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Santander, Blackstone in Popular talks before resolution; Slovenia to float NLB

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Santander, Blackstone in Popular talks before resolution; Slovenia to float NLB

* Single Resolution Board Chair Elke König said the Single Resolution Fund will grow to just short of €33 billion in 2019 from €25 billion this year, Reuters reported. The move is in line with plans to increase the fund to at least 1% of all covered deposits in eurozone banks by the end of 2023.

* Meanwhile, the 35 major European banks have to raise €125 billion worth of securities that are subject to bail-in procedures in order to meet the minimum requirements for own funds and eligible liabilities, MF reported, citing a study from the SRB.

* European Banking Authority Chairman Andrea Enria said eurozone banks had not made enough progress in raising loss-absorbing capital buffers and now face tougher market conditions to build them up, according to Reuters. Enria noted that the problem concerned large and medium lenders, but not the global systemically important banks, such as Deutsche Bank AG or UniCredit SpA.

UK AND IRELAND

* The Bank of England's Prudential Regulation Authority published a consultation paper urging banks, insurers and asset managers to take a "strategic approach" to gauging their financial exposure to climate change. It urged companies, including Lloyd's of London syndicates and the U.K. subsidiaries of foreign banks, to develop risk models to be shared with the regulator in order to create new industry standards over the coming 18 months.

* CYBG PLC completed its acquisition of Virgin Money Holdings (UK) PLC, having met all the conditions set out in the scheme of arrangement.

* Schroders PLC's total assets under management and administration amounted to £453.0 billion at Sept. 30, up from £447.0 billion as of Jan. 1.

* HSBC Holdings PLC is planning to invest about £250 million of its pension scheme into renewable energy infrastructure for wind and solar power in the U.K., Bloomberg News reported.

* OakNorth Bank PLC appointed Martin Stewart to its advisory board, according to the Financial Times. Stewart previously served as the BoE's director of banks, building societies and credit unions.

* London-based cryptocurrency exchange Coinfloor Ltd. obtained a license to operate under Gibraltar's new rules for financial technology companies that make use of blockchain technology, the FT reported.

* U.S.-based cryptocurrency exchange Coinbase Inc. launched a new office in Dublin that will compliment its operations in London.

GERMANY, SWITZERLAND AND AUSTRIA

* Credit Suisse Group AG CEO Tidjane Thiam is among the few top managers who will not boycott the Future Investment Initiative event to be held later this month in Riyadh, after a host of executives pulled out of the business conference amid questions about the disappearance of journalist Jamal Khashoggi, Handelszeitung wrote. Credit Suisse was one of the main sponsors of the event.

* Moody's warned of "fundamental changes" and "hard times" for domestic banks in the Swiss property financing market after several expected legal changes involving tax preferences come into effect and PostFinance AG enters the mortgage market, Tagesanzeiger noted.

* SIX Group AG acquired a minority stake in Swiss fintech startup PassOn AG, which focuses on digital inheritance and estate planning.

* Deutsche Börse AG will be cutting 218 jobs in Germany in the next three years, representing 60% of total cuts planned in its Roadmap 2020 strategy, Handelsblatt reported.

* Talanx AG slashed its 2018 group net income outlook to approximately €700 million due to several large losses and an "unusually large" accumulation of frequency losses in industrial property insurance at its industrial lines division.

* U.S. private equity group Advent International Corp. has begun preparations for an IPO or sale of Austrian banking unit Addiko Bank AG, insiders told Reuters. The listing or sale could take place next year, according to one of the sources.

* The planned purchase of Austria-based Wiener Privatbank SE by Czech and Slovak investment group Arca Capital has been facing delays and could become more expensive for Arca, Euro.cz and E15 reported. In addition to offering €10 per Wiener Privatbank share and an additional €2 per-share premium for exclusivity in negotiations, Arca recently agreed to pay additional €1 per share to extend the exclusivity option until the end of June 2019, with the new purchase price to exceed €39.9 million.

FRANCE AND BENELUX

* Groupe BPCE is to launch the sale process for Fidor, insiders told L'Agefi.

* The Netherlands Authority for the Financial Markets is in need of about 10% more staff to cope with the flurry of relocation requests from Britain-based firms due to Brexit, insiders told Reuters.

SPAIN AND PORTUGAL

* Banco Santander SA was in discussions to sell the real estate portfolio of Banco Popular Español SA to Blackstone Group LP at least three weeks before Banco Popular was wound down by European authorities and sold to Santander for €1 and three months before an actual deal with Blackstone took place, according to documents seen by S&P Global Market Intelligence.

* Warren Buffett is preparing for a possible launch of an insurance business in Spain by searching for an executive to lead Berkshire Hathaway Specialty Insurance Co. in the country, Expansión wrote.

* The investment banking and risk capital operations of Banco BPI SA — composed of Banco Português de Investimento SA and BPI Private Equity - Sociedade de Capital de Risco — are set to be absorbed by the Portuguese lender's Spanish parent CaixaBank SA as part of a corporate restructuring, Jornal de Negócios reported.

* João Rendeiro, the founder of defunct Portuguese private bank Banco Privado Português, has been sentenced to five years imprisonment or a suspended sentence and a €400,000 fine for offences including computer fraud and forgery of documents following an investigation launched in 2014, Jornal de Negócios and Dinheiro Vivo reported. BPP collapsed in 2010.

ITALY AND GREECE

* Italy's government approved an expansionary budget for 2019 that will raise the country's budget deficit to 2.4% of GDP, a figure that has raised flags at the European Commission and rattled financial markets. The budget reduces the proportion of interest payments that banks can deduct from their taxable income to 86% from 100% currently, a government source told Reuters.

* Credito Valtellinese SpA appointed Luigi Lovaglio as its new chairman, replacing Miro Fiordi.

* Sweden-based Intrum AB (publ), which earlier this year purchased some €12 billion in nonperforming loans from Intesa Sanpaolo SpA, is likely to conclude a second deal in Italy over the next two years, Mikael Ericson, head of the Swedish group, told La Repubblica.

EASTERN EUROPE

* The government of Slovenia is pressing ahead with an IPO of Nova Ljubljanska banka dd, in which the state will offer up to 75% of the bank's current shares minus 1 share.

* Munich Re Co. subsidiary ERGO Group AG agreed to sell its Russian life insurance business, ERGO Life, to Rosgosstrakh Insurance Co. (PJSC).

* The Serbian Ministry of Finance invited companies to submit applications to act as a financial adviser in the sale of its stake in Komercijalna banka a.d. Beograd.

* Russia will provide an additional 20 billion Russian rubles to PAO Promsvyazbank, bailed out by the Central Bank of the Russian Federation in 2017, in addition to the 5 billion rubles promised earlier this year, news agency Prime reported.

* The Russian central bank placed International Bank of Saint Petersburg (JSC) into provisional administration of the Deposit Insurance Agency for six months and imposed a three-month moratorium on meeting the bank's creditor claims, citing the need protect its assets as well as creditors and deposit holders.

* Citing increased inflation risks, the National Bank of the Republic of Kazakhstan increased its key interest rate from 9% to 9.25% with a corridor of plus or minus 1%, Kapital.kz reported.

IN OTHER PARTS OF THE WORLD

Asia-Pacific: NAB flags extra A$314M costs; Suncorp mulls unit sale; Star Health deal gets nod

Middle East & Africa: Old Mutual cuts Nedbank stake; Masraf Al-Rayan posts YOY rise in Q3 profit

Latin America: Itaú ups stake in Chilean unit; Argentine economic slump contagious, IMF warns

North America: BofA's Q3 earnings rise; Jamie Dimon drops out of Saudi conference

Global Insurance: Prudential SIFI vote due; insurers to absorb Michael hit; Manulife criticized

NOW FEATURED ON S&P GLOBAL MARKET INTELLIGENCE

Time running out for Banca Carige to plug capital hole: Banca Carige is weighing options as pressure builds on it to strengthen its capital position, but analysts say time is running out for the embattled lender to find a solution.

Treasury joins regulators in call for banks to plan for no-deal Brexit: Britain's high street banks have been asked by the Treasury to assess their exposure to businesses likely to be affected by a no-deal Brexit and draw up plans to support them through any disruption.

BoE warns of climate change risk; disclosure rules likely in 2-3 years: The Prudential Regulation Authority has published a consultation paper urging banks, insurers and asset managers to take a "strategic approach" to gauging their financial exposure to climate change.

Leo Magno, Arno Maierbrugger, Danielle Rossingh, Gerard O'Dwyer, Beata Fojcik, Yael Schrage, Stephanie Salti, Sophie Davies and Helen Popper contributed to this report.

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