Bank of England not easing rules for banks
LONDON • Britain still faces a "challenging period" for financial stability despite resilience seen after the European Union referendum, and rules for banks must remain tight, the Bank of England (BOE) said yesterday.
Britain's government is keen to ensure London retains its place as Europe's leading financial centre even after the country leaves the EU, but the BOE said there was no case to loosen bank capital rules.
With UK-regulated banks' future access to EU markets unclear, Britain's government is likely to come under pressure from the industry to make London a more attractive location.
The Confederation of British Industry has already called for banks to be removed from the "naughty step", after a prolonged regulatory crackdown following the financial crisis.
But the BOE said "irrespective of the particular form of the UK's future relationship with the EU", Britain's financial system needed "robust prudential standards".
Chinese shipping firm set for revamp seeks loan
BEIJING • A Chinese container shipping firm has asked banks to join a loan backing its proposed acquisition of a United States computer distributor as it tries to transform itself into a general logistics operation, according to people familiar with the matter.
Tianjin Tianhai Investment, based in northern China, has invited lenders to contribute to the US$4.27 billion (S$5.8 billion) loan to support its US$6 billion proposed acquisition of computer, networking and software distributor Ingram Micro, the sources said.
The move comes as slowing global economic growth and a mountain of debt claim more casualties in the shipping industry, including South Korea's biggest container line Hanjin Shipping.
Singapore-based shipping trust Rickmers Trust Management said yesterday that it is seeking to issue new units in the trust to pare obligations amid a restructuring.