Reliance on wholesale funding poses risks for big Canadian banks: Moody’s

first_img Share this article and your comments with peers on social media Canada’s largest banks are heavily reliant on wholesale funding, which poses a higher refinancing risk, according to a report published on Monday by Moody’s Investors Service. The funding strategies of Canada’s largest banks “result in a heavy reliance on wholesale funding compared to their global peers,” the report from the New York-based credit rating agency says. The average ratio of wholesale funding to tangible assets was 36% at the big banks, ranges from 30% for Toronto-Dominion Bank to 42% for National Bank of Canada, the report notes. A heavy reliance on wholesale funding is generally considered a “credit negative — making a bank more likely to suffer periodic difficulties in refinancing its debt — which increases the risk of failure.” the report warns. However, the big banks’ reliance on wholesale funding is also offset by the banks’ funding mix, and their large holdings of high-quality liquid assets, according to the report. “While it’s true Canadian banks have a high reliance on wholesale funding, they also have high levels of less confidence-sensitive funding and sticky retail deposits, which improves the system’s overall funding profile,” says David Beattie, senior vice president at Moody’s, in a statement. Moody’s believes that regulatory changes as part of the implementation of the new capital adequacy regime known as Basel III will encourage the banks to reduce their reliance on short-term wholesale funding, the credit rating agency’s report says. Facebook LinkedIn Twitter Keywords Banking industry High debt levels threaten banks’ strong results: Fitch U.S. action on climate benefits banks, asset managers: Moody’s James Langton G7 tax pledge may be upstaged by CBDC work Related newslast_img read more

Holmes grabs Fargo lead; Phil 2 back

first_imgCHARLOTTE, N.C. – Even with his best round of the year, Phil Mickelson knew it wouldn’t be enough for him to stay in the lead Saturday at the Wells Fargo Championship. That was OK with Lefty. All he wanted was a chance at Quail Hollow, and Mickelson hasn’t had a better chance to win all year. Mickelson roared into contention by playing a six-hole stretch in 7 under par on the front nine, and keeping bogeys off his card with a wedge that danced around the cup on the 18th for a 9-under 63. He was leading when he finished and wound up two shots behind J.B. Holmes, who overtook Martin Flores for the lead on the last hole. ”I don’t think I’ll be leading at the end of the day because I think there are some birdies out there,” Mickelson said. ”But just to be in contention, and to have a chance at a golf course that I’ve become so close to over the years, I’m excited about tomorrow’s round.” Holmes, pounding tee shots and gaining confidence along the way, had a 9-iron left on the 490-yard closing hole and made a 20-foot birdie putt from the fringe. That gave him a 6-under 66, and it made him the outright leader when Flores made his only big mistake of the round. Flores pulled his tee shot into the stream that winds along the left side of the 18th fairway. He at least gave himself a chance to save par, but missed a 20-foot putt and had to settle for a 69. Wells Fargo Championship: Articles, photos and videos Holmes goes into the final round with a shot at coming back from injuries, one of them far more noteworthy than the others. He had brain surgery in 2011 to remove a piece of his skull. Then, he broke his ankle in 2013, and time off allowed him to have surgery on his left elbow. And now he takes a one-shot lead into the final round at 13-under 203. ”I’ve worked really hard to get there and it would be a great accomplishment to come back and get a win in the bag,” Holmes said. Flores feels the same way. His best finish in four seasons on the PGA Tour was a tie for fourth in the John Deere Classic last year, when he closed with a 63 and finished one shot out of a three-way playoff won by fellow Dallas resident Jordan Spieth. Flores describes himself as a flat-liner, and he played the part Saturday, the first time he ever played in the final group on the weekend. He never looked at a leaderboard because he figured it didn’t matter on a Saturday. He didn’t let adrenaline get the best of him when he rolled in a 40-foot birdie putt from just off the 12th green for his third straight birdie and a two-shot lead. He never came seriously close to a bogey until the 18th hole. And not even that bothered him. So when asked if he could be the winner Sunday, Flores shrugged and said, ”Why not me?” ”I’ve been working really hard, feeling great about my game,” he said. ”I’m going to go out there and attack. If I win, I win. If I don’t, I don’t. I’m going to keep working until I do.” Kevin Kisner had a 68 and was three shots behind. Justin Rose bogeyed his last hole for a 71 and was four shots back, along with Jason Bohn, who made three birdies over his last four holes for a 67. Former PGA champion Martin Kaymer bogeyed his last two holes for a 70 and was five behind. The last 54-hole leader to win at Quail Hollow was Anthony Kim in 2008. That could bode well for Mickelson, off to his worst start to a season in 11 years. Not since 2003 – the last year he went winless on the PGA Tour – has Mickelson gone this deep into a year without winning. Worse yet, he doesn’t even have a top 10. He had to deal with a back injury in San Diego and an oblique muscle strain in Texas. He missed the cut at the Masters last month for the first time in 17 years. ”I had a good round today, and it feels good because it’s been a rough year for me this year,” Mickelson said. ”I haven’t been healthy early on and I haven’t put it together. And to have a good round today, good round the first round, this is a good start.” Mickelson said he didn’t feel far off after his 75 on Friday, and he was right. He was helped by a couple of long birdie putts on the fourth and sixth holes, and by a 20-foot eagle putt on the par-5 seventh hole that revved up the crowd on a gorgeous day of sunshine. Rory McIlroy set the pace early for a day of low scoring with a 65 that brought back memories of 2010, when he made the cut on the number and went 66-62 to win for the first time on the PGA Tour. He was four shots behind that year going into Sunday. But with Holmes and Flores finishing strong, McIlroy goes into the last round seven shots behind.last_img read more

Will Chechnya’s Ramzan Kadyrov Survive Hospitalization in Moscow?

first_imgOn May 21, mainstream Russian news agencies broke the story of the hospitalization of Chechnya’s strongman, Ramzan Kadyrov. These media outlet’s sources revealed that Kadyrov was flown from Grozny to Moscow on suspicion of his having contracted the novel coronavirus responsible for causing COVID-19. They asserted that the Chechen governor was in a “stable state,” but if Kadyrov had to be taken to Moscow for treatment, it meant he was likely in a life-threatening condition (Interfax, May 21). The next day, on May 22, the speaker of the Chechen parliament, Magomed Daudov, called information about republican governor’s illness only “gossip” and urged his audience not to worry about Kadyrov’s health (TASS, May 22). The intrigue did not end there. On the same day, the Russian State Duma deputy from Chechnya and a close associate of Kadyrov’s, Adam Delimkhanov, said that a large number of people are concerned about the head of Chechnya and wished him a quick recovery from his illness (TASS, May 22). Official Chechen websites, nonetheless, published a video, on May 23, with Ramzan Kadyrov’s greeting to Muslims concerning the Eid al-Fitr holiday (Chechnya Segodnya, May 23). The low-quality video appears to have been filmed at Kadyrov’s official residence, but he himself does not actually appear in it. The voice-over on the recording also does not sound unequivocally like the Chechen leader’s (Kavkazsky Uzel, May 24). This is quite unlike the governor of Chechnya, whose media appearances are usually carefully choreographed. In the past day, Kadyrov appeared in multiple media forums, claiming, with a certain level of ambiguity, that the rumors of his hospitalization were untrue (Meduza, The Moscow Times, May 27).Shortly before his presumed hospitalization in Moscow, Kadyrov openly demanded the dismissal of medical workers at the Gudermes hospital who had disseminated reports about the lack of protective equipment at the facility. The medics complained they lacked the means to receive and treat patients with the novel coronavirus and revealed that one of their colleagues had died of the disease. Kadyrov stated that the republic had no shortages of resources to treat the sick (TASS, May 18). Yet after his own apparent removal to Moscow, Chechnya’s governor implicitly signaled that the republic lacks facilities for treatment of COVID-19. Previously, observers pointed out inconsistencies with pandemic-related restrictions imposed by the Chechen government. While ordinary citizens were severely punished and sometimes even beaten by the local police for breaking the rules, Chechen officials continued to congregate in large groups and ignore social distancing. The authorities appeared to see the coronavirus and the related restrictions as something that applies only to their subordinate population (Kavkazsky Uzel, May 6).Chechnya’s strongman is notorious for presiding over rampant human rights abuses. Ramzan succeeded his father, Ahmad Kadyrov, who was the mufti of the quasi-independent Chechen Republic of Ichkeria. Kadyrov senior defected to the Russian side during the second Russian-Chechen war and became the first pro-Moscow governor of Chechnya. In 2004, Ahmad Kadyrov was assassinated. After several years of a tug-of-war over succession, Vladimir Putin of Russia appointed the former mufti’s son, Ramzan, to lead the republic. With the full support of the central Russian government, the new governor of Chechnya ruthlessly uprooted the remaining rebel forces who had sought independence for the republic.The younger Kadyrov (now 43) is in many ways a controversial figure. Russian liberals dislike him for his role in rampant human rights abuses but often overlook his Moscow backers. Russian nationalists dislike him for assuming too much power over Chechnya, which renders the republic almost an associate member of the Russian Federation. Kadyrov has de facto created his own armed forces, which are paid for by Moscow. Kadyrov’s political survival appears to be conditional on Putin’s continued personal support. The rationale for backing Kadyrov’s rule is usually explained as a necessary condition for keeping Chechnya pacified (and under the control of Moscow).Kadyrov’s latest temporary disappearance from the political scene in Chechnya (especially if it happens again soon, should Kadyrov’s health deteriorate yet again) may seriously reshape the situation in the republic, the North Caucasus, and even the Russian Federation. Rumors about Kadyrov’s possible removal have circulated for several years already. Most recently, they reemerged in January 2020, when Moscow reportedly offered Chechnya’s governor the position of special representative for the Middle East. Kadyrov himself denied such an offer had ever been extended to him (Argumenty Nedeli, January 16). Disconnecting Chechnya’s strongman from his powerbase would turn him into a regular bureaucrat who can later be easily dismissed. This is well understood by both Kadyrov and his opponents. Despite strong denials earlier this year of leaving the republic, the Chechen head still suggested that if he were asked to step down, he would prefer to lead the Council of Veterans in his republic.Kadyrov’s possible illness provides Moscow with a trump card to play, if it chooses. In the middle of the current economic and health crises, when Russian federal authorities are forced to ease their grip on the regions (see EDM, March 18, April 2, 6, 30, May 6), the Kremlin might be especially keen on removing governors who may cause trouble. Kadyrov is one of the most independent political figures in Russia due to the direct support he receives from Putin, the autonomous armed forces loyal to him personally, and his ties to various Middle Eastern Muslim-majority countries. A destabilization of the republic is among the potential risks; but in the end, Vladimir Putin will decide Ramzan Kadyrov’s fate in accordance with his own interests. In the current environment of pandemic and economic crisis, the removal of Chechnya’s ruler would hardly impress Russians or help sustain Putin’s plummeting popular support. However, it might pave the way for a further weakening of the role of ethnic republics in the Russian Federation—which is already advocated by many Russians. Moscow may, therefore, still decide to remove Kadyrov in the near future, especially if his health takes a turn for the worse and he has to return to the capital for further emergency treatment.last_img read more

Seven dead as car bomb rams into a cafe in Somalia’s…

first_imgA car bomb rammed into a cafe in the Somali capital Mogadishu near compounds housing government ministries on Wednesday, killing seven people, officials and ambulance services said.Reuters witnesses said the blast destroyed the cafe and damaged another one. Three cars destroyed and blood stained the floor. Smoke billowed from the scene.“So far we have carried seven dead people from the blast. Casualties may rise,” Abdikadir Abdirahman, the director of Amin ambulances, told Reuters.Police said the blast took place near the compounds housing the security and sports ministries.The incident occurred after the new security minister, Mahamed Abuukar Islow, took office and promised he would come up with a plan to tighten security.Police had earlier put the number of dead at three.“We have confirmed seven civilians were killed in the blast by al Shabaab,” Abdifatah Omar Halane, spokesman for Mogadishu’s mayor, told reporters at the scene.Al Shabaab were not immediately reachable for comment. In the past, have taken responsibility for blasts and gun attacks in the capital and elsewhere in Somalia.last_img read more

Tipperary hoping to pick up performance ahead of weekend clash with Longford

first_imgPhoto : Tipperary GAA Tipperary senior football manager David Power says his team need to build on last weekends performance.The Premier County lost to Cork by a single point despite scoring 21 points of their own.Tipp face Longford this weekend and Power is hoping his team kicks on and learns from the defeat to the Rebels. He said they are working on a few things after the defeat, but that Cork are probably the best game in the league. They need to build on this now and perform well against Longford, he added.Listen to a snippet here;last_img

Watch the literally mind-blowing opening to ‘The Umbrella Academy”s second season

first_imgNetflix(NEW YORK) — Netflix has released quite the teaser: the explosive opening scene of The Umbrella Academy‘s second season. The snippet opens with Aiden Gallagher’s Five dropping through time into an alternate 1963, where Soviet soldiers are openly battling American forces on the streets. “What the hell we do now?” Five asks rhetorically.As he struggles to believe what he’s seeing, he sees his fellow super-powered siblings doing battle with the Reds. Ellen Page’s Vanya, Tom Hopper’s Luther, David Castañeda’s Diego, Emmy Raver-Lampman’s Allison, Robert Sheehan’s Klaus and Justin H. Min’s Ben all use their unique gifts to lay waste to the enemy soldiers, including Allison literally blowing minds with her powers of suggestion.Appropriately, the battle is set to Frank Sinatra’s “My Way.”Just then, a white-bearded Hazel appears, urging Five to leave his family. Cameron Britton’s character then shows Five why: nukes are on their way, and the only way to save everyone and stop another Armageddon is to go with him through a time portal.The Umbrella Academy, a live-action adaptation of My Chemical Romance frontman Gerard Way’s comic book series of the same name, will return to Netflix with new episodes on July 31.By Stephen IervolinoCopyright © 2020, ABC Audio. All rights reserved.last_img read more