bank to meet its obligations to all of its clients in full. It was expected that the bank would get more than 500 million euros from the deal.

Earlier we reported that Markets get restless ahead of weekend.

Economy

EU plans to agree on new sanctions on Russia before next week’s summit

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new sanctions on russia

The European Union expects to find agreement on a package of new sanctions on Russia, or at least on its main parts, before the bloc’s summit next week, Reuters reported.

“We expect an agreement on new economic sanctions on Russia or at least on its main parts before next week’s EU summit,” a European official said.

According to the agency’s interlocutor, EU leaders are going to discuss different ideas on the energy price ceiling. He stressed that the upcoming meeting should be tense, as “difficult times” are coming.

Earlier it was reported that new EU proposals on economic sanctions against Russia will affect diamond miner Alrosa and some other Russian companies.

The EU Commission and Foreign Affairs Service put forward the ideas on September 27th against the background of the referendums.

Earlier, we reported that the Fed had lost its credibility.

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Economy

Market decline triggers a wave of foreign currency intervention in Asian countries

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foreign currency intervention

After the start of the fight against inflation in the U.S. six months ago, when the Federal Reserve began raising the cost of borrowing, authorities in many Asian countries were also forced to carry out foreign currency intervention and increase their efforts to prevent their own currencies from falling, Bloomberg wrote.

One of the first such countries in Asia was South Korea, whose central bank spent currency intervention, saying it will buy sovereign debt of up to $2.1 billion.

Taiwan officials also took their own measures, introducing a countervailing currency intervention and declaring their readiness to ban short sales of stocks. China instructed a lot of funds to refrain from large sales of shares, and banks – to make sure the “observance” of the daily yuan rate in the market. Thus, the Japanese yen remains close to 145 per $1, and the yuan has reached its lowest level since 2008.

The rapid growth of the dollar to the detriment of all other assets is particularly acute in the Asian market. Central banks in Indonesia, Japan and India have also undertaken countervailing currency interventions to support their currencies, but their efforts seem insufficient.

“Foreign currency intervention will only help slow the decline in Asian assets, not stop it,” said Mitul Kotecha, head of emerging markets strategy at TD Securities in Singapore. – U.S. rate hikes, a stronger dollar and relatively low real rates in the region suggest the pressure will continue in the coming weeks.”

Some exception to the rule was South Korea, where the authorities’ intervention was relatively more successful as 3-year bonds rose after the central bank said it would buy government debt.

Earlier, we reported that the number of detected COVID-19 cases in the world exceeded 616.6 million.

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The Fed has lost its credibility. What is the Fed doing right now? 

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what is the fed doing right now

According to Mohamed El-Erian, the sell-off in the stock market after the Fed’s recent interest rate hike indicates a loss of confidence in the Fed, which increases the risk of economic problems as Fed policy tightening continues, writes Business Insider. What is the Fed doing right now?

The economist now expects that the Fed’s policies will cause additional collateral damage in an attempt to meet its inflation target.

What is the Fed doing with interest rates?

El-Erian voiced his views Wednesday, warning that the Fed’s failure to raise inflation to the target this year would signal a loss of market confidence and a growing market belief that a U.S. recession could not be avoided at the price of “little blood.

The Fed chief warned that fighting rising prices would “bring some pain” to Americans by slowing down hiring and making mortgages and credit cards more expensive. After his press conference, the S&P 500 stock index fell 3.8 percent over the past 7 days.

The Fed was late in raising interest rates in an attempt to tame skyrocketing prices, El-Erian believes, for it initially fueled the 2021 bubble by keeping rates low even as inflation began to rise steadily.

Earlier we reported that the U.S. president’s administration is concerned about the tax cuts in the U.K.

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