Here is today’s important banking news to keep you updated and help you prepare for IBPS and other bank exams:
Important Banking News: HSBC UK Internet Banking Back Up After Cyber Attack
- HSBC said its British personal banking websites were back up and running on Saturday after a cyber attack forced them to close for most of the previous day.
- Europe’s largest lender said it had “successfully defended” its systems against a distributed denial of service (DDoS) attack but was not able to fully restore services immediately as it continued to experience threats.
- But customers were able to log-on again from 2100 GMT (2:30 a.m. in India) on Friday, the bank said, after an outage which had started that morning.
- “HSBC Internet and mobile banking are now fully recovered. Thanks for your patience and again we apologise for the disruption,” the bank told customers via social media.
Important Banking News: Arun Jaitley Non-Committal on Slippage in Fiscal Deficit Target
- Finance Minister Arun Jaitley on Saturday remained non-committal on slippage in the government’s fiscal deficit target saying there were pros and cons of boosting growth by higher public spending.
- Mr Jaitley’s comments came a day after Reserve Bank of India Governor Raghuram Rajan warned of borrowing more to spur spending for higher economic growth, saying such a move could risk macroeconomic stability of the country.
- Speaking at The Economic Times Global Business Summit, the minister said there are different views from industry and economists on whether the government should scale up public investment in next fiscal year or stick to the deficit target.
- “I can tell you I have been consulting all shades of opinion. This is the first time that I have come across people holding sharply divided views and each one has a strong argument in his favour. There is an argument being given that in the current economic situation public investment holds the key.”
- “Then there is another argument, and the alternate argument is also equally important with regard to credibility of government. One year you deviated from target, will you do it again and particularly if oil prices are one-third of what they were. If you still can’t meet the target, when will you do that? And, therefore, both the arguments have a way,” Mr Jaitley said.
- He said there is also another argument that in a fast moving situation globally, whether it is necessary to fix a target beforehand.
- “Of course the government has benefit of these three views. Predominantly industry is of the view that you must spend more, economist view is sharply divided,” he said.
- Mr Jaitley said the final decision on the fiscal deficit target would be spelt out in Budget based on the kind of resource, growth potential, tax buoyancy for the next year that the government anticipates.
- “I think all these inputs will go into determining the policy of the government,” he said.
- Cautioning against higher fiscal deficit to spur growth, Mr Rajan on Friday said, “Unfortunately, the growth multipliers on government spending at this juncture are likely to be much smaller, so more spending will probably hurt debt dynamics.”
- Put differently, it is worth asking if there really are very high-return investments that we are foregoing by staying on the consolidation path?”
- Mr Jaitley in the Budget for 2015-16 deviated from the fiscal consolidation path, postponing reduction in fiscal deficit target by a year.
- Originally, the target was to bring down fiscal deficit to 3.6 per cent of the GDP in 2015-16 but it has been postponed by a year. Now, the government is targeting 3.9 per cent in the current fiscal and 3.5 per cent by next year.