LONDON, April 23 (UPI) — The Bank of England said Monday that lending in Britain continues to lag behind pre-recession levels.
Lending slowed by $14.5 billion November through January, The Daily Telegraph reported.
In February alone, lending dropped by $6.4 billion, the BOE said.
An increase in mortgage lending in the first quarter was attributed to a flurry of mortgages completed before a new processing fee was established, the newspaper said.
ARLINGTON, Va., Apr 23, 2012 (BUSINESS WIRE) –
In keeping with Virginia Commerce Bank’s commitment to professional
development and in recognition of outstanding performance, we proudly
announce the following officer promotions:
Jamie Nalls has been promoted to Executive Vice President,
Construction Lending. Mr. Nalls has been with the Bank since 1998 and
has over 24 years of banking experience. Throughout his tenure, Mr.
Nalls has been actively engaged in the Northern Virginia community of
builders and developers and was instrumental in helping guide the Bank
through challenging times in the real estate market in recent years.
Brian Murphy has been promoted to Senior Vice President,
Portfolio Manager of the Bank’s Construction Lending department. Mr.
Murphy has been at VCB since March 2007 and has over 23 years of banking
experience.
Mary Ann Martins has been promoted to Senior Vice President,
Commercial Lending, in the Bank’s Alexandria market. With the Bank since
January 2008, Ms. Martins has over 21 years of banking experience,
including extensive work with trade associations.
The Bank is also pleased to announce the following promotions in the
consumer lending area of the Bank to Assistant Vice President: Kateena
Rodriguez, Retail Lending, and Shawn White, Collections.
In addition, Amy Williams has been promoted to Senior Mortgage
Closer Officer, in the Residential Mortgage Lending department.
Vicki Farmer has been promoted to Portfolio Officer of the
Bank’s commercial lending division in Fredericksburg.
To recognize outstanding performance in Credit Administration, a key
department that directly supports the Bank’s commercial loan
underwriting efforts, Garret Reed has been promoted to Vice
President; Mike Rodgers to Assistant Vice President;
and Linda Presgraves to Credit Administration Officer.
In addition, the Bank is pleased to announce branch manager promotions: Sylvana
Mascarenhas to Vice President of the McLean branch; Anita
Abram to Assistant Vice President of the Courthouse Road
branch in Fredericksburg; and Kimberly Triglia to Branch
Officer of the Centre Ridge branch in Centreville.
The Bank is also pleased to announce the following promotions in several
other departments: Krista DiVenere to Assistant Vice President,
Finance, and Katie Dellinger to Staff Accounting Officer.
In its Internal Audit department, Mary Slayton has been promoted
to Vice President and Shabby Shafaei, Young Tarry and
Craig Edelin to Assistant Vice President. In its Treasury
Management department, Jackie Keeratisakdawong has been promoted
to Assistant Vice President. And finally, Dale Dwaileebe has
been promoted to Assistant Vice President, Network Security.
About Virginia Commerce Bank
Established in 1988, Virginia Commerce Bank
/quotes/zigman/81560/quotes/nls/vcbi VCBI
+0.76%
is a
full-service, community bank headquartered in Arlington, Virginia, with
over $2.9 billion in assets. The Bank serves the Northern Virginia and
Fredericksburg markets with twenty-eight branches, a mortgage lending
office and a wealth management services department. For further
information about VCB’s many services and a map of convenient locations,
please visit our Web site at VCBonline.com.
SOURCE: Virginia Commerce Bank
Virginia Commerce Bank
Trish Smith, Director, Human Resources
703-633-6120
http://www.vcbonline.com tsmith@vcbonline.com
Copyright Business Wire 2012
/quotes/zigman/81560/quotes/nls/vcbi
Add to portfolio
VCBI
Virginia Commerce Bancorp
US
: U.S.: Nasdaq
$
7.94
+0.06
+0.76%
Volume: 246,642
May 2, 2012 4:00p
P/E Ratio11.62
Dividend YieldN/A
Market Cap$251.21 million
Rev. per Employee$482,696
Financial Glossary
Words used in this article:
Almost three years after it began, the US recovery may strengthen as autos and housing begin to reemerge as mainstays of growth.
The traditional engines that tend to give you a recovery are kicking in now, Joseph Carson, director of global economic research at AllianceBernstein LP in New York, said in an interview. Were seeing confirmation of sustainability from all sides. Thats a real business cycle.
Over the past two quarters, measures normally associated with early stages of lasting rebounds, including hours worked, employment, consumer and business sentiment, household spending on durable goods and residential investment, have picked up in tandem, said Carson. Ian Shepherdson at High Frequency Economics Ltd. is betting the comeback from the worst financial crisis since the Great Depression will be rooted in a thawing of lending, an area that usually lags behind.
Household spending led by durable goods like automobiles, as well as gains in homebuilding, may account for more than half of the first-quarter advance in gross domestic product, according to Carson. Those two areas contributed 1.7 percentage points to the 3 percent gain in gross domestic product at an annual rate in the fourth quarter and probably made a similar contribution in the past three months, he said.
That marks a shift from the period following the recession. Exports and business investment accounted for about 70 percent of the 2.4 percent growth seen in the first nine quarters of the recovery, compared with a historical contribution of about 20 percent in rebounds spanning the past five decades, according to Carson, who worked as an economist at the Commerce Department.
The US economy grew at a 2.5 percent pace from January through March, according to the median estimate of economists surveyed by Bloomberg News before the Commerce Departments report on Friday. Carson projects the gain will be 3.5 percent. Consumer spending rose at a 2.3 percent rate, the best performance in more than a year, the Bloomberg survey showed.
One stand-out in the rebound for consumer durable goods is automobiles, typical of the early stages of a lasting expansion, Carson said. Cars and light trucks sold in the first quarter at the strongest pace in four years, according to Wards Automotive Group. The pickup is linked to job gains, according to Mark Fields, president of the Americas at Ford Motor Co.
Auto Sales
Bolstered by a recent strengthening in the economy and the improving employment situation, US industry sales have surged in the early months of 2012, Fields said in a conference presentation telecast on April 4.
Ford this month raised its 2012 forecast for total US vehicle sales to as much as 15 million. If Fords prediction is on the mark, industrywide vehicle purchases would rise by about 2 million this year from 12.7 million in 2011, according to Carson. Such an increase has occurred only three times in the past 40 years, and in each of those cases — 1971, 1976 and 1984 — an economic recovery was taking hold, he said.
Were starting to see improvement in consumer confidence and, combined with rising fuel prices and aging vehicles, the market is starting to move, Bob Carter, Toyota Motor Corp.s group vice president for US sales, told reporters on April 5 at the New York auto show. Its happening quicker than anyone thought.
Credit Easing
Consumers wont be the only ones buying more vehicles, predicts Shepherdson, chief US economist at Valhalla, New York-based High Frequency Economics. Credit is starting to become more readily available, which will make it possible for small- and medium-sized companies to replace aging delivery trucks, he said. That means business investment probably wont slow much this year, according to Shepherdson.
We are seeing a real recovery in bank credit, he said in an interview. In an economic cycle that has been defined by a credit event, credit is not a lagging indicator, its a missing link.
Bank loans to commercial and industrial companies have climbed 14 percent in the 52 weeks ended April 11, the biggest year-to-year gain since November 2008, according to Federal Reserve data.
The credit situation couldnt be described as easy, but it can be described as easier, said Shepherdson. The economy will therefore take off properly. Shepherdson and Carson both forecast the economy will grow 3 percent this year, compared with a 2.3 percent median estimate of economists surveyed by Bloomberg this month.
Business Investment
Steve Latin-Kasper, director of market data and research at the Detroit-based National Truck Equipment Association, is among those with first-hand knowledge of the improvement.
Were seeing demand not just for consumer durables, but for capital equipment as well, he said in an interview. Well continue to see steady growth in spending. Latin- Kasper projects the economy will grow about 3 percent this year and is not ruling out a 4 percent gain in 2013.
Not everyone is as optimistic. Household finances and the job market arent robust enough to encourage consumers to splurge, cooling global growth will restrain exports, and housing is going nowhere, said Joshua Shapiro, chief US economist at Maria Fiorini Ramirez Inc. in New York. Monetary and fiscal policy are also limited in their ability to spur growth.
No lsquo;Breakaway
The economy has not yet reached a breakaway momentum, Shapiro, who forecasts GDP will rise 1.9 percent this year, said in an interview. Were still muddling through. Consumers arent ready to open their wallet in any grand manner and are increasingly aware theyre going to have to fend for themselves as there will be less government largesse.
Housing will play a bigger role as employment improves, consumers repair balance sheets and more people move away from their families and gain confidence to strike out on their own, according to Shepherdson and Carson.
Rising home sales ripple through the economy by spurring demand for everything from building materials like paints to furniture and electronics, said Shepherdson.
Purchases of building materials jumped 22 percent in the first quarter from the prior three months, after rising 10 percent, according to Carsons calculations.
While unseasonably mild temperatures probably boosted demand, there is no way that that entire increase is a weather effect, said Shepherdson. Some of the rebound is real and sustainable.
copy; Copyright 2012 Bloomberg News. All rights reserved.
Mumbai, April 23 â?? The State Bank of India (SBI), the countrys largest lender, said Monday that it will cut interest rates on term deposits by upto 1 percent.
However, the bank has not announced any change in lending rates, keeping borrowings costlier despite reduction in policy rates by the central bank.
State Bank of India has decided to revise its retail term deposit rates across various tenors with reduction ranging from 0.25 percent to 1 percent, with effect from April 24, 2012, SBI said in a statement.
Another public sector lender Allahabad Bank said it will cut lending rates by 0.25 percent effective from May 1, 2012.
Allahabad Bank said it will cut the annual benchmark prime lending rate by 0.25 percent to 14.75 percent. The bank will also cut base rate by 0.25 percent to 10.50 percent.
Other major lenders including ICICI Bank, Punjab National Bank and IDBI Bank has already announced reduction in lending and deposit rates following cut in policy rates by the Reserve Bank of India.
Punjab National Bank, the countrys second largest public sector lender, has said it will cut the annual benchmark prime lending rate by 0.25 percent to 14 percent, effective from May 1.
The bank has also decided to lower the base rate, the rate below which it cant lend, by 0.25 percent to 10.50 percent.
Indias largest private sector lender ICICI Bank lowered base rate and interest rates on term deposits 0.25 percent effective from Monday.
The RBI in its annual monetary policy for 2012-13 announced on April 17, cut key policy rates by 0.50 percent. This is the first rate cut by the central bank in three years.
In order to provide additional liquidity cushion to the banking system, the RBI has enhanced the borrowing limit for banks under the marginal standing facility to 2 percent of net demand and time liabilities.
IANS
This article was distributed through the NewsCred Smartwire.
Original article  IANS / Daily News 2012
In the run-up to this weeks talks, IMF managing director Christine Lagarde had urged policymakers to recreate the sense of shared purpose that prevailed during the financial crisis, saying she hoped the meeting could be considered a Washington moment.
I personally feel that that Washington moment was clearly in the room in the course of the meetings, Lagarde said Saturday.
The additional resources could be used to help rescue troubled eurozone economies, although the IMF stressed that the funds will be available to all 188 members.
The IMF has provided $300 billion in emergency loans since the global financial crisis struck in 2007, including a program for Greece that is the largest in the funds history.
The push to increase IMF resources comes as the global economy faces multiple risks. While conditions have improved recently, the outlook for growth remains tepid. In addition, the debt crisis in Europe continues to threaten the global financial system, along with ongoing problems in the banking system and rising oil prices.
The IMF has estimated that its funding needs will reach $1 trillion over the next few years.
The firewall is an important step forward, but additional steps are needed to provide a real solution to the crisis, said Tharman Shanmugaratnam, chairman of the IMFs governing committee.
He said there was very strong consensus on the need to enact fiscal reforms, such as bringing down government deficits, while also taking steps to boost economic growth over the next three years.
If we dont get growth back then fiscal sustainability isnt possible either, Shanmugaratnam told reporters Saturday. That holds true for both the euro area and the United States, he added.
In announcing the pledges Friday, Lagarde said the international community had demonstrated a commitment to stabilizing the financial system and supporting the global economy. But she suggested that the IMF expects more members to contribute.
We made a call to action, and our members have delivered, Lagarde said. I look forward to further commitments from our broader membership.
The United States has declined to provide any additional loans for the IMF. Under the current IMF quota system, the US government stands behind nearly 18% of the funds normal resources, making it the largest shareholder.
US officials argue that Europe has the resources it needs to resolve the crisis, and that the IMF should not be used as a substitute for a strong European response.
On Saturday, US Treasury Secretary Tim Geithner welcomed the pledges, saying in a statement that the IMF has substantial capacity to address threats to the global economy, including the effects of the European crisis on the rest of the world.
The IMF can and should play a complementary role in a comprehensive and well-designed European response, he said.
While European leaders have taken important action to contain the crisis, Geithner suggested that more needs to be done to ensure that governments can follow through on proposed reforms.
The success of the next phase of the crisis response will hinge on Europes willingness and ability, together with the European Central Bank, to apply its tools and processes creatively, flexibly and aggressively to support countries as they implement reforms and stay ahead of markets, said Geithner.
European officials, meanwhile, echoed Lagardes call for more IMF members to provide additional loans.
We agree with the managing director that the funds membership should now swiftly raise the funds lending capacity, as important challenges remain, said Steven Vanackere, Belgiums minister of finance.
Vanackere added that euro area governments have pledged EUR150 billion in IMF loans, saying the rest of the membership should contribute its fair share.
Jan Kees de Jager, the Netherlands finance minister, said the euro area is aware of its special responsibility in the current circumstances. But he said other IMF members should rise to the occasion, noting that European nations have aided others in past crises.
We call on other IMF members to support the efforts to safeguard global financial stability by contributing to the increase in IMF resources as Europe has done in the past when major crises threatened economies in other parts of the world, said de Jager.
FRANKFURT, April 23 (Reuters) – Key euro zone bank-to-bank
lending rates hit their lowest since June 2010 on Monday,
weighed down by the record amount of cash the European Central
Bank has pumped into financial markets since late last year.
The ECB, which left official euro zone interest rates at 1.0
percent earlier this month (click ), has poured
over 1 trillion euros of ultra-cheap, 3-year funding into the
banking system since the end of December, driving interbank
rates to half of what they were last August.
Three-month Euribor rates, traditionally the
main gauge of unsecured interbank euro lending and a mix of
interest rate expectations and banks appetite for lending,
extended the slide on Monday, falling to 0.731 percent from
0.734 percent.
Six-month rates fell to 1.027 percent from
1.029 percent and 12-month rates dropped to 1.348
percent from 1.352 percent.
Shorter term rates steadied. The one-week rate
, which continues to bump around all-time lows,
remained at 0.319 percent, while overnight rates fell
to 0.344 percent from 0.347 percent.
Dollar-priced bank-to-bank Euribor lending rates followed
the broader downward trend. Three-month rates
fell to 0.947 percent from 0.951 percent, while
overnight rates dipped to 0.318 percent from 0.322
percent.
Despite the sharp fall in interbank rates over the last few
months, the benchmark euro-priced three-month rate remains some
way above the euro-era low of 0.634 percent hit in early 2010.
The 0.25 percent the ECB offers banks for overnight deposits
continues to act as a floor for money market rates as banks know
they can get that level of interest no matter what.
With the ECB expected to keep limit-free liquidity available
and interest rates at their record low for the foreseeable
future, further falls in Euribor rates are expected.
High excess liquidity in the banking system has
led to high use of the ECBs overnight deposit facility. Banks
parked 776 billion euros there on Friday. In normal times the
amounts are minimal.
Euribor rates are fixed daily by the Banking Federation of
the European Union (FBE) shortly after 0900 GMT.
* For a table of the latest Euribor fixings for terms of one
week to one year, double click on
* For a table of the previous days fixings of EONIA swap
rates, which show market expectations for future overnight
lending rates, double click on
* For graphs of historic Euribor and EONIA swap rates, right
click on the links in angle brackets below, and select Related
Graph
1 week
2 week
3 week
1 month
2 month
3 month
4 month
5 month
6 month
7 month
8 month
9 month
10 month
11 month
1 year
(Reporting by Frankfurt newsroom)
Get started ‘On’ Apr. 23: Government fund boosts local lending, men’s suits ranked worst business to start
By
Our daily blend of the latest news, trends and tips for the small business community.
What’s going ‘on’:
Government fund spurring local lending: Banks participating in the Small Business Lending Fund upped lending to mom-and-pop operations $4.8 billion over baseline levels during the fourth quarter. The fund, part of the Small Business Job Act of 2010, doled out more than $4 billion to 332 community banks, credit unions and community development financial institutions across the country.
Men’s suits, knitting mills among worst new firms to start: Opening a men’s suits, coats and trousers manufacturing firm is by far the worst entrepreneurial idea of the year, according to new rankings published by IBISWorld, which expects three out of four such firms to fold before the end of 2012. Not far behind are knitting mills, costume/uniform makers and photofinishing firms.
House GOP women key in pushing tax cut bill: Several female lawmakers played a leading role in helping Republicans push through a small business tax cut measure last week, according to The Hill. Reps. Cathy McMorris-Rodgers (R-Wash.) and Renee Ellmers (R-N.C.) were deployed to both promotoe the party’s talking points and highlight the benefits of the tax cut for women-owned companies.
Keep an eye ‘on’:
SBA size standards changing the game for regional firms: The Small Business Administration has been revamping the size standards companies must meet to receive work set aside for small business, which has given a much needed boost to firms like environmental and energy consulting contractor SC&A in Vienna.
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How to pick the right daily deals for your firm (OSB)
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How to be consistent in your branding (Open Forum)
How to protect your online reputation (Fox Business)
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Small London-area businesses stand to benefit from a pledge by the Bank of Montreal to boost business borrowing by $10 billion over the next three years.
That represents a 30% jump over the current $38 billion portfolio for commercial lending.
Hydra Dyne Technology, an Ingersoll hydraulic parts manufacturer, is one of BMOs area clients taking advantage of the favorable lending climate to fund an expansion while their market is hot.
The firm has started construction of an 18,000-sq.-ft. addition that will double the plants size.
Hydra Dynes main customers are in the construction, forestry, mining and agricultural sectors.
In our market we have been booming since 2010. The Chinese market is really opening up. Theres a lot of digging going on there and they need equipment, said Hydra Dyne Technology president Stephen Bohner.
The 20-year-old company has 68 employees and plans to add more when the expansion is completed. Companies now have a good chance to grow while capital is available, Bohner said.
Funding is reasonably easy to get at a good rate as long as you have a good balance sheet. We have to be globally competitive. . . If you dont grow, you die, said Bohner.
James Gardiner, BMOs area manager for commercial banking, said the bank didnt cut back on lending in the London area during the economic downturn and city businesses will benefit from the $10-billion boost in the banks commercial portfolio.
We will get our fair share of that and put it out in the streets of London . . For companies with strong balance sheets, this is the time to invest, he said.
Gardiner said local BMO managers will also get more power to approve loans.
Weve always had a decentralized credit structure . . . but theres been increased discretion put into the local market to make sure our offers are competitive, he said.
Londons high unemployment and the lockout at the Electro-Motive Diesel plant have grabbed headlines recently, but Gardiner said clients such as Hydra Dyne are quietly expanding and adding jobs.
Economists have noted that businesses have been wary about borrowing money and expanding since the recession in 2008.
Douglas Porter, BMOs deputy chief economist, said more business investment is needed to improve productivity and boost the economy.
While small- and medium-sized enterprises have shown some understandable caution in recent months, relatively strong finances and supportive financial conditions should spur capital spending further in the coming year, said Porter.
E-mail hank.daniszewski@sunmedia.ca, or follow HankatLFPress on Twitter.
Money tends to not grow in savings accounts nowadays, and some people might earn more by lending it out online. YNNs Tara Lynn Wagner filed the following report.
Predictions about how far Western European car sales might drop don’t seem to be getting any worse, but the number of reasons why it will be bad are on the increase. And the weakness in sales will go on longer than previously thought, while non-German mass car makers will lose money for the foreseeable future.
Ford Europe, the first major automotive company to report today, lost $190 million in the fourth quarter, the first of a probably long line of red numbers.
Investment banker Morgan Stanley has already cut its forecast to minus 6.5 per cent for Western Europe’s sales in 2012, but added another reason why consumers will be staying away from dealer’s lots; the banks will cut back on lending.
“Our economists take the rather dour view that GDP growth in the Eurozone this year will be only 0.5 per cent and our European banks team expects EU banks to cut lending by up EUR2.5 trillion in response to the region’s economic turmoil,” said Morgan Stanley auto analyst Adam Jonas.
“Moreover, Europe should remain loss-making for most big manufacturers for a few more years to come,” Jonas said.
“Most big manufacturers” means those which aren’t German, and includes those with big factories in Germany but aren’t native, like Ford and GM Europe.
Moody’s Investors Service, the US bond rating agency, said Western European sales in 2012 will fall 6.2 per cent.
“We anticipate that the steepest declines will be in France – minus 10 per cent – Italy – minus seven per cent – and the UK – minus seven per cent. Auto manufacturers in these countries will suffer most from the austerity measures initiated by their governments, as well as a continued challenging economic environment and the subsequent expected fall in consumer spending,” said Moody’s senior vice president Falk Frey.
All is not well in Germany either, according to Professor Ferdinand Dudenhoeffer of the University of Duisberg-Essen.
“We think the German car market is not so stable as the latest figures show. There are a lot of incentives, the biggest for five years in Germany and about 30 per cent of the sales in the last three months are pre-registrations. Rebates and incentives are pushing these numbers artificially,” Dudenhoeffer said.
In December, German car sales rose 6.1 per cent to 244,500, according to AID figures.
LMC Automotive agrees that all is not well in Germany.
“On the face of it, the December 2011 result (for Germany) certainly looks favorable in year-on-year terms, but the market is cooling and consumer confidence has dropped sharply in recent months,” said LMC analyst Jonathon Poskitt.
LMC’s latest report calls for a 5.3 per cent drop in 2012 Western European sales to 12.1 million, with Germany slipping to 3.1 million from 3.2 million the previous year.
Profits are being hit by widespread price cutting across Europe.
“There’s savage discounting going on in France, with PSA and Renault fighting each other – Clios for 40% off list, Twingos for less than Dacias,” John Wormald of consultancy Autopolis said.
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