* The Financial Stability Board said watchdogs should have the power to wipe out the cash guarantees posted by members of clearing houses or cancel derivative contracts in an emergency. The increasing importance of clearing houses, or central counterparties, within the global financial infrastructure since the 2008 crash means that they have themselves become a source of systemic risk, prompting the FSB to begin fashioning a framework for dealing with the fallout of a clearing house failure.
UK AND IRELAND
* Members of U.K. House of Commons have voted overwhelmingly in favor of a bill that would give Prime Minister Theresa May the authority to trigger Article 50 of Lisbon Treaty to leave the EU.
* The Bank of England will likely try to avoid adding to speculation regarding a first interest rate hike in nearly a decade, even as it acknowledges the U.K. economy's resilience since the Brexit referendum, Reuters writes. A Reuters poll of economists expects the BoE to marginally raise its 2017 growth forecast.
* Royal Bank of Scotland Group Plc Chairman Howard Davies indicated in an interview with Bloomberg Television that the lender would likely pick Dublin as its EU base after Brexit and may have to move employees from Britain to other offices, noting that Irish unit Ulster Bank Ireland DAC, which is already regulated by the ECB, will probably be the lender's hub in the eurozone.
* The U.K. Financial Conduct and Prudential Regulation authorities yesterday published final changes in a policy statement meant to strengthen the transparency and effectiveness of their enforcement decision-making processes. The Daily Telegraph covers.
* Aberdeen Asset Management Plc reported AUM of £302.7 billion as of Dec. 31, 2016, down from £312.1 billion at Sept. 30, 2016. Gross inflows in the three months to December-end amounted to £10.16 billion, compared to £8.35 billion in the three months to September-end.
* Worldpay Group plc named Peter Jackson CEO of Worldpay UK.
GERMANY, SWITZERLAND AND AUSTRIA
* Deutsche Bank AG reported fourth-quarter 2016 net loss of €1.89 billion, compared to a net loss of €2.13 billion in the year-ago period. For the full year 2016, the bank reported a net loss of €1.36 billion, down from a net loss of €6.77 billion in 2015.
* German authorities are investigating Deutsche Börse AG CEO Carsten Kengeter's purchase of shares in the Frankfurt-based exchanges operator shortly before the company announced plans to merge with London Stock Exchange Group Plc last year, the Financial Times reports.
* More than 5,500 customers of private banks lodged complaints with the ombudsman at the Association of German Banks mainly over alleged false advice in connection with security purchases, wrong information about cancellation policies of loans and account charges, Handelsblatt writes.
* Munich Re CFO Jörg Schneider tells Handelsblatt that the company is interested in making "large acquisitions" outside the reinsurance market if prices are right.
* Georg Fahrenschon, president of the German Savings Bank Association, tells Handelsblatt that negative interest rates cost German savings banks "a few hundred million euros" in 2016.
* Switzerland's Federal Council plans to introduce a special business license for fintech companies to reduce administrative barriers for start-ups and innovative financial technology solution providers, which normally would be subject to a banking license in case they undertake money transactions, Handelszeitung writes.
* Bâloise Holding AG launched an insurtech start-up called "Friday" in Germany.
FRANCE AND BENELUX
* NN Group NV today recommended an all-cash public offer at a price of €5.40 per ordinary share, representing a total consideration of €2.5 billion, for all issued and outstanding ordinary shares of Delta Lloyd NV. The offer is expected to be completed in the second quarter.
* ING Groep NV this morning posted fourth-quarter 2016 group net result of €750 million, down from €819 million a year ago. The group's full-year 2016 net result amounted to €4.65 billion, up from €4.01 billion in 2015.
* BNP Paribas SA announced the sale of 17.9% of unit First Hawaiian Inc. for $800 million, L'Echo and Les Echos write. At the end of this transaction, the bank will own between 64.4% and 62% of First Hawaiian.
SPAIN AND PORTUGAL
* Spanish Economy Minister Luis de Guindos said the government will resort to the privatization of its stakes in Bankia SA and Banco Mare Nostrum SA to repay the "majority" of the €60 billion loan obtained from the European Stability Mechanism to clean up the country's banking sector, Europa Press writes.
* CaixaBank SA booked fourth-quarter 2016 profit attributable to the group of €77 million, compared to a loss of €182 million in the year-ago period. The bank booked reversals on financial assets of €108 million, compared to year-ago impairment losses of €754 million.
* Former Caixa Geral de Depósitos SA President António Domingues, along with his former administration, will be obliged to present his income and assets declaration to the Constitutional Court, despite having resigned his position for not wanting the information to go public, Expresso anticipates.
ITALY AND GREECE
* UniCredit SpA set the subscription price for new ordinary shares in its upcoming rights issue at €8.09 per share, representing a discount of roughly 38% to the theoretical ex-rights price of the company's shares. The subscription ratio is 13 new ordinary shares for every 5 ordinary and/or savings shares held. Reuters has a report.
* Banco BPM SpA will raise its nonperforming loan coverage ratio to close to 60%, a move that will clean up its balance sheet but will have a negative impact on its bottom line, MF says. The bank's board is due to approve its 2016 results Feb. 10.
* The Italian government granted state guarantees on new bonds to be issued by Banca Popolare di Vicenza SpA and Veneto Banca SpA, Reuters reports.
* Retail investors owning junior debt in Banca Monte dei Paschi di Siena SpA will be entitled to reimbursement only if they bought the notes prior to Jan. 1, 2016, according to a draft government document on its planned bailout of the bank, Reuters says.
* Investors are selling off Greek bonds, fearing that Athens will be unable to repay about €6 billion in debt by the July deadline, The Wall Street Journal reports.
* Swedbank AB (publ) reported fourth-quarter 2016 profit attributable to shareholders of the bank of 4.14 billion Swedish kronor, compared to 3.81 billion kronor a year ago. Full-year 2016 profit attributable to shareholders was 19.54 billion kronor, up on a yearly basis from 15.73 billion kronor.
* Danske Bank A/S today reported full-year 2016 net profit of 19.86 billion Danish kroner, up from 13.12 billion kroner a year ago. The bank will launch a share buyback program for 10 billion kroner, running from tomorrow up to Feb. 2, 2018, at the latest.
* Meanwhile, Danske Bank is making changes to its organization and is integrating the investment operations of Danica Pension with Danske Bank Asset Management, FinansWatch reports. Several managers will resign as part of the changes.
* DNB ASA today reported fourth-quarter 2016 profit of 5.4 billion Norwegian kroner, compared to 6.8 billion kroner in the year-ago period. For the full-year 2016, profit was 19.3 billion kroner, compared to 24.8 billion kroner a year earlier.
* OP Financial Group unit OP Yrityspankki Oyj, or OP Corporate Bank Plc, reported consolidated 2016 full-year pre-tax earnings of €504 million, down 19.4% from €625 million in the year-ago period.
* Anne Barfod will step down as CFO of Alm. Brand A/S to take on a similar role at the Danish Refugee Council, an international humanitarian organization.
* The Danish FSA is worried about pension funds increasing their lending to real estate projects, noting that several banks went bankrupt during the financial crisis after financing large real estate projects, Finans reports.
* The Norwegian government is considering introducing measures against marketing of consumer loans, E24 reports. There have been several warnings against the growth in consumer lending, and according to a new report, it is possible for the government to prohibit marketing of it.
* Danish fintech company Altapay has entered a strategic partnership with U.K. payment services company IPS, Børsen reports.
* Entities close to Russian nonstate pension fund NPF Blagosostoyanie and U.S. company Brunswick could become new shareholders at Renaissance Insurance Group Ltd., Banki.ru reports, citing news agency TASS.
* O1 Group, controlled by Russian businessman Boris Mints, acquired nonstate pension fund NPF Sotsialnoe razvitie from Fletcher Group Holdings, Vedomosti reports.
* Russia's Federal Customs Service revoked the right of PJSC BANK JUGRA to issue bank guarantees on payments of customs duties and taxes, Kommersant reports.
* PZU SA, which is getting ready to take control of Bank Pekao SA, filed a request with the Polish Office of Competition and Consumer Protection to approve the purchase of a stake in the lender, as well as Pioneer Pekao Investment Management and brokerage company Dom Inwestycyjny Xelion, which are part of Pekao Group, Parkiet reports.
* Getin Holding SA completed the sale of a 10.02% stake in GETIN Leasing SA to LC Corp. BV, Parkiet says.
* The Czech central bank's deputy head, Vladimir Tomsik, said the regulator is ready to act by adjusting credit standards and increasing the countercyclical capital buffer if the quick lending dynamic continues on the Czech market, Reuters reports.
* Ukrainian state-owned lender PJSC JSB Ukrgasbank is ready to be sold to private investors, but the current market situation makes it difficult to find buyers, Interfax Ukraine reports, citing Deputy Finance Minister Yuriy Butsa.
IN OTHER PARTS OF THE WORLD
Asia-Pacific: US Fed officials hold target rate; KB Kookmin eyes stake sale in Kazakh bank
Middle East & Africa: Banque du Caire eyes listing; Nigeria nears $1B eurobond sale
Latin America: XP Investimentos plans $1B IPO; BNDES lending hits 9-year low
North America: Wells blocked from paying severance packages to laid-off employees
North America Insurance: Warren questions decision to end ACA ads; Cigna weighing Anthem deal options
NOW FEATURED ON S&P GLOBAL MARKET INTELLIGENCE
Pan-EU 'bad bank' proposal fraught with challenges: The EBA's proposal for a pan-European bad bank is a good idea in principal but would be hard to implement, experts say.
BBVA sees slower loan growth in Mexico as economy slows: The Spanish lender also said it is not planning to increase provisions for claims related to the mis-selling of mortgages.
SEB 'not satisfied' with mortgage growth: SEB CEO Annika Falkengren is "not satisfied" with levels of mortgage origination, but is hopeful that the bank can grow its lending book faster in 2017.
Sheryl Obejera, Arno Maierbrugger, Meike Wijers, Esben Svendsen, Beata Fojcik, Thanasis Kakalis, Ali Kayalar, Heather O'Brian, Stephanie Salti, Praxilla Trabattoni and Mariana Aldano contributed to this report.
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