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Postbank disposal rethink; Admin Re stake disposal plan; Bankia, Sabadell earnings

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Postbank disposal rethink; Admin Re stake disposal plan; Bankia, Sabadell earnings

ECB keeps ratesunchanged: The ECB's Governing Council kept key interest rates at its first policymeeting after the U.K. voted to leave the EU. The central bank also did not makechanges to its quantitative easing program. ECB President Mario Draghi said thecouncil will continueto keep a close eye on economic and financial market developments, stoppingshort of pledging fresh stimulus, accordingto The Wall Street Journal.

* The Financial Stability Board saidyesterday that the global financial system "has continued to functioneffectively" following the Brexit vote, and that authorities are on thelookout for market developments to address any potential financial stabilityissues. The FSB recommended addressing vulnerabilities from nonperforming loansand incomplete bank balance sheet repair in some parts of the financial system,among other things.

* Meanwhile, the IMF said in a note to G-20finance ministers and central bank governors that policymakers should beprepared to "act decisively should financial market turbulence threatenthe global outlook" due to the uncertainty of the outcome of the talksabout the U.K.'s new relationship with the EU.

UK AND IRELAND

Regulator urges darkpool improvements: The U.K. Financial Conduct Authority yesterday urgedfirms operating dark pools to make improvements by enhancing the monitoring ofthe activity of the platforms, among other measures. The Financial Times has a report.

* Tim Cartledge, chief strategy officer at electronic-trading technologyand solutions provider EBS BrokerTec and former global head of electronictrading at BarclaysPlc, is said to be the leading contender to succeed EBS BrokerTecCEO Gil Mandelzis, who decided to step down, Reuters says.ICAP CEO Michael Spencer said the company will consider both internal andexternal candidates for Mandelzis' role.

* HSBCHoldings Plc found no breach of conduct in an internal of a $3.5 billioncurrency trade carried out on behalf of Cairn Energy, that has now led to thearrest of its global head of foreign exchange cash trading, Mark Johnson, andthe issuance of an arrest warrant for Stuart Scott, who served until 2014 ashead of foreign exchange cash trading for Europe, the Middle East and Africa.Gerallt Owen, Scott's lawyer, said his client "strongly denies theallegations," The Guardian writes.

* The U.K.'s Payment Systems Regulator saidyesterday that it will not take any further action to drive competition in thebanking and payments sector as it sees positive progress in the supply ofindirect access. In response to MasterCard's planned of U.K.-based VocaLinkHoldings Ltd., the regulator saidit will consider the effects of the merger and will discuss developments withboth parties.

* AberdeenAsset Management Plc slashed the dilution adjustment on AberdeenU.K. Property Fund and Aberdeen U.K. Property Feeder Unit Trust to 7% from 17%amid a slowdown in investor redemption requests following the Brexit vote,Reuters reports.Aberdeen last week lifted the trading suspension on the property fund. The Daily Telegraph also covers.

* IT problems hit Allied Irish Banks Plc yesterday, affecting thousands ofits clients, the Irish Independent notes. 

GERMANY, SWITZERLANDAND AUSTRIA

Deutsche Bankrethinks Postbank disposal: Deutsche Bank AG is considering dropping its plan tosell Deutsche PostbankAG and might instead reintegrate the unit into the parent groupeven though it recently started operating independently again, Manager Magazin reports.Deutsche Bank, originally paid €5.5 billion for Postbank, wants a good pricefor the unit, Handelsblatt writes.

* Deutsche Bank and BHF-Bank AG have been named in the U.S. JusticeDepartment's investigation into analleged transfer of funds from Malaysian state fund1Malaysia Development Bhd., Handelsblatt reports. Investigators said the banks unintentionally transferred government funds to privateaccounts around the world.

* Germany'sFederal Court of Justice ruled yesterday that the country's Sparkasse group maykeep its trademark shade of red, DeutscheWelle reports. The ruling puts an end to a long-standingdispute between Spain's SantanderBank and the German savings bank group.

* has heldpreliminary discussions with pension funds and sovereign wealth funds topotentially sell a £1 billion stake in its Admin ReUK Ltd. unit, Sky News reports.Swiss Re could use the funds generated from the possible sale of a minoritystake to facilitate additional acquisitions.

FRANCE AND BENELUX

Deutsche Bank Nederland faceslawsuit: Dutch shareholderactivist Pieter Lakeman is planning to sue Deutsche Bank Nederland NV over interest-rate swaps thatbackfired following the global financial crisis, Het Financieele Dagblad reports. Lakeman's foundation alleges that customerswere not offered any alternatives to the interest rate derivatives. Lakeman, whoestimated that Dutch banks earned a total of €10 billion by selling the swaps,is also suing Rabobank.

*ABN AMRO Group NVinformed 70,000 of its business customers that they will be hit with negativeinterest rates on their savings accounts amid exceptionally low interest rates,Het Financieele Dagblad reports. ING Bank NV is also planning to make some of itscustomers pay to save, but will not charge its regular business current accountand savings account holders negative rates.

* EricGarcia, a former director of Girobank NV, has been arrested on the Dutch island ofCuraçao, Het Financieele Dagblad reports. Garcia was held over the allegedmisappropriation of more than $10 million of funds in a bankruptcy in which heacted as curator.

*Société Générale SAhas acquired a stake in French fintech firm Tagpay, the Post reports.

* A special unit tasked to deal with the affairs of Frenchtaxpayers with hidden bank accounts abroad is to be dismantled because anamnesty will not be renewed and because the free exchange of bank accountdetails from 2018 will make tracking accounts easier, Les Echos reports.

SPAIN AND PORTUGAL

Banco Popular mullsbranch closures: BancoPopular Español SA plans to adopt drastic cost cutting measures,including reducing its staff by 2,500, or more than 15% of the workforce, El País writes.The bank is also considering closing 300 branches.

* BankiaSA today reportedsecond-quarter attributable net income of €245 million, down from €296 milliona year ago. The first-half result dropped year over year to €481 million from€527 million, partly due to the sale of U.S. unit City National Bank ofFlorida in 2015.

* Banco deSabadell SA postednet income attributable to the group of €173.3 million in the second quarter,compared to €177.6 million in the year-ago period. Excluding unit TSB BankingGroup Plc, the second-quarter profit amounted to €89.3 million. The Spanishbank's first-half net income rose on a yearly basis to €425.3 million from€352.2 million.

* BankinterSA CEO María Dolores Dancausa said the bank plans to increase thenumber of its branches and staff, albeit in a controlled way, El Economista reports.The bank hopes that its full-year 2016 profit will be higher than €376 millionlast year, Europa Press writes. Net interest income is expected to remainat €220 million.

* Citibank expects Banco Bilbao Vizcaya Argentaria SA to post asecond-quarter profit of €901 million, 4% less than the market consensus, ABC reports.

* The co-head of the investment banking division of DeutscheBank España has left his position, Expansión says. Alfonso Gomez-Acebo handed his responsibilitiesover to Miguel Lainz, co-head of the division.

* Banco BPISA shareholders are due to meet today to vote on a proposal to lifta cap on voting rights, a measure that would in turn allow to advance a fulltakeover offer, DiárioEconómico, Jornalde Negócios and Expressoall report. The reports noted that the 20% cap would likely be lifted despitestrong opposition from some smaller shareholders and possible legal disputesfollowing the vote.

* Portuguese police carried outsearches at the offices of investment banks Haitong Bank SAand Caixa - Banco de InvestimentoSA as part of an investigation believed to be linked to PortugalTelecom, Expresso reports.Both banks worked for the telecommunications company in an advisory capacity.The investigation is looking into possible crimes of money-laundering, fraudand corruption.

* Portugal's government may askCaixa Geral de DepósitosSA's current administration to stay on for a short period timeafter its term officially ends July 31, Jornal de Negócios reports.The appointment of a new management team led by António Domingues is delayedand it is unclear when it will take office.

* closedits unit in the Cayman Islands earlier in July as part of a 2016-2018 strategyplan to sell riskier and noncore assets weighing on its balance sheet, Jornalde Negócios and DiárioEconómico report.

ITALY AND GREECE

Italy finds ally in Draghi: ECB President Mario Draghi said astate-funded backstop would be "very useful" in helping Italian bankssell some of their bad loans but added that this would need to be agreed withthe European Commission according to existing rules, Reuters reports.

* has submitted a plan to the ECB to sell its entire portfolio of nonperformingloans at a loss of €1 billion to €2.7 billion, an insider tellsReuters. The ECB reportedly reviewed the proposal yesterday.

* The Bank of Italy received atleast three binding offers for four small-sized Italian banks bailed out latelast year by an extended deadline yesterday, Reuters reports.Private equity funds Apollo and Lone Star were said to be among the bidders.

* appointed Konstantinos Paschalis CFO, effectiveJuly 21, Naftemporiki reports.

* The ECB decided to further reduceemergency liquidity assistance to the Greek banking system due to the increasein deposit flows and overall improved liquidity, Imerisia writes.The ECB approved Bank of Greece Governor Yannis Stournaras' request andset the ELA ceiling at €57.2 billion.

* introduced a newe-payment platform called MyBank, Euro2dayreports.

NORDIC COUNTRIES

Danske Bank on Brexit vote: The Brexit vote will increaseuncertainty around the future growth of Danske Bank A/S but the lender believes that in theshort term, it will have no significant impact on its operations and finances, Politiken reports.

* CEO BirgitteBonnesen said increased margins on bank mortgages "remain a consequence ofthe increased capitalization rules that came out of the FSA," Dagens Industri reports.

EASTERN EUROPE

Russian central banknot planning to influence ruble: The Central Bank of Russia said it has noplans to abandon the floating ruble rate and influence it against foreigncurrencies, Russian news agency TASS reports.The ruble stands in the range of between 63 and 67 to the U.S. dollar betweenApril and July. Russian presidential aide Andrei Belousov said the ruble is toostrong, leading to a slowdown in export growth.

* TürkiyeFinans Katilim Bankasi AS said its board of directors accepted the resignationsof four executive vice presidents. The four executives are Erol Gorgun, who isresponsible for risk monitoring, collections and legal affairs; Dursun Arslan,who oversees operations; Menduh Kara, who has responsibility for corporate andcommercial banking; and Mustafa Saglam, who has oversight of retail banking anddistribution network.

IN OTHER PARTS OF THE WORLD

Asia-Pacific: BI keeps key rate at 6.5%; Goldman Sachs under scrutiny in 1MDBprobe

Middle East and Africa: Bank of Mozambique hikes rates again; Kenya eyes term limits forbank CEOs

Latin America: Banamex chairman to step down

North America: BNY Mellon in earnings spotlight; Yadkin, FNB reportedly in M&Atalks

North America Insurance: Travelers operating earnings decline; Securian invests in healthinsurance startup

NOW FEATURED ON S&PGLOBAL MARKET INTELLIGENCE

RumoredCEO change welcome as ABN AMRO faces capital, mortgage risk-weightchallenges: New leadership and a fresh strategy could help ABN AMROrestore balance amid worries about its capital and mortgage risk-weightings.

Around theBourse: Draghi backs 'public backstop' for NPLs as Italy moves on Monte deiPaschi: ECB President Mario Draghi expressed support for stateinvolvement in reducing nonperforming loans as Italy seeks to address the issueof Banca Monte dei Paschi.

Swedbank execsforesee stable oil exposure after sharp rise in provisions: CEOBirgitte Bonnesen told analysts that a sharper-than-expected rise in impairmentprovisions was attributable to the early closing of loan restructuringnegotiations.

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.

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