Concerns raised by Germany's Bundesbank led India to suspend trade in euros through the Asian Clearing Union, a regional trade settlement system, HR Khan, Deputy governor of the Reserve Bank of India, said on Monday.
Cooperation between the national supervisory authorities and Europe's new Single Supervisory Mechanism (SSM) set up within the European Central Bank, "is functioning very well," Bundesbank executive board member Andreas Dombret told a news conference.
The German regulator has been investigating Deutsche Bank and the role it played during the financial crisis when a global inter-bank lending rate mechanism was being manipulated.
ECB policy-setters held the limit on their emergency funding for the banks steady for the second day running, a source familiar with their talks said, having previously increased it steadily over many weeks.
The Bank of Greece said the country's future in the European Union itself could also be at risk without a deal, underlining the extent to which officials who once refused any suggestion of "Grexit" are now openly discussing the prospect.
Draghi said the bank's independence was not compromised because it did not automatically have to start bond purchases just because a government had applied for a bailout. The ECB "retains its full discretion," he said.
The euro gained against the dollar while German bond prices held steady on Wednesday ahead of Italy's first debt sale since its credit rating was cut due to political uncertainty.
Leaders of the world's largest banks have gone some way to persuading investors that their industry's near-death experience is over, even though the public still don't trust them.
An international agreement on bank capital rules known as Basel III may not be implemented until the middle of next year, Handelsblatt reported, citing a member of the German Bundesbank's board.
Markets are closely watching the Federal Open Market Committee (FOMC) meet on Wednesday and John Woods, MD & Chief Investment Strategist at Citi Pvt. Bank said markets are likely to be under pressure if the Fed does not take any concrete action.
Jeff Chowdhry, head-emerging equities, F&C Investments explains to CNBC-TV18 that though the ECB bond-buying plan is clever, it doesn‘t solve the problem of boosting growth and reducing debt. Chowdhry adds that the slowdown in the Chinese economy might affect the commodities sector, especially coal and iron ore.
The head of Germany's Bundesbank stepped up his opposition to the European Central Bank's latest moves to battle the euro zone's debt crisis on Sunday, saying that plans to buy bonds risked becoming a drug on which governments would get hooked.
Richard Titherington, CIO & Head-EM Equities at JPMorgan AMC says the ECB President Mario Draghi‘s commentary was disappointing and not enough to support the Spanish and Italian yields.
Ahead of the ECB meet on Thursday, Jurgen Michels of Citi feels chances of ECB action is very little taking into consideration the stands taken by the German Federal Bank, Bundesbank and Spain's reluctance to ask for support from the EFSF.
The rupee rose for a second successive session on Friday as local shares rallied in line with overnight gains in risk assets after the European Central Bank vowed to protect the euro zone.
The European Central Bank will hold interest rates at a record low of 1% on Wednesday and resist German pressure to flag an exit from its crisis-fighting mode as the euro zone recovery looks increasingly fragile and concerns grow about Spain.