China capital curbs reflect buyer’s remorse over market reforms

Last year the reformist head of China’s central bank convinced his Communist party bosses to give market forces a bigger say in setting the renminbi’s daily “reference rate” against the US dollar. In return, Zhou Xiaochuan assured his more conservative party colleagues that the redback would finally secure coveted recognition as an official reserve currency […]

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Capital Markets

Mnuchin expected to be Trump’s Treasury secretary

Donald Trump has chosen Steven Mnuchin as his Treasury secretary, US media outlets reported on Tuesday, positioning the former Goldman Sachs banker to be the latest Wall Street veteran to receive a top administration post. Mr Mnuchin chairs both Dune Capital Management and Dune Entertainment Partners and has been a longtime business associate of Mr […]

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Financial system more vulnerable after Trump victory, says BoE

The US election outcome has “reinforced existing vulnerabilities” in the financial system, the Bank of England has warned, adding that the outlook for financial stability in the UK remains challenging. The BoE said on Wednesday that vulnerabilities that were already considered “elevated” have worsened since its last report on financial stability in July, in the […]

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China stock market unfazed by falling renminbi

China’s renminbi slump has companies and individuals alike scrambling to move capital overseas, but it has not damped the enthusiasm of China’s equity investors. The Shanghai Composite, which tracks stocks on the mainland’s biggest exchange, has been gradually rising since May. That is the opposite of what happened in August 2015 after China’s surprise renminbi […]

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Hard-hit online lender CAN Capital makes executive changes

The biggest online lender to small businesses in the US has pulled down the shutters and put its top managers on a leave of absence, in the latest blow to an industry grappling with mounting fears over credit quality. Atlanta-based CAN Capital said on Tuesday that it had replaced a trio of senior executives, after […]

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Categorized | Financial

FCA tightens rules for payday lenders

Posted on February 28, 2014

Payday lenders operating in the UK are being told to check whether borrowers can afford their short-term, high-cost loans under new rules introduced to address poor practice.

The UK’s financial regulator has announced its final verdict on plans to oversee consumer credit providers and debt management companies and says it intends to take a “hands on” approach.

    From 1 April, around 50,000 firms will be required to meet new requirements which include a ban on misleading adverts and provision of debt advice. Lenders will also not be able to automatically hit a customer’s bank account for funds if they miss a payment and cannot roll over loans more than twice.

    The UK’s “Wonga economy” has ballooned over the past few years, which has led to growing criticism from politicians, debt charities and consumer groups.

    Last year George Osborne, chancellor, told the regulator that it had a duty to impose a cap on the costs incurred by borrowers. This is expected to be put in place on 2 January 2015.

    “Millions of consumers access some form of credit each day, from paying for everyday goods by credit to taking out a payday loan. We want to be sure that the market works well when people need it – whether that’s for one day, one month or longer,” said Martin Wheatley, chief executive of the Financial Conduct Authority.

    “Our new rules will help us to protect consumers and give us strong new powers to tackle any firm found to be overstepping the line.”