* The Financial Stability Board published the 2017 list of global systemically important banks, which saw Groupe BPCE drop out and get replaced by Royal Bank of Canada. BNP Paribas SA
* Meanwhile, the FSB decided not to publish a new list of global systemically important insurers for 2017, saying it could reconsider how it assesses systemic risk in the insurance sector and how the insurers, as well as policy measures applied to them, are identified. The FSB's 2016 list included AEGON NV, Allianz Group, Aviva Plc, Axa, and Prudential Plc.
* With a string of natural disasters around the world, 2017 is on track to become "one of the most expensive on record" in terms of losses for global insurers, according to a report from ClimateWise, a network of 28 insurance industry organizations. Meanwhile, Swiss Re AG said yesterday that it expects pricing in nonlife insurance and reinsurance to rise as a result of this year's natural catastrophe events.
* ECB Executive Board Member Benoît Cœuré told Handelsblatt that he expects the central bank to drop by September 2018 its pledge to keep buying bonds until inflation heads toward the target of just under 2%, Reuters reported.
* The U.K. and EU are aiming to agree on a Brexit divorce deal within three weeks and are preparing to thresh out issues such as Britain's financial settlement and the Irish border amid an impasse in the negotiations, the Financial Times reported.
UK AND IRELAND
* Royal Bank of Scotland Group Plc outlined further details on its ring-fencing strategy. The group expects to transfer certain personal and business banking businesses and commercial banking businesses from Royal Bank of Scotland Plc to Adam & Co. Plc and National Westminster Bank Plc in 2018, subject to court and regulatory approvals. Adam & Co. will then be renamed The Royal Bank of Scotland Plc.
* Christopher Hohn, founder of The Children's Investment Fund, called on the Bank of England and the U.K. Financial Conduct Authority "to immediately intervene" and instruct London Stock Exchange Group Plc's board to name a new chairman in order to solve the corporate governance crisis gripping the company, Reuters and the FT reported. Meanwhile, the board is lining up Group CFO David Warren as the company's interim head in case outgoing CEO Xavier Rolet leaves early, insiders told the FT.
* The Hong Kong branch of HSBC Holdings Plc's Swiss private banking business was fined HK$400 million after losing its appeal against a 2015 ruling for misconduct in selling products linked to the now-defunct Lehman Brothers Holdings Inc. Hong Kong's Securities and Futures Commission said HSBC Pvt. Bank (Suisse) SA
* Simon Cooper, CEO of Standard Chartered Plc's
* Lloyds Banking Group Plc is weighing a potential sale of its remaining €5 billion-plus Irish mortgage loan portfolio in early 2018, insiders told The Irish Times.
* U.S.-based Bain Capital Credit LP selected Dublin as the headquarters of its European funds management operations, insiders told the Irish Independent. Separately, British ship insurer Standard Club said it will set up an Irish subsidiary in case the U.K. loses access to the single market when it leaves the EU, Reuters reported.
GERMANY, SWITZERLAND AND AUSTRIA
* A spokesman for Credit Suisse said the lender has not been in contact with any sovereign wealth funds from Saudi Arabia about becoming investors in the bank, according to Reuters. The statement followed a report by the FT that suggested such a possibility.
* Landesbank Hessen-Thüringen Girozentrale, or Helaba, reported consolidated net profit of €249 million for the nine months ended Sept. 30, down from €266 million in the year-ago period.
* Hamburg-based private bank M.M. Warburg looks set to sell Warburg Invest Luxembourg and M.M. Warburg & CO Luxembourg in order to focus on organic growth in Germany and strategic acquisitions, according to Finanz-Szene.de and Fonds Professionell Online. The bank is reviewing a sale of both businesses to an unnamed U.S. investment group.
* German banks are preparing for hefty fines related to illicit dividend stripping trades that led to tax refunds, Handelsblatt reported, citing Reuters. Some 77 banks are facing fines totalling €500 million.
FRANCE AND BENELUX
* Société Générale SA told the National Front party to close all its accounts at the bank, Les Echos reported.
* Crédit Agricole Group is planning a €120 million capital increase for its loss-making online bank Bforbank SA, Les Echos wrote.
SPAIN AND PORTUGAL
* Banco Santander SA is considering issuing so-called samurai senior nonpreferred debt, Europa Press reported. Santander has hired Mizuho and Nomura to coordinate the issue in Japan of the potential Japanese yen-denominated bonds.
ITALY AND GREECE
* Shares being sold in the IPO of brokerage Equita SIM SpA have been priced at €2.90 per share, toward the high end of a price range of €2.40 to €3.10 per share and implying a market capitalization excluding treasury shares of €130.8 million, Reuters reported.
* Credito Valtellinese SpA is in talks with banks to form an underwriting consortium for its planned €700 million cash call, an insider told Reuters. Cerberus Capital Management LP has meanwhile expressed interest in Creval's turnaround plan, the newswire wrote.
* Christofferson Robb & Co., Chenavari Financial Group and StormHarbour are competing to buy Banca Carige SpA's consumer credit platform Creditis, Il Sole 24 Ore said.
NORDIC COUNTRIES
* DNB ASA aims to obtain an additional 1.5 billion Norwegian kroner to 2 billion kroner in savings by 2020, according to e24.no. The bank will also set up a new noncore division that will help improve its return on equity and exit a noncore portfolio relating to shipping and oil exposures.
* Swedbank AB (publ)
EASTERN EUROPE
* Hungary's central bank kept its interest rates unchanged, saying loose monetary conditions are required for an extended period to achieve the inflation target.
* The Russian government submitted a proposal to the Russian Duma to no longer publish the list of banks which work with state-controlled arms manufacturers, a move that could indicate the country is preparing for new U.S. sanctions, Vedomosti and Reuters reported.
* Tadek Holding & Finance SA, a company connected with TCS Group Holding Plc
* The Polish Financial Supervision Authority approved the request of 56 local cooperative banks to set up Polski Bank Apeksowy SA as an institution associating the lenders, Puls Biznesu reported. The regulator also approved the bank's management board, with Anna Zwierzchowska as its president.
* The Polish Financial Supervision Authority cleared the planned purchase of an over 50% stake in Pioneer Pekao TFI and Dom Inwestycyjny Xelion Sp.z.o.o by Bank Pekao SA, news agency PAP said. The transaction was first announced in June.
* Poland-listed debt collector GetBack SA
* United Bulgarian Bank AD and CIBANK EAD plan to complete their full merger by the end of 2018, SEENews reported, citing Petar Andronov, CEO of both banks and country manager at KBC Group NV, which controls the units.
IN OTHER PARTS OF THE WORLD
Asia-Pacific: HSBC unit fined over Lehman-linked products; Mitsubishi UFJ to cut workforce
Middle East & Africa: Mugabe resigns; Leumi Q3 profit drops; Nigeria rate on hold
Latin America: Davivienda Q3 profit falls; Chile election headed for runoff
North America: Citi falls in FSB's G-SIB ranking; Royal Bank of Canada joins the list
North America Insurance: MetLife, US resume legal battle over SIFI label; CEA cat bond pricing finalized
NOW FEATURED ON S&P GLOBAL MARKET INTELLIGENCE
Chinese lenders rise in global risk ranking as Citi, European trio drop: Credit Suisse, Citigroup and BNP Paribas have been moved to a lower-risk bucket in the Financial Stability Board's annual list of global systemically important banks, while Bank of China and China Construction Bank are now in a higher-risk category.
Large portfolio sales mark moment of 'recalibration' of German life market: The large back book sales planned by life insurers Ergo, Generali and AXA are part of an anticipated shift by German market towards lower-guarantee products, analysts say.
Bank of Cyprus eyes return to profit, higher asset growth in 2018: The largest Cypriot lender is targeting a return to profitability and more significant balance sheet growth in 2018, CEO John Hourican said.
Leo Magno, Ed Meza, Meike Wijers, Gerard O'Dwyer, Beata Fojcik, Heather O'Brian, Brian McCulloch, Sophie Davies and Mariana Aldano contributed to this report.
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