Overseas Headlines – September 8, 2020

United states:

Fed Wants Banks to Say What They’re Doing to Promote Diversity

“The Federal Reserve wants the banks it oversees to provide more information on what they’re doing to promote racial and gender diversity, a senior central bank official said. “In the last two years, regulated entities slightly increased their submissions of assessments of their diversity policies and practices,” Sheila Clark, program director of the Fed’s Office of Diversity and Inclusion, said in congressional testimony published ahead of a hearing Tuesday. However, we are not satisfied with the level of responsiveness.”



Bank of England Chief Economist Warns Against Extending Furlough Program

“The Bank of England’s chief economist has thrown his weight behind the government’s controversial plan to let its wage-support program end, saying that prolonging it could delay the economy’s much-needed restructuring. Calls have been mounting for the subsidies to be extended beyond next month, but Andy Haldane said a better way might be to let pay levels and working hours adjust to the market. At the same time he signaled that companies may need help managing the debt burdens they’ve built up during the pandemic.”



Bank of Japan’s Covid Loan Programs Risk Revival of ‘Zombie’ Firm Concerns

“The Bank of Japan’s loan programs to help businesses ride out the recession run the risk of creating more zombie companies if they are kept in place for too long, analysts warn. The central bank loan measures, worth almost $1 trillion, have so far fueled a record jump in lending that’s kept firms afloat during the nation’s worst economic slump. The challenge for policy makers is to turn off the tap before an apparently successful lifeline of support for otherwise healthy firms turns into an addictive supply of cash for habitual loss-makers.”




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