World Bulletin / News Desk
Britain's banks have been told to test how they would cope if several euro zone countries exited the single currency, the UK's Financial Services Authority watchdog said on Tuesday.
FSA Chairman Adair Turner said Britain's banks needed to think about problems arising from their assets and liabilities being redenominated into another currency, even though the likelihood of this happening was still small.
"We've certainly encouraged them to run those scenarios for Greece, Spain, Italy, Portugal and Ireland," Turner told parliament's Treasury Select Committee.
"I think we consider the chances very low, very very low for at least some of those countries on that list, but I think it is sensible to encourage people to run extreme risk scenarios," Turner added.
The committee was questioning Turner and Bank of England (BoE) officials who are members of the BoE's Financial Policy Committee which looks at risk affecting financial stability.
The FPC's meeting in June concluded that the euro zone debt crisis was the biggest challenge facing the UK economy, which is back in recession.
The committee agreed to help banks kick start the economy by tapping billions of pounds from their cash buffers and using the freed up money to increase lending to businesses.
The extent to which banks can cut their liquidity buffers -- mainly made up of government bonds -- will depend on how much lenders have in collateral parked at the Bank of England.
"We are working through the details on that," Turner said, adding the FSA will soon hold meetings with each bank over how much they can tap their cash buffers.
"Within a few weeks we will have sorted this out," Turner said.
The FPC is still putting pressure on banks to build up their separate capital cushions by retaining earnings, and curbing bonuses and dividends, Turner said.
"Our banks are in a much stronger position than they were three or four years ago," Turner said.
The FSA was discussing with some banks the possibility of issuing contingent capital or CoCos, a hybrid debt that converts to equity when a bank becomes stressed, Turner added.
Production from conflict-free mines are bagged and tagged with a barcode to make it easily traceable.
"We will further expand our capacities to be able to respond to the high market growth," Jochem Heizmann, head of VW's China operations told reporters on Saturday ahead of the Beijing auto show.
The State Duma lower house on Friday ratified a 2012 agreement to write off the bulk of North Korea's debt. It said the total debt stood at $10.96 billion as of Sept. 17, 2012.
Mt. Gox, once the world's biggest bitcoin exchange, is likely to be liquidated after a Tokyo court dismissed the company's bid to resuscitate its business.
Discussions will continue in the days and weeks ahead, but there is no particular deadline for concluding the talks, the official added.
Russia's oil output stands at over 10 million barrels per day, the world's largest, but it needs new sources of crude oil, including hard-to-recover deposits and the Arctic, to sustain this level
The strike at Yue Yuen is not just one of China's biggest in recent years, it's also more clearly driven by workers' fears that they have been scammed by an opaque and convoluted welfare payment system.
When the system is in place citizens will be able to buy a limited amount of subsidised fuel, and will have to pay a normal, market price for any extra quantities.
Production in Upper Nile state's Paloch oilfields, where output has not been hampered by the conflict, stood at 159,000 barrels per day this week.
Dragomir Stoynev accused fellow European Union members of a politically-motivated attempt to scupper the project, and urged the bloc to understand the effect that doing so would have on its members.
The drops have come mainly because Japan did not take any cargoes in March and South Korea is not scheduled to take any shipments in April, according to the tanker data.
Japan's finance ministry and central bank have declined to comment on the payments.
But a survey shows that most people believe inflation is speeding up and could surpass 37 percent this year.
A fifth payment of $450 million was due on April 15, contingent on Iran having diluted half of its most sensitive stockpile of nuclear materials
The year-on-year inflation rate in the 18 countries sharing the euro was 0.5 percent in March against 0.7 percent in February, the European Union's statistics office Eurostat said.
Pushed by higher food and shelter costs, the consumer price index rose in March.