DAVOS, Switzerland Jan 26 (Reuters) – Unconventional lenders
that have enjoyed a cozy spot while central bankers were busy
trying to make banks stronger should watch out as shadow banking
is coming back on to regulators’ agenda.

Shadow banking, broadly described as intermediation by
non-banks such as hedge funds, private capital and venture
funds, has so far escaped traditional banking regulation even
though some regulators say it worsened the global financial
crisis.

DAVOS, Switzerland Jan 26 (Reuters) – Unconventional lenders
that have enjoyed a cozy spot while central bankers were busy
trying to make banks stronger should watch out as shadow banking
is coming back on to regulators’ agenda.

Shadow banking, broadly described as intermediation by
non-banks such as hedge funds, private capital and venture
funds, has so far escaped traditional banking regulation even
though some regulators say it worsened the global financial
crisis.

DAVOS, Switzerland, Jan 26 (Reuters) – Japan’s economy
minister rejected criticism on Saturday that his country’s
extraordinary fiscal and monetary stimulus programme was aimed
at weakening the yen and undermined central bank independence.

Akira Amari told the World Economic Forum in Davos it was up
to the market to determine the currency’s exchange rate, and the
Bank of Japan had chosen independently to sign a joint statement
with the government on actions to fight deflation and revive
economic growth.

DAVOS, Switzerland, Jan 26 (Reuters) – Mario Monti was
preaching to the converted at an annual meeting of elite bankers
and policymakers in Davos, but he must woo austerity-hit
Italians and fend off a populist offensive to have similar
success at national elections next month.

The Italian prime minister, an internationally respected
former European Commissioner who now leads a centrist coalition,
was welcomed as a hero as he arrived in this Swiss ski resort
for a two-day stint at the World Economic Forum (WEF).

DAVOS, Switzerland (Reuters) – The “positive contagion” on financial markets is not yet feeding into the economy at large but the euro zone should see recovery in the second half of the year, ECB President Mario Draghi said on Friday.

Speaking at the World Economic Forum, Draghi said that the central bank’s loose monetary policy was helping the euro zone return to growth, but that much remained to be done.

DAVOS, Switzerland (Reuters) – Encouraged by the euro zone’s resilience last year in the face of severe doubts about its survival, some outside investors have snapped up assets in the strongest corners of the region.

Yet even the most enthusiastic euro proponent would concede there’s plenty more to do to strengthen the currency bloc. Fundamentally, there’s a need for economic growth to start to revive for many investors to risk a more decisive push into bonds, equities or more tangible assets in a swathe of crisis-hit countries.

DAVOS, Switzerland (Reuters) – Outgoing Prime Minister Mario Monti defended his reform efforts in front of an audience of the world’s financial elite on Wednesday and accused past governments of plunging Italy into a spiral of unemployment and stagnation.

Monti, who was given a rare opportunity to address the annual World Economic Forum, also got an open endorsement from the influential forum’s founder, Klaus Schwab, for his decision to lead a centrist list at a general election in February.

LONDON (Reuters) – New Generali (GASI.MI: Quote, Profile, Research, Stock Buzz) boss Mario Greco said the sale of non-core assets would raise some 4 billion euros ($5.3 billion) as part of a turnaround strategy that promises to boost profit by focusing on “value over volume”.

Europe’s third-biggest insurer has already put on the blocks Swiss private bank BSI and its U.S. reinsurance business, which analysts say could be worth around 2.5 billion euros together, as it concentrates on its core business.

LONDON, Jan 14 (Reuters) – Generali boss Mario
Greco has vowed to boost operating results by a quarter via a
long-awaited turnaround strategy unveiled in London on Monday.

Under the plan, the Italy-based insurer aims to increase the
weight of its non-life segment, hike investments in eastern
Europe and Asia and deliver significant cost cuts.

MILAN, Jan 14 (Reuters) – Generali’s (GASI.MI: Quote, Profile, Research) boss Mario
Greco vowed to deliver operating results of above 5 billion
euros ($6.7 billion) and to improve solvency margins beyond 160
percent under a new strategy that will hike investments in
high-growth markets and rein in costs.

As he unveiled its closely-watched new strategy for Europe’s
third-largest insurer, Greco also said the Italian insurer would
increase the weight of its non-life segment, to bring it to
around a half of its total insurance operating profits by 2015.