Source: African Development Bank Group
“The importance of ESG disclosure for attracting finance for sustainable development in Africa cannot be overstated. It is no longer an optional add-on; it is a necessity if Africa is to thrive and not just survive in the 21st century,” stated Solomon Quaynor, African Development Bank Group Vice-President in opening the inaugural…
Category: Banking
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MIL-OSI Economics: Environmental, Social and Governance Disclosure is Critical for Africa’s Sustainable Development — AfDB VP Quaynor at Inaugural Africa ESG Forum
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MIL-OSI Economics: Ninth AEMP held in Dar es Salaam ahead of key Africa Heads of State Energy Summit scheduled for 28 January in Tanzania
Source: African Development Bank Group
Further to an April 2024 pledge by the Presidents of the African Development Bank and the World Bank to bring electricity access to 300 million people in Africa by 2030, the Tanzanian port city of Dar es Salaam has been selected to host an Africa Heads of State Energy Summit on 28 January 2025. -
MIL-OSI Economics: Pink October: A Call to Action for Breast Cancer Awareness in Africa
Source: African Development Bank Group
Every October, the world unites in a vibrant global campaign aimed at eradicating breast cancer. Known as “Pink October”, this campaign is dedicated to raising awareness about breast cancer, promoting early detection, and supporting research for better treatment options. For the African Development Bank (the Bank), the month serves as a crucial reminder of the ongoing health challenges faced by people, particularly women, across the continent. Gender perspectives reveal that women encounter unique obstacles, be they social, cultural, economic, policy related. This makes Pink October an even more pressing call for action to improve health outcomes and the quality of life of the people of Africa.
The Rising Challenge of Breast Cancer in Africa
Breast cancer is now the most common form of cancer among women globally, causing over 670,000 deaths in 2022[i]. In sub-Saharan Africa, an alarmingly, 60 percent to 70 percent of women are diagnosed with advanced stage disease presented at Stage 3 and 4. Accessible infrastructure, quality training, preventive care, and supportive policies are essential for timely and adequate treatment, which significantly impacts survival rates. Currently, only 50 percent of women in Sub-Saharan Africa survive five years post-diagnosis compared to over 90 percent in high-income countries with affordable health care[ii].
The Bank’s Response: Strategic Initiatives
The Bank is making meaningful strides in addressing critical health challenges and empowering communities, particularly women in regional member countries. A few examples include the:
- Uganda Oncology Project (East Africa Centre of Excellence Project): Approved in December 2023, this project aims to enhance cancer management in Uganda and the East African Community region by addressing critical shortages in oncology professionals. The project focuses on improving infrastructure and education at the Uganda Cancer Institute. Additionally, the project seeks to support regional integration in higher education, ensuring that training and services meet the growing demand for specialized oncology care to address the pressing shortage of skilled oncology professionals in Uganda and the East African Community. Key outputs include:
- Building research and training capacity in cancer diagnosis and treatment.
- Providing advanced cancer treatment facilities notably breast cancer.
- Offering scholarships for 60 postgraduate candidates in oncology, with at least 30 percent reserved for women to help reduce the traditionally male-dominated Oncology field.
- Increase 40 percent of early-stage breast cancer diagnoses and other forms of cancers by 2026.
- Partnership with HealthTech Hub Africa, to develop a pan-African blueprint aimed at accelerating health tech innovations across the continent. This collaboration addresses the urgent demand for solutions to close health infrastructure gaps and extend affordable services to underserved communities by promoting advanced technologies like telemedicine and AI-powered diagnostics. HealthTech Hub Africa has supported 68 organizations in 17 countries, impacting over 2.35 million beneficiaries and creating more than 830 jobs. The agreement was announced at the HealthTech Africa Investor Summit on October 16, 2023.
“By creating a pan-African blueprint for health tech innovations, we aim to address critical infrastructure needs and extend affordable services to underserved communities. This collaboration will empower innovators and enhance healthcare delivery for millions, ultimately improving outcomes for women and men affected by breast cancer,”
states Martha T.M. Phiri, Director of Human Capital, Youth and Skills Development.
Institutional Initiatives At an institutional level, the Bank launches several initiatives every year to raise awareness about breast cancer and support the staff. This year for instance, an inaugural conference will be held on October 25, featuring expert discussions on breast cancer awareness and prevention. Additionally, screenings will be provided on October 29-31, ensuring access to essential health services. Regional Directorate Generals (RDGs) will spearhead communication efforts in their areas, promoting the importance of prevention and screening. Furthermore, the Bank’s medical plan will cover 100 percent of periodic medical check-ups, including mammograms and breast ultrasounds conducted. To enhance support, the Bank will also assist with treatments, medical follow-ups, and psychological support for employees affected by breast cancer.
“Breast cancer awareness is not just a campaign; it’s a commitment to the health and well-being of our employees and their families. By promoting early detection and providing essential support, we aim to create a culture where health takes priority, and everyone feels empowered to take charge of their wellness.”
Ali Ramzi Mohammed, Director staff welfare services, compensation and employment policy.
A Collective Commitment
As we observe Pink October, let us reaffirm our commitment to fighting breast cancer in Africa. The African Development Bank prioritizes internal efforts, fostering a supportive environment for its employees through awareness campaigns and health initiatives. By investing in health systems, supporting research, and advocating for universal access to care, we can reduce the burden of breast cancer and empower women everywhere.
As we highlight these initiatives, it is important to remember the real impact of our efforts through the voices of those directly affected. A colleague and cancer survivor shared her experience, emphasizing the critical role of awareness and support in the journey through breast cancer:
“Surviving breast cancer has shown me the power of community and the importance of early detection. I am grateful for the support around me including the Bank and hope my journey inspires others to prioritize their health and seek the care they deserve.”
Zeneb Touré, Manager of the Civil Society Engagement Division.
Let’s wear pink not just this October, but every day, as a symbol of hope, solidarity, and our shared commitment to fight breast cancer. Together, we can create a healthier future for women and men across Africa.
- Uganda Oncology Project (East Africa Centre of Excellence Project): Approved in December 2023, this project aims to enhance cancer management in Uganda and the East African Community region by addressing critical shortages in oncology professionals. The project focuses on improving infrastructure and education at the Uganda Cancer Institute. Additionally, the project seeks to support regional integration in higher education, ensuring that training and services meet the growing demand for specialized oncology care to address the pressing shortage of skilled oncology professionals in Uganda and the East African Community. Key outputs include:
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MIL-Evening Report: NZ’s Labour calls on other cities to follow Israel boycott lead
Asia Pacific Report
New Zealand’s opposition Labour Party has backed Christchurch City Council and called for other cities to block business with firms involved in Israel’s illegal settlements in the Occupied Palestine Territories.
“It is great that Christchurch is the first council in New Zealand to take up this cause. We hope others will follow this example,” Labour’s associate foreign affairs spokesperson Phil Twyford said.
“Christchurch City’s decision is in line with the recent International Court of Justice ruling on the illegal settlements, which said the international community should not ‘aid or assist’ the settlements.”
Christchurch is New Zealand’s third-largest city with a population of 408,000. The council vote yesterday was 10 for sanctions, two against and three abstentions.
Labour has called on the government to direct the Super Fund and the Accident Compensation Corporation (ACC) to divest from any companies on the United Nations list of companies complicit in building or maintaining the illegal settlements, and use its procurement rules to ban any future dealings with those firms.
“New Zealanders want to see an end to Israel’s slaughter in Gaza, and a political solution that allows the establishment of a Palestinian state,” Twyford said.
“Unfortunately, since the Oslo Accords in 1993, Israel has deliberately set out to colonise the Occupied West Bank with settlements housing more than 700,000 Israelis, designed to scuttle any hope of a two-state solution.
“It is time for the international community to take action against this breach of international law.”
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MIL-OSI China: Xi says urgency of reforming international financial architecture increasingly prominent
Source: China State Council Information Office
Chinese President Xi Jinping said on Wednesday that the urgency of reforming the international financial architecture is becoming increasingly prominent in the current situation.
Xi made the remarks when addressing the 16th BRICS Summit.
He also called for strengthening the New Development Bank and urged BRICS countries to take the lead in promoting a better alignment of the international financial system with the changing dynamics of the global economy.
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MIL-OSI: Southside Bancshares, Inc. Announces Financial Results for the Third Quarter Ended September 30, 2024
Source: GlobeNewswire (MIL-OSI)
- Third quarter net income of $20.5 million;
- Third quarter earnings per diluted common share of $0.68;
- Annualized return on third quarter average assets of 0.98%;
- Annualized return on third quarter average tangible common equity of 13.69%(1); and
- Nonperforming assets remain low at 0.09% of total assets.
TYLER, Texas, Oct. 24, 2024 (GLOBE NEWSWIRE) — Southside Bancshares, Inc. (“Southside” or the “Company”) (NASDAQ: SBSI) today reported its financial results for the quarter ended September 30, 2024. Southside reported net income of $20.5 million for the three months ended September 30, 2024, an increase of $2.1 million, or 11.2%, compared to $18.4 million for the same period in 2023. Earnings per diluted common share increased $0.08, or 13.3%, to $0.68 for the three months ended September 30, 2024, from $0.60 for the same period in 2023. The annualized return on average shareholders’ equity for the three months ended September 30, 2024, was 10.13%, compared to 9.50% for the same period in 2023. The annualized return on average assets was 0.98% for the three months ended September 30, 2024, compared to 0.93% for the same period in 2023.
“Third quarter financial results were highlighted by a linked quarter $1.86 million increase in net interest income, a linked quarter eight basis point increase in our net interest margin to 2.95%, earnings per share of $0.68, a 13.69% return on average tangible equity(1), and continued strong asset quality,” stated Lee R. Gibson, Chief Executive Officer of Southside. “During the quarter we sold $28 million of lower yielding municipal securities, unwound the related fair value swaps and recorded a loss of $1.9 million. The proceeds were reinvested in higher yielding agency mortgage-backed securities. In addition, we recorded an impairment charge of $868,000 on the sale of approximately $10 million of available for sale (“AFS”) municipal securities and the unwind of the related fair value swaps on October 1.”
Operating Results for the Three Months Ended September 30, 2024
Net income was $20.5 million for the three months ended September 30, 2024, compared to $18.4 million for the same period in 2023, an increase of $2.1 million, or 11.2%. Earnings per diluted common share were $0.68 and $0.60 for the three months ended September 30, 2024 and 2023, respectively. The increase in net income was a result of the increase in net interest income and the decrease in provision for credit losses, partially offset by the decrease in noninterest income and increases in noninterest expense and income tax expense. Annualized returns on average assets and average shareholders’ equity for the three months ended September 30, 2024 were 0.98% and 10.13%, respectively, compared to 0.93% and 9.50%, respectively, for the three months ended September 30, 2023. Our efficiency ratio and tax-equivalent efficiency ratio(1) were 53.94% and 51.90%, respectively, for the three months ended September 30, 2024, compared to 54.86% and 52.29%, respectively, for the three months ended September 30, 2023, and 54.90% and 52.71%, respectively, for the three months ended June 30, 2024.
Net interest income for the three months ended September 30, 2024 was $55.5 million, an increase of $2.2 million, or 4.1%, from the same period in 2023. The increase in net interest income was due to the increases in the average balance and the average yield of interest earning assets, partially offset by increases in the average rate paid on our interest bearing liabilities and average balance of our interest bearing liabilities. Linked quarter, net interest income increased $1.9 million, or 3.5%, compared to $53.6 million during the three months ended June 30, 2024, largely due to the increase in the average yield on our interest earning assets and the decrease in the average rate paid on our interest bearing liabilities, partially offset by the decrease in the average balance of interest earning assets.
Our net interest margin and tax-equivalent net interest margin(1) decreased to 2.82% and 2.95%, respectively, for the three months ended September 30, 2024, compared to 2.85% and 3.02%, respectively, for the same period in 2023. Linked quarter, net interest margin and tax-equivalent net interest margin(1) increased from 2.74% and 2.87%, respectively for the three months ended June 30, 2024.
Noninterest income was $8.2 million for the three months ended September 30, 2024, a decrease of $2.7 million, or 24.6%, compared to $10.8 million for the same period in 2023. The decrease was due to a net loss on sale of securities AFS and decreases in other noninterest income and deposit services income, partially offset by an increase in brokerage services income. On a linked quarter basis, noninterest income decreased $3.4 million, or 29.3%, compared to the three months ended June 30, 2024. The decrease was primarily due to an increase in net loss on sale of securities AFS and decreases in other noninterest income and bank owned life insurance income related to a $1.0 million death benefit realized in the second quarter of 2024. The decrease in other noninterest income for both periods was primarily due to an impairment charge of $868,000 on the sale of approximately $10 million of AFS municipal securities and the unwind of the related fair value swaps on October 1.
Noninterest expense increased $0.8 million, or 2.2%, to $36.3 million for the three months ended September 30, 2024, compared to $35.6 million for the same period in 2023, due to increases in salaries and employee benefits and software and data processing expense, partially offset by decreases in advertising, travel and entertainment expense, professional fees, net occupancy expense and amortization of intangibles. On a linked quarter basis, noninterest expense increased by $0.6 million, or 1.6%, compared to the three months ended June 30, 2024, due to increases in other noninterest expense, salaries and employee benefits expense and professional fees.
Income tax expense increased $1.3 million, or 40.7%, for the three months ended September 30, 2024, compared to the same period in 2023. On a linked quarter basis, income tax expense decreased $0.8 million, or 15.8%. Our effective tax rate (“ETR”) increased to 17.6% for the three months ended September 30, 2024, compared to 14.5% for the three months ended September 30, 2023, and increased slightly from 17.4% for the three months ended June 30, 2024. The higher ETR for the three months ended September 30, 2024 compared to the same period in 2023, was primarily due to a decrease in tax-exempt income as a percentage of pre-tax income.
Operating Results for the Nine Months Ended September 30, 2024
Net income was $66.7 million for the nine months ended September 30, 2024, compared to $69.4 million for the same period in 2023, a decrease of $2.7 million, or 3.8%. Earnings per diluted common share were $2.20 for the nine months ended September 30, 2024, compared to $2.24 for the same period in 2023, a decrease of 1.8%. The decrease in net income was primarily a result of the decrease in noninterest income and increases in noninterest expense and income tax expense, partially offset by the decrease in provision for credit losses and the increase in net interest income. Returns on average assets and average shareholders’ equity for the nine months ended September 30, 2024 were 1.06% and 11.19%, respectively, compared to 1.20% and 12.21%, respectively, for the nine months ended September 30, 2023. Our efficiency ratio and tax-equivalent efficiency ratio(1) were 55.56% and 53.35%, respectively, for the nine months ended September 30, 2024, compared to 53.99% and 51.44%, respectively, for the nine months ended September 30, 2023.
Net interest income was $162.4 million for the nine months ended September 30, 2024, compared to $160.5 million for the same period in 2023, an increase of $1.9 million, or 1.2%, due to increases in the average balance and the average yield of interest earning assets, partially offset by increases in the average rate paid on our interest bearing liabilities and average balance of our interest bearing liabilities.
Our net interest margin and tax-equivalent net interest margin(1) were 2.76% and 2.90%, respectively, for the nine months ended September 30, 2024, compared to 2.95% and 3.13%, respectively, for the same period in 2023.
Noninterest income was $29.5 million for the nine months ended September 30, 2024, a decrease of $3.9 million, or 11.6%, compared to $33.3 million for the same period in 2023. The decrease was due to decreases in the net gain on sale of equity securities, other noninterest income and deposit services income and a loss on sale of loans, partially offset by a decrease in net loss on sale of securities AFS and an increase in brokerage services income. The decrease in other noninterest income was primarily due to an impairment charge of $868,000 on the sale of approximately $10 million of AFS municipal securities and the unwind of the related fair value swaps on October 1.
Noninterest expense was $109.0 million for the nine months ended September 30, 2024, compared to $105.4 million for the same period in 2023, an increase of $3.6 million, or 3.4%. The increase was primarily due to increases in salaries and employee benefits and software and data processing expense, partially offset by decreases in professional fees, net occupancy expense, advertising, travel and entertainment expense, and amortization of intangibles.
Income tax expense increased $2.0 million, or 16.3%, for the nine months ended September 30, 2024, compared to the same period in 2023. Our ETR was approximately 17.6% and 15.0% for the nine months ended September 30, 2024 and 2023, respectively. The higher ETR for the nine months ended September 30, 2024, as compared to the same period in 2023, was primarily due to a decrease in tax-exempt income as a percentage of pre-tax income.
Balance Sheet Data
At September 30, 2024, Southside had $8.36 billion in total assets, compared to $8.28 billion at December 31, 2023 and $7.97 billion at September 30, 2023.
Loans at September 30, 2024 were $4.58 billion, an increase of $157.4 million, or 3.6%, compared to $4.42 billion at September 30, 2023. Linked quarter, loans decreased $11.3 million, or 0.2%, due to decreases of $50.2 million in commercial real estate loans, $14.9 million in municipal loans, $2.4 million in loans to individuals and $1.0 million in commercial loans. These decreases were partially offset by increases of $39.8 million in construction loans and $17.4 million in 1-4 family residential loans.
Securities at September 30, 2024 were $2.70 billion, an increase of $53.4 million, or 2.0%, compared to $2.64 billion at September 30, 2023. Linked quarter, securities decreased $15.1 million, or 0.6%, from $2.71 billion at June 30, 2024.
Deposits at September 30, 2024 were $6.44 billion, an increase of $86.1 million, or 1.4%, compared to $6.35 billion at September 30, 2023. Linked quarter, deposits decreased $60.2 million, or 0.9%, from $6.50 billion at June 30, 2024.
At September 30, 2024, we had 179,214 total deposit accounts with an average balance of $32,000. Our estimated uninsured deposits were 35.9% as of September 30, 2024. When excluding affiliate deposits (Southside-owned deposits) and public fund deposits (all collateralized), our total estimated deposits without insurance or collateral was 19.2% as of September 30, 2024. Our noninterest bearing deposits represent approximately 21.4% of total deposits. Linked quarter, our cost of interest bearing deposits remained consistent at 3.01%. Linked quarter, our cost of total deposits decreased one basis point from 2.39% in the prior quarter to 2.38%.
Our cost of interest bearing deposits increased 83 basis points, from 2.16% for the nine months ended September 30, 2023, to 2.99% for the nine months ended September 30, 2024. Our cost of total deposits increased 75 basis points, from 1.62% for the nine months ended September 30, 2023, to 2.37% for the nine months ended September 30, 2024.
Capital Resources and Liquidity
Our capital ratios and contingent liquidity sources remain solid. During the third quarter ended September 30, 2024, we did not purchase any common stock pursuant to our Stock Repurchase Plan. Under this plan, repurchases of our outstanding common stock may be carried out in open market purchases, privately negotiated transactions or pursuant to any trading plan that might be adopted in accordance with Rule 10b5-1 of The Securities Exchange Act of 1934, as amended. The Company has no obligation to repurchase any shares under the Stock Repurchase Plan and may modify, suspend or discontinue the plan at any time. We have not purchased any common stock pursuant to the Stock Repurchase Plan subsequent to September 30, 2024.
As of September 30, 2024, our total available contingent liquidity, net of current outstanding borrowings, was $2.23 billion, consisting of FHLB advances, Federal Reserve Discount Window and correspondent bank lines of credit.
Asset Quality
Nonperforming assets at September 30, 2024 were $7.7 million, or 0.09% of total assets, an increase of $3.3 million, or 74.8%, compared to $4.4 million, or 0.05% of total assets, at September 30, 2023. Linked quarter, nonperforming assets increased $0.7 million, or 10.7%, from $6.9 million at June 30, 2024 due primarily to an increase of $1.1 million, or 18.7%, in nonaccrual loans, partially offset by decreases of $0.1 million in restructured loans and $0.3 million in other real estate owned.
The allowance for loan losses totaled $44.3 million, or 0.97% of total loans, at September 30, 2024, compared to $42.4 million, or 0.92% of total loans, at June 30, 2024. The increase in the allowance as a percentage of total assets was primarily due to the increased economic concerns forecasted in the CECL model specific to office and multifamily markets in metro areas. The allowance for loan losses was $41.8 million, or 0.94% of total loans, at September 30, 2023.
For the three months ended September 30, 2024, we recorded a provision for credit losses for loans of $2.3 million, compared to a provision of $6.3 million for the three months ended September 30, 2023, and a reversal of provision of $0.9 million for the three months ended June 30, 2024. Net charge-offs were $0.4 million for the three months ended September 30, 2024, compared to net charge-offs of $0.9 million and $0.3 million for the three months ended September 30, 2023 and June 30, 2024, respectively. Net charge-offs were $1.0 million for the nine months ended September 30, 2024, compared to net charge-offs of $1.5 million for the nine months ended September 30, 2023.
We recorded a provision for credit losses on off-balance-sheet credit exposures of $0.1 million for the three months ended September 30, 2024, compared to $0.6 million and $0.4 million for the three months ended September 30, 2023 and June 30, 2024, respectively. We recorded a reversal of provision for credit losses for off-balance-sheet credit exposures of $0.6 million for the nine months ended September 30, 2024, compared to a provision for credit losses on off-balance-sheet credit exposures of $0.2 million for the nine months ended September 30, 2023. The balance of the allowance for off-balance-sheet credit exposures was $3.3 million and $3.9 million at September 30, 2024 and 2023, respectively, and is included in other liabilities.
Dividend
Southside Bancshares, Inc. declared a third quarter cash dividend of $0.36 per share on August 8, 2024, which was paid on September 5, 2024, to all shareholders of record as of August 22, 2024.
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(1) Refer to “Non-GAAP Financial Measures” below and to “Non-GAAP Reconciliation” at the end of the financial statement tables in this Earnings Release for more information and for a reconciliation of this non-GAAP financial measure to the nearest GAAP financial measure.
Conference Call
Southside’s management team will host a conference call to discuss its third quarter ended September 30, 2024 financial results on Thursday, October 24, 2024 at 11:00 a.m. CDT. The conference call can be accessed by webcast, for listen-only mode, on the company website, https://investors.southside.com, under Events.
Those interested in participating in the question and answer session, or others who prefer to call-in, can register at https://register.vevent.com/register/BIe280e5ecbf444a68a5836f1e27caa8a9 to receive the dial-in number and unique code to access the conference call seamlessly. While not required, it is recommended that those wishing to participate, register 10 minutes prior to the conference call to ensure a more efficient registration process.
For those unable to attend the live event, a webcast recording will be available on the company website, https://investors.southside.com, for at least 30 days, beginning approximately two hours following the conference call.
Non-GAAP Financial Measures
Our accounting and reporting policies conform to generally accepted accounting principles (“GAAP”) in the United States and prevailing practices in the banking industry. However, certain non-GAAP measures are used by management to supplement the evaluation of our performance. These include the following fully taxable-equivalent measures (“FTE”): (i) Net interest income (FTE), (ii) net interest margin (FTE), (iii) net interest spread (FTE), and (iv) efficiency ratio (FTE), which include the effects of taxable-equivalent adjustments using a federal income tax rate of 21% to increase tax-exempt interest income to a tax-equivalent basis. Interest income earned on certain assets is completely or partially exempt from federal income tax. As such, these tax-exempt instruments typically yield lower returns than taxable investments.
Net interest income (FTE), net interest margin (FTE) and net interest spread (FTE). Net interest income (FTE) is a non-GAAP measure that adjusts for the tax-favored status of net interest income from certain loans and investments and is not permitted under GAAP in the consolidated statements of income. We believe this measure to be the preferred industry measurement of net interest income and that it enhances comparability of net interest income arising from taxable and tax-exempt sources. The most directly comparable financial measure calculated in accordance with GAAP is our net interest income. Net interest margin (FTE) is the ratio of net interest income (FTE) to average earning assets. The most directly comparable financial measure calculated in accordance with GAAP is our net interest margin. Net interest spread (FTE) is the difference in the average yield on average earning assets on a tax-equivalent basis and the average rate paid on average interest bearing liabilities. The most directly comparable financial measure calculated in accordance with GAAP is our net interest spread.
Efficiency ratio (FTE). The efficiency ratio (FTE) is a non-GAAP measure that provides a measure of productivity in the banking industry. This ratio is calculated to measure the cost of generating one dollar of revenue. The ratio is designed to reflect the percentage of one dollar which must be expended to generate that dollar of revenue. We calculate this ratio by dividing noninterest expense, excluding amortization expense on intangibles and certain nonrecurring expense by the sum of net interest income (FTE) and noninterest income, excluding net gain (loss) on sale of securities available for sale and certain nonrecurring impairments. The most directly comparable financial measure calculated in accordance with GAAP is our efficiency ratio.
These non-GAAP financial measures should not be considered alternatives to GAAP-basis financial statements and other bank holding companies may define or calculate these non-GAAP measures or similar measures differently. Whenever we present a non-GAAP financial measure in an SEC filing, we are also required to present the most directly comparable financial measure calculated and presented in accordance with GAAP and reconcile the differences between the non-GAAP financial measure and such comparable GAAP measure.
Management believes adjusting net interest income, net interest margin and net interest spread to a fully taxable-equivalent basis is a standard practice in the banking industry as these measures provide useful information to make peer comparisons. Tax-equivalent adjustments are reflected in the respective earning asset categories as listed in the “Average Balances with Average Yields and Rates” tables.
A reconciliation of our non-GAAP financial measures to the comparable GAAP financial measures is included at the end of the financial statement tables.
About Southside Bancshares, Inc.
Southside Bancshares, Inc. is a bank holding company with approximately $8.36 billion in assets as of September 30, 2024, that owns 100% of Southside Bank. Southside Bank currently has 54 branches in Texas and operates a network of 73 ATMs/ITMs.
To learn more about Southside Bancshares, Inc., please visit our investor relations website at https://investors.southside.com. Our investor relations site provides a detailed overview of our activities, financial information and historical stock price data. To receive email notification of company news, events and stock activity, please register on the website under Resources and Investor Email Alerts. Questions or comments may be directed to Lindsey Bailes at (903) 630-7965, or lindsey.bailes@southside.com.
Forward-Looking Statements
Certain statements of other than historical fact that are contained in this press release and in other written materials, documents and oral statements issued by or on behalf of the Company may be considered to be “forward-looking statements” within the meaning of and subject to the safe harbor protections of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are not guarantees of future performance, nor should they be relied upon as representing management’s views as of any subsequent date. These statements may include words such as “expect,” “estimate,” “project,” “anticipate,” “appear,” “believe,” “could,” “should,” “may,” “might,” “will,” “would,” “seek,” “intend,” “probability,” “risk,” “goal,” “target,” “objective,” “plans,” “potential,” and similar expressions. Forward-looking statements are statements with respect to the Company’s beliefs, plans, expectations, objectives, goals, anticipations, assumptions, estimates, intentions and future performance and are subject to significant known and unknown risks and uncertainties, which could cause the Company’s actual results to differ materially from the results discussed in the forward-looking statements. For example, benefits of the Share Repurchase Plan, trends in asset quality, capital, liquidity, the Company’s ability to sell nonperforming assets, expense reductions, planned operational efficiencies and earnings from growth and certain market risk disclosures, including the impact of interest rates and our expectations regarding rate increases, tax reform, inflation, the impacts related to or resulting from other economic factors are based upon information presently available to management and are dependent on choices about key model characteristics and assumptions and are subject to various limitations. By their nature, certain of the market risk disclosures are only estimates and could be materially different from what actually occurs in the future. Accordingly, our results could materially differ from those that have been estimated. The most significant factor that could cause future results to differ materially from those anticipated by our forward-looking statements include the ongoing impact of higher inflation levels, interest rate fluctuations and general economic and recessionary concerns, all of which could impact economic growth and could cause a reduction in financial transactions and business activities, including decreased deposits and reduced loan originations, our ability to manage liquidity in a rapidly changing and unpredictable market, labor shortages and changes in interest rates by the Federal Reserve.
Additional information concerning the Company and its business, including additional factors that could materially affect the Company’s financial results, is included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, under “Part I – Item 1. Forward Looking Information” and “Part I – Item 1A. Risk Factors” and in the Company’s other filings with the Securities and Exchange Commission. The Company disclaims any obligation to update any factors or to announce publicly the result of revisions to any of the forward-looking statements included herein to reflect future events or developments.
Southside Bancshares, Inc.
Consolidated Financial Summary (Unaudited)
(Dollars in thousands)As of 2024 2023 Sep 30, Jun 30, Mar 31, Dec 31, Sep 30, ASSETS Cash and due from banks $ 130,147 $ 114,283 $ 96,744 $ 122,021 $ 105,601 Interest earning deposits 333,825 272,469 307,257 391,719 106,094 Federal funds sold 22,325 65,244 65,372 46,770 114,128 Securities available for sale, at estimated fair value 1,408,437 1,405,944 1,405,221 1,296,294 1,335,560 Securities held to maturity, at net carrying value 1,288,403 1,305,975 1,306,898 1,307,053 1,307,886 Total securities 2,696,840 2,711,919 2,712,119 2,603,347 2,643,446 Federal Home Loan Bank stock, at cost 40,291 32,991 27,958 11,936 12,778 Loans held for sale 768 1,352 756 10,894 1,382 Loans 4,578,048 4,589,365 4,577,368 4,524,510 4,420,633 Less: Allowance for loan losses (44,276 ) (42,407 ) (43,557 ) (42,674 ) (41,760 ) Net loans 4,533,772 4,546,958 4,533,811 4,481,836 4,378,873 Premises & equipment, net 138,811 138,489 139,491 138,950 139,473 Goodwill 201,116 201,116 201,116 201,116 201,116 Other intangible assets, net 2,003 2,281 2,588 2,925 3,295 Bank owned life insurance 137,489 136,903 136,604 136,330 135,737 Other assets 124,876 133,697 130,047 137,070 130,545 Total assets $ 8,362,263 $ 8,357,702 $ 8,353,863 $ 8,284,914 $ 7,972,468 LIABILITIES AND SHAREHOLDERS’ EQUITY Noninterest bearing deposits $ 1,377,022 $ 1,366,924 $ 1,358,827 $ 1,390,407 $ 1,431,285 Interest bearing deposits 5,058,680 5,129,008 5,186,933 5,159,274 4,918,286 Total deposits 6,435,702 6,495,932 6,545,760 6,549,681 6,349,571 Other borrowings and Federal Home Loan Bank borrowings 865,856 763,700 770,151 722,468 608,038 Subordinated notes, net of unamortized debt
issuance costs92,006 91,970 93,913 93,877 93,838 Trust preferred subordinated debentures, net of unamortized debt issuance costs 60,273 60,272 60,271 60,270 60,269 Other liabilities 103,172 144,858 95,846 85,330 132,157 Total liabilities 7,557,009 7,556,732 7,565,941 7,511,626 7,243,873 Shareholders’ equity 805,254 800,970 787,922 773,288 728,595 Total liabilities and shareholders’ equity $ 8,362,263 $ 8,357,702 $ 8,353,863 $ 8,284,914 $ 7,972,468 Southside Bancshares, Inc.
Consolidated Financial Highlights (Unaudited)
(Dollars and shares in thousands, except per share data)Three Months Ended 2024 2023 Sep 30, Jun 30, Mar 31, Dec 31, Sep 30, Income Statement: Total interest income $ 105,703 $ 104,186 $ 102,758 $ 98,939 $ 93,078 Total interest expense 50,239 50,578 49,410 44,454 39,805 Net interest income 55,464 53,608 53,348 54,485 53,273 Provision for (reversal of) credit losses 2,389 (485 ) 58 2,281 6,987 Net interest income after provision for (reversal of) credit losses 53,075 54,093 53,290 52,204 46,286 Noninterest income Deposit services 6,199 6,157 5,985 6,305 6,479 Net gain (loss) on sale of securities available for sale (1,929 ) (563 ) (18 ) (10,386 ) 11 Gain (loss) on sale of loans 115 220 (436 ) 178 96 Trust fees 1,628 1,456 1,336 1,431 1,522 Bank owned life insurance 857 1,767 784 2,602 790 Brokerage services 1,068 1,081 1,014 944 760 Other 233 1,439 1,059 1,427 1,178 Total noninterest income 8,171 11,557 9,724 2,501 10,836 Noninterest expense Salaries and employee benefits 22,233 21,984 23,113 21,152 21,241 Net occupancy 3,613 3,750 3,362 3,474 3,796 Advertising, travel & entertainment 734 795 950 1,127 1,062 ATM expense 412 368 325 318 358 Professional fees 1,206 1,075 1,154 1,315 1,472 Software and data processing 2,951 2,860 2,856 2,644 2,432 Communications 423 410 449 435 359 FDIC insurance 939 977 943 892 902 Amortization of intangibles 278 307 337 370 407 Other 3,543 3,239 3,392 3,456 3,524 Total noninterest expense 36,332 35,765 36,881 35,183 35,553 Income before income tax expense 24,914 29,885 26,133 19,522 21,569 Income tax expense 4,390 5,212 4,622 2,206 3,120 Net income $ 20,524 $ 24,673 $ 21,511 $ 17,316 $ 18,449 Common Share Data: Weighted-average basic shares outstanding 30,286 30,280 30,262 30,235 30,502 Weighted-average diluted shares outstanding 30,370 30,312 30,305 30,276 30,543 Common shares outstanding end of period 30,308 30,261 30,284 30,249 30,338 Earnings per common share Basic $ 0.68 $ 0.81 $ 0.71 $ 0.57 $ 0.60 Diluted 0.68 0.81 0.71 0.57 0.60 Book value per common share 26.57 26.47 26.02 25.56 24.02 Tangible book value per common share 19.87 19.75 19.29 18.82 17.28 Cash dividends paid per common share 0.36 0.36 0.36 0.37 0.35 Selected Performance Ratios: Return on average assets 0.98 % 1.19 % 1.03 % 0.85 % 0.93 % Return on average shareholders’ equity 10.13 12.46 11.02 9.31 9.50 Return on average tangible common equity (1) 13.69 16.90 15.07 13.10 13.17 Average yield on earning assets (FTE) (1) 5.51 5.45 5.38 5.30 5.15 Average rate on interest bearing liabilities 3.28 3.32 3.22 3.04 2.84 Net interest margin (FTE) (1) 2.95 2.87 2.86 2.99 3.02 Net interest spread (FTE) (1) 2.23 2.13 2.16 2.26 2.31 Average earning assets to average interest bearing liabilities 128.51 128.62 127.71 131.65 133.24 Noninterest expense to average total assets 1.73 1.72 1.77 1.73 1.79 Efficiency ratio (FTE) (1) 51.90 52.71 55.54 50.86 52.29 (1) Refer to “Non-GAAP Reconciliation” at the end of the financial statement tables in this Earnings Release for a reconciliation of this non-GAAP financial measure to the nearest GAAP financial measure.
Southside Bancshares, Inc.
Consolidated Financial Highlights (Unaudited)
(Dollars in thousands)Three Months Ended 2024 2023 Sep 30, Jun 30, Mar 31, Dec 31, Sep 30, Nonperforming Assets: $ 7,656 $ 6,918 $ 7,979 $ 4,001 $ 4,381 Nonaccrual loans 7,254 6,110 7,709 3,889 4,316 Accruing loans past due more than 90 days — — — — — Restructured loans — 145 151 13 15 Other real estate owned 388 648 119 99 50 Repossessed assets 14 15 — — — Asset Quality Ratios: Ratio of nonaccruing loans to: Total loans 0.16 % 0.13 % 0.17 % 0.09 % 0.10 % Ratio of nonperforming assets to: Total assets 0.09 0.08 0.10 0.05 0.05 Total loans 0.17 0.15 0.17 0.09 0.10 Total loans and OREO 0.17 0.15 0.17 0.09 0.10 Ratio of allowance for loan losses to: Nonaccruing loans 610.37 694.06 565.01 1,097.30 967.56 Nonperforming assets 578.32 613.00 545.90 1,066.58 953.21 Total loans 0.97 0.92 0.95 0.94 0.94 Net charge-offs (recoveries) to average loans outstanding 0.04 0.02 0.03 0.11 0.08 Capital Ratios: Shareholders’ equity to total assets 9.63 9.58 9.43 9.33 9.14 Common equity tier 1 capital 13.07 12.72 12.43 12.28 12.27 Tier 1 risk-based capital 14.12 13.76 13.47 13.32 13.31 Total risk-based capital 16.59 16.16 15.92 15.73 15.71 Tier 1 leverage capital 9.61 9.40 9.22 9.39 9.61 Period end tangible equity to period end tangible assets (1) 7.38 7.33 7.17 7.04 6.75 Average shareholders’ equity to average total assets 9.67 9.52 9.35 9.13 9.76 (1) Refer to the “Non-GAAP Reconciliation” at the end of the financial statement tables in this Earnings Release for a reconciliation of this non-GAAP financial measure to the nearest GAAP financial measure.
Southside Bancshares, Inc.
Consolidated Financial Highlights (Unaudited)
(Dollars in thousands)Three Months Ended 2024 2023 Loan Portfolio Composition Sep 30, Jun 30, Mar 31, Dec 31, Sep 30, Real Estate Loans: Construction $ 585,817 $ 546,040 $ 599,464 $ 789,744 $ 720,515 1-4 Family Residential 755,406 738,037 720,508 696,738 689,492 Commercial 2,422,612 2,472,771 2,413,345 2,168,451 2,117,306 Commercial Loans 358,854 359,807 358,053 366,893 385,816 Municipal Loans 402,041 416,986 427,225 441,168 441,512 Loans to Individuals 53,318 55,724 58,773 61,516 65,992 Total Loans $ 4,578,048 $ 4,589,365 $ 4,577,368 $ 4,524,510 $ 4,420,633 Summary of Changes in Allowances: Allowance for Loan Losses Balance at beginning of period $ 42,407 $ 43,557 $ 42,674 $ 41,760 $ 36,303 Loans charged-off (773 ) (721 ) (634 ) (1,572 ) (1,262 ) Recoveries of loans charged-off 365 444 347 284 378 Net loans (charged-off) recovered (408 ) (277 ) (287 ) (1,288 ) (884 ) Provision for (reversal of) loan losses 2,277 (873 ) 1,170 2,202 6,341 Balance at end of period $ 44,276 $ 42,407 $ 43,557 $ 42,674 $ 41,760 Allowance for Off-Balance-Sheet Credit Exposures Balance at beginning of period $ 3,208 $ 2,820 $ 3,932 $ 3,853 $ 3,207 Provision for (reversal of) off-balance-sheet credit exposures 112 388 (1,112 ) 79 646 Balance at end of period $ 3,320 $ 3,208 $ 2,820 $ 3,932 $ 3,853 Total Allowance for Credit Losses $ 47,596 $ 45,615 $ 46,377 $ 46,606 $ 45,613 Southside Bancshares, Inc.
Consolidated Financial Highlights (Unaudited)
(Dollars in thousands)Nine Months Ended September 30, 2024 2023 Income Statement: Total interest income $ 312,647 $ 260,802 Total interest expense 150,227 100,260 Net interest income 162,420 160,542 Provision for (reversal of) credit losses 1,962 6,873 Net interest income after provision for (reversal of) credit losses 160,458 153,669 Noninterest income Deposit services 18,341 19,192 Net gain (loss) on sale of securities available for sale (2,510 ) (5,590 ) Net gain on sale of equity securities — 5,058 Gain (loss) on sale of loans (101 ) 385 Trust fees 4,420 4,479 Bank owned life insurance 3,408 3,221 Brokerage services 3,163 2,361 Other 2,731 4,227 Total noninterest income 29,452 33,333 Noninterest expense Salaries and employee benefits 67,330 64,473 Net occupancy 10,725 11,220 Advertising, travel & entertainment 2,479 2,966 ATM expense 1,105 1,033 Professional fees 3,435 4,036 Software and data processing 8,667 6,751 Communications 1,282 1,034 FDIC insurance 2,859 2,666 Amortization of intangibles 922 1,327 Other 10,174 9,889 Total noninterest expense 108,978 105,395 Income before income tax expense 80,932 81,607 Income tax expense 14,224 12,231 Net income $ 66,708 $ 69,376 Common Share Data: Weighted-average basic shares outstanding 30,276 30,862 Weighted-average diluted shares outstanding 30,332 30,916 Common shares outstanding end of period 30,308 30,338 Earnings per common share Basic $ 2.20 $ 2.25 Diluted 2.20 2.24 Book value per common share 26.57 24.02 Tangible book value per common share 19.87 17.28 Cash dividends paid per common share 1.08 1.05 Selected Performance Ratios: Return on average assets 1.06 % 1.20 % Return on average shareholders’ equity 11.19 12.21 Return on average tangible common equity (1) 15.20 16.98 Average yield on earning assets (FTE) (1) 5.45 4.97 Average rate on interest bearing liabilities 3.27 2.49 Net interest margin (FTE) (1) 2.90 3.13 Net interest spread (FTE) (1) 2.18 2.48 Average earning assets to average interest bearing liabilities 128.28 134.94 Noninterest expense to average total assets 1.74 1.84 Efficiency ratio (FTE) (1) 53.35 51.44 (1) Refer to the “Non-GAAP Reconciliation” at the end of the financial statement tables in this Earnings Release for a reconciliation of this non-GAAP financial measure to the nearest GAAP financial measure.
Southside Bancshares, Inc.
Consolidated Financial Highlights (Unaudited)
(Dollars in thousands)Nine Months Ended September 30, 2024 2023 Nonperforming Assets: $ 7,656 $ 4,381 Nonaccrual loans 7,254 4,316 Accruing loans past due more than 90 days — — Restructured loans — 15 Other real estate owned 388 50 Repossessed assets 14 — Asset Quality Ratios: Ratio of nonaccruing loans to: Total loans 0.16 % 0.10 % Ratio of nonperforming assets to: Total assets 0.09 0.05 Total loans 0.17 0.10 Total loans and OREO 0.17 0.10 Ratio of allowance for loan losses to: Nonaccruing loans 610.37 967.56 Nonperforming assets 578.32 953.21 Total loans 0.97 0.94 Net charge-offs (recoveries) to average loans outstanding 0.03 0.05 Capital Ratios: Shareholders’ equity to total assets 9.63 9.14 Common equity tier 1 capital 13.07 12.27 Tier 1 risk-based capital 14.12 13.31 Total risk-based capital 16.59 15.71 Tier 1 leverage capital 9.61 9.61 Period end tangible equity to period end tangible assets (1) 7.38 6.75 Average shareholders’ equity to average total assets 9.51 9.81 (1) Refer to the “Non-GAAP Reconciliation” at the end of the financial statement tables in this Earnings Release for a reconciliation of this non-GAAP financial measure to the nearest GAAP financial measure.
Southside Bancshares, Inc.
Consolidated Financial Highlights (Unaudited)
(Dollars in thousands)Nine Months Ended September 30, Loan Portfolio Composition 2024 2023 Real Estate Loans: Construction $ 585,817 $ 720,515 1-4 Family Residential 755,406 689,492 Commercial 2,422,612 2,117,306 Commercial Loans 358,854 385,816 Municipal Loans 402,041 441,512 Loans to Individuals 53,318 65,992 Total Loans $ 4,578,048 $ 4,420,633 Summary of Changes in Allowances: Allowance for Loan Losses Balance at beginning of period $ 42,674 $ 36,515 Loans charged-off (2,128 ) (2,632 ) Recoveries of loans charged-off 1,156 1,170 Net loans (charged-off) recovered (972 ) (1,462 ) Provision for (reversal of) loan losses 2,574 6,707 Balance at end of period $ 44,276 $ 41,760 Allowance for Off-Balance-Sheet Credit Exposures Balance at beginning of period $ 3,932 $ 3,687 Provision for (reversal of) off-balance-sheet credit exposures (612 ) 166 Balance at end of period $ 3,320 $ 3,853 Total Allowance for Credit Losses $ 47,596 $ 45,613 The tables that follow show average earning assets and interest bearing liabilities together with the average yield on the earning assets and the average rate of the interest bearing liabilities for the periods presented. The interest and related yields presented are on a fully taxable-equivalent basis and are therefore non-GAAP measures. See “Non-GAAP Financial Measures” and “Non-GAAP Reconciliation” for more information.
Southside Bancshares, Inc.
Average Balances and Average Yields and Rates (Annualized) (Unaudited)
(Dollars in thousands)Three Months Ended September 30, 2024 June 30, 2024 Average Balance Interest Average Yield/Rate Average Balance Interest Average Yield/Rate ASSETS Loans (1) $ 4,613,028 $ 72,493 6.25 % $ 4,595,980 $ 70,293 6.15 % Loans held for sale 871 11 5.02 % 1,489 24 6.48 % Securities: Taxable investment securities (2) 791,914 7,150 3.59 % 783,856 7,009 3.60 % Tax-exempt investment securities (2) 1,174,445 11,825 4.01 % 1,254,097 12,761 4.09 % Mortgage-backed and related securities (2) 886,325 11,976 5.38 % 830,504 11,084 5.37 % Total securities 2,852,684 30,951 4.32 % 2,868,457 30,854 4.33 % Federal Home Loan Bank stock, at cost, and equity investments 41,159 582 5.63 % 40,467 573 5.69 % Interest earning deposits 281,313 3,798 5.37 % 300,047 4,105 5.50 % Federal funds sold 33,971 488 5.71 % 75,479 1,021 5.44 % Total earning assets 7,823,026 108,323 5.51 % 7,881,919 106,870 5.45 % Cash and due from banks 100,578 110,102 Accrued interest and other assets 455,091 424,323 Less: Allowance for loan losses (42,581 ) (43,738 ) Total assets $ 8,336,114 $ 8,372,606 LIABILITIES AND SHAREHOLDERS’ EQUITY Savings accounts $ 598,116 1,490 0.99 % $ 604,753 1,454 0.97 % Certificates of deposit 1,087,613 12,647 4.63 % 1,020,099 11,630 4.59 % Interest bearing demand accounts 3,409,911 24,395 2.85 % 3,513,068 25,382 2.91 % Total interest bearing deposits 5,095,640 38,532 3.01 % 5,137,920 38,466 3.01 % Federal Home Loan Bank borrowings 618,708 6,488 4.17 % 606,851 6,455 4.28 % Subordinated notes, net of unamortized debt issuance costs 91,988 937 4.05 % 92,017 936 4.09 % Trust preferred subordinated debentures, net of unamortized debt issuance costs 60,273 1,180 7.79 % 60,271 1,171 7.81 % Repurchase agreements 83,297 899 4.29 % 88,007 955 4.36 % Other borrowings 137,482 2,203 6.37 % 143,169 2,595 7.29 % Total interest bearing liabilities 6,087,388 50,239 3.28 % 6,128,235 50,578 3.32 % Noninterest bearing deposits 1,344,165 1,346,274 Accrued expenses and other liabilities 98,331 101,399 Total liabilities 7,529,884 7,575,908 Shareholders’ equity 806,230 796,698 Total liabilities and shareholders’ equity $ 8,336,114 $ 8,372,606 Net interest income (FTE) $ 58,084 $ 56,292 Net interest margin (FTE) 2.95 % 2.87 % Net interest spread (FTE) 2.23 % 2.13 % (1) Interest on loans includes net fees on loans that are not material in amount.
(2) For the purpose of calculating the average yield, the average balance of securities is presented at historical cost.Note: As of September 30, 2024 and June 30, 2024, loans totaling $7.3 million and $6.1 million, respectively, were on nonaccrual status. Our policy is to reverse previously accrued but unpaid interest on nonaccrual loans; thereafter, interest income is recorded to the extent received when appropriate.
Southside Bancshares, Inc.
Average Balances and Average Yields and Rates (Annualized) (Unaudited)
(Dollars in thousands)Three Months Ended March 31, 2024 December 31, 2023 Average Balance Interest Average Yield/Rate Average Balance Interest Average Yield/Rate ASSETS Loans (1) $ 4,559,602 $ 68,849 6.07 % $ 4,473,618 $ 67,886 6.02 % Loans held for sale 8,834 18 0.82 % 1,858 27 5.77 % Securities: Taxable investment securities (2) 780,423 6,967 3.59 % 852,023 7,970 3.71 % Tax-exempt investment securities (2) 1,285,922 13,168 4.12 % 1,456,187 15,688 4.27 % Mortgage-backed and related securities (2) 764,713 10,119 5.32 % 581,548 6,865 4.68 % Total securities 2,831,058 30,254 4.30 % 2,889,758 30,523 4.19 % Federal Home Loan Bank stock, at cost, and equity investments 40,063 333 3.34 % 24,674 296 4.76 % Interest earning deposits 380,181 5,202 5.50 % 150,763 2,054 5.41 % Federal funds sold 62,599 838 5.38 % 93,149 1,286 5.48 % Total earning assets 7,882,337 105,494 5.38 % 7,633,820 102,072 5.30 % Cash and due from banks 114,379 110,380 Accrued interest and other assets 441,783 374,120 Less: Allowance for loan losses (42,973 ) (41,822 ) Total assets $ 8,395,526 $ 8,076,498 LIABILITIES AND SHAREHOLDERS’ EQUITY Savings accounts $ 604,529 1,424 0.95 % $ 610,453 1,432 0.93 % Certificates of deposit 941,947 10,341 4.42 % 910,759 9,691 4.22 % Interest bearing demand accounts 3,634,936 26,433 2.92 % 3,469,120 24,498 2.80 % Total interest bearing deposits 5,181,412 38,198 2.97 % 4,990,332 35,621 2.83 % Federal Home Loan Bank borrowings 607,033 5,950 3.94 % 262,709 1,430 2.16 % Subordinated notes, net of unamortized debt issuance costs 93,895 956 4.10 % 93,859 965 4.08 % Trust preferred subordinated debentures, net of unamortized debt issuance costs 60,270 1,175 7.84 % 60,269 1,195 7.87 % Repurchase agreements 92,177 967 4.22 % 96,622 1,008 4.14 % Other borrowings 137,287 2,164 6.34 % 294,683 4,235 5.70 % Total interest bearing liabilities 6,172,074 49,410 3.22 % 5,798,474 44,454 3.04 % Noninterest bearing deposits 1,338,384 1,424,961 Accrued expenses and other liabilities 100,014 115,388 Total liabilities 7,610,472 7,338,823 Shareholders’ equity 785,054 737,675 Total liabilities and shareholders’ equity $ 8,395,526 $ 8,076,498 Net interest income (FTE) $ 56,084 $ 57,618 Net interest margin (FTE) 2.86 % 2.99 % Net interest spread (FTE) 2.16 % 2.26 % (1) Interest on loans includes net fees on loans that are not material in amount.
(2) For the purpose of calculating the average yield, the average balance of securities is presented at historical cost.Note: As of March 31, 2024 and December 31, 2023, loans totaling $7.7 million and $3.9 million, respectively, were on nonaccrual status. Our policy is to reverse previously accrued but unpaid interest on nonaccrual loans; thereafter, interest income is recorded to the extent received when appropriate.
Southside Bancshares, Inc.
Average Balances and Average Yields and Rates (Annualized) (Unaudited)
(Dollars in thousands)Three Months Ended September 30, 2023 Average Balance Interest Average Yield/Rate ASSETS Loans (1) $ 4,396,184 $ 64,758 5.84 % Loans held for sale 1,537 26 6.71 % Securities: Taxable investment securities (2) 912,789 8,731 3.79 % Tax-exempt investment securities (2) 1,510,044 16,232 4.26 % Mortgage-backed and related securities (2) 442,908 4,426 3.96 % Total securities 2,865,741 29,389 4.07 % Federal Home Loan Bank stock, at cost, and equity investments 22,363 265 4.70 % Interest earning deposits 37,891 535 5.60 % Federal funds sold 94,441 1,253 5.26 % Total earning assets 7,418,157 96,226 5.15 % Cash and due from banks 106,348 Accrued interest and other assets 400,850 Less: Allowance for loan losses (36,493 ) Total assets $ 7,888,862 LIABILITIES AND SHAREHOLDERS’ EQUITY Savings accounts $ 622,246 1,458 0.93 % Certificates of deposit 949,894 9,443 3.94 % Interest bearing demand accounts 3,189,048 20,050 2.49 % Total interest bearing deposits 4,761,188 30,951 2.58 % Federal Home Loan Bank borrowings 230,184 1,174 2.02 % Subordinated notes, net of unamortized debt issuance costs 93,817 962 4.07 % Trust preferred subordinated debentures, net of unamortized debt issuance costs 60,268 1,178 7.75 % Repurchase agreements 104,070 1,048 4.00 % Other borrowings 317,913 4,492 5.61 % Total interest bearing liabilities 5,567,440 39,805 2.84 % Noninterest bearing deposits 1,441,738 Accrued expenses and other liabilities 109,490 Total liabilities 7,118,668 Shareholders’ equity 770,194 Total liabilities and shareholders’ equity $ 7,888,862 Net interest income (FTE) $ 56,421 Net interest margin (FTE) 3.02 % Net interest spread (FTE) 2.31 % (1) Interest on loans includes net fees on loans that are not material in amount.
(2) For the purpose of calculating the average yield, the average balance of securities is presented at historical cost.Note: As of September 30, 2023, loans totaling $4.3 million were on nonaccrual status. Our policy is to reverse previously accrued but unpaid interest on nonaccrual loans; thereafter, interest income is recorded to the extent received when appropriate.
Southside Bancshares, Inc.
Average Balances and Average Yields and Rates (Annualized) (Unaudited)
(Dollars in thousands)Nine Months Ended September 30, 2024 September 30, 2023 Average Balance Interest Average Yield/Rate Average Balance Interest Average Yield/Rate ASSETS Loans (1) $ 4,589,621 $ 211,635 6.16 % $ 4,241,676 $ 179,545 5.66 % Loans held for sale 3,721 53 1.90 % 1,620 69 5.69 % Securities: Taxable investment securities (2) 785,422 21,126 3.59 % 843,846 23,216 3.68 % Tax-exempt investment securities (2) 1,237,884 37,754 4.07 % 1,587,656 48,880 4.12 % Mortgage-backed and related securities (2) 827,396 33,179 5.36 % 433,335 12,585 3.88 % Total securities 2,850,702 92,059 4.31 % 2,864,837 84,681 3.95 % Federal Home Loan Bank stock, at cost, and equity investments 40,565 1,488 4.90 % 25,071 889 4.74 % Interest earning deposits 320,371 13,105 5.46 % 60,623 2,310 5.09 % Federal funds sold 57,265 2,347 5.47 % 75,499 2,838 5.03 % Total earning assets 7,862,245 320,687 5.45 % 7,269,326 270,332 4.97 % Cash and due from banks 108,325 105,885 Accrued interest and other assets 440,340 406,160 Less: Allowance for loan losses (43,096 ) (36,564 ) Total assets $ 8,367,814 $ 7,744,807 LIABILITIES AND SHAREHOLDERS’ EQUITY Savings accounts $ 602,450 4,368 0.97 % $ 645,415 4,201 0.87 % Certificates of deposit 1,016,812 34,618 4.55 % 845,851 21,215 3.35 % Interest bearing demand accounts 3,518,906 76,210 2.89 % 3,005,449 47,120 2.10 % Total interest bearing deposits 5,138,168 115,196 2.99 % 4,496,715 72,536 2.16 % Federal Home Loan Bank borrowings 610,893 18,893 4.13 % 281,260 5,347 2.54 % Subordinated notes, net of unamortized debt issuance costs 92,631 2,829 4.08 % 96,753 2,955 4.08 % Trust preferred subordinated debentures, net of unamortized debt issuance costs 60,271 3,526 7.81 % 60,266 3,309 7.34 % Repurchase agreements 87,811 2,821 4.29 % 89,282 2,423 3.63 % Other borrowings 139,306 6,962 6.68 % 362,684 13,690 5.05 % Total interest bearing liabilities 6,129,080 150,227 3.27 % 5,386,960 100,260 2.49 % Noninterest bearing deposits 1,342,945 1,506,431 Accrued expenses and other liabilities 99,758 91,784 Total liabilities 7,571,783 6,985,175 Shareholders’ equity 796,031 759,632 Total liabilities and shareholders’ equity $ 8,367,814 $ 7,744,807 Net interest income (FTE) $ 170,460 $ 170,072 Net interest margin (FTE) 2.90 % 3.13 % Net interest spread (FTE) 2.18 % 2.48 % (1) Interest on loans includes net fees on loans that are not material in amount.
(2) For the purpose of calculating the average yield, the average balance of securities is presented at historical cost.Note: As of September 30, 2024 and 2023, loans totaling $7.3 million and $4.3 million, respectively, were on nonaccrual status. Our policy is to reverse previously accrued but unpaid interest on nonaccrual loans; thereafter, interest income is recorded to the extent received when appropriate.
The following tables set forth the reconciliation of return on average common equity to return on average tangible common equity, book value per share to tangible book value per share, net interest income to net interest income adjusted to a fully taxable-equivalent basis assuming a 21% marginal tax rate for interest earned on tax-exempt assets such as municipal loans and investment securities, along with the calculation of total revenue, adjusted noninterest expense, efficiency ratio (FTE), net interest margin (FTE) and net interest spread (FTE) for the applicable periods presented.
Southside Bancshares, Inc.
Non-GAAP Reconciliation (Unaudited)
(Dollars and shares in thousands, except per share data)Three Months Ended Nine Months Ended 2024 2023 2024 2023 Sep 30, Jun 30, Mar 31, Dec 31, Sep 30, Sep 30, Sep 30, Reconciliation of return on average common equity to return on average tangible common equity: Net income $ 20,524 $ 24,673 $ 21,511 $ 17,316 $ 18,449 $ 66,708 $ 69,376 After-tax amortization expense 220 243 266 292 322 728 1,048 Adjusted net income available to common shareholders $ 20,744 $ 24,916 $ 21,777 $ 17,608 $ 18,771 $ 67,436 $ 70,424 Average shareholders’ equity $ 806,230 $ 796,698 $ 785,054 $ 737,675 $ 770,194 $ 796,031 $ 759,632 Less: Average intangibles for the period (203,288 ) (203,581 ) (203,910 ) (204,267 ) (204,658 ) (203,592 ) (205,096 ) Average tangible shareholders’ equity $ 602,942 $ 593,117 $ 581,144 $ 533,408 $ 565,536 $ 592,439 $ 554,536 Return on average tangible common equity 13.69 % 16.90 % 15.07 % 13.10 % 13.17 % 15.20 % 16.98 % Reconciliation of book value per share to tangible book value per share: Common equity at end of period $ 805,254 $ 800,970 $ 787,922 $ 773,288 $ 728,595 $ 805,254 $ 728,595 Less: Intangible assets at end of period (203,119 ) (203,397 ) (203,704 ) (204,041 ) (204,411 ) (203,119 ) (204,411 ) Tangible common shareholders’ equity at end of period $ 602,135 $ 597,573 $ 584,218 $ 569,247 $ 524,184 $ 602,135 $ 524,184 Total assets at end of period $ 8,362,263 $ 8,357,702 $ 8,353,863 $ 8,284,914 $ 7,972,468 $ 8,362,263 $ 7,972,468 Less: Intangible assets at end of period (203,119 ) (203,397 ) (203,704 ) (204,041 ) (204,411 ) (203,119 ) (204,411 ) Tangible assets at end of period $ 8,159,144 $ 8,154,305 $ 8,150,159 $ 8,080,873 $ 7,768,057 $ 8,159,144 $ 7,768,057 Period end tangible equity to period end tangible assets 7.38 % 7.33 % 7.17 % 7.04 % 6.75 % 7.38 % 6.75 % Common shares outstanding end of period 30,308 30,261 30,284 30,249 30,338 30,308 30,338 Tangible book value per common share $ 19.87 $ 19.75 $ 19.29 $ 18.82 $ 17.28 $ 19.87 $ 17.28 Reconciliation of efficiency ratio to efficiency ratio (FTE), net interest margin to net interest margin (FTE) and net interest spread to net interest spread (FTE): Net interest income (GAAP) $ 55,464 $ 53,608 $ 53,348 $ 54,485 $ 53,273 $ 162,420 $ 160,542 Tax-equivalent adjustments: Loans 608 633 656 680 674 1,897 2,044 Tax-exempt investment securities 2,012 2,051 2,080 2,453 2,474 6,143 7,486 Net interest income (FTE) (1) 58,084 56,292 56,084 57,618 56,421 170,460 170,072 Noninterest income 8,171 11,557 9,724 2,501 10,836 29,452 33,333 Nonrecurring income (2) 2,797 (576 ) 18 8,376 (11 ) 2,239 (1,006 ) Total revenue $ 69,052 $ 67,273 $ 65,826 $ 68,495 $ 67,246 $ 202,151 $ 202,399 Noninterest expense $ 36,332 $ 35,765 $ 36,881 $ 35,183 $ 35,553 $ 108,978 $ 105,395 Pre-tax amortization expense (278 ) (307 ) (337 ) (370 ) (407 ) (922 ) (1,327 ) Nonrecurring expense (3) (219 ) 2 17 22 17 (200 ) 56 Adjusted noninterest expense $ 35,835 $ 35,460 $ 36,561 $ 34,835 $ 35,163 $ 107,856 $ 104,124 Efficiency ratio 53.94 % 54.90 % 57.95 % 53.30 % 54.86 % 55.56 % 53.99 % Efficiency ratio (FTE) (1) 51.90 % 52.71 % 55.54 % 50.86 % 52.29 % 53.35 % 51.44 % Average earning assets $ 7,823,026 $ 7,881,919 $ 7,882,337 $ 7,633,820 $ 7,418,157 $ 7,862,245 $ 7,269,326 Net interest margin 2.82 % 2.74 % 2.72 % 2.83 % 2.85 % 2.76 % 2.95 % Net interest margin (FTE) (1) 2.95 % 2.87 % 2.86 % 2.99 % 3.02 % 2.90 % 3.13 % Net interest spread 2.10 % 2.00 % 2.02 % 2.10 % 2.14 % 2.04 % 2.31 % Net interest spread (FTE) (1) 2.23 % 2.13 % 2.16 % 2.26 % 2.31 % 2.18 % 2.48 % (1) These amounts are presented on a fully taxable-equivalent basis and are non-GAAP measures.
(2) These adjustments may include net gain or loss on sale of securities available for sale, net gain on sale of equity securities, BOLI income related to death benefits realized and other investment income or loss in the periods where applicable.
(3) These adjustments may include foreclosure expenses and branch closure expenses, in the periods where applicable. -
MIL-OSI: AvidXchange Announces Winners of the Inaugural Change Maker Awards
Source: GlobeNewswire (MIL-OSI)
CHARLOTTE, N.C., Oct. 23, 2024 (GLOBE NEWSWIRE) — AvidXchange, Inc. (Nasdaq: AVDX), a leading provider of accounts payable (AP) automation software and payment solutions for middle market businesses and their suppliers, today announced the winners of the inaugural Change Maker Awards, recognizing individuals who have driven innovative and transformative change in the AP industry.
Change Makers:
For this award program, AvidXchange honors those who embodied being a “change maker,” or someone who facilitates or brings about change in their AP department through innovative processes, automated procedures or other creative solutions.- Alexis Bates, Director of Construction and Development Accounting, Robert High Development: In response to the demand for faster, more secure subcontractor payments, Alexis spearheaded the implementation of AvidXchange’s end-to-end AP automation solution built for construction. The payment process is now more streamlined, saving her company over $100,000 annually in hard costs like check stock and postage and eliminating the need to hire additional staff due to increased efficiency. Additionally, with a more robust approval process, her team has experienced fewer errors and implemented a stronger system for checks and balances.
- Ella Hu, Corporate Accountant, HH Red Stone: Ella played a key role in implementing AvidXchange’s payment automation solution, replacing manual processes that were prone to errors and delays. The adoption of a more efficient process resulted in annual savings of $45,000 and reduced payment processing time from 14 days to just 5. Ella’s efforts also led to a 30% increase in supplier satisfaction, as suppliers now receive more timely payments with clearer status updates.
- Farzana Sarpas, Staff Accountant – Development Accounting, Rancho Mission Viejo: Farzana led the implementation of AvidXchange’s end-to-end AP automation solution built for construction. She played a key role in integrating an innovative system that utilizes a newly created company portal designed to automatically import, code, and route invoices to AvidXchange, fully automating the AP process and saving approximately 40 hours each week. In addition to eliminating a variety of time-consuming tasks, Farzana created personalized virtual trainings and user guide manuals for her company and suppliers, ensuring a seamless transition to the new AP software.
- Ja’Net Penn, Accounting Manager, Peak Property Management: Under Ja’Net’s innovative leadership, Peak Property successfully transitioned to a fully automated, paperless AP process with AvidXchange. This shift reduced invoice approval times by 30% and improved customer retention, allowing the company to focus on stable revenue streams rather than new client acquisition costs. Ja’Net also introduced a key KPI to track unapproved invoices, increasing accountability in the approval process and improving relationships with suppliers and property owners, with on-time payments reaching 95%.
- Kelly Brummer, Controller AVP, Premier Bank: Kelly’s efforts to modernize the accounts payable and expense reimbursement processes with AvidXchange had a transformative impact on Premier Bank, resulting in annual savings of approximately $79,000. Administrative tasks for all employees were reduced from 40 hours per week to just 10, freeing up valuable time for the finance team to focus on more strategic work. Her CFO praised her for driving a more efficient and delivering a seamless experience for the team.
- Shannon Powers, Manager of HRIS & AP, Energo: Shannon implemented enhanced workflows within AvidXchange’s invoice automation solution, reducing invoice approval time to under 24 hours. The streamlined process has also improved accuracy, with error rates now nearly “non-existent”. Reporting now takes just 15 minutes, down from an hour, increasing operational efficiency and saving on payroll costs. Shannon implemented enhanced workflows within AvidXchange’s invoice automation solution, reducing invoice approval time to under 24 hours. The streamlined process has also improved accuracy, with error rates now nearly “non-existent.” Reporting now takes just 15 minutes, down from an hour, increasing operational efficiency and saving on payroll costs.
“Innovation in accounts payable goes beyond improving processes—it’s about making change that has a lasting impact on both financial and operational success,” said Michael Praeger, Co-Founder, Chairman, and Chief Executive Officer of AvidXchange. “Our inaugural class of Change Makers embodies this forward-thinking mindset, and we are proud to honor these individuals whose bold contributions will continue to shape the future of our industry.”
In recognition of their outstanding contributions to the accounts payable industry, each winner will be showcased on the iconic Nasdaq Tower, as well as have $1,000 donated to the charity of their choice on behalf of AvidXchange.
Nominations for the 2025 Change Maker Awards will open in August 2025.
To learn more, visit avidxchange.com/awards.
About AvidXchange
AvidXchange is a leading provider of accounts payable (“AP”) automation software and payment solutions for middle market businesses and their suppliers. AvidXchange’s software-as-a-service-based, end-to-end software and payment platform digitizes and automates the AP workflows for more than 8,000 businesses and it has made payments to more than 1.2 million supplier customers of its buyers over the past five years. To learn more about how AvidXchange is transforming the way companies pay their bills, visit avidxchange.com.Contact:
Kevin Logan
Manager, Corporate Communications
pr@avidxchange.com -
MIL-OSI: Alation Launches Season 3 of Data Radicals Podcast to Spotlight Data and AI’s Impact on Business and Society
Source: GlobeNewswire (MIL-OSI)
REDWOOD CITY, Calif., Oct. 23, 2024 (GLOBE NEWSWIRE) — Alation Inc., the data intelligence company, today announced the launch of Season 3 of the Data Radicals podcast. The new season, hosted by Satyen Sangani, Alation’s CEO and co-founder, focuses on AI’s transformative power to unlock business value, featuring firsthand accounts and practical insights from leaders and practitioners implementing AI in their organizations. This season will explore how organizations leverage trusted data and AI to drive innovation and realize new business opportunities.
Data Radicals has become a go-to resource for business leaders seeking insights into AI, data governance, and building data-driven cultures. Available on Apple Podcasts, Spotify, and Alation.com/podcast, Season 3 delivers in-depth conversations with industry visionaries tackling the most pressing data problems in business today. This season’s guests include Dr. Geraldine Wong (CDO of GXS Bank), Stewart Bond (Research VP of IDC), Jeremy Kahn (AI Editor at Fortune), Chris Wiggins (Chief Data Scientist at the New York Times), Dr. Raza Habib (CEO and co-founder of Humanloop), and Tom Davenport (author of All-in on AI), who explore how AI use cases drive smarter decision-making, maximize business value from data initiatives, and reshape industries while creating societal change.
“AI has unlocked extraordinary potential for organizations to reimagine how they use data,” said Satyen Sangani, host of Data Radicals and CEO of Alation. “This season, we explore how AI enables businesses to innovate and disrupt industries and the critical role of trusted data in fueling AI. We’re thrilled to hear from leaders driving AI’s accessibility, trust, and transformative impact. Season 3 will cover the most cutting-edge topics in data and AI, from practical applications like AI-powered chatbots and fraud detection in banking to realizing tangible value from AI initiatives.”
“I applaud Data Radicals for helping to highlight both the opportunities and the risks AI presents,” said Jeremy Kahn, AI Editor at Fortune and author of the book Mastering AI: A Survival Guide to Our Superpowered Future. “We desperately need public education and discussions like those Data Radicals if we are to hope to avoid AI’s dangers and realize its positive potential. It was a pleasure to be on the podcast to help advance this vital conversation.”
“Being a guest on Data Radicals was truly enjoyable,” said Wendy Batchelder, Senior Vice President and Chief Data Officer at Centene. “As a leader who has navigated many of the same data and AI challenges other executives face, it was an honor to discuss the critical role of trusted data in driving organizational innovation. We explored the importance of breaking down silos, understanding organizational dynamics, and the pivotal role data governance and DE&I play in creating impactful business outcomes.”
Upcoming guests for season three of Data Radicals include:
- Dr. Geraldine Wong, Chief Data Officer at GXS Bank
- Stewart Bond, Senior Vice President, Data Integration and Intelligence Software Research at IDC
- Jeremy Kahn, AI Editor at Fortune
- Chris Wiggins, Chief Data Scientist at The New York Times
- Dr. Raza Habib, CEO and co-founder of Humanloop
- Tom Davenport, Distinguished Professor of Information Technology and Management at Babson College, author of All-in on AI, and contributor to Harvard Business Review
Tune into Data Radicals to stay at the forefront of data and AI innovation and discover how these technologies drive business value and reshape the world. Episode one of Season 3, featuring Dr. Geraldine Wong, Chief Data Officer at GXS Bank, is available today anywhere you listen to podcasts.
Sign up for the Data Radicals newsletter here.
See new episodes at alation.com/podcast.
About Alation
Alation is the data intelligence company. Nearly 600 global enterprises — including 40% of the Fortune 100 — rely on Alation to realize value from their data and AI initiatives. Customers such as Cisco, DocuSign, Nasdaq, Pfizer, and Samsung trust Alation’s platform for self-service analytics, cloud transformation, data governance, and AI-ready data, fostering data-driven innovation at scale. Headquartered in Redwood City, California, Alation has been recognized five times by Inc. Magazine as one of the Best Workplaces. To learn more, visit www.alation.com.Media Contact
Lauren Lloyd
Director, Corporate Communications
541-490-6115
lauren.lloyd@alation.com -
MIL-OSI United Kingdom: Cyber Essentials 10 years on
Source: United Kingdom – Executive Government & Departments
A speech by cyber security Minister Feryal Clark at the 10 year anniversary event for the Cyber Essentials scheme.
See also:
Good afternoon everyone.
Thank you for joining us to celebrate the 10 year anniversary of Cyber Essentials.
What an occasion. I’m very excited to be here with all of you today.
It’s important we take time to recognise and reflect on the success of Cyber Essentials – and how it plays an important part in making the UK more cyber resilient.
Two years ago the government hosted a similar event to mark the award of the one hundred thousandth Cyber Essentials certificate. This represented a significant moment in the growth of the scheme.
Since then, we’ve awarded almost ninety thousand more – so it looks like we may have to host yet another celebratory event in a few months time!
It is great to see the rapid growth in the scheme, and I firmly believe that with your help, its growth can be accelerated and its impact further reaching.
Now – we are often asked about how effective the scheme is.
We have always believed Cyber Essentials helps drive better cyber security across the economy.
However, we can now prove that it does.
Recent insurance data shows us that organisations with Cyber Essentials are 92% less likely to make a claim on their insurance than those without it.
Additionally, where organisations require their third parties to get Cyber Essentials, we know they experience fewer third party cyber incidents.
We’ll discuss this later in the panel discussion.
In short, Cyber Essentials is working.
The government has made a concerted effort over the past couple of years to assess the efficacy of the scheme.
Today, we have published an [independent impact evaluation report](https://www.gov.uk/government/publications/cyber-essentials-scheme-impact-evaluation, which I encourage you all to read.
It provides fascinating insights into the impact Cyber Essentials is having in many different areas.
The evaluation concludes that Cyber Essentials is providing cyber security protection to organisations of all sizes.
82% of certified organisations are confident the controls provide protection against common cyber threats.
It further concludes that Cyber Essentials is improving organisations’ awareness and understanding of the cyber security risk environment, enabling them to become more informed and confident in mitigating cyber risks.
We know it works, and we now need more organisations to embed the Cyber Essentials controls and grasp the economic benefits of secure digital adoption.
I’d now like to talk about supply chains.
All organisations face cyber security risks, and will benefit from getting the Cyber Essentials controls in place.
However, long gone is the time when protecting your own perimeter was sufficient. Supply chain attacks are increasing in prevalence, and their impact can be far reaching.
For example, the recent cyber attack on IT provider Synnovis had a devastating impact on London hospitals, with many thousands of appointments and operations cancelled.
We know many organisations across the economy are struggling to manage the cyber security risk presented by suppliers.
This is clearly reflected in the fact that just 6% of UK businesses are assessing cyber risks in their wider supply chain.
This is simply too low and presents a concerning scenario.
Supply chain attacks are increasing, while limited efforts are being made to address this increased risk.
We know it is difficult – it requires skill and valuable resources to do effectively.
Against this backdrop, we firmly believe Cyber Essentials has a more important role to play.
By requiring suppliers, or other third parties, to have Cyber Essentials themselves, customers gain tangible assurance that fundamental cyber security controls are in place, and they are protected from common cyber attacks.
Such assurance is no longer a ‘nice to have’ – it’s a necessity. Embedding Cyber Essentials requirements across supply chains will drive up the cyber maturity of our whole economy.
This is a real priority for me.
Which is why I’m pleased to announce that my department and the National Cyber Security Centre today published a joint statement with the UK’s largest banks and building societies. These include Santander UK, Nationwide, Barclays, Lloyds Banking Group, TSB and NatWest.
I thank them all for their efforts.
This collaboration aims to raise the levels of cyber security in critical national supply chains by exploring ways to expand the role of Cyber Essentials within their supplier assurance processes.
We will hear more about this shortly, but I wanted to make clear my enthusiasm and support for this collaboration, which we hope to replicate with other sectors across the economy.
On that note, I wanted to end with a request.
This new government is determined to make the UK safer, more secure and prosperous. To that end, we want to work with you, to partner with you, in raising the cyber security baseline across our economy.
We are taking huge strides to improve the cyber resilience of the UK, including through the forthcoming Cyber Security and Resilience Bill. The Bill will have a significant impact on enhancing the cyber resilience of the UK.
However, the proposed legislation must be complemented by other efforts to improve cyber security across the wider economy.
We must do this together.
Many of those in attendance today represent large, influential organisations with large supply chains.
I invite you all to join us on the journey to embed Cyber Essentials across the UK, by incorporating it within your own supplier requirements.
As you do this, we will do our utmost to ensure all organisations, especially SMEs, are supported in their efforts to become certified.
Together we can make a huge difference in reducing the economic and social harm impacting our businesses and citizens.
Thank you for being here and supporting us today. We look forward to closer collaboration in the future.
Thank you.
[ends]
Updates to this page
Published 23 October 2024 -
MIL-OSI Canada: Monetary Policy Report Press Conference Opening Statement
Source: Bank of Canada
Good morning. I’m pleased to be here with Senior Deputy Governor Carolyn Rogers to discuss the October Monetary Policy Report and our policy decision.
Today, we lowered the policy interest rate by 50 basis points. This is our fourth consecutive decrease since June and brings our policy rate to 3.75%.
We took a bigger step today because inflation is now back to the 2% target and we want to keep it close to the target.
In the past few months, inflation has come down significantly from 2.7% in June to 1.6% in September. Recent indicators suggest it will be around 2% in October. Price pressures are no longer broad-based, and both our measures of core inflation are now under 2½%. Our surveys also find that business and consumer expectations of inflation have shifted down and are nearing normal. All this suggests we are back to low inflation. This is good news for Canadians.
Now our focus is to maintain low, stable inflation. We need to stick the landing.
That means the upward and downward forces on inflation need to balance out. Household spending and business investment have picked up this year, but remain soft. This softness has helped take the remaining steam out of inflation. But with inflation back to 2%, we want to see growth strengthen. Today’s interest rate decision should contribute to a pickup in demand.
The Bank forecasts inflation will remain close to the target over the projection horizon. The upward pressure from shelter and other services is expected to gradually diminish. With stronger demand, the downward pressure on inflation is also forecast to dissipate, keeping the upward and downward forces roughly balanced.
If the economy evolves broadly in line with this forecast, we anticipate cutting our policy rate further to support demand and keep inflation on target. The timing and pace of further interest rate cuts will depend on incoming information and our assessment of its implications for the inflation outlook. We will take our monetary policy decisions one at a time.
Let me expand on what we’re seeing in the economy, and how that played into our deliberations.
After stalling in the second half of last year, the economy grew by about 2% in the first half of this year, and we expect growth of 1¾% in the second half. The economy remains in excess supply and the labour market is soft. The unemployment rate was 6.5% in September. Job layoffs have remained modest but business hiring has been weak, which has particularly affected young people and newcomers to Canada. Simply put, the number of workers has increased faster than the number of jobs.
Looking ahead, GDP growth is forecast to gradually strengthen to around 2% in 2025 and 2¼% in 2026, supported by lower interest rates. This forecast largely reflects the net effect of a gradual pick up in consumer spending per person and slower population growth. We also expect growth in residential investment to rise as strong demand for housing lifts sales and spending on renovations. Business investment is expected to strengthen as demand picks up, and exports should remain strong, supported by robust demand from the United States.
The decline in inflation in recent months reflects the combined effects of lower global oil prices, slightly lower shelter price inflation in Canada, and lower prices for many consumer goods like cars and clothes. Going forward, we can expect to continue to see some monthly fluctuations in inflation. But overall, inflation is expected to remain close to target over the projection horizon as upward pressure from shelter and other services gradually diminishes and excess supply in the economy is absorbed.
There are risks around our inflation outlook. The biggest downside risk to inflation is that it could take longer than anticipated for household spending and business investment to pick up. Our recent surveys suggest businesses expect subdued sales and their hiring and investment plans are modest. On the upside, lower interest rates could fuel a stronger rebound in housing activity or wage growth could remain high relative to productivity. There is also elevated geopolitical uncertainty and the risk of new shocks.
Overall, we view the risks around our inflation forecast as reasonably balanced. With inflation back to 2%, we are now equally concerned about inflation coming in higher or lower than expected. The economy functions well when inflation is around 2%.
Let me conclude.
High inflation and interest rates have been a heavy burden for Canadians. With inflation now back to target and interest rates continuing to come down, families, businesses and communities should feel some relief.
The Bank is committed to maintaining price stability for Canadians by keeping inflation close to the 2% target.
With that summary, the Senior Deputy Governor and I would be pleased to take your questions.
-
MIL-OSI Canada: Bank of Canada reduces policy rate by 50 basis points to 3¾%
Source: Bank of Canada
The Bank of Canada today reduced its target for the overnight rate to 3¾%, with the Bank Rate at 4% and the deposit rate at 3¾%. The Bank is continuing its policy of balance sheet normalization.
The Bank continues to expect the global economy to expand at a rate of about 3% over the next two years. Growth in the United States is now expected to be stronger than previously forecast while the outlook for China remains subdued. Growth in the euro area has been soft but should recover modestly next year. Inflation in advanced economies has declined in recent months, and is now around central bank targets. Global financial conditions have eased since July, in part because of market expectations of lower policy interest rates. Global oil prices are about $10 lower than assumed in the July Monetary Policy Report (MPR).
In Canada, the economy grew at around 2% in the first half of the year and we expect growth of 1¾% in the second half. Consumption has continued to grow but is declining on a per person basis. Exports have been boosted by the opening of the Trans Mountain Expansion pipeline. The labour market remains soft—the unemployment rate was at 6.5% in September. Population growth has continued to expand the labour force while hiring has been modest. This has particularly affected young people and newcomers to Canada. Wage growth remains elevated relative to productivity growth. Overall, the economy continues to be in excess supply.
GDP growth is forecast to strengthen gradually over the projection horizon, supported by lower interest rates. This forecast largely reflects the net effect of a gradual pick up in consumer spending per person and slower population growth. Residential investment growth is also projected to rise as strong demand for housing lifts sales and spending on renovations. Business investment is expected to strengthen as demand picks up, and exports should remain strong, supported by robust demand from the United States.
Overall, the Bank forecasts GDP growth of 1.2% in 2024, 2.1% in 2025, and 2.3% in 2026. As the economy strengthens, excess supply is gradually absorbed.
CPI inflation has declined significantly from 2.7% in June to 1.6% in September. Inflation in shelter costs remains elevated but has begun to ease. Excess supply elsewhere in the economy has reduced inflation in the prices of many goods and services. The drop in global oil prices has led to lower gasoline prices. These factors have all combined to bring inflation down. The Bank’s preferred measures of core inflation are now below 2½%. With inflationary pressures no longer broad-based, business and consumer inflation expectations have largely normalized.
The Bank expects inflation to remain close to the target over the projection horizon, with the upward and downward pressures on inflation roughly balancing out. The upward pressure from shelter and other services gradually diminishes, and the downward pressure on inflation recedes as excess supply in the economy is absorbed.
With inflation now back around the 2% target, Governing Council decided to reduce the policy rate by 50 basis points to support economic growth and keep inflation close to the middle of the 1% to 3% range. If the economy evolves broadly in line with our latest forecast, we expect to reduce the policy rate further. However, the timing and pace of further reductions in the policy rate will be guided by incoming information and our assessment of its implications for the inflation outlook. We will take decisions one meeting at a time. The Bank is committed to maintaining price stability for Canadians by keeping inflation close to the 2% target.
Information note
The next scheduled date for announcing the overnight rate target is December 11, 2024. The Bank will publish its next full outlook for the economy and inflation, including risks to the projection, in the MPR on January 29, 2025.
-
MIL-OSI Economics: Change happens – and why central banks care
Source: Bank for International Settlements
It is a great pleasure for me to join you today. Many thanks to the staff at the Federal Reserve Bank of Philadelphia for the invitation. 1
BIS Innovation Hub
Today I want to talk about change and central banks. But before I begin, allow me to briefly introduce the BIS Innovation Hub. The Bank for International Settlements supports central banks in their pursuit of monetary and financial stability by fostering international cooperation. The Innovation Hub was created five years ago and can be described as a joint venture between the BIS and the central banks who host our seven centres. The Innovation Hub has almost 100 people working together across the world. Our mandate is to follow and explore new technology and, when suitable, develop public goods. And to do that we research technologies and challenges that matter to central banks by building proofs of concept or prototypes. In more than 30 projects to date, we have collaborated with central banks and other partners to demonstrate the art of the possible. Currently, tokenisation and artificial intelligence are important areas for us, where we have multiple projects under way. Another crucial area is ensuring the integrity and safety in the financial system by exploring possible improvements to services like payments. Again, we aim to demonstrate the art of the possible. Adopting some of the technologies or implementing the outcomes of our projects is not up to us. Ultimately, countries’ authorities decide what becomes reality in their jurisdictions.
So why am I here? Well, when I was asked to join you here at the Philadelphia Fed, I immediately said yes. Maybe too fast, because the organisers kept asking me what I wanted to announce. I had to disappoint them. This is not a public service announcement. I am not trying to sell you anything. What I want to do in the next 10 minutes is explain why central banks care about change and innovation – and why that matters to us all.
Technology and change
Let me start with innovation and change, for which I will look to Adam Smith. Who better? The Wealth of Nations was published about 250 years ago. And Adam Smith uses the example of moving goods by road or by ship. Canal companies were the big techs of the day. They could move things faster and cheaper, and only the most niche products chose the horse and cart. Yet 100 years later, the transport network and – by extension the industrial capacity of Britain – was totally unrecognisable.
What changed? In that time, railways happened. Or more accurately, innovation changed how railways were used. There were railways when Adam Smith was writing. But they were small, private and horse-drawn. He did not even mention them as a contender to roads and ships. But 50 years of innovation in steam engines – to make them smaller, faster and more efficient – would make railways far superior to canals. Following some smaller private railways, the first public railway – from Liverpool to Manchester – opened in 1830. At that time, there were about 125 miles of railways in England. Over the next 40 years, this grew to 13,000 miles. Canals were dead in the water.
Was the change smooth, clearly predictable and always rational and obvious? No. Was it just the technology advantages that catalysed the change? No. It was many things. Financial innovations meant that investments in railways were easier. Yet this also created a financial bubble. Early safety regulations reassured a sceptical public – but not before some terrible accidents. Competition drove further innovation but resulted in a grossly inefficient network. When agreement on a standardised width of railway gauge was eventually brokered, network effects could be enhanced. The standard adopted was George Stephenson’s 4 feet, 8 1⁄2 inches, which spread across England and internationally. I have been told the United States uses it too.
But why am I telling you a story about something that happened in England hundreds of years ago? Well first, I enjoy history. But second, because it is a great example of how technologies change. Do you see any parallels with today? Railways did not just “win” overnight. They were initially less efficient than canals. Canal owners saw the threat and organised resistance. Yet railways improved faster than canals could – at least once steam engines became technologically and commercially viable. Investment played a significant role in this. So, at times, did safety regulations and politics. There were battles about which standards should be used. And importantly, change driven by technology and innovation is not an elegant dance. It is a race and a tussle and sometimes a mess.
To really make the point, allow me one more historical example closer to home. The Federal Reserve Bank of New York recently published an article about when securities markets scrapped paper in the 1960s and ’70s. At that time, IBM and Honeywell were in a race to develop more powerful computers. And stockbrokers were racing one another to use them for competitive advantage. The winners of that race went on to dominate securities markets for decades because they bought out the failing houses that could not operate their computers as effectively. And the digital infrastructures they created, based on the paper processes before them, are the ones we use now. And they are the same infrastructures now experimenting with tokenisation and are maybe on the cusp of another change.
Understanding change
How do industries and society manage these huge changes? Almost all industries have regulations of various kinds to ensure safety, competition and transparency – standards with a large or small “s” that are adhered to. Yet finance has something that planes, trains and automobiles do not. Finance has central banks. And why do they care about innovation and change?
First, for monetary analysis. For central banks to set interest rates to stabilise prices they have to understand the economy. The data collection and analysis of credit, demand, output, supply, costs, prices and labour markets all roll up to into determining monetary policy. And innovation can have a huge impact. AI is an obvious example. But digitalisation more broadly has had and will continue to have a fundamental impact on the global economy. For effective policymaking, central banks need to understand where things are heading. So they must follow and explore innovation and its implications.
Second, central banks care about innovation because of their oversight role. For prudential supervision of banks and market infrastructure, it is necessary to understand how technology is being used and the effect of any large changes. Financial stability analyses are increasingly concerned with how financial and operational risks interact. Technology is a significant variable in that analysis.
Third, central banks do not just think; within their mandate, they act. To deliver on their monetary policy objectives, they decide where interest rates need to be. And then they act through their market operations to make that happen. Central banks want safe settlement and so they offer it – by operating payment systems to safely and reliably move substantial amounts of money every day. And they provide banknotes.
It is because central banks act that they are really part of any change – not on the sidelines or just observing, but really involved. As part of the financial ecosystem, central banks offer settlement in central bank money, which is the safest settlement asset possible and a pillar of a stable and robust financial system. And this is what makes them so different from a regulator in any other space. To put it very simply, if central banks think technology is changing, they need to consider and adapt as well. And they need to change operations and systems that require the highest possible resilience from cyber threats and operational risk. That puts a very different slant on any decision and perhaps adds some caution. It might also add some practicality. And importantly for an economist, it gives central banks skin in the technology game – and the right incentives.
Incentives matter. Trust in money is grounded on two things. The first is the central bank’s monetary policy framework and operational independence. The second is the competence to carry out its role. And that competence increasingly means the ability to use technology better. To do that we experiment. We collaborate. We get involved. But our role is not to win or to profit or to tell the private sector how to run their business. The private sector will always know what customers need and want better than the public sector. But it is also important to have the public sector involved, with public policy objectives such as stability, safety, interoperability and compliance.
BIS and international cooperation
To close I want to talk about how these themes of technology, change and incentives play out internationally. Central banks are different from one another. But I have spoken for almost 10 minutes about their interests and incentives as a homogeneous group. And if I can do that, they must be similar enough to cooperate.
The BIS’s job is to help and guide central bank cooperation. Given what I have said, that should be easy. But collaboration is not always simple. Yet, with the right governance and communications, building knowledge by running projects together could reap great rewards for central banks.
Our projects are “just” a first look at what is possible. Projects are not a commitment. Some of the questions like whether there is a need for central bank digital currency or digital identity can only be answered politically. The central bank is one of many advisers on a decision that should be made with other players in our societies. That is right and that is normal. Yet the fact remains, for good policymaking on any subject, you need understanding. And with technology, you need to experiment and collaborate to obtain that understanding.
So, I thank you again for the invitation and attention. I will close with a quote from Adam Smith: “I have never known much good done, by those who affected to trade for the public good.” Eerily, he foresaw a version of what US president Ronald Reagan famously highlighted as the nine most terrifying words: “I’m from the government and I’m here to help.” The BIS Innovation Hub has a mandate to explore technology and to develop public goods. But others ultimately decide what could be changed. Our job is to learn and advise them so that when change happens, it can happen for the better.
Thank you for listening.
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MIL-OSI Africa: IMF isn’t doing enough to support Africa: billions could be made available through special drawing rights
Source: The Conversation – Africa – By Kevin P. Gallagher, Professor of Global Development Policy and Director, Global Development Policy Center, Boston University
At the 2021 UN Climate Summit, Barbados prime minister Mia Mottley called for more and better use of special drawing rights (SDRs), the International Monetary Fund’s reserve asset.
The special drawing right is an international reserve asset created by the IMF. It is not a currency – its value is based on a basket of five currencies, the biggest chunk of which is the US dollar, followed by the euro. It is a potential claim on the freely usable currencies of IMF members. Special drawing rights can provide a country with liquidity.
Countries can use their special drawing rights to pay back IMF loans, or they can exchange them for foreign currencies.
As Mottley is the newest president of the Climate Vulnerable Forum and Vulnerable Group of 20 (V20) finance ministers, which represents 68 climate-vulnerable countries that are among those with the most dire liquidity needs, including 32 African countries, her call would be directly beneficial to African countries.
In August 2021, as the shock from the COVID-19 pandemic battered their economies, African countries received a lifeline of US$33 billion from special drawing rights. This amounts to more than all the climate finance Africa receives each year, and more than half of all annual official development assistance to Africa.
This US$33 billion did not add to African countries’ debt burden, it did not come with any conditions, and it did not cost donors a single cent to provide.
IMF members can vote to create new issuances of special drawing rights. They are then distributed to countries in proportion to their quotas in the IMF. Quotas are denominated in special drawing rights, the IMF’s unit of account.
Quotas are the building blocks of the IMF’s financial and governance structure. An individual member country’s quota broadly reflects its relative position in the world economy. Thus, by design, the poorest and most vulnerable countries receive the least when it comes to quotas and voting shares.
Special drawing rights cannot solve all of Africa’s economic challenges. And their highly technical nature means they are not always well understood. But at a time when African countries are facing chronic liquidity challenges – most countries in the region are spending more on debt service payments than they are on health, education, or climate change – our new research shows that special drawing rights can play an important role in establishing financial stability and enabling investments for development.
Financial stability includes macroeconomic stability (such as low inflation, healthy balance of payments, sufficient foreign reserves), a strong financial system and resilience to shocks.
African leaders are approaching a critical year-long opportunity: in November, the first Group of 20 (G20) summit will convene (with the African Union in attendance as a member for the first time). Then in December South Africa assumes the G20 presidency.
Read more: South Africa will be president of the G20 in 2025: two much-needed reforms it should drive
As African leaders advocate for reforms to the international financial architecture, maximising the potential of special drawing rights should be a central component of their agenda.
The problem
African countries’ finances are facing tough times. External debt in sub-Saharan Africa has tripled since 2008. The average government is now spending 12% of its revenue on external debt service. The COVID-19 pandemic, Russia’s war in Ukraine, and rises in interest rates and the prices of commodities, like food and fertiliser, have all contributed to this trend.
Debt restructuring mechanisms have also proved inadequate. Countries like Zambia and Ghana got stuck in lengthy restructurings. Weak institutional capacity and poor governance also impede efficient use of public resources.
At the same time, African economies need to increase investment to advance development, support a young and growing population, develop climate resilience and take advantage of the opportunity presented by the energy transition.
To meet the resources for a just energy transition and the attainment of the UN 2030 Sustainable Development Goals, investment in climate and development will have to increase from around 24% of GDP (the average for Africa in 2022) to 37%.
Special drawing rights have proved to be an important tool in addressing these challenges. Research by the IMF and others shows that African countries significantly benefited from the special drawing rights they received in 2021 to stabilise their economies. And this happened without worsening debt burdens or costing advanced economies any money, particularly as they cut development aid.
However, advanced economies exercise significant control over the availability of special drawing rights. The IMF’s quota system determines both voting power and their distribution. Advanced economies control most of the IMF’s quotas.
The advanced economies made the right decision in 2021 and in 2009 to issue new special drawing rights and the time has come again.
The solution
African and other global south leaders need to make a strong case for another issuance of special drawing rights at the IMF and World Bank meetings in Washington.
In addition to a new issuance of special drawing rights, advanced economies still need to be pressured to re-channel the hundreds of billions of special drawing rights sitting idle on their balance sheets into productive purposes.
The 2021 allocation of special drawing rights amounted to US$650 billion in total. But only US$33 billion went to African countries due to the IMF’s unequal quota distribution. Meanwhile advanced economies with powerful currencies and no need for special drawing rights received the lion’s share.
The African Development Bank has spearheaded one such proposal alongside the Inter-American Development Bank. Under this plan, countries with unused special drawing rights could re-channel them to the African Development Bank as hybrid capital, allowing the bank to lend around $4 for each $1 of special drawing rights it receives.
The IMF approved the use of special drawing rights as hybrid capital for multilateral development banks in May. But it set an excessively low limit of 15 billion special drawing rights across all multilateral development banks.
Even so, advanced economies have been slow to re-channel special drawing rights. The close to $100 billion that have been re-channelled – mostly to IMF trust funds – is meaningful.
But it still falls short of what should have been re-channelled.
In the long term, IMF governance reforms are needed to avoid a repeat of the inefficient distribution of special drawing rights.
Read more: The World Bank and the IMF need to keep reforming to become fit for purpose
As African countries rightly push to change shortcomings of the international financial architecture, new special drawing rights issuances should be at the centre of such a strategy. The IMF’s 2021 special drawing rights issuance showed the tool’s scale and importance. And special drawing rights re-channelling has had positive effects in easing debt burdens and freeing up financing to recover from the COVID-19 pandemic.
With 2030 approaching and the window shrinking for climate action, global leaders should be using all the tools at their disposal, including special drawing rights, to build a more resilient future.
– IMF isn’t doing enough to support Africa: billions could be made available through special drawing rights
– https://theconversation.com/imf-isnt-doing-enough-to-support-africa-billions-could-be-made-available-through-special-drawing-rights-241428 -
MIL-OSI Global: IMF isn’t doing enough to support Africa: billions could be made available through special drawing rights
Source: The Conversation – Africa – By Kevin P. Gallagher, Professor of Global Development Policy and Director, Global Development Policy Center, Boston University
At the 2021 UN Climate Summit, Barbados prime minister Mia Mottley called for more and better use of special drawing rights (SDRs), the International Monetary Fund’s reserve asset.
The special drawing right is an international reserve asset created by the IMF. It is not a currency – its value is based on a basket of five currencies, the biggest chunk of which is the US dollar, followed by the euro. It is a potential claim on the freely usable currencies of IMF members. Special drawing rights can provide a country with liquidity.
Countries can use their special drawing rights to pay back IMF loans, or they can exchange them for foreign currencies.
As Mottley is the newest president of the Climate Vulnerable Forum and Vulnerable Group of 20 (V20) finance ministers, which represents 68 climate-vulnerable countries that are among those with the most dire liquidity needs, including 32 African countries, her call would be directly beneficial to African countries.
In August 2021, as the shock from the COVID-19 pandemic battered their economies, African countries received a lifeline of US$33 billion from special drawing rights. This amounts to more than all the climate finance Africa receives each year, and more than half of all annual official development assistance to Africa.
This US$33 billion did not add to African countries’ debt burden, it did not come with any conditions, and it did not cost donors a single cent to provide.
IMF members can vote to create new issuances of special drawing rights. They are then distributed to countries in proportion to their quotas in the IMF. Quotas are denominated in special drawing rights, the IMF’s unit of account.
Quotas are the building blocks of the IMF’s financial and governance structure. An individual member country’s quota broadly reflects its relative position in the world economy. Thus, by design, the poorest and most vulnerable countries receive the least when it comes to quotas and voting shares.
Special drawing rights cannot solve all of Africa’s economic challenges. And their highly technical nature means they are not always well understood. But at a time when African countries are facing chronic liquidity challenges – most countries in the region are spending more on debt service payments than they are on health, education, or climate change – our new research shows that special drawing rights can play an important role in establishing financial stability and enabling investments for development.
Financial stability includes macroeconomic stability (such as low inflation, healthy balance of payments, sufficient foreign reserves), a strong financial system and resilience to shocks.
African leaders are approaching a critical year-long opportunity: in November, the first Group of 20 (G20) summit will convene (with the African Union in attendance as a member for the first time). Then in December South Africa assumes the G20 presidency.
Read more:
South Africa will be president of the G20 in 2025: two much-needed reforms it should drive
As African leaders advocate for reforms to the international financial architecture, maximising the potential of special drawing rights should be a central component of their agenda.
The problem
African countries’ finances are facing tough times. External debt in sub-Saharan Africa has tripled since 2008. The average government is now spending 12% of its revenue on external debt service. The COVID-19 pandemic, Russia’s war in Ukraine, and rises in interest rates and the prices of commodities, like food and fertiliser, have all contributed to this trend.
Debt restructuring mechanisms have also proved inadequate. Countries like Zambia and Ghana got stuck in lengthy restructurings. Weak institutional capacity and poor governance also impede efficient use of public resources.
At the same time, African economies need to increase investment to advance development, support a young and growing population, develop climate resilience and take advantage of the opportunity presented by the energy transition.
To meet the resources for a just energy transition and the attainment of the UN 2030 Sustainable Development Goals, investment in climate and development will have to increase from around 24% of GDP (the average for Africa in 2022) to 37%.
Special drawing rights have proved to be an important tool in addressing these challenges. Research by the IMF and others shows that African countries significantly benefited from the special drawing rights they received in 2021 to stabilise their economies. And this happened without worsening debt burdens or costing advanced economies any money, particularly as they cut development aid.
However, advanced economies exercise significant control over the availability of special drawing rights. The IMF’s quota system determines both voting power and their distribution. Advanced economies control most of the IMF’s quotas.
The advanced economies made the right decision in 2021 and in 2009 to issue new special drawing rights and the time has come again.
The solution
African and other global south leaders need to make a strong case for another issuance of special drawing rights at the IMF and World Bank meetings in Washington.
In addition to a new issuance of special drawing rights, advanced economies still need to be pressured to re-channel the hundreds of billions of special drawing rights sitting idle on their balance sheets into productive purposes.
The 2021 allocation of special drawing rights amounted to US$650 billion in total. But only US$33 billion went to African countries due to the IMF’s unequal quota distribution. Meanwhile advanced economies with powerful currencies and no need for special drawing rights received the lion’s share.
The African Development Bank has spearheaded one such proposal alongside the Inter-American Development Bank. Under this plan, countries with unused special drawing rights could re-channel them to the African Development Bank as hybrid capital, allowing the bank to lend around $4 for each $1 of special drawing rights it receives.
The IMF approved the use of special drawing rights as hybrid capital for multilateral development banks in May. But it set an excessively low limit of 15 billion special drawing rights across all multilateral development banks.
Even so, advanced economies have been slow to re-channel special drawing rights. The close to $100 billion that have been re-channelled – mostly to IMF trust funds – is meaningful.
But it still falls short of what should have been re-channelled.
In the long term, IMF governance reforms are needed to avoid a repeat of the inefficient distribution of special drawing rights.
Read more:
The World Bank and the IMF need to keep reforming to become fit for purpose
As African countries rightly push to change shortcomings of the international financial architecture, new special drawing rights issuances should be at the centre of such a strategy. The IMF’s 2021 special drawing rights issuance showed the tool’s scale and importance. And special drawing rights re-channelling has had positive effects in easing debt burdens and freeing up financing to recover from the COVID-19 pandemic.
With 2030 approaching and the window shrinking for climate action, global leaders should be using all the tools at their disposal, including special drawing rights, to build a more resilient future.
Abebe Shimeles received funding from African Economic Research Consortium. He is affiliated with Institute of Labor Studies, IZA
Kevin P. Gallagher does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.
– ref. IMF isn’t doing enough to support Africa: billions could be made available through special drawing rights – https://theconversation.com/imf-isnt-doing-enough-to-support-africa-billions-could-be-made-available-through-special-drawing-rights-241428
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MIL-OSI United Kingdom: Visitors advised to plan ahead for Derry Halloween
Source: Northern Ireland – City of Derry
Visitors advised to plan ahead for Derry Halloween
23 October 2024
With just a week to go until Europe’s biggest Halloween Festival, Derry City and Strabane District Council has released the latest traffic and travel information to ensure visitors avoid any unnecessary delays or diversions.
Over 100,000 visitors attend the annual festival, which runs from Monday October 28th – Thursday 31st, and a range of measures will be introduced to keep traffic flowing and disruption to a minimum for everyone. These include road closures, parking restrictions and some diversions, so it’s best to plan ahead to ensure easy access to all the events.
These arrangements will also assist with the safe delivery of the event, and everyone is asked to follow the directions of stewards and police.
People are advised to use public transport where possible, with additional services being operated by Translink on Halloween night, both to and from the city and local services.
Motorists are advised to expect some delays and diversions in the City Centre during the four nights of the event. From Monday October 28th – Wednesday October 30th Road Closures will operate from 2pm until 10pm in the following areas to accommodate the Awakening the Walled City Trail. All times are approximate, but road closures and diversions will be kept to the minimum length necessary to ensure safety.
Road Closures:
Bank Place, Union Hall Street, Magazine Street, Magazine Street Upper, Butcher Street, Shipquay Street, Ferryquay Street, Bishop Street within, Palace Street, Pump Street, The Diamond, London Street, Artillery Street, Fountain Street. No City Centre on-Street parking with exception of Shipquay Street until 11am.
Please note that public realm works are currently underway around the front of the Guildhall, pedestrians are asked to please follow the signage in this area.
Car Park Closures 28th October – 1st November:
- Bishop Street Car Park will close to general parking to accommodate motorhome parking
- Ebrington Car Park
Monday October 28th, Tuesday 29th and Wednesday 30th
- Society Street Car Park
- Victoria Market Car Park (limited accessible only Car parking)
Thursday October 31st
- Queens Quay and Strand Road Car Park will be closed on the 31st October.
- Strand Road Car Park will offer accessible parking only
- Victoria Market Car Park – limited accessible parking only
Car Parking availability
Drivers are reminded that normal on street parking restrictions will be in place and people should avoid parking anywhere they may be blocking entrances to residences or businesses or where they may be obstructing emergency access.
Parking is available at a number of locations throughout the City:
Cityside carparks – Foyleside Shopping Centre Car Park East, Foyleside West and Quayside Shopping Centre, Foyle Road, Magee Campus (Lawrence Hill), Carlisle Road and William Street.
Waterside carparks – Foyle Arena, Spencer Road, Oakgrove School, Duke Street and Former Waterside Health Centre Car Parks.
From October 28-30 the Council Car Park on Strand Road will be open to the public.
Fort George Car Park will be open to the public on October 31st only for event car parking.
Victoria Market will be an accessible car park only from 28th – 31st October and will operate on a first come, first served basis.
Strand Road car park will be an accessible car park only on the 31st October also operating on a first come, first served basis.
On Halloween night itself the annual Carnival Parade will leave the Council carpark at 7pm. The parade is followed by the Halloween Fireworks Finale over the River Foyle at 8.15pm.
Please note that in the interests of health and safety, the Peace Bridge will be closed from 7pm in advance of the display, reopening at 8.45pm.
A quiet space will be available in the Guildhall each day from 12noon – 9pm (10pm 31st), and parents and carers can also pick up ID Me safety wrist bands at the Guildhall information point.
For anyone with accessibility requirements, a full guide to available support is available here – https://derryhalloween.com/about/accessibility/
Translink will run additional services to the city centre throughout the event. For information on Translink bus and rail services to and from the city go to https://www.translink.co.uk/
Festival and Events Manager with Derry City and Strabane District Council, Jacqueline Whoriskey, said regular updates will be provided on social media. “With the numbers expected this year I would advise that visitors check out all the traffic and travel information so they can prepare ahead. Regular updates will be posted on the Derry Halloween and Council social media platforms throughout the festival.
“I would recommend downloading our Whats On Derry Strabane app – this will give you the lowdown on all that’s going on and all the information you need to plan your journey.
“I would also appeal to everyone to follow the guidance of our stewards and the PSNI – they are there to keep the event running smoothly and everyone safe. We are so looking forward to the event this year but we need everyone to play their part and help us deliver a safe and enjoyable celebration.”
Derry Halloween is delivered by Derry City and Strabane District Council and funded by Tourism Northern Ireland and The Executive Office, with support from Ulster University and Air Coach.
You can find all the details about traffic and travel and the full programme on derryhalloween.com
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MIL-OSI Banking: The Million Baht Adventure: A Journey of Purpose and Adventure
Source: International Marine Contractors Association – IMCA
Headline: The Million Baht Adventure: A Journey of Purpose and Adventure
Published on 23 October 2024
Darren Brunton – IMCA Asia Pacific Regional Committee Chairman and IMCA Diving Division Committee Member – will soon embark on the Million Baht Phang Nga Bay Adventure: a gruelling 350km challenge that aims to raise one million Baht for the children of the Banya Literary Centre in Thailand.
To learn more about the Million Baht Phang Nga Bay Adventure and how you can support the team and their cause, click here:
Along with other adventurers, Darren – a long-time Singapore resident and passionate advocate for the Banya Literary Centre – has been training hard in preparation for the six-day event, drawing on his experience as a former UK military serviceman and commercial diver.
Now the Managing Director of KB Associates Pte Ltd and KBA Training Centre Pte – IMCA Member companies in the training and diving / safety consultancy arena – Darren told Making Waves that he is driven by the opportunity to raise money for a worthy cause, improve his own fitness, and share his experience with his teammates as they tackle this demanding adventure together.
You can follow their progress, cheer them on, and most importantly, get involved, whether by donating, participating in their auction coming in November, or simply spreading the word. Every bit of support will help them move closer to their goal of raising one million Baht.
The Challenge and the Cause
The adventure itself is as thrilling as it is purposeful. From 26 November to 1 December this year, the team will cover the 350km distance by foot, bicycle, and kayak. They will face the physical and mental challenge of pushing their limits while raising money to fund essential resources for the children of the Banya Literacy Centre:
- Daily Meals: Ensuring that the children receive two meals-a-day for at least a year. Currently, the children are only receiving three meals a week.
- A School Bus: Providing the children with safe and reliable transport to and from the school.
The adventure is entirely self-funded, meaning that the team are all paying their own expenses to join the adventure and that every donation will go directly to these children, helping to provide essential support that many of us take for granted.
The expedition follows a similar fundraising effort in January – the Million Baht Swim – in which a team of Phuket based expats completed a 122km lap of Phuket Island, and together, with the support of the community, raised 1.1 million Baht for the school.
Several IMCA Members and individuals from the IMCA network have already contributed to help reach the target. To find out how you can support the team’s fundraising, click here.
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MIL-OSI: Bank of Åland Plc: Targeted issue as part of the Bank of Åland’s share saving programme for employees
Source: GlobeNewswire (MIL-OSI)
Bank of Åland Plc
Stock Exchange Release
October 23, 2024, 18.00 EETTargeted issue as part of the Bank of Åland’s share saving programme for employees
On October 23, 2024, based on the authorisation granted by the Annual General Meeting on 26 March 2024, the Board of Directors of Bank of Åland Plc (Ålandsbanken Abp) decided on a targeted share issue as follows:
The Board of Directors has decided to issue 22,912 Series B shares for the fulfilment of the Bank’s commitments as part of the Bank of Åland’s share savings programme for employees.
The Bank of Åland’s share savings programme is a voluntary savings programme enabling employees to save a maximum of five per cent of their monthly salary in order to subscribe for twice-yearly targeted issues of Series B shares. The programme was introduced in 2023 as a one-year programme.
Employees subscribe for Series B shares at a price that is 10 per cent below the average stock market price during September 2024. The issue is related to the savings period March 1, 2024 – August 30, 2024.
Three years after each respective share issue, the Bank of Åland will distribute one matching share for each share acquired in the targeted share issues to those who have participated in the share issues, who are still employed by the Bank of Åland Group and who own the shares that were issued.
After the share issue, the Bank of Åland´s share capital will remain unchanged at EUR 42,029,289.89, with the number of Series A shares totalling 6,476,138 (representing 129,522,760 votes) and the number of Series B shares totalling 8,890,781 (representing 8,890,781 votes).
For further information, please contact:
Peter Wiklöf, Managing Director and Chief Executive, Bank of Åland Plc, tel. +358 40 512 7505
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MIL-OSI United Kingdom: Westminster launches latest round of Community Priorities Programme funding | Westminster City Council
Source: City of Westminster
Provider Name
Amount awarded
Project Name
Project Description
Individual Provider
£10,000
Westminster Throws
Judo project offering structured activities to promote physical fitness, mental well-being, and community development among children in Westminster.
Happy Lizzy
£32,000
Happy Hub Holiday Clubs & Wild Kittens Wild Cats
Holiday clubs every school holiday. During the Summer the club is for children aged 7 and over. Play, explore, plant gardens, build LEGO, learn chess and hold community events.
WECH
£28,960 (Health and Well-being project)
£28,960 (Foodbank)
£13,816 (Welfare Benefits Service)
The Maida Hill Foodbank, Maida Hill Health & Well- Being Project, Harrow Road Welfare Benefits Service
Sustain the weekly Foodbank from Nov 24 for a year, to continue providing food to 50 families per week for 46 weeks, benefiting at least 300 families over the year. approx. Also engaging 15 residents as volunteers and support staff.
sustain delivery of the health and well-being activities.
Next Generation CIC
£31,040
Next Gen Intense Mentoring/ Business mentoring
We aim to work with 50 young people (ages 11-25) and their support networks, focusing on those at risk or involved in SYV. Our goal is to encourage them to pursue their dreams and career aspirations while steering them away from antisocial behaviour. We take a holistic mentoring approach, emphasizing diverse career pathways, particularly entrepreneurship.
The Flourish Group
£30,000
Creativity Calling
Creativity Calling’ is the first project of its kind in London. At its core are the Flourish-Banks, that act like food banks only donating and distributing art and craft materials to those that need them. Circular and sustainable, Flourish-Bank ‘bins’ positioned throughout Westminster allow the community to donate unwanted creative resources to be redistributed.
The Pepper Pot Centre
£30,000
Harrow Road Elderly African and Caribbean Health & Wellbeing Project
Stimulate Creativity: encourage participants to express themselves through art and creative materials.
Westbourne Park Family Centre
£16412.80
£10,000
Parent Power & Westbourne Park Pantry
A 36-week programme to help young people to tackle issues on bullying, boundaries, stop & search, drugs and alcohol, peer pressure and gangs (Parent Power).
The pantry stocks a range of fresh, cupboard essentials and toiletries (fruit, vegetables, dairy, pasta, rice, cereals, toilet paper, soap etc.) The pantry provides a service for those impacted by the cost-of-living crises and may not qualify for a food bank, or who prefer to choose their food selection.
Paddington Arts
£24,000
Every Child Matters
Dance activities for age groups 6-10; 11-15; 16-22, Emotional support programme for age 8 – 18, Wellbeing programme for girls’ group, Health advice and signposting for children and families.
The Grove Think Tank
£38,000
Westbourne Holistic & Development Project
Boxing and basketball sessions for young people targeting 24-30 participants.
In Deep
£24923.86
In – Deep music therapy for children with send & Music Therapy & Art therapy for People with SEND
free weekly group music therapy sessions in Edward Wilson Primary School, senior street, w2 for children with special needs.
Abundance Arts
£21,000
Community Unity – SEND Wellbeing, Music and Art project
Interactive drumming and percussion games and stories incorporating basic sign language, enhancing sensory engagement and communication skills, including multicultural music, sign language, performances and community events.
Fun4over 50’s
£41819.32
Zumba Gold Over 50’s & Fun Social Events
Zumba Gold: specialised version of Zumba fitness program designed for older adults or those with physical limitations including community events.
Urban wise
£27397.60
Discover and Share!
Project consists of some short arts, culture and heritage courses, discovery walks and visits to places of cultural interest to build connections between people.
Blind Aid
£25,365
Reducing isolation and improving wellbeing of blind and visually impaired adults in Westminster
Blind Aid’s flagship Sight Support Project provides free ongoing home-based support to isolated, blind and visually impaired residents of Westminster.
Adebo Stitch
£29999.40
Adebo Stitch
Weekly sewing, knitting and crochet sessions for 15-20 participants per week.
Dutch Pot
£20,736
Dutch Pot Lunch & Social Club phase 2
professional wellbeing activities – chair & gentle exercises, special events for birthdays & other special days, signposting & visits from other services in Westminster and a minibus pick up door to door for the most vulnerable operates one day a week. Hand crafts, music, bingo with prizes is the highlight of the day, seaside visits and other places of interest. Cultural dancers & musical entertainers are invited to perform.
London Disability Network
£35,844
LDN London Community Hub
We run group activities and workshops for people with learning disabilities.
Kulan Somali Organisation
£29,985
SAAXIB
Weekly cultural activities/workshops such as cultural dancing, poetry, singing, cookery activities, telephone befriending service, physical activities and Nutrional meals.
Avenues
£27,750
Friday Night Seniors – The Avenues Youth Project
Youth club providing a range of activities designed to enhance health and wellbeing including sports activities – dance, basketball, MMA, table tennis and teq ball. We provide balanced nutritious meals and a space to decompress. Socially the connections are strong, and we frequently run workshops on mental health, sexual health and managing emotions.
Treasure Sports
£30,000
Making Westminster Healthier
The main activity of the project is to help uplift the most disadvantaged and vulnerable in Westminster through sports and exercise.
All Stars Youth Club
£35,552
Community Active
Kids boxing, female only boxing, Muay Thai and kickboxing.
Adventure Play Hub
£16,453.20
Saturday Play Days at Adventure Play Hub
Main activities of the project are to help uplift the most disadvantaged and vulnerable in Westminster through exercise classes as well as financial literacy and community engagement classes for children, young people and female only.
Unfold
£29,992.66
Peer Support Groups and Mentoring Programme for Women
Weekly peer support group for women in the local community in the North of the borough.
Women’s Trust
£24,000
Specialist Domestic Abuse Counselling Project
We offer an initial assessment session (IS) and then up to 18 weekly counselling sessions per client, which is longer than statutory provision (IAPT is usually 6 sessions).
The Floating Classroom
£12,618.60
Community Trips on the Floating Classroom (FC)
We are applying for funding to offer 20 trips on our electric canal barge for community groups and people accessing services provided by organizations.
St Andrew’s Club
£55,188
Active at the Andrew’s – Sports and Physical Activity Programme
St Andrew’s will support up to 150 children and adults to stay physically active, including football, basketball, yoga and other various physical activities.
Make it Happen
£7,500
Carers Mental Health
Bi-weekly group counselling sessions to provide emotional support and coping strategies. Those session are tailored for Parent Carers and offered by a credited counsellor who is a parent carer herself. The sessions will cover topics such as acceptance, managing feeling, anxiety and low mood. Other topics voted for by parents will be added.
Echo of Hope
£10,718
Strive Together
EOH will bring together leading experts, organization leaders, and housing specialists to offer invaluable advice and workshops.
Individual
£20,000
Carlys Angels Stay and Play
Activities for the stay and play sessions will include outdoor play and exploration, creative arts and crafts, music and movement, storytelling and literacy, physical activities, educational and social play, healthy eating, mindfulness and relaxation and parent engagement. These activities aim to provide a balanced mix of physical, creative, educational and social experiences, supporting children’s overall development and preparing them for future educational settings. I plan to deliver the sessions weekly, dependant on how much funding is awarded, but at least once a week session. Number of participants will be 15-30 to begin with to offer a more personal approach and avoid overwhelming families.
St Vincent’s Family Project
£20,000
SVFP Drop-In and Lunch
Our charity targets young vulnerable families on low incomes. The drop in will provide two main responses to help families affected by this, including the cost of living crises with lots of free activities for children
Individual
£8,611.26
Stay Safe Stay Creative
Intro of the project for 30 minutes, partnership delivery with STREETDOCTORS for 1 hour to empower individuals affected by violence to keep themselves and others safe and in charge of delivering FREE Knife Wound 1st Aid Training. This also include a 1-hour art therapy through artwork craft and outdo of project.
Basch Helps
£16,598
Angel Box
Emergency relief package which acts to alleviate conditions of distress, deprivation and disadvantage to parents, factors that contribute to social exclusion, self-harm & neglect
Individual
£14,890
Happy Feet Haven
We will offer people a programme of 6 reflexology sessions of 30-mins each. We will register 6 people for each 4-week block and deliver a total of 9 x 4 weeks sessions each year. This means we will be able to provide free reflexology sessions to 54 people each year. After the 30min reflexology session, people will have a 20-min foot spa session which will detoxify the feet and is a very relaxing experience.
Sport 4 Health
£17,200
Filipino Women Health and Support Project
Regular weekly indoor physical and social activities for improving physical health, and for mental wellbeing through creating strong friendship and support networks for Filipino Women. We will provide 2-hour activity sessions twice a week for 30 weeks per year (for 2 years) in both Pimlico South (at St. Gabriel’s Parish House) and Pimlico North (at Queen Mother Sports Centre). Activities (their choice) will include table-tennis, badminton, Pilates/stretching classes, etc and we aim to reach approx. 40 participants – mostly women.
Motivez
£15,000
Sustainable London
‘Engage & Inspire’, ‘Empower’ and ‘Unleash’ using a hackathon approach to build community, strengthen confidence and increase feelings of inclusivity. Through 15+ fun activities, intimate fireside chats, team-building activities, site visits, and mentoring led by relatable and inspirational young professionals (volunteers), the students will increase their awareness of how they can solve these issues through STEM.
Well Played
£17,340
Well Played Community Hubs
Invited by forthcoming ‘community hubs’ at Charing Cross/Victoria Libraries. Fulfilling established need (having completed community engagement). Increasing social barriers e.g. homelessness, isolation/mental health, increasing confidence/communication skills. Creative Writing with professional poets/writers, queer arts group and family story time.
Individual Provider
£4,000
Community Arts & Crafts Through Conversations
Through arts and craft, we allow our participants to express themselves through nonverbal and verbal cues. The activity is also key to bringing the community together. We use mainly preloved materials and encourage sustainability creating sustainable art. This process is scientifically proven to enhance mental health. Single mothers, young adults, ethnic minorities who are less unaware of sustainable living and the public.
WBWT
£25,000
Stitch, Shuttle, and Soar
The main activities of the “Stitch, Shuttle, and Soar” project include sewing classes, badminton sessions, 2 summer trips per year, along with two additional day outings for volunteers per year. The sewing classes will cater to 10-15 participants per session, with a total of 40 sessions held throughout the year. These classes provide a creative and cost-saving skill, enhancing mental well-being and community ties. Badminton sessions will host 10-12 participants per session, totalling 60 sessions over 2 years.
Chinese Community Council
£7,632
Outreach to the vulnerable
Social “hub” for older Chinese people who either live or work in Chinatown as it is a service-providing charity organisation. This fact affords us with daily face-to-face interactions with the community and hours spent building organic relationships with the people we serve, consequently developing deep insight into the complex and diverse views of disadvantaged people.
Bear Fitness
£29,659.20
Bear Fitness Street Homelessness Programme
Bear Fitness provides twice weekly fitness classes (~1 hour in length) in The Passage for people experiencing homelessness.
Pro Touch SA CIC
£37,000
Inspiring Youths in Health & Wellbeing
Physical activities programme, mental health workshops, nutritional education sessions, community engagement events.
Hotel School
£30,000
Hotel School 10-week programme
Hotel School teaches hospitality skills to people experiencing homelessness and those who are vulnerable.
Volta Theatre
£15,014
Bright Lights
Provide a 1hr after-school class three times per week, including yoga, pilates bodywork, fitness, stretching, breathing exercises, voice technique, yoga, bodyweight exercises, object-work, visualisation relaxation technique, stress management and performance science theory.
Shop and Donate
£25,000
Shop And Donate – Strengthening and Building Resilient Communities
providing residents and families with essential food and goods which will help them with their health, diet and nutrition.
Individual provider
£10,000
Lunchtime Meals for Homeless
The main activities are: preparing/sourcing the lunchtime meals
Age UK, Westminster
£15,000
Maintenance Cognitive Stimulation Therapy (MCST) & Outreach Project
Over 24-months deliver 2 MCST sessions weekly for Westminster residents aged 60+ and family/carers. Each 2-hour session provides structured, and cognitively stimulating activities.
The Feathers Association
£40,000
Community Inclusion Project
Youth club, cultural events, residentials, vocational traing, including first aid, food sfety, & sports development.
Mala CHERGA Theatre
£59,732
Yoga and Dance for Adults and Children
Mixed yoga class for men & women in the evenings, yoga class for women only in the mornings.
49
Photojournalism Hub CIC
£19,218
Seeing the Green
A nine-month project for 20 beneficiaries, each session will include learning documentary photography, followed by practical photography and group activities.
50
Creative Futures Ltd (London)
£20,000
Community Families
Community Families consists of 8 completely free music sessions every week during term-time for families with children aged 0-4 years old in north Westminster. (Nurture groups)
51
London Tigers
£47,398
Tigers Connect: Supporting and empowering young people
Sports to break down barriers of fear and distrust between communities including football, basketball, sports events, mentoring and volunteering activites.
52
North Paddington Youth Club
£40,000
NPYC Intergenerational Project
Youth club which provides health and fitness sessions and some therapeutic gardening sessions in our brand new 4 story building in Maida Vale.
53
Daily Veda
£22,260
Little Lotus Meditation and Breathwork Sessions
deliver weekly yoga sessions for 30 children which would consist of 3 x weekly sessions of 10 children per group.
54
Earth Living
£15,000
Wellbeing Food Drive
Our project supports over 70 residents who rely on our services, providing full-course meals, massage services for chronic pain relief, providing food parcels as we work with the local food banks to deliver the food parcels to the resident of Westminster.
55
Community for all
£30,000
C4A’s Community Domino Effect (DE)
DE is a bespoke culturally appropriate service that celebrates Caribbean culture whilst empowering individuals to make positive choices around health and lifestyle. DE provides a weekly social space that includes dominoes, music and food. It provides vital connections in the community for vulnerable isolated individuals as well as routine in a friendly environment.
56
Right at home
£6,000
Memory Café for above 65 & carers
The project aims to assist remote, localised communities by organising educational sessions on various subjects such as falls prevention, nutrition, home infection control, art, and chair exercises conducted by our team of senior physiotherapists.
57
West London Doulas
£26,843.5
Free Birth Preparation Classes
run 8 free, 8 week antenatal courses, for expectant parents. Each weekly session is themed and led by a specialist speaker on that topic. Participants have the opportunity to ask questions and discussion is encouraged. Each session includes yoga and relaxation to promote physical and mental health and wellbeing.
58
Zodiac Arts / Sports4all
£29487.30
Bee fit
Main activities of our project is to enhance health and well-being, community safety, and community development through chair based yoga, hydro swim sessions and windrush workshops.
59
7 Spheres
£28,976
Church Street Community Cohesion Project
Yoga & Mindfulness and chess club
60
Individual
£19,010
Dodge the Laziness
Dodgeball sessions for children and young people
61
Individual
£15,450
Exploring Themes and Cultures through mosaics
Aims to reconnect children through 20 mosaic sessions, offering a fun environment to learn new skills/techniques. The final goal is for children to create a collaborative artwork for donation to hospitals/hospices/care homes.
62
Financial Harmony
£14,402
Thrive & Tribe: Building Strong Futures Together
Fun workshops for young people to learn about financial concepts like budgeting and credit management.
63
Harrow Road Soup Kitchen
£18,730
HRSK Mentoring
Training and mentoring for young people confidence-building, career exploration, and gaining real-world experience.
64
Plant Environment
£20,250
What’s Growing On
Gardening and environmental awareness for the community
65
Cartoon Studios
£23,400
JKCS: Arty and Wellbeing Wednesdays
Health and wellbeing workshops and events through art for mum’s, young & vulnerable people.
66
Vital Connections
£12,600
“I Am – A Woman’s Voice”
67
ESP Foundation
£30,000
Girls Allowed
Sports and wellbeing activities for young girls.
68
Family Friends UK
£9,898
Family Friends Befriending
Befriending and mentoring service for families from disadvantaged communities.
69
Jojays
£14,000
Jojays Community Lunch Club
Help the local community improve their physical health and tackle social isolation through healthy meals.
70
MEWSO
£21,480
Women’s Circle II
Sewing classes and walk & talk sessions for women – predominantly from the middle eastern background.
71
PACE
£18,984
PACE Boccia at Beethoven
Bespoke physical activity programmes, including coaching in Boccia for all.
72
Progressay
£4,384
Girl Power – Football for Girls
Football sessions for girls, including information and advice, parent support group and tuition classes
73
Queen’s Park Bangladeshi Association
£20,222
Let’s Get Moving!
Sports & physical activities programmes to increase participation amongst the BME communities.
74
Queen’s Park Community Council
£20,000
Queen’s Park Youth Holiday Camps
Youth activities for youths during the school holidays.
75
GarmHub
£15,158
GarmHubs – Clothes Bank
Clothes Bank
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MIL-OSI: 45.5 million in financing to accelerate Laserax’s international growth
Source: GlobeNewswire (MIL-OSI)
QUEBEC CITY, Oct. 23, 2024 (GLOBE NEWSWIRE) — Laserax announces the raising of $45.5 million in its Series C financing led by the Business Development Bank of Canada, BDC, through its Industrial Innovation Venture Fund, with significant participation from existing investors Investissement Québec (IQ), Desjardins Capital. The package also includes a new credit facility from Desjardins Technologie & Innovation and support from the National Research Council of Canada (NRC-IRAP). This achievement testifies to the investors’ confidence in the Québec-based company’s ability to materialize its ambitious growth plan aimed at making it a world leader in the industrial laser technology sector.
“In an ecosystem where successful start-ups are too often bought by foreign multinationals, this round of financing sends a strong message to our industry that Laserax is fully committed to its ambition to conquer and dominate the market. Beyond this investment, which will substantially accelerate our organic growth, we intend to rapidly add other financial tools to make strategic acquisitions in order to strengthen our geographic positioning and diversify our technological portfolio”, says Xavier Godmaire, President of Laserax.
A PLAYER IN THE ENERGY TRANSITION
Through its many innovations, Laserax is actively participating in the transition to a greener, more efficient economy by developing laser technologies that have a major impact on the productivity and carbon footprint reduction of its manufacturing customers.
The company is particularly active in the transportation electrification and renewable energy production markets. Laserax has a strong intellectual property position, guaranteeing protection and differentiation of its technologies. The new investments will be used in particular to accelerate Laserax’s innovation velocity through the hiring of new talent and the acquisition of specialized equipment.
“Over the past 14 years, Laserax has built strong relationships with leaders in the transition to electric vehicles (EVs) and battery manufacturers. We have a team of brilliant professionals, and I’m very proud to be pushing the boundaries of laser with them to propel Laserax to new heights,” insists Alex Fraser, CTO and co-founder of Laserax.
QUOTES
“Laserax continues to assert its leadership in industrial laser solutions. With an experienced management team and exceptional technological know-how, the company is well-positioned to seize significant market share in a rapidly transforming sector. BDC is proud to lead this round of financing and contribute to the energy transition by supporting the development of more sustainable industrial innovations.”
Geneviève Bouthillier, Executive Vice President, BDC Capital“With its innovative technologies, Laserax plays an important role in the manufacture of electric vehicles and batteries that are at the heart of Quebec’s energy transition. We’re proud to support this dynamic company in its initiatives to enhance its performance and make its ingenuity more widely known in industries committed to decarbonizing our economy.”
Christine Fréchette, Minister of the Economy, Innovation and Energy, Minister responsible for Regional Economic Development and Minister responsible for the Greater Montreal Area“Laserax continues to grow in the Capitale-Nationale region with this major investment project. Already recognized for its expertise in technological innovation, the company is taking another step forward to strengthen its competitiveness and accelerate the production of its laser solutions, which are assets for the electrification of transportation and energy storage in all our regions.”
Jonathan Julien, Minister responsible for Infrastructure and Minister responsible for the National Capital Region“As a financial partner of Laserax since 2013, Desjardins Capital is proud to once again support Laserax in its growth. From its modest beginnings as a startup with a few employees in the basement of Laval University, Laserax has become a young multinational. It is now a major player in the automotive industry. Laserax embodies our ability to support Quebec entrepreneurs at every stage of their growth.
Nathalie Bernard, Chief Operating Officer, Desjardins CapitalABOUT LASERAX
Founded in 2010, Laserax is an innovative company specializing in industrial laser solutions. With over 115 employees, the company has recorded an average annual growth rate of 60% in recent years, and is forecasting revenues of $100 million in 2026-2027. Headquartered in Quebec City, the company also operates facilities in Michigan, Germany and Japan.
SOURCE
Laserax | LinkedIn | Facebook | YouTube
MEDIA CONTACT :
Anne-Marie-A. Savoie | annemarie@fernandezcom.ca | C 418 934-7448
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MIL-OSI USA News: On-the-Record Press Call on the G7’s Extraordinary Revenue Acceleration Loans Effort
Source: The White House
Via Teleconference
9:09 A.M. EDT
MODERATOR: Good morning, everyone. Thanks so much for joining today’s call to discuss the G7’s Extraordinary Revenue Acceleration loans effort for Ukraine.
As a reminder, this call is going to be on the record, and it is embargoed until its conclusion.
The speaker on today’s call is Daleep Singh, who’s the White House Deputy National Security Advisor for International Economics. He’ll have a few words at the top, and then we’ll take some of your questions.
With that, Daleep, I’ll turn it over to you.
MR. SINGH: Thanks, Eduardo. Thanks, everybody, for joining.
Since Russia’s invasion began over two years ago, the United States has rallied the world to defend Ukraine’s freedom, leading a coalition of allies and partners to surge security, economic, and humanitarian assistance, while spearheading unprecedented efforts to impose costs on Russia for its senseless aggression.
At the G7 Leaders’ Summit in Apulia this June, the United States proposed an idea to ensure Putin pays for the damage he’s caused in Ukraine by committing we issue $50 billion in loans to Ukraine, backed by the interest earned on the Russian sovereign assets we collectively immobilized just after the invasion began. We call these Extraordinary Revenue Acceleration loans.
Today, we’re announcing that of the $50 billion G7 commitment, the United States plans to provide a loan of $20 billion. The other $30 billion in loans will come from a combination of our G7 partners, including the European Union, the United Kingdom, Canada, and Japan.
To be clear, nothing like this has ever been done before. Never before has a multilateral coalition frozen the assets of an aggressor country and then harnessed the value of those assets to fund the defense of the aggrieved party, all while respecting the rule of law and maintaining solidarity. And as a result, Ukraine will receive the assistance it needs now without burdening our taxpayers.
As we committed in June, the G7 will begin disbursing assistance for the benefit of Ukraine by the end of this year so that we can meet Ukraine’s urgent needs as we approach the winter, while sending an unmistakable signal: The United States and its G7 partners will not fatigue. We will continue to use our creativity and collaboration to support Ukraine’s fight for independence and sovereignty. And tyrants are responsible for the damages they cause, not U.S. taxpayers.
It’s also a testament to this administration’s belief that multilateralism is a force multiplier. We couldn’t have done this by ourselves. The income used to repay these loans will be generated from frozen Russian assets held in the European Union. This is another example of how Putin’s war of aggression has unified and strengthened the resolve of G7 countries and our partners to defend shared values. It’s also a model for how we can rally our closest allies towards a shared purpose while ensuring that each country contributes its fair share.
Let me give you a few more details, and then I’ll be happy to take your questions.
So, the United States will provide at least $10 billion of our loan via economic support. The World Bank recently established what’s called a financial intermediary fund for Ukraine, which will be the vehicle through which we will disburse U.S. loan proceeds for economic support to Ukraine.
The financial intermediary fund, or FIF, will be subject to robust accountability and transparency measures, much like those used for existing U.S. economic assistance to Ukraine.
The United States also hopes to provide up to $10 billion
of our loan as U.S. military support, but our ability to do that relies on Congress taking action before mid-December on certain legislative changes that allow us to make loans for military support under the contours of this broader G7 initiative.
To be clear, either way, the U.S. will provide $20 billion in support for Ukraine through this effort, whether it’s split between economic and military support or provided entirely via economic assistance.
In terms of next steps, the United States will now work with Ukraine to sign loan agreements in order to execute the loan and begin disbursing funds for the benefit of Ukraine before the end of this year. More details will be available at the conclusion of the G7 finance ministers meeting later this week or early next.
Let me stop there and take your questions.
MODERATOR: Thanks. If folks have questions, please use the “raise your hand” function on Zoom and we’ll turn to you.
First up, we’ll go to Alan Rappeport. You should be able to unmute yourself.
Q Hi. Thanks very much, Daleep. A couple things. One, can we expect a G7 statement today saying that this is fully done? Because I know, yesterday, Secretary Yellen said it was 99 percent done.
And then, second of all, can you explain how the U.S. has gotten around the need to appropriate any funds to account for the risk associated with the loan? I know there were concerns about the EU needing to extend its sanctions renewal period, or something like that, to minimize the risk.
MR. SINGH: (Inaudible.) (Audio muted) — from partners, if we had sufficiently strong repayment assurances from the immobilized assets. And since the Leaders’ Summit, we’ve engaged in intensive diplomacy and technical negotiations every day with our partners to secure the strongest possible repayment assurances.
Let me just mention a few. Number one, the EU Council released a statement at the end of June, and again in October, from all 27 EU heads of state to keep Russia’s central bank assets immobilized until there’s a just peace with a free and sovereign Ukraine and until Russia pays for the damages it’s caused. This represents an expansion of the G7 leaders’ commitment to the entire EU, including Hungary.
Number two, equal burden sharing. So, the EU committed to provide at least $20 billion in loans alongside the United States, which means the Europeans have equal skin in the game and, therefore, fully aligned incentives to keep the assets immobilized until we get fully repaid.
Number three, we’ve worked with Ukraine on loan agreements under which, at the conclusion of this war, Ukraine would use settlement proceeds it receives from Russia towards repayment of these loans.
Number four, we’ve negotiated loan terms with our partners that further reduces any fiscal risks to the U.S. taxpayer.
And number five, history. You know, the EU has had sanctions in place against Russia for almost 10 years now. Every six months, those sanctions need EU unanimity to get rolled over for another six months. And, yes, there’s grandstanding and drama, but the EU has built a track record of staying the course, and that adds to our confidence that Russia’s sovereign assets will remain immobilized until Russia ends its war and pays for the damages it’s caused.
One last point, Alan. I’m sorry to belabor this, but it’s a really important question. While we have found a way to move forward without legal changes to the EU sanctions regime, we will keep pushing for those changes to get made.
MODERATOR: Alan, I think we had a little bit of trouble hearing the first part of your question, if you could ask that again.
Q Oh, sorry. Yeah. I think maybe — or maybe you were muted in the first part of your response. I was trying to understand if there was going to be a G7 statement today and if this is fully done now. I know Secretary Yellen said it was 99 percent done yesterday.
MR. SINGH: Oh, I’m sorry if you didn’t hear me. You should expect further statements today, both from the United States and from the G7.
MODERATOR: Next up we’ll go to Victoria. You should be able to unmute yourself.
Q Hi. Thank you. I just had a couple of questions. First, I was wondering if you could explain a bit the part you talked in the beginning on the Congress contribution side of things. What needs to happen from Congress exactly for the $10 billion, the second half, to come through the military aid part? Is it a matter of using appropriations that have happened already, different appropriations? If you could just explain that. And just to clarify that if that doesn’t happen, you could give the other ten through economic support.
And then, just a second question on the timing of things. I’m just wondering if you could talk us through how frontloaded you expect this load to be, as in, you know, do you think over the next couple of months we’re going to get a big chunk of it over to Ukraine? Just the timeline of the disbursements. Thank you.
MR. SINGH: Sure. So, on the second part of your question, we expect to disburse at least half of our $20 billion loan to the World Bank Trust Fund this December, and possibly the entire amount.
And this kind of gets to your first question: We do need authority from Congress to raise the amount of foreign military financing we can provide to Ukraine and also to make certain technical changes that would allow us to split the loan in half between economic assistance and security assistance. And we’ll be having conversations with Congress between now and December to assess those odds.
MODERATOR: Next up, we’ll go to Colby Smith.
Q Hi. Thank you so much. I just wanted — a couple questions just to follow up on — in terms of assessing the odds. Did you have, kind of, an initial assessment as it stands today? And how do you kind of — do you expect that support to come through?
And then, just more specifically on the economic support side of things, can you just mention a couple of specifics there in terms of how you expect this money to be used?
MR. SINGH: Sure. Thanks, Colby. So, I just want to be clear: The only question we’re talking about here is the split between economic assistance and security assistance. We’re going to provide $20 billion either way.
But, you know, we’ll work with Congress over the next few months to assess whether we can get sufficient authority through foreign military financing loan guarantee authorities to provide half of our assistance through military support.
In terms of your question, Colby, on what kinds of projects could the economic assistance support, you know, I would highlight a couple: Energy assistance. So, we all know Ukraine is at risk of being plunged into cold and darkness this winter. Helping to fund the rapid repairs that will be needed to stabilize the grid and also to provide passive protection against drone attacks for substations and transformers. That’s an urgent priority that we hope this assistance can help meet.
There are a number of other initiatives that relate to Ukraine’s infrastructure that can create the conditions for an eventual economic recovery that we expect this fund can also support through World Bank project support.
And there are many other projects that we can assess, but those are just a couple of examples.
MODERATOR: And our last question will go to Daniel. You should be able to unmute yourself.
Q Hi. How are you doing? Thank you for taking my question. I wanted to ask about any potential Russian reprisals. I know that was a large consideration when you guys were determining the mechanism for these loans. Are you guys expecting any kind of retaliation? And do you guys have any preparations for that, whether it be European assets or American? Thank you very much.
MR. SINGH: Well, Russia has been expropriating assets, seizing assets, really, from close to the beginning of its invasion. So, nothing — nothing new would change on that front if they continue to do so.
I would just make clear, though, that the revenues that we are using to repay these loans, under European law, these revenues don’t belong to Russia. It’s actually contractual law. The interest earned doesn’t belong to Russia but rather the custody in Belgium. And so, we don’t view this as a seizure of Russia’s assets, per se.
MODERATOR: Thanks, everyone. Thanks for joining. If there are any follow-up questions, do reach out to us, and we’ll get back to you.
As a reminder, this call was on the record, and the person you heard from was Daleep Singh, Deputy National Security Advisor for International Economics. The embargo on this call is now lifted. Thanks again.
9:23 A.M. EDT
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MIL-OSI: Landmark Bancorp, Inc. Announces Conference Call to Discuss Third Quarter 2024 Earnings
Source: GlobeNewswire (MIL-OSI)
Manhattan, KS, Oct. 23, 2024 (GLOBE NEWSWIRE) — Landmark Bancorp, Inc. (Nasdaq: LARK) announced that it will release earnings for the third quarter of 2024 after the market closes on Wednesday, October 30, 2024. The Company will host a conference call to discuss these results on Thursday, October 31, 2024 at 10:00 am (CT). Investors may listen to the Company’s earnings call via telephone by dialing (833) 470-1428 and using access code 242414. Investors are encouraged to call the dial-in number at least 5 minutes prior to the scheduled start of the call.
A replay of the earnings call will be available through November 30, 2024, by dialing (866) 813-9403 and using access code 908094.
About LandmarkLandmark Bancorp, Inc., the holding company for Landmark National Bank, is listed on the NASDAQ Global Market under the symbol “LARK.” Headquartered in Manhattan, Kansas, Landmark National Bank is a community banking organization dedicated to providing quality financial and banking services. Landmark National Bank has 30 locations in 24 communities across Kansas: Manhattan (2), Auburn, Dodge City (2), Fort Scott (2), Garden City, Great Bend (2), Hoisington, Iola, Junction City, Kincaid, LaCrosse, Lawrence (2), Lenexa, Louisburg, Mound City, Osage City, Osawatomie, Overland Park, Paola, Pittsburg, Prairie Village, Topeka (2), Wamego and Wellsville, Kansas. Visit www.banklandmark.com for more information.
Contact:
Mark A. Herpich
Chief Financial Officer
(785) 565-2000 -
MIL-OSI Economics: Joint IMF-Regional Financing Arrangements Press Release on the Ninth High-level RFAs Dialogue
Source: International Monetary Fund
October 23, 2024
Washington, DC: The 9th High-level Regional Financing Arrangements (RFAs) Dialogue was held on 23 October 2024 in Washington DC at a time when the global economic outlook is improving but remains weak amid a complex geoeconomic environment and elevated policy uncertainty. The heightened volatility observed in global financial markets over the summer reaffirmed the importance of having a strong Global Financial Safety Net, including effective collaboration between the International Monetary Fund (IMF) and RFAs, to safeguard against external risks.
During the dialogue, representatives from the IMF and the RFAs (the Arab Monetary Fund, the ASEAN+3 Macroeconomic Research Office cum the Chiang Mai Initiative Multilateralisation, the BRICS Contingent Reserve Arrangement, the Eurasian Fund for Stabilization and Development, the European Commission, the European Stability Mechanism, and the Latin American Reserve Fund) provided an update on institutional activities since their last meeting in October 2023 in Marrakech, covering a range of issues from policy and instrument enhancements to capacity and analytical developments.
The exchange demonstrated the RFAs’ continued efforts to prepare their institutions for an uncertain economic and financial landscape, marked by risks of geoeconomic fragmentation, the threat of climate change, and a transforming global economy under the influence of artificial intelligence and digital progress.
The IMF is continuing to adapt to ensure that its policy advice, financial resources, and capacity development can best support its global membership. IMF staff updated RFAs on recent lending toolkit reforms that directly benefit its membership while reinforcing the IMF’s strong financial position. The recently completed Review of Charges and the Surcharge Policy reduces charges and surcharges on regular IMF lending, and the Review of the Poverty Reduction and Growth Trust puts in place a comprehensive package that secures the concessional lending capacity to support low-income countries. IMF staff also discussed how the institution is implementing its Climate Strategy across its operations. As the institution at the center of the global financial safety net, the IMF serves as a critical platform for cooperation to tackle global economic challenges.
The IMF and RFAs appreciated the exchange of views with Joaquim Levy and Siddharth Tiwari, in their capacity as members of the Bretton Woods Committee Multilateral Reform Working Group, on how to empower multilateralism amid geoeconomic fragmentation. The roundtable discussion offered an opportunity to explore the role that RFAs can play in advancing global solutions to shared challenges. The RFAs stressed that the IMF and the World Bank, with their global memberships and decades-long expertise, are best suited to take the lead in such efforts. The RFAs can support the Bretton Woods institutions’ work by leveraging their regional knowledge and the close ties that they have cultivated with each other and the IMF in recent years. Participants also welcomed the timely update from the French co-chair of the G20 International Financial Architecture Working Group on the group’s priorities, especially on its quest towards a more effective and representative global financial architecture.
Recognising that the system of international cooperation is under strain, the IMF and RFAs reiterated their continued commitment to maintain an open and candid dialogue to share crisis experiences and expertise and support multilateralism.
The 9th Joint RFA Research Seminar will be held in Colombia in the first half of 2025. The 10th High-level RFA Dialogue will be convened at the margins of the next IMF/World Bank Annual Meetings in October 2025.
IMF Communications Department
MEDIA RELATIONS
PRESS OFFICER: Julie Ziegler
Phone: +1 202 623-7100Email: MEDIA@IMF.org
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MIL-OSI Reportage: Scammers undeterred: 9 in 10 NZers targeted, but reporting surges
Source: BNZ statements
New research from BNZ highlights the unrelenting onslaught of criminal scammers facing New Zealanders, with nearly nine in ten Kiwis reporting they’ve been targeted by scammers in the past year.
BNZ’s annual Scam Savvy survey found that 87% of New Zealanders were targeted by scams in the past 12 months, virtually unchanged from 2023 (88%).
However, in a positive shift, New Zealanders are fighting back: despite persistent attacks, the proportion of people reporting scams to organisations like banks, police, and Netsafe, has jumped to 70%, up from 62% in 2023 and a mere 46% in 2022.
BNZ Head of Financial Crime, Ashley Kai Fong, says, “While it’s concerning that scammers continue to target Kiwis at such a high rate, we’re pleased to see a significant increase in scam reporting.
“This shift suggests that our efforts to raise awareness and encourage action are paying off. However, it’s crucial to remember that if you suspect you’ve been scammed, you should always call your bank immediately. Quick action can often help prevent or limit financial losses.”
Key findings from BNZ’s 2024 Scam Savvy survey include:
- Government impersonation scams have increased, with 52% of respondents targeted by this type of scam in the last 12 months, up from 45% in 2023
- Email remains the most common scam channel, with 34% of scam victims targeted this way.
- Website-based scams have more than doubled, with 22% of scam victims being contacted this way, up from 9% in 2023
- Social media remains a significant channel for scammers, with 22% of respondents encountering scams on these platforms
- 1 in 8 respondents fell victim to a scam in the last 12 months, with 7% losing money
“The tactics used by scammers are constantly evolving, so the increase in reporting is a crucial step in our collective fight against fraud – every report makes it harder for scammers to operate. We’re seeing a real shift in attitudes, with more people recognising the importance of speaking up,” Kai Fong says.
In response to the evolving scam landscape, BNZ recently launched another anti-scam tool. The ‘online banking lock’ feature gives customers the ability to disable all online banking activity and lock access to their online banking if they suspect a scammer has gained access to their accounts.
“This new tool – available in the BNZ app – gives customers the ability to lock their online banking while they’re contacting us, potentially speeding up the process to lock their accounts and shut scammers out,” says Kai Fong.
The online banking lock is just one of a number of new features BNZ has introduced, including:
- Introducing a way for customers to verify their identity through the BNZ app when prompted by a BNZ staff member to confirm it is the bank calling.
- Introducing additional two-factor authentication (2FA) within internet banking for high-risk actions such as changing personal contact details, creating a new payee, editing an existing payee, or making payments to unsaved payees. This is required regardless of whether a customer has already completed 2FA in their current session.
- Deploying ID readers in branch to help identify fraudulent documents.
“While we’re making progress and introducing new protective measures, our research underscores the need for continued vigilance and education. We urge all New Zealanders to stay informed about the latest scam tactics and to report any suspicious activity immediately.
“Remember, reporting a scam isn’t just about your own protection—it could prevent someone else from becoming a victim too,” says Kai Fong.
Keeping account details, passwords and pin numbers safe
- never click on links or attachments sent by someone you don’t know or that seem out of character for someone you do know
- keep your computer and phone security software up to date
- contact your bank as soon as possible if you think you’ve been scammed
Top tips to get scam savvy – BNZ will never:
- email or text you links to online banking and ask you to log in
- send you a text message with a link to a website, or link to call us
- ask you for information about your PIN number, bank account number, or password
- ask you to verbally share the authentication codes sent to you by text or email, even with a BNZ staff member
- ask you to transfer money to help catch a scammer or a bank employee who is scamming customers send you a text message about account issues with a link to log in
- ask you to download software to access your Internet Banking remotely
- use international phone numbers to call or send you notifications.
The BNZ Scam Savvy research was commissioned by BNZ using the Insights HQ my2cents online research panel. Responses were collected between July 30 and August 16, 2024, with a sample size of 1,263 New Zealanders. The sample was weighted to be nationally representative on region, age and gender.
The post Scammers undeterred: 9 in 10 NZers targeted, but reporting surges appeared first on BNZ Debrief.
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MIL-OSI: PCBB and Finzly Partnership Boosts International Payment Services
Source: GlobeNewswire (MIL-OSI)
WALNUT CREEK, Calif., Oct. 23, 2024 (GLOBE NEWSWIRE) — PCBB and Finzly, two leading innovators in the financial payments industry, have formed a strategic partnership to deliver enhanced international payment services to Finzly’s customers. PCBB is the first bankers’ bank to provide services to Finzly BankOS, a 24/7 real-time platform designed to help financial institutions accelerate their payment transformation.
Integrating with PCBB’s payment services means access to straight-through processing of foreign wire transfers, Swift GPI tracking, and enhanced transparency into payment statuses. As a result, Finzly customers can process international wires faster, more easily, and with greater efficiency for a seamless cross-border payment experience.
“We’re excited to enable integration of our services with Finzly BankOS. This collaboration not only enhances the payment capabilities of our partners, but also reinforces our position as a leading solutions provider in the financial services industry,” said Sheila Noll, Chief Operating Officer at PCBB. “We are continuously building strategic relationships that are focused on delivering seamless solutions to help financial institutions stay ahead in an evolving market.”
Finzly equips financial institutions with speed and agility to transform their payment operations through its award-winning Finzly BankOS platform. Booshan Rengachari, founder and CEO of Finzly stated, “This partnership with PCBB perfectly aligns with our mission to empower customers to innovate and compete through customer-centric solutions. By broadening our partner ecosystem, we’re providing our customers with greater flexibility and control over their international payments, particularly in areas like pricing and liquidity management.”
This new partnership underscores PCBB’s commitment to expanding the reach of its solutions with strategic API enablement. While this integration focuses on foreign wires, it taps into just one of the many APIs PCBB offers its customers, including domestic wires and international cash letter clearing. This latest integration aligns with PCBB’s goal of meeting customers where they are, offering flexibility and accessibility, while enhancing the overall experience for their end users. It’s another key step in advancing PCBB’s vision to deliver scalable and integrated financial solutions, including through innovative technology partnerships.
About Finzly
Finzly helps banks and credit unions thrive in a real-time, connected world with its BankOS platform. Financial institutions can quickly launch instant payments on FedNow and RTP, modernize ACH and wire transfers, and orchestrate payments through a unified API and ISO 20022-native payment hub. Finzly, recognized with multiple awards, also offers advanced FX solutions to help banks attract corporate and enterprise treasury customers. For more information, visit www.finzly.com.About PCBB
PCBB believes in the power of local financial institutions to be the catalyst of small business growth and to enable communities to thrive. Our team is committed to providing not only the tools and knowledge our customers need to serve their clients, but also the partnership and trust they deserve. Our robust suite of competitive services includes cash management and international services, lending solutions, and profitability and risk management advisory services. These solutions help community financial institutions maximize revenue, increase efficiency, and manage risk. For more information, visit www.pcbb.com.Media Contact:
Nancy Ozawa
PCBB
nozawa@pcbb.com
(888) 399-1930 x177 -
MIL-OSI: Transom Capital-backed Artivo Surfaces Acquires Tom Duffy Company
Source: GlobeNewswire (MIL-OSI)
LIVONIA, Mich. and LOS ANGELES, Oct. 23, 2024 (GLOBE NEWSWIRE) — Artivo Surfaces, the Transom Capital-backed parent company of Virginia Tile, Galleher, and Trinity Hardwood, is acquiring Tom Duffy Company, a strategic move that significantly strengthens Artivo’s position as a market leader in the tile and flooring industry. With its extensive portfolio of installation materials, hardwood, luxury vinyl tile (LVT), and tile solutions, Tom Duffy brings valuable expertise and a diverse product offering to Artivo’s growing family of products and capabilities.
“For over 70 years, Tom Duffy has earned its place as a trusted partner in the flooring industry,” said Sunil Palakodati, CEO of Artivo Surfaces. “This acquisition expands Artivo’s platform and strengthens our core capabilities. By bringing together Tom Duffy’s exceptional team, strong industry relationships, and loyal customer base, we’re enhancing our ability to serve residential and commercial markets across the country with a broader range of flooring solutions.”
Anne Funsten, President, and CEO of Tom Duffy Company expressed her enthusiasm about joining Artivo Surfaces: “We are thrilled to become part of Artivo Surfaces. This partnership not only enables us to scale our business but also preserves the legacy we have built in an ever-changing market. Artivo’s forward-thinking vision and robust resources create the perfect foundation for our continued growth while allowing us to strengthen the trusted relationships we have nurtured over the decades.”
“This acquisition marks an exciting milestone as Artivo continues to expand its reach and capabilities,” said Steve Kim, Principal at Transom Capital Group. “Tom Duffy has been well known in the West Coast for decades, and their inclusion in the Artivo family strengthens its ability to provide customers with even more comprehensive and innovative solutions. Tom Duffy is Transom Capital’s third acquisition in less than twelve months in this vertical, and we are proud to support Sunil and his leadership team in building a premier surfaces platform.”
Kirkland & Ellis LLP served as legal advisor to Transom Capital and PNC Bank, N.A. and Blue Torch Capital provided debt financing for the transaction. Wood Warren served as the exclusive financial advisor and Sheppard, Mullin, Richter & Hampton LLP served as legal advisor to Tom Duffy.
About Artivo Surfaces
Artivo Surfaces is a multi-regional flooring company and parent company to the Virginia Tile, Galleher LLC, Trinity Hardwood Flooring and Tom Duffy brands. The company’s network covers 48 locations in over 18 states, and they provide a comprehensive range of flooring solutions from coast to coast. Its extensive portfolio features a diverse selection of ceramic, porcelain, natural stone, hardwood, luxury vinyl, and all necessary installation materials. Combining a century of expertise with innovative design and premium products, serving both residential and commercial markets. Artivo’s scale enables it to deliver industry-leading products and solutions while preserving the personalized, high-touch service its customers depend on.About Transom Capital Group
Transom Capital Group is an operations-focused private equity firm focused on investing in the middle market. The firm strives to create long-term value by partnering with established businesses and helping them navigate transformative growth. Transom’s functional pattern recognition, access to capital, and ARMORSM Value Creation Process, combined with management’s industry expertise, drive improved operational efficiency, top-line growth, cultural transformation, and distinctive outcomes. Transom is headquartered in Los Angeles, California.Media Contact
Sam Butler for Transom Capital
sam@35thAvenuePartners.com -
MIL-OSI USA: Beatty & Waters Lead Call for Stronger, More Accountable IFIs
Source: United States House of Representatives – Congresswoman Joyce Beatty (3rd District of Ohio)
WASHINGTON, DC – Today, Congresswoman Joyce Beatty (D-OH), the Ranking Member of the Subcommittee on National Security, Illicit Finance, and International Financial Institutions, and Congresswoman Maxine Waters (D-CA), the top Democrat on the House Financial Services Committee announced plans this week to introduce a legislative package aimed at strengthening and reforming the International Financial Institutions. With the Annual Meetings of the International Monetary Fund (IMF) and the World Bank Group underway, this bill will help initiate reforms related to transparency, accountability, and institutional management. Specifically, this bill seeks to hold accountable the persons involved in the child sexual abuse scandal at the Bridge Academies project in Kenya, eliminate onerous loan conditions on developing or distressed countries, improve the debt forgiveness efforts of the IFIs, reduce reliance on Russian agriculture, combat corruption, and more.
“Countries around the world continue to face significant social and economic challenges, from corruption and human rights abuses to debt sustainability crises and the disastrous effects of climate change,” said Congresswoman Beatty. “International Financial Institutions (IFIs) have done substantial work to promote financial stability, poverty reduction, and economic development, but they can do more to address systemic inequities and facilitate debt relief for distressed countries. I am proud to join Ranking Member Waters in introducing this package of meaningful reforms to increase transparency and accountability at the IFIs, strengthen support for low-income countries, and establish robust human rights protections.”
“Over the years, our International Financial Institutions (IFI) have played a crucial role in establishing international order and addressing some of the most pressing economic challenges across the globe,” said Congresswoman Waters. “Despite this success, there have been troubling instances of child abuse, corruption, discrimination, and mismanagement that has hindered IFIs from reaching their full potential. I am eager to advance this bill to the President’s desk and look forward to working across the aisle on ways to strengthen the IMF, World Bank and other Development Banks so that they can create a more equitable and prosperous global economy.”
Key provisions in the legislative package include:
- Treasury Report on Accountability of the World Bank in Child Sexual Abuse – This provision would mandate that Treasury report to Congress on a quarterly basis on actions completed by the World Bank to compensate survivors of child sexual abuse, including with financial compensation and other relief, and to hold accountable those involved in the Bridge Academies project. The quarterly report to Congress must also include details of reforms adopted by the International Finance Corporation (IFC) to prevent such failures in the future, as well as any steps taken by the IFC to impede Treasury from sharing any information around this report or the Bridge Academies case with Congress.
- Anti-corruption measures in lending agreements – This provision states that the US press for the incorporation of anti-corruption measures in lending agreements at the IMF to build sustainable economies. Such measures must include ensuring that governments receiving loans make specific, measurable, and time-bound commitments as part of the loan agreements, with consequences for noncompliance.
- Protections for human rights, including LGBTQ+ persons – This provision would mandate that Treasury oppose the World Bank providing financial assistance to countries that engage in the human rights abuses as reported in the State Department’s Annual Country Reports on Human Rights Practices, including those of people who identify as LGBTQ+.
- Loan Conditions – This provision states that the U.S. encourage the reduction or elimination of loan conditions that: limit spending on key social needs such as health, education, or climate action; weaken environmental, labor, public health regulations; or increase taxes or reduce subsidies in such a way that falls regressively on recipient country populations.
- Reporting on Human Rights Abuses in For-Profit Healthcare – This provision mandates that Treasury report to Congress on a biannual basis on any known accusations made by community groups, CSOs, media, or other credible actors, of human rights abuses at MDB-funded, for-profit hospitals, included those funded by the IFC, and on actions completed by the MDB private sector arms to investigate and address or respond to these accusations. This provision also mandates that the U.S. advocate for the MDBs to examine their investments in healthcare to determine contribution to universal health coverage, the strengthening of national health systems, and the reduction of health inequities.
- Resilience and Sustainability Trust (RST) Financing – This provision would amend the most recent appropriations law so that U.S. money could be used to finance loans to the RST in addition to the Poverty Reduction and Growth Trust. This is important because the Republicans cut the RST out from potentially receiving loans.
- Quota Increase – This provision would authorize an equiproportional increase in quota at the IMF consistent with the increase Treasury negotiated with the IMF Member countries. If Congress passes this provision the US would retain its veto power and percent of shareholding at the IMF and China’s share would not increase (even though it probably should based on its growth). At the IMF, Member countries’ maximum financial commitments to the Fund are called “quota.” Quota is broadly matched to a Member country’s relative position in the world’s economy, and voting shares at the IMF are in line with how much quota a country pays. This was in President Biden’s most recent budget request.
Read the full bill here.
Read the Section by Section here.For media inquiries, please contact Cassandra.Johnson@mail.house.gov.
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MIL-OSI Canada: Deputy Prime Minister to attend G7 and G20 Finance Ministers’ Meetings and Annual Meetings of the IMF and World Bank
Source: Government of Canada News
News release
October 23, 2024 – Ottawa, Canada – Department of Finance Canada
This week, from October 23 to 25, the Deputy Prime Minister and Minister of Finance, the Honourable Chrystia Freeland, will attend the Fall Meetings of G7 and G20 Finance Ministers and the Annual Meetings of the International Monetary Fund (IMF) and World Bank in Washington D.C.
At these meetings, the Deputy Prime Minister will advance work with Canada’s allies to strengthen supply chains with trusted trading partners to create jobs and economic growth that is shared by all Canadians.
While in Washington, the Deputy Prime Minister will discuss with allies further efforts to support Ukraine through to victory and into reconstruction. Canada was an early champion of G7 efforts to make full use of frozen Russian sovereign assets, and provided a CA$5 billion (US$3.7 billion) contribution to the G7’s CA$68 billion (US$50 billion) Extraordinary Revenue Acceleration Loans for Ukraine.
The Deputy Prime Minister will further Canada’s work to build resilient economies and reduce economic inequalities—as demonstrated by the government’s historic investments in early learning and child care, national dental care coverage, and free contraception and diabetes medication. The Deputy Prime Minister will also advance Canada’s work on international tax cooperation.
An itinerary of events will be released in advance of the meetings.
Quotes
“Canada is leading the G7 in cutting interest rates four times this year and reducing inflation to target for all of this year. The wages of Canadian workers have outpaced inflation for 20 months. And, the IMF expects Canada’s economic growth to be the best in the G7 next year. Together, Canada and our allies are working to ensure recent economic gains are not unwound, but rather built upon, so we can create more good-paying jobs, help people get ahead, and build a fairer future for every generation.”
– The Honourable Chrystia Freeland, Deputy Prime Minister and Minister of Finance
Quick facts
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Canada is leading the G7 in:
- Cutting interest rates; the first to cut rates twice, the first to cut rates a third time, and now the first to cut rates a fourth time;
- Economic growth expectations, with the IMF predicting that Canada’s GDP will be the fastest growing in 2025;
- Maintaining the lowest net debt-to-GDP ratio—by a significant margin—in the G7; and,
- Securing AAA credit ratings from at least two of the world’s three major credit rating agencies, along with only Germany.
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Inflation has been within the target range of 1 per cent to 3 per cent for all of 2024, with inflation in Canada falling to 1.6 per cent in September—a 43 month low.
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Wages in Canada have outpaced inflation for 20 months in a row, which means Canadian workers today on average have larger pay cheques, even accounting for inflation, than they did before the pandemic.
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The Annual Meetings of the IMF and World Bank, which generally take place in October, have customarily been held in Washington for two consecutive years and in another member country in the third year.
Contacts
Media may contact:
Katherine Cuplinskas
Deputy Director of Communications
Office of the Deputy Prime Minister and Minister of Finance
Katherine.Cuplinskas@fin.gc.caMedia Relations
Department of Finance Canada
mediare@fin.gc.ca
613-369-4000General enquiries
Phone: 1-833-712-2292
TTY: 613-369-3230
E-mail: financepublic-financepublique@fin.gc.caStay Connected
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MIL-OSI USA: Money to Advance Zero-Emission Homes in New York
Source: US State of New York
Governor Kathy Hochul today announced $10 million is now available to advance new zero-emission homes in New York State. The Building Better Homes – Zero Emission Homes for Healthier Communities program incentivizes the design, construction and marketing of new clean and resilient single-family homes and townhomes and provides training and technical support to builders and developers. Advancing zero-emission new construction across the state will reduce emissions, improve indoor air quality, and create healthy, comfortable and resilient living environments for all New Yorkers.
“New homes built to the latest clean energy and efficiency standards will ensure greener, healthier housing is available to all New Yorkers while helping pave the way toward a more sustainable future,” Governor Hochul said. “This investment is another part of the State’s comprehensive strategy to transform the new construction market, curb emissions, and ensure fewer homes and buildings rely on fossil fuels.”
The Building Better Homes – Zero Emission Homes for Healthier Communities Program, administered by the New York State Energy Research and Development Authority (NYSERDA), provides funding on a first come, first served basis to builders and developers that commit to designing, constructing and growing market awareness and demand for new zero emission single-family homes and townhomes. Projects must meet performance requirements and third-party certification criteria that address clean energy, above code energy efficiency, and resiliency, including heating, ventilation, and air conditioning (HVAC) systems that remain operable during power outages or include backup power sources that can be used in the event of a power outage.
New York State Energy Research and Development Authority President and CEO Doreen M. Harris said, “Bringing builders and developers resources to advance zero-emission new construction is at the heart of Governor Hochul’s commitment to build homes that are healthy, comfortable, and maximize consumer control over energy use. This program continues NYSERDA’s long history of working with the market to bring the latest in energy and efficiency measures to more New Yorkers.”
The base incentive per home is up to $7,000 and up to $4,000 for townhomes. Homes located in disadvantaged communities, as defined by the Climate Justice Working Group, will be eligible for the higher incentive amount with an additional $1,000 offered per project in these areas. Funding is also available for Passive House training of staff and contractors to help develop the expertise needed to effectively incorporate these standards into new homes.
Applications for a single home, townhome or multiple homes and townhomes within a housing subdivision will be accepted through December 31, 2025, by 3 p.m. ET or until funds have been exhausted. For more information on this opportunity, including eligibility requirements, please visit NYSERDA’s website.
This program is part of the Building Better Homes Initiative, which is designed to advance market awareness of zero-emission building practices and provide resources that can be distributed to consumers about the benefits of them. Benefits to consumers include improved indoor air quality, reducing the potential for asthma and allergies, and more comfortable living, all resulting from modern, high-performance appliances, such as induction cooktops, convection ovens, and clothes washers with integrated heat pump dryers.
Zero-emission homes are also more likely to operate seamlessly during power outages due to incorporating passive resiliency and survivability measures. With more than 10,000 new homes being built per year in New York State, working with the home building market to reduce emissions is critical to making progress toward the State’s climate and energy goals, including the Governor’s goal to achieve two million climate-friendly homes by 2030.
Buildings are one of the most significant sources of greenhouse gas emissions in New York State, and through NYSERDA and utility programs, more than $6.8 billion is being invested to decarbonize buildings. By improving energy efficiency in buildings and advancing statewide installations of onsite storage, renewables, and electric vehicle charging equipment, the State will reduce its carbon emissions and advance toward the ambitious target of reducing on-site energy consumption by 185 TBtu by 2025, the equivalent of powering 1.8 million homes.
This program is funded through the State’s Clean Energy Fund (CEF).
New York State’s Nation-Leading Climate Plan
New York State’s climate agenda calls for an orderly and just transition that creates family-sustaining jobs, continues to foster a green economy across all sectors and ensures that at least 35 percent, with a goal of 40 percent of the benefits of clean energy investments, are directed to disadvantaged communities. Guided by some of the nation’s most aggressive climate and clean energy initiatives, New York is advancing a suite of efforts – including the New York Cap-and-Invest program (NYCI) and other complementary policies – to reduce greenhouse gas emissions 40 percent by 2030 and 85 percent by 2050 from 1990 levels. New York is also on a path to achieving a zero-emission electricity sector by 2040, including 70 percent renewable energy generation by 2030, and economy-wide carbon neutrality by mid-century. A cornerstone of this transition is New York’s unprecedented clean energy investments, including more than $28 billion in 61 large-scale renewable and transmission projects across the State, $6.8 billion to reduce building emissions, $3.3 billion to scale up solar, nearly $3 billion for clean transportation initiatives and over $2 billion in NY Green Bank commitments. These and other investments are supporting more than 170,000 jobs in New York’s clean energy sector as of 2022 and over 3,000 percent growth in the distributed solar sector since 2011. To reduce greenhouse gas emissions and improve air quality, New York also adopted zero-emission vehicle regulations, including requiring all new passenger cars and light-duty trucks sold in the State be zero emission by 2035. Partnerships are continuing to advance New York’s climate action with more than 400 registered and more than 130 certified Climate Smart Communities, nearly 500 Clean Energy Communities, and the State’s largest community air monitoring initiative in 10 disadvantaged communities across the State to help target air pollution and combat climate change.
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MIL-OSI Global: Bank of Canada’s latest interest rate cut: Monetary policy is not enough to address economic issues on its own
Source: The Conversation – Canada – By Sorin Rizeanu, Assistant Professor, Gustavson School of Business, University of Victoria
The Canadian and American economies are deeply intertwined. With the United States Federal Reserve cautious amid mixed signals from the labour market and rising inflation worries, the Bank of Canada has just lowered its key interest rate to 3.75 per cent – cutting it by half a percentage point.
Strong U.S. job growth and cooling inflation could result in a smaller Fed rate cut compared to its previous cut and to Canada’s recent cut. It could also pause the rate entirely, which may change economic conditions in the U.S. and Canada in the months to come. Upcoming U.S. elections complicate the problem further.
In Canada, cooling inflation, slowing manufacturing sales and more cautious consumer spending opens the door to another half percentage point rate cut by the end of the year.
But does the Bank of Canada have the ability to offset shifts in U.S. monetary policies through its own monetary instruments? In fact, how much room does it have to diverge from U.S. policy at all?
Monetary conditions are transmitted from the world’s biggest financial centres to the rest of the world through gross credit flows and leverage. Any policy differences between Canada and the U.S. immediately impact Canada, including spillover effects on the loonie exchange rates and other widespread economical and social effects.
Canada’s double trilemmas
Canada’s key challenges include economic growth as a potential recession looms, taming inflation, housing, managing interest rates while private and public debt is sky-high and stabilizing Canada’s commodity-linked currency in an increasingly volatile geopolitical environment. Failing to address these challenges could lead to severe systemic imbalances.
A country cannot have an independent monetary policy, stable exchange rate and free capital flows simultaneously. It must choose one side of this triangle and give up the opposite corner.
(Sorin Rizeanu), CC BY-NDThe Bank of Canada has good reasons to cut the interest rate back to 2.5 to 3.5 per cent, but this could have a significant impact on the loonie.
Canada is facing two sets of trilemmas: a monetary one for the central bank and a fiscal one for the government. On the monetary side, stable exchange rates, independent monetary policy and financial market openness are three objectives that cannot all be achieved simultaneously. European countries have sacrificed monetary independence in exchange for a strong euro and financial openness.
It’s impossible for policymakers to pursue all three choices at the same time. For instance, a country spending more without raising taxes has to increase public debt and deficit.
(Sorin Rizeanu), CC BY-NDCanada, in contrast, has opted for free capital mobility and independent monetary policy at the expense of exchange rate stability. This allows the loonie to be determined by market forces, giving the central bank the ability to adjust interest rates while capital moves freely across the border.
On the fiscal side, the government is grappling with climate change, immigration and wealth inequality. However, there is also strong public resistance to higher taxes, and public debt and deficits are currently at alarming levels.
If the central banks are at odds
If the Bank of Canada were to cut interest rates while the Fed doesn’t, the loonie would likely depreciate sharply, forcing a response. Such a divergence happened in June 2024, with the Fed following with a 0.5 per cent cut only in September.
On such short-term deviations, sterilization is typically implemented to dampen the depreciation of the loonie by acquiring Canadian dollars and selling reserves.
If the central banks were to remain at odds in the longer term, a decrease in money supply as investors flee would likely cause a decrease in domestic bank lending, which is already under pressure from public and private debt and increased default rates.
This could decrease longer term interest rates and put additional pressure on the economy through the capital account. If investors believe the central bank is merely delaying the inevitable depreciation of its currency, it could also reinforce carry trade dynamics — an investment strategy where money is borrowed at a low cost in one currency to earn higher returns from investments in another currency.
The bond market would also react, with notable effects in key economic sectors and asset valuation. Long-term interest rates tend to align more across countries than short-term rates, especially if global factors are influencing real rates or if investors are seeking safer assets.
While the Bank of Canada can set its policy rate independently of the Fed’s rate, it has less control over the long-term. Long-term rates are tied to exchange rates and reflect expectations for future short-term rates and risk factors. Mortgage rates and corporate borrowing rates would be affected as well.
Monetary policy can’t be the only answer
The Bank of Canada’s mandate is to “keep inflation low, stable and predictable.” While this can be fulfilled through rate cuts, diverging from U.S. policy will have widespread effects on the Canadian economy. These impacts will be uneven, with indebted investors and banks likely benefiting while the working class may bear the brunt.
The Bank of Canada focuses on providing liquidity to the financial sector, often with little regulation or oversight. However, this approach tends to overlook challenges faced by the working class. In 2022, for instance, Bank of Canada Governor Tiff Macklem advised against employers increasing wages to match inflation over concern that a wage-price spiral would occur.
Even if the central bank wanted to address these issues, it’s limited by the ability to manage multiple outputs with just one instrument. As a result, the central bank should report not only on inflation, but also on the overall trade-offs of rate cuts.
The Bank of Canada has a vested interest in tampering the effects of a new rate cut, especially since it could trigger a “capital famine” in the long-term and weaken the Canadian dollar. In the short-term, divergences from the U.S. will likely be manageable, but in the longer term, currency depreciation may be unavoidable to keep the economy afloat.
Monetary policy is vital, but it’s merely the first line of defence against inflation. To truly address Canada’s economic issues, both monetary and fiscal policies need to work together in harmony, with a broader public discussion that goes beyond inflation.
Sorin Rizeanu does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.
– ref. Bank of Canada’s latest interest rate cut: Monetary policy is not enough to address economic issues on its own – https://theconversation.com/bank-of-canadas-latest-interest-rate-cut-monetary-policy-is-not-enough-to-address-economic-issues-on-its-own-238396
