Greek Banks Set for First Payouts Since 2008 on ECB Approval
The European Central Bank will allow Greek banks to make their first shareholder payouts in over a decade as the country emerges from a painful post-crisis restructuring.
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The European Central Bank will allow Greek banks to make their first shareholder payouts in over a decade as the country emerges from a painful post-crisis restructuring.
Embattled German landlord Adler Group SA has asked its bondholders for permission to sell an unfinished apartment development at a 47% discount to its 2022 valuation, as the company races to repay its vast debt load.
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The Bank of Korea warned Thursday that a further slump in the real estate sector would undermine broader economic activity, as it pointed to worsening delinquencies among developers in the latest signal of continuing woes in the credit market.
Oct 18, 2017
Reuters
,Canada's federal housing agency said on Wednesday it is well-capitalized and able to weather what it calls extreme scenarios including a wave of anti-globalization, a steep oil price fall and a housing correction like the one experienced in the United States about a decade ago.
The Canada Mortgage and Housing Corporation, responsible for insuring the bulk of Canadian mortgages issued by banks and other big lenders, uses annual stress tests to gauge its resilience to extreme scenarios. It began publishing the results in 2015.
The 2017 stress test confirmed CMHC's mortgage loan insurance and securitization business had enough capital to withstand the impact of scenarios including an anti-globalization wave, earthquake, steep oil price fall and a sharp housing correction over a five-year period, it said.
Of the four scenarios examined, the CMHC said anti-globalization would take the greatest toll on housing prices, knocking the national average 31.5 per cent lower from peak to trough. That exceeded the firm’s estimate of a 30-per-cent drop in prices in the event of a U.S.-style housing meltdown, and a mere 0.2-per-cent drop if a catastrophic earthquake struck.
The 2017 stress test was the first in which the CMHC considered the impact of anti-globalization, after deeming global deflation a greater threat last year. While the agency expects it would wreak havoc on home prices and send unemployment as high as 15.3 per cent, the CMHC said it would not post a net loss in such a scenario over the next five years.
"We seek out extreme, almost unimaginable situations and ask ourselves 'what if?'," CMHC Chief Risk Officer Romy Bowers said. "In all cases, this year's stress testing shows we are well capitalized to handle these very severe situations."
Canadian authorities have taken a number of steps over the past 18 months to cool overheating housing markets in Vancouver and Toronto, including implementing taxes on foreign buyers.
Canada's banking regulator on Tuesday finalized tougher new rules on mortgage lending aimed at safeguarding lenders and borrowers, but warned the measures could push some borrowers into the arms of unregulated private lenders.
--With files from BNN