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Irish banks told to hold more capital; Credit Suisse fined; Barclays buying NPLs

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Irish banks told to hold more capital; Credit Suisse fined; Barclays buying NPLs

* A sharp jump in interest rates after a prolonged period of ultra-loose monetary policy could trigger solvency and liquidity problems at insurers and pension funds, the Bank for International Settlements has warned.

* Uncertainty over trade at a time of increasing protectionism could trigger a "snap back" in interest rates, tightening financial conditions around the world, according to Bank of England Governor Mark Carney. The market is interpreting Carney's comments as a signal that the BoE will increase interest rates in August.

* Global insurance premiums continued to rise in 2017, albeit at a somewhat slower pace than a year earlier, according to a Swiss Re Institute report.

UK AND IRELAND

* The BoE and the U.K. Financial Conduct and Prudential Regulation authorities will more closely examine the relationships between financial firms and IT outsourcers to determine how resilient the sector is to potential cyber threats, according to a discussion paper.

* The U.K. FCA has backed measures by the Institutional Disclosure Working Group to standardize how costs and fund management charges are disclosed to institutional investors.

* British TV presenter Noel Edmonds said Lloyds Banking Group PLC could face a much larger bill than the £100 million it set aside to compensate the victims of a suspected fraud at HBOS PLC's Reading branch, BBC News reported. Edmonds, who is seeking £64 million in damages over the scandal, noted that the current pot does not include potential court settlements and that Lloyds could face more than £1 billion in legal claims.

* Virgin Money Holdings (UK) PLC expects its common equity Tier 1 ratio to increase by over 250 basis points to about 16%, having received an approval from the U.K. Prudential Regulation Authority on its mortgage risk-weight models.

* The Irish central bank will require the country's banks to hold an extra capital buffer equivalent to 1% of their risk-weighted assets from July 5, 2019, onward, to promote resilience in the banking sector. The Irish countercyclical capital buffer has been set at zero percent since its introduction in December 2015.

* Ireland's FBD Holdings Plc hired law firm William Fry to look into internal allegations made against CEO Fiona Muldoon, The Irish Times reported.

* Dmitri Rozanov, former managing director of private banking at EFG Private Bank Ltd., has sued the EFG International AG British unit for unfair dismissal for blowing the whistle on their allegedly weak due diligence process and controls, the Financial Times reported.

* The U.K. FCA has refused to allow U.S. hedge fund manager Steven Cohen to reopen his new Point72 fund to clients in Britain after a two-year ban over insider trading at his previous company expired at the beginning of the year, insiders told the Financial Times.

* JPMorgan Chase & Co. issued a mass communication to its 16,000 employees in the U.K., calling for relocations as the company braces for Britain's post-Brexit future, Reuters reported.

GERMANY, SWITZERLAND AND AUSTRIA

* Credit Suisse Group AG agreed to pay a total of $77 million to settle allegations that it violated the Foreign Corrupt Practices Act, an anti-bribery law, in its Asia-Pacific hiring practices.

* Vontobel Holding AG could cut up to 140 of 400 jobs at Notenstein La Roche Privatbank AG, which it recently acquired from Raiffeisen Schweiz Genossenschaft for CHF700 million, Reuters reported, citing Swiss newspaper Tages-Anzeiger.

* Meanwhile, Bank Vontobel AG is setting up a unit targeting less wealthy clients due to changes in the population and consumer behavior, Finews.com reported. The bank plans to use its digital offerings in the new unit, which marks a change in the bank's tradition of solely serving wealthy clients.

* Allianz Group is expecting a tougher year in terms of flow numbers into its asset management business due to the recent volatility in financial markets, board member Jacqueline Hunt told Reuters.

* Germany's KfW has raised the target corridor of its funding needs for 2018 by €5 billion to between €75 billion and €80 billion following an updated forecast of off-schedule repayments in lending business for the whole year 2018.

FRANCE AND BENELUX

* A report into the regulation of cryptocurrencies ordered by the French finance ministry recommends that no attempt be made to directly regulate them, and that they be allowed to develop in the "virtual space they occupy," Les Echos and La Tribune covered.

SPAIN AND PORTUGAL

* Bankia SA has won an appeal by Iberdrola SA over the losses the Spanish power supply company entailed following the bank's 2011 IPO, El País reported.

* Nationale-Nederlanden Bank NV has begun operations in Spain with the launch of an online savings account, Expansión wrote.

* Nonperforming loans at Portuguese banks fell to €35.3 billion in the first quarter from €37 billion in December 2017, mainly reflecting a reduction in the nonfinancial corporation segment, Jornal de Negócios said.

ITALY AND GREECE

* A portfolio of nonperforming loans originated by 53 cooperative, rural and popolari banks across Italy was jointly acquired by Barclays Bank PLC, Värde Partners Inc. and Guber Banca, through a securitization vehicle. The gross book value of the portfolio is €1.40 billion.

* Unione di Banche Italiane SpA is expected to launch next week a nonperforming loan securitization deal for a portfolio with a nearly €3 billion nominal value, MF said.

* Cerberus Capital Management's senior adviser for Europe, Roberto Nicastro, said the private equity group is among those working on an offer for a portfolio of nonperforming loans put up for sale by Banco BPM SpA and the bank's bad loan management portfolio, Reuters reported.

NORDIC COUNTRIES

* Danish business minister Rasmus Jarlov said the government would confiscate any profits made by Danske Bank A/S through alleged illicit dealings at its Estonian unit, Bloomberg News reported, citing local newspaper Jyllands-Posten.

* Meanwhile, Hermitage Capital Management Ltd. CEO Bill Browder told the Financial Times that he will file a new criminal complaint against Danske Bank over the scandal at its Estonian unit.

* Skandinaviska Enskilda Banken AB CEO Johan Torgeby told Bloomberg News that the Swedish lender is hiring as many as 1,400 to 1,500 people a year right now, or about 100 individuals per month. The new hires are people primarily in new technology, computer scientists and new areas within customer journey design, Torgeby noted.

* Swedbank AB (publ) appointed Ola Laurin as the sole head of large corporates and institutions after co-head Elisabeth Beskow decided to leave the bank.

* Nordnet Bank AB has named Anne Buchardt its new country manager for Denmark, Dagens Industri reported. Buchardt will replace Niklas Odenwall, who is leaving Nordnet for a new assignment outside banking.

EASTERN EUROPE

* The Polish Financial Supervision Authority has asked the U.K. FCA to keep a close eye on the payments and remittances company Revolut Ltd. after a series of failures encountered by its app users, Reuters reported.

* The second quarter commission income of investment banks operating in Russia amounted to just over $30 million, the lowest quarterly result in over three years, Kommersant wrote, citing Thomson Reuters data.

* Polish financially troubled debt collector GetBack SA wants to change the terms of its debt restructuring proposal, as the situation at the company turned out to be more difficult than initially expected, news agency PAP reported.

* The Bulgarian Commission for Protection of Competition allowed Investbank AD to acquire Victoria Commercial Bank EAD from collapsed Corporate Commercial Bank AD, SEENews reported.

* Ukraine's parliament approved a law requiring state-controlled lenders to appoint a majority of independent members to their supervisory boards, Reuters reported.

IN OTHER PARTS OF THE WORLD

Asia-Pacific: Credit Suisse fined in Asia-Pacific hiring probe; Hong Kong's PAG to enter India

Middle East & Africa: Abraaj-Colony Capital deal in question; Waha Capital plans hiring spree

Latin America: Peru names Agrobanco chairman; Banco de Chile sues HK firm after cyberattack

North America: British court rejects Goldman Sachs appeal; Visa, Mastercard lose in fee ruling

Global Insurance: Generali selling German unit; global premiums tick up; Willis plans Africa reorg

NOW FEATURED ON S&P GLOBAL MARKET INTELLIGENCE

Lloyd's of London must follow through on syndicate closure threats, CEOs say: Lloyd's insurers have welcomed the crackdown on syndicate and business line profitability but say they are not the sole answer to the 330-year-old insurance market's problems.

UK regulators warn banks, other financial firms to boost IT failure resilience: In a new discussion paper, the Bank of England and the U.K. Financial Conduct Authority warn that regulators will focus on relationships with IT outsourcers to determine the level of resilience in the financial system, but they also warned banks and others that they are responsible for continuing to deliver services during an outage.

Sheryl Obejera, Ed Meza, Danielle Rossingh, Gerard O'Dwyer, Beata Fojcik, Heather O'Brian, Brian McCulloch, Sophie Davies and Mariana Aldano contributed to this report.

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