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1/28/2009 News For: Nj Banks CD RatesNo CD issues from Indian banks MUMBAI, Jan 28 Reuters - Indian banks did not issue any Certificate of Deposit CD on Wednesday, a day after the central bank left interest rates unchanged at its policy review meeting, Thomson Reuters data showed. FDIC wants new ceiling on interest rates paid by weak banks Trying to limit its losses amid mounting lender failures, the agency proposes a cap of 0.75 of a percentage point over the national average rate for banks with less-than-adequate capital. Savers have long been able to take advantage of the above-average interest rates that weak banks pay to attract deposits. But those days may soon be over. Asia Money Rates Slip as Central Banks to Pump Cash Into System Jan. 28 -- Asian money market rates fell on speculation central banks will extend reductions in interest rates and pump liquidity into the banking system to encourage lending amidst the worst global recession since the 1930s. RBI prods banks to cut rates Uco, Lakshmi Vilas agree; others say cost of deposits needs to soften further. The Reserve Bank of India today kept key policy rates unchanged, but put the onus of further reduction in interest rates on banks. Banks halt CD issues to cut costs Changes in Sebi norms have also slowed down demand for short-term paper. Banks did not issue any certificate of deposits CDs On Wednesday as they are flush with cash and are trying to lower their cost of funds by repricing their deposits. Smaller banks may opt for lower cut in fixed deposit rates PETALING JAYA: Industry competition, especially among smaller and less well-capitalised banks, remains relatively intense and this could see these banks opting to cut the fixed deposit FD rates by less than the 50-basis-point bps reduction initiated by Bank Negara, says OSK Investment Research. RBI prods banks to cut rates The Reserve Bank of India today kept key policy rates unchanged, but put the onus of further reduction in interest rates on banks. However, most lenders indicated that any such decision will be linked to a fall in the cost of funds. FDIC May Limit Interest Rates Offered by Banks With Low Capital Jan. 27 -- The Federal Deposit Insurance Corp. , which is selling failed U.S. banks at the fastest pace in 17 years, probably will propose limits on interest rates paid by lenders with less than adequate regulatory capital, industry consultant Bert Ely said. Banks not in a position to reduce deposit rates: RBI Highlighting some critical defects in the interest rate transmission mechanism, the Reserve Bank of India has said Indian banks could not reduce deposit rates 'sharply' due to the presence of high administered rates on small savings, higher fixed deposits rates. It's time to cut lending rates, RBI tells banks MUMBAI: The Reserve Bank of India has sent a strong, and unambiguous, message to all banks in the country ? cut lending rates. |




