| BI warns of higher consumer loan risk
The central bank has warned of a rising risk from consumer loans amid the recent rise in total bank lending, which has already exceeded its 22 percent growth target for this year and is expected to add another 25 percent next year. Bank Indonesia director for banking research and regulations Halim Alamsyah said Monday more consumer loans could face default if household income weakens, with banks themselves facing regulatory constraints to resolve the potential bad debts. "We've noticed an increase in the non-performing loan (NPL) level of consumer loans, particularly from credit cards," Halim said at a financial stability discussion. "And banks cannot simply write off these bad debts, as this has regulatory implications regarding their financial reporting and taxation." Halim did not elaborate on the current NPL level in the consumer sector, but according to data from Bank Indonesia, as of the end of September it reached Rp 8.7 trillion (US$950 million) -- or 3.2 percent of total consumer loans.
Personal Loans Smart Guide
What you'll learn in this step: shop around for the best debt deal. There�ll come a time in your life when you�re faced with deciding whether to borrow money. You may be a student needing some funds to complete your degree or perhaps you�re considering buying a car or a home. In our step-by-step guide to debt management, you�ll learn that debt isn�t necessarily a bad thing � as long as you stay in control of your borrowings. Having made the decision to borrow, where do you go � the bank you�ve been with for a few years, a local credit union, a finance house such as GE Money, a mortgage broker, or even that quick-approval lender advertising on late-night TV? These days the list of lenders seems endless. The purpose of your borrowing will be one factor in determining where you turn, as will how long it�ll take to pay back the money � your credit card might be the no-fuss way to buy something you can afford to pay off in a month or two, especially if you have a card with a low interest rate.
Quick Money Sunflashes Column
The Bank of Montreal has joined the array of big banks hurt by the U.S. subprime mortgage crash, revealing that it will book half a billion dollars in writedowns partly connected to disorder in world credit markets. The bank said yesterday that $320 million in writedowns come from debt-instrument woes at BMO Capital Markets, and $185 million from the bank's credit card loyalty program. DOUBLE WHAMMY FOR TD Toronto Dominion Bank was hit with a double dose of bad news yesterday. .
Secured card a good way to get started in the credit game
With the holiday shopping season upon us you can expect more people to turn to the Internet in search of bargains. But before you do, you really need to have a credit card. Unfortunately, some people can't get one either because they don't have any credit or because they have bad credit. But there's something you can do. Many local banks offer something called a secured credit card, which offers the same safety and security as a regular credit card. That's something you can't always get when you pay with a check or debit card. The amount you can charge on your credit card depends on how much you put into a savings account with the bank. "You would secure your limit with a balance which is tied to your savings account," said Kristel Johnson of Fifth Third Bank.
Pelosi: 'Given His Dismal Record, President Bush in No Position to Lecture Congress About Fiscal Responsibility'
Speaker Nancy Pelosi released the following statement today in response to a speech in Indiana this afternoon by President Bush in which he compared Congress to "a teenager with a new credit card." Below the Speaker's statement is a fact sheet comparing the President and Congress' fiscal records. "If President Bush applied for a credit card, any bank in America would turn him down as a bad credit risk. He has put more foreign debt on the nation's credit card than all previous Presidents combined - saddling our children and grandchildren with $3.3 trillion in new debt. "At the same time, President Bush has compiled one of the worst records of job creation since the Great Depression while American families saw their incomes drop by $2,500. "Given his dismal record of maxing out America's credit card, the President is no position to lecture Congress about fiscal responsibility or economic policy.
Double whammy hits TD Bank
Toronto-Dominion Bank was hit with a double dose of bad news coming from both sides of the globe today. In London, Britain's Financial Services Authority revealed it has fined TD's London office nearly C$1 million, or 490,000 pounds, for failing to control a rogue bond trader who cost the bank C$8.8 million. The fine is worth C$980,000 at current exchange rates, and the trader, Simon Richard Brignall, was banned from capital markets "on the grounds that he is not a fit and proper person" after his activities between the start of 2005 and last March. In Canada, the Ontario Court of Appeal has given the green light to a $150-million class action lawsuit against TD Bank over allegations of undisclosed and unauthorized fees to Visa card holders. The fine in London comes after Brignall, a senior fixed-income trader, resigned March 9 and revealed to TD that he had been booking false values on his trading positions for almost two years to hide losses.
TD Bank faces $1M fine, mega lawsuit
TORONTO -- Toronto-Dominion Bank was hit with a double dose of bad news coming from both sides of the globe yesterday. In London, Britain's Financial Services Authority revealed it has fined TD's London office nearly C$1 million, or 490,000 pounds, for failing to control a rogue bond trader who cost the bank C$8.8 million. The fine is worth C$980,000 at current exchange rates, and the trader, Simon Richard Brignall, was banned from capital markets "on the grounds that he is not a fit and proper person" after his activities between the start of 2005 and last March. In Canada, the Ontario Court of Appeal has given the green light to a $150-million class action lawsuit against TD Bank over allegations of undisclosed and unauthorized fees to Visa card holders.
The bright side of consumer paralysis
American manufacturing jobs won't get hit if Americans stop pulling out their credit cards, because those jobs are already gone No tiny fonts allowed!The payday loan industry strikes back against the foul propaganda perpetrated by the Predatory Loan Association We are all subprimeInformation about CDOs wants to be free. A hedge fund manager explains why. More fun with payday loansThe Predatory Loan Association has some advice for "responsible" lenders: Tiny fonts are the key to successful consumer empowerment. Purchasing power disparityThe World Bank waves its magic wand, and presto -- 200 million poverty-stricken Chinese appear out of nowhere .
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