The Reserve Bank will soon get stronger powers to deal with the finance companies under new legislation. The legislation, Non-Bank Deposit Takers Bill, will be presented in the parliament next week by the Finance Minister, Bill English. The new law is expected to be enforced in June 2013.
The new stronger rules will be for related-party lending, increased capital requirements, and credit ratings.
People prefer payments through electronic card over cash while purchasing retail commodities, reveals a data from New Zealand. As per the data, payments made through cards had increased by 1.2% in June.
Amid pessimistic growth outlook for 2011, Australia's central bank kept its key interest rates same at 4.75% on Tuesday. Citing the ongoing crisis in Arab nations, thereby driving the global crude oil to reach at new records and further, pushing the inflation to a new high, the interest rates were kept unchanged by the Reserve Bank of Australia Board.
While addressing the issue of inflationary pressure on the global economy, the Bank for International Settlements (BIS) has marked the low interest rates as a threat to the financial stability across the world.
On Monday, Charles Plosser, the President of the Philadelphia Federal Reserve Bank has advised Federal Reserve to follow a strict and systematic plan to its ultimate asset sales of about $1.8 trillion in government securities and other assets combined during the crisis to avoid the temptation of using the sales for non-monetary-policy purposes like aiding banks.
The Central Bank of Vietnam announced to quit usage of foreign currency like dollars in domestic transactions, in order to promote dong, the currency of Vietnam. The people of the country were ordered to sell out their foreign currency to the banks in the country.