trending Market Intelligence /marketintelligence/en/news-insights/trending/7Jlhepm7JBrrhe-2TSIFlA2 content esgSubNav
Log in to other products

Login to Market Intelligence Platform

 /


Looking for more?

Contact Us
In This List

ECB not expected to ease monetary policy; Turkey placed on review for downgrade

Banking Essentials Newsletter December Edition Part 2

Banking Essentials Newsletter - November Edition

Online Brokerage Space Should Remain Rich Source Of M&A

University Essentials | COVID-19 Economic Outlook in Banking: Rates and Long-Term Expectations: Q&A with the Experts


ECB not expected to ease monetary policy; Turkey placed on review for downgrade

Eased ECB policyunlikely: Analysts do not expect the ECB to ease its monetary policy at itsupcoming meeting on Thursday but said that the central bank could makeadjustments to its bond-buying program to address a scarcity of bonds topurchase in certain countries such as Portugal and Germany, Reuters reports.

* Valdis Dombrovskis, the European Commission's new financialregulatory chief, said ensuring financial stability in the EU is the"first priority" after the U.K. voted to leave the bloc, Reuters writes.Dombrovskis said his overall approach will be continuity of the work of hispredecessor, Jonathan Hill, on capital markets and reviewing regulations. TheEC will finalize the application of the Basel III banking rules and willimplement requirements for the new total loss-absorbing capacity rules "intime," Dombrovskis added.

 *Munich Re said investors in catastrophe bonds and insurance-linked securitieswill continue to be exposed to a wider range of perils despite the reducedmomentum in the issuance of such securities in the second quarter, Artemis notes.

UK AND IRELAND

May to meetGerman, French leaders: British Prime Minister Theresa May will meet withGerman Chancellor Angela Merkel on Wednesday and with French President FrançoisHollande on Thursday to discuss the U.K.'s relationship with the EU after itvoted to leave the bloc, accordingto Bloomberg News. May's talks with Merkel "will be an opportunity todiscuss the bilateral relationship, cooperation on a range of globalchallenges, and of course how the U.K. and Germany can work together as theU.K. prepares to leave the EU," May's office said.

* Bank of England policymaker Martin Weale called on thecentral bank to be cautious in cutting interest rates so that it does notaccidentally lead to tightening monetary policy, Reuters reports.The Guardian has a report.

* The Central Bank of Ireland finedBank of Ireland'sNew Ireland Assurance Co.Plc €650,000 and reprimanded it over breaches related to theprovision of information to consumers regarding their investment products andsystems. The central bank said the insurance firm admitted to the breaches aspart of a settlement agreement and that the investigation into the matter isclosed.

* WillisTowers Watson Plc named Kemp Ross global of delegated investment solutionsin the company's investments business. Ross joins from Aon Hewitt, where he wasmost recently senior partner, head of solutions and operations for investment.

GERMANY, SWITZERLAND ANDAUSTRIA

UBS faces €5B fine over tax evasion: UBS Group AG is facing punitive fines of at least €5 billion in France for its role ina tax evasion affair, Swiss business news agency AWP reports. A trial could begin in early 2017. The€5 billion sum is based on the estimated amount UBS is accused of hiding fromFrench tax authorities.

*Bank Julius Baer & Co.Ltd. promoted CEO Alain Ucari to chairman of Bank Julius Baer (Monaco) SAM Ucari will in his new role focus onfurther enhancing the bank's governancein Monaco and strengthening its UHNWIclient segment. Albert Henriques, who joins from , will succeed Ucari as CEO of Julius Baerin Monaco, subject to regulatory approvals.

* Ben Tellings stepped down as supervisory board chairman ofING-DiBa AG, effectiveimmediately. Vice Chairman diger Köppel will assumeTellings' responsibilities until the bank appoints a successor.

* 's was hit byserious software problems yesterday, resulting in some of its 2 millioncustomers inadvertently logging in to other people's accounts, Frankfurter Allgemeine Zeitung reports. The technical mishap allowed users tosee other customers' bank data.

* Fitch Ratings saidyesterday that Austria's plan to lower its bank levy and link it to profitsshould improve the sector's competitiveness against European rivals andaccelerate recovery. However, a one-off payment included in the plan willeffectively postpone the impact by two years.

FRANCE AND BENELUX

Apple Pay lands in France: Mobile payment solution Apple Pay is nowoperational in France, Les Echosreports.Only Visa cardholders, Caisses d'Epargne, Banques Populaires and CarrefourBanque clients who have an iPhone 6, 6s or SE, an Apple Watch twinned with aniPhone 5/6 can make in-store purchases using Apple Pay. , , , and are withPaylib, which plans to introduce an in-store mobile payment offer in the comingmonths.

* In Belgium, Belfius Banque SA, BNP Paribas Fortis SA, and signed an agreement withthree telephone operators over a mobile ID system that should be operative byyear-end, L'Echo reports.It adds that the system could be used forpayments and for signing documents.

*BinckBank NV acquireda €340 million Dutch residential mortgage portfolio from unit . The is aligned with BinckBank'sstrategic goals to diversify its revenue streams and become less dependent ontransaction-related income. HetFinancieele Dagblad covers.

* Dutchinsurance company ASR NederlandNV acquired Corins, an Amsterdam-based underwriter of commercialand industrial risks, Het FinancieeleDagblad reports.

*NN Group NV agreed tosell wholly owned Netherlands-based independent insurance broker and riskadviser Mandema & Partners to Van Lanschot Chabot, Het Financieele Dagblad reports.NN Group said thedeal is expected to complete in the fourth quarter, pending regulatory approvaland the advice of the workers' council of Mandema & Partners and VanLanschot Chabot.

SPAIN AND PORTUGAL

Novo Bancocould be wound up: Novo BancoSA would be wound up in an orderly manner if it cannot be sold byAugust 2017, Diário Económicoreports.In a letter to the European Commission, the Portuguese government said furtherstate aid to the lender had beenruled out.

* Portuguese President Marcelo Rebelo de Sousa said talkswith Brussels about a possible state-funded recapitalization of were urgent andshould be concluded in thecoming days, Diário Económico writes. The size of any eventual recapitalization wouldbe decided after an audit, Diário de Notícias notes.

* Portuguese Finance Minister Mario Centeno said Portugal ison track to have a budget deficit of "clearly below" the EU limit of3%" in 2016, warning that sanctions on the country for breaking the bloc'sdeficit rules in 2015 could derail the goal, Reuters reports.Portugal intends to freeze €346 million of spending to meet the budget goals,Bloomberg News writes.Meanwhile, Centeno said the government had not made any commitments toadditional austerity measures for 2016 or 2017, Diário Económico reports, although Jornal de Negócios notesthat belt-tightening demands could intensify in 2017.

* Portugal's banks are not short of liquidity but are shortof revenue sources, Jornal de Negócioswrites.

* Spanish banks' nonperforming loan ratio fell to 9.84% inMay, El País reports.Total bad loans came in at €126 billion in May, a drop of about €1.6 billionfrom April. Reuters also reports.

* BancoSantander SA warned that market volatility and economic andpolitical uncertainty in the U.K. could have an adverse effect on the group'sfinancial results, Expansión writes.

* Santander InnoVentures, the high-tech investment arm ofBanco Santander, will invest an additional $100 million in fintech companies, Europa Press reports.

ITALY AND GREECE

Apollo expectedto present binding offer for 4 Italian banks:  Private equity group Apollo is expected topresent a binding offer for four small Italian banks bailed out last year bytomorrow's deadline, Il Sole 24 Ore says.Lone Star may not make a final offer, as well as Apax. The voluntary arm of theItalian interbank deposit protection fund could still step in to acquire theassets if offers are disappointing.

* The Federation of Greek Bank Employees is accusing the Greek government ofsurrendering Greek banks to their creditors, Imerisia writes. The group said the banks' recapitalizationgave full power to the creditors and eliminated the government's control on theGreek banks, adding that it will seek legal assistance to cancel recentlegislation and protect Greek banks.

EASTERN EUROPE

Turkey placed on review for downgrade: Moody'syesterday placed Turkey's Baa3 long-term issuer senior unsecured bond ratings and(P)Baa3 senior unsecured shelf rating on review for downgrade following thefailed coup attempt in the country. The review will assess the medium-termimpact of the unrest on Turkey's economic growth, policymaking institutions andexternal buffers, given the existing challenges in all of these areas.

* Meanwhile, Türkiye Halk Bankasi AS CEO Ali Fuat Taskesenlioglu saidTurkey is still a "safe port" for investors and there is nothing toworry about for the markets, accordingto Finans Gündem. "Turkishbanking sector has come back to activity without any damage," he said,owing to measures adopted by the authorities to ensure financial stability.

* Huseyin Aydin, head of the Banks' Association of Turkey, tellsBloomberg HT that banks need no additional measures.

* TürkiyeVakiflar Bankasi TAO said it is continuing routine operationswithout any disruption, Finans Gündemreports.

* The lira's slide following the failed coup in Turkey willhave a minimal impact on Spain's Banco Bilbao Vizcaya Argentaria SA, which owns 40% ofTurkish bank Garanti, Europa Press writes.BBVA's share price was hit on concerns about its exposure to Turkey.

* Yazicilar Holding subsidiary Anadolu Endustri Holding A.S.decided to sell its entire 25% stake in Alternatifbank AS (Abank) to , Finans Gündem reports.The Qatari bank already holds the remaining 75% stake in the Turkish bank.

IN OTHER PARTS OF THE WORLD

Asia-Pacific: Bank of East Asia to oppose Elliott suit; MAS probes banks over1MDB

Middle East and Africa: 

Latin America: Banco do Brasil eyes asset sales to boost capital

North America: BofA, Charles Schwab report earnings

North America Insurance: Ore. regulator mulls coverage extension for failed co-op'spolicyholders; HHS' Burwell advocates for competition in health insurancemarket

NOW FEATURED ON S&PGLOBAL MARKET INTELLIGENCE

Turkey'sbanks well-capitalized as failed coup unnerves markets: Turkey'sbanks have plenty of capital and low NPLs. But a failed coup showed the countryis no emerging market paradise.

Allianz CFO:Up to €3B available for acquisitions, but only until year-end:Dieter Wemmer also told the Börsen-Zeitung that the German insurer's LatinAmerican units are struggling and that the markets have exaggerated Brexitfears.

Sheryl Gesto-Obejera, EdMeza, Brian McCulloch, Danielle Rossingh, Jennifer Laidlaw, Helen Popper,Heather O'Brian, Thanasis Kakalis, Gerard O'Dwyer and Ali Kayalar contributedto this report.

The Daily Dose has aneditorial deadline of 7 a.m. London time. Some external links may require asubscription.