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Average us new car loan a record 65 months in 4th qtr


March 5 U.S. auto lenders gave borrowers a record 65 months, on average, to repay new-car loans in the fourth quarter, credit-tracking company Experian said on Tuesday. The average term for new-car loans was up from 63 months a year earlier. For loans on used cars, the average term was unchanged at 60 months. The new-car loan term record came as lenders continued to finance more subprime borrowers. Subprime borrowers took 43.2 percent of all car loans, the most in any fourth quarter since 2007 and nearly seven percentage points more than in 2009, according to Experian.

Banks and finance companies have been generally easing standards for car loans over the past three years. The shift has followed lower-than-expected losses on car loans during the financial crisis and increased competition among banks and debt investors for interest income.

The longer terms have come as interest rates have declined. The average interest rate for a new-car loan dropped to 4.36 percent in the fourth quarter from 4.52 percent a year earlier, and the average monthly payment fell to $460 from $468, according to Experian.

Experian is a unit of Experian Plc.

Baml hosts instinct loans charity event tuesday


Bank of America Merrill Lynch is hosting a charity event Tuesday, donating all commissions for transactions made through its electronic loan trading platform, Instinct Loans, to the Food Bank For New York City, according to an e-mail sent to market participants. The Instinct platform allows multiple participants to bid on a specified number of loans during twice daily sessions. The bank held the first 30 minute session June 16. BAML reached its first US$1bn of pure electronic trading volume on August 30, according to the September 19 e-mail to clients. The bank said in a Tuesday e-mail to market participants that 43% of inquiry to the system has resulted in a trade, including phone follow ups to electronically-initiated interest.

There was US$628bn of par, or performing, loan trades in 2015, down from a five-year high of US$647.3bn in 2014, according to Markit data. With the contribution from the charity day, BAML will donate Thanksgiving pantry boxes, with a goal to provide thousands of meals to New York City’s neediest, the bank said in the September 19 e-mail.

“We appreciate our clients' support of Instinct Loans and are proud to support the Food Bank For New York City, which provides food for approximately 64 million free meals a year for New Yorkers in need,” said Brian Callahan, head of electronic initiatives and US par loan trading for global credit and special situations at BAML.

Charity trading days have become more popular, with some banks hosting celebrities and encouraging traders to don costumes.

Britain backs push for alternative small firm funding sources


LONDON May 20 British firms should look for funding outside the banking sector, Business Secretary Vince Cable said on Monday, marking the latest effort to generate growth among small- and medium-sized businesses (SMEs). Faced with a barely growing economy, the government has targeted smaller companies as a major source of growth and has introduced reforms to encourage start-ups and make it easier for existing businesses to expand."Britain's businesses cannot grow, export and innovate without proper access to bank credit. But they also need alternatives when looking for finance," Cable said. "The government wants to see a shift in the market structure towards non-bank lending."

Bank funding for SMEs has shrivelled in the wake of a global banking crisis, which has made traditional lenders more cautious and, according to a recent UK study, created a cash-flow crisis that is stifling small firms.

Cable's comments coincided with the launch of a guide to alternative sources of financing, published by business lobby group the Confederation of British Industry (CBI).

The CBI said high-growth, medium-sized businesses could be worth an additional 20 billion pounds ($30.4 billion) to the British economy over the next seven years if they can gain access to finance through alternative channels. The CBI highlighted traditional but underused funding options, such as the retail bond market and private debt placements, but also promoted more innovative approaches such as online "crowd-funding" platforms which enable individuals and businesses to back specific projects.

Britains eu commissioner, finance chief hill, resigns


The British member of the EU executive, Financial Services Commissioner Jonathan Hill, resigned on Saturday after having campaigned against Britain leaving the European Union. Following the referendum vote for Brexit on Thursday, few expected a Briton to retain oversight of the EU banking and finance market that will be a key battleground in negotiations between London and Brussels on dissolving British membership. European Commission President Jean-Claude Juncker said he was handing the portfolio to Valdis Dombrovskis, who will take it into his brief as vice president for the euro from July 16. An EU official said the move made it clear that plans for an EU capital markets union would now focus on the euro zone after Hill had worked to ensure new EU rules would not disadvantage London's huge finance industry based outside the currency area."It's clear there will be a less clear division between the capital markets union and the euro zone," the official said. London-based banks and other financial firms are concerned about access to the EU once Britain leaves the single market. Hill said in a statement a day after British voters backed Brexit in a referendum called by Prime Minister David Cameron: "I don't believe it is right that I should carry on as the British commissioner as though nothing had happened."

Dombrovskis, who as prime minister took Latvia into the euro, and whose current role already oversees Hill's portfolio, said his priority was to maintain financial stability in markets. Cameron, who will be replaced once his Conservative party elects a new leader, will leave it to his successor to discuss what to do with Britain's seat on the Commission, a British spokesperson said. It retains the right to a seat, along with the 27 other EU states, until it finally leaves the Union.

BRITISH COMMISSIONER Hill, 54, a lobbyist and former Conservative leader in the upper house of parliament who has become a popular figure among EU colleagues in 18 months in Brussels, was described by Juncker as a "true European" whom he had tried to persuade to stay on. Hill, a close ally and friend of Cameron, said: "I came to Brussels as someone who had campaigned against Britain joining the euro and who was skeptical about Europe. I will leave it certain that, despite its frustrations, our membership was good for our place in the world and good for our economy."The distribution of portfolios in the Commission is the job of its president, former Luxembourg premier Juncker, in negotiation with the leader of the member state nominating their commissioner. Other member states also have a say, and new commissioners must face hearings in the European Parliament.

It is unclear what a new British commissioner can do in the final years of Britain's membership. EU officials say it is inconceivable they will have a major policy-making role. Brussels wits talk of them being made "Commissioner for Ballet". Cameron's spokesperson said: "It will be for the next prime minister to decide, following discussions with European partners, what role the UK plays in the European Commission."Hill's appointment to the finance job in 2014 was a peace offering from Juncker to Cameron, who had tried to block the Commission president's own appointment that year. It was viewed with suspicion by euro zone bankers keen to challenge London's dominance as Europe's financial capital. Juncker said on Saturday: "I wanted the British commissioner to be in charge of financial services, as a sign of my confidence in the United Kingdom's membership of the European Union. To my great regret, this situation is now changing."