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Italy's €50B bank bailout plan; Deutsche Bank branch closures; Turkey's financial stability measures

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Italy's €50B bank bailout plan; Deutsche Bank branch closures; Turkey's financial stability measures

European banks could face€40B bill due to Brexit:Europe's banks would face a bill of up to €40 billion for extra capitalreserves if Brexit were to mean that all their U.K. operations would have to beclassified as stand-alone subsidiaries, LesEchos reports.

* Boston Consulting Group said revenues at investment bankswill likely drop by about 11% to $204 billion this year partly due touncertainty and lower client activity following the Brexit vote, Reuters reports.

* Hedge funds around the world reported gains of 1.36% inthe first six months, its worst performance since 2008 when they lost 0.53%,Reuters reports,citing data from Preqin.

UK AND IRELAND

BoEpolicymaker wants more than rate cut: Bank of England Monetary PolicyCommittee member Gertjan Vlieghe said in an opinion piece publishedby the Financial Times that the U.K.needs further monetary stimulus after the Brexit vote. Vlieghe, the lone memberwho voted for an interest rate cut of 0.25 percentage point in the MPC's latestmeeting, indicated that "an immediate interest rate cut" must"be supplemented by a package of additional measures in August."

* Santander UKPlc is looking into a restructured asset transfer deal to acquireRoyal Bank of Scotland GroupPlc's Williams & Glyn business, which includes about £24billion in deposits and more than 300 branches. The two banks are currently intalks about the deal but the feasibility of such asset transfer is stillunclear, insiders tellSky News.

* Insiders tellThe Daily Telegraph that thenew British government could speed up the privatization of and shelveformer Chancellor George Osborne's plan to sell the bank's shares to retailinvestors.

* CEO Bill Winters tellsthe Financial Times that may moveits headquarters from the U.K. if extra taxes were to be imposed on the bankingsector as a result of Brexit.

* Co-operativeBank Plc named John Worth CFO and a director, with effect fromSept. 1, pending regulatory approvals. Worth, who is currently interim CFO atHiscox Ltd., willsucceed John Baines, who will step down from the board Sept. 28 and leave thebank Oct. 1.

* BarclaysPlc CEO Jes Staley tellsLes Echos that he does not think itis possible that a bank will be prevented from pursuing activity in the rest ofEurope after Brexit, adding that the greatest risk to financial institutionscame from low or negative interest rates provoked by central banks.

* Legal &General Group Plc's Legal & General Investment Managementchanged the fair value pricing adjustment for its £2.3 billion U.K. propertyfund, Reuters reports.

*Randall & Quilter InvestmentHoldings Ltd. completedits acquisition of Agency Program Insurance Co. (SAC) Ltd. for a totalconsideration of about $1.4 million.

GERMANY, SWITZERLAND ANDAUSTRIA

Deutsche Bank toshut nearly 200 branches: Of the 188 branches is planning to closein Germany by 2017-end, most will be in the state of North Rhine-Westphalia, Handelsblatt writes,citing a report by Bildam Sonntag. Deutsche Bank is looking to reduce the number of itsbranches to 535 from 723.

* Two investment vehicles owned by the Qatari royal familyincreased theirshares in Deutsche Bank. Paramount Services Holdings and Supreme UniversalHoldings raised their stakes to just under 5%. Bloomberg News reports.

* CEO Heinrich Schaller is the likely candidate to succeedKarl Sevelda as CEO of RaiffeisenBank International AG next year, Die Presse reports. Sevelda is due to retire in 2017. RBIand Raiffeisen ZentralbankÖsterreich AG are looking to merge and could present a formalresolution as early as September.

* In an interviewwith Böersen-Zeitung,Allianz Group CFODieter Wemmer said the insurer was looking to increase its market share inEurope through acquisitions, adding that a 10% share was a good starting point.Wemmer noted that the volatility in Italy and turbulent market in the U.K. havenot had major effects on Allianz's business in the countries, adding that"artificial financial markets" remain the biggest risk for thecompany.

* Singapore's central bank is examining several Swissbanks to see if they broke anti-money laundering rules in handling transactionslinked to the Malaysian 1MDB state fund scandal, Reuters reports.The investigation could result to fines and other penalties.

FRANCE AND BENELUX

ING to merge dealing rooms: Dutch lender wants to merge itsdealing rooms in London, Amsterdam and Brussels to cut regulatory costs, Het Financieele Dagblad reports.The newly merged dealing room may be seated in Amsterdam, London, Frankfurt orParis.

* KBC GroupNV subscribed for an additional 224 million ordinary shares of€1.25 each in unit KBC BankIreland Plc to meet an ECB requirement to change the structure ofits capital buffers in Dublin, accordingto The Irish Times. The Irishsubsidiary replaced an existing €280 million Additional Tier 1 capitalinstrument held entirely by KBC Group with ordinary shares.

* CBC BanqueSA unveiled a new strategy aimed at Walloon entrepreneurs, sayingit will create 118 full-time jobs, L'Echoreports.

SPAIN AND PORTUGAL

BPIshareholders advised to lift voting rights cap: Investment advisory firmsInstitutional Shareholder Services Inc. and Glass Lewis & Co., advisedBanco BPI SAshareholders to lift a cap on voting rights in order to let take full control of thelender and reduce its exposure to Angolan assets in line with Europeanregulations, BloombergNews and Jornal de Negócios reports.A decision on whether to lift the cap,which currently limits voting rights to 20%, is due to be discussed at a July22 general meeting.

* Portugal's central bank sees potential for a successfulsale of Novo Banco SAfollowing the presentation of four formal bids at June-end, Jornal de Negócios reports.A decision on whether to holdexclusive talks with any of the bidders or consider a possible stock marketflotation instead would not be made until August.

* Portuguese businessman Carlos Tavares will join 's12-member nonexecutive board, Jornalde Negócios reports. Tavares, who is currentlychairman of French car maker PSA Peugeot Citroën's managing board, was asked to join the bank's administration byAntónio Domingues. Domingues is in line to become Caixa's new CEO and, althoughthe government has postponed his appointment, final European approval of thenew management lineup is all but complete, Diário de Notícias reports.With regards to a possible capital injection, Diário Económico saysthe ECB had urged the government to come up with an alternative plan in case astate-funded recapitalization was not viable.

* BancoPopular Español SA may start paying dividends again with a cashdistribution of 25% of profits in 2017, Expansiónsays.A research note by brokerage Beka Finance forecast a €481 million profit forPopular in 2017. The bank expects to post losses of more than €2 billion thisyear after provisioning for bad real estate assets and does not intend to payout a dividend.

* In a note to Spanish market watchdog CNMV, reiteratedits commitment to the merger of Santander Asset Management and unit PioneerInvestments, El Economista writes.

* Banco Santander will have to pay back more than €55,000 toa customer who lost money in a cyber attack, Expansión reports.A judge ruled that the bank had the necessary means to detect and prevent acyber attack affecting current accounts.

ITALY AND GREECE

Italy said to beworking on €50B bailout fund: Italy is setting up a €50 billion badbank in hopes of cleaning up bad loans in the country's banking system, The Telegraph reports.The country reportedly mandated JPMorgan to work on the scheme.

* Banca Montedei Paschi di Siena SpA could carry out the planned disposal of 9.6 billion of net nonperformingloans and a subsequent capital increase analysts place at about 3 billion to €4 billion withoutstate guarantees, Il Sole 24 Ore says, noting that bail-in rulescould make state aid an excessively risky option while the market seemswell-disposed to a privately backed capital increase.

* Meanwhile, Moody's estimates that Monte dei Paschi'sdisposal of bad loans could leave it with a capital shortfall of 2 billion to 5 billion and has cut the bank'sB3 long-term senior unsecured rating due to what it sees as a rising likelihoodof it requiring external support, Reuters reports.

* SocietàCattolica di Assicurazione - SC appears intent on exercising itsput option on its 60% stakes in three bancassurance ventures with ,Corriere della Sera writes.

* Former BancaCarige SpA Chairman Cesare Castelbarco and former CEO Piero Montanisaid the bank's request for 850million in damages from them had no merit, insisting they had always actedaccording to the law and to regulator's requests, Reuters writes.

NORDIC COUNTRIES

SEB ends share lending practice: Skandinaviska Enskilda Banken AB has terminated thepractice of providing so-called "share lending" facilities tocustomers, FinansWatch reports. Suchfacilities had been commonly used by customers to avoid paying tax on stockdividends. Regulators had threatened punitive action against such facilities.

*Svenska Handelsbanken AB(publ) CEO Frank Vang-Jensen said the bank will continue tostrengthen its retail bank operations in Sweden and Britain, Dagens Industri reports.

* anticipates that a greater degree of price competition between insurers willdrive premium rates on policies down for consumers in the Norwegian market, Dagens Næringsliv writes.

EASTERN EUROPE

Turkey's central banktakes measures amid unrest: The Central Bank of the Republic of Turkey revealed a numberof measures to prevent possible fluctuations in the markets after a attempt in thecounty, Dunya reports.The central bank said it will provide banks with necessary liquidity withoutany limits. Additionally, the commission rate will be zero in intradayliquidity facilities, and banks will be able to place foreign exchange depositsas collateral without any limit to safeguard the lira. The Wall Street Journal has a report.

*Turkish Deputy Prime Minister Nurettin Canikli said the country's bankingsystem maintains routine functions in the aftermath of the failed coup attempt,Finans Gundem reports.Borsa Istanbul also remains open.

* Thetender held for the sale of AsyaKatilim Bankasi AS did not attract any bids, Yeni Safak reports,citing the Savings Deposit Insurance Fund. Two of three potential bidders didnot meet the pre-selection criteria, while the third one did not submit aformal bid despite meeting the criteria. The authorities earlier said the bankwould be liquidated if it finds no buyers.

* ING BankSlaski SA spokesman Piotr Utrata said the ING Groep unit will closeits brokerage services to institutional investors by August-end as thefinancial industry "is facing challenges," Bloomberg News reports.

IN OTHER PARTS OF THE WORLD

Asia-Pacific: Korea Eximbank issues NZ$350M bonds; Deutsche Bank eyes Asiagrowth

Middle East and Africa: National Bank of Kenya ex-CEO arrested; Saudi's NCB, Riyad Bankreport Q2 profits

NOW FEATURED ON S&PGLOBAL MARKET INTELLIGENCE

UniCredit'sstruggling asset management deal may be no great loss: UniCredit'slong-awaited deal to combine its asset management business, PioneerInvestments, with Santander Asset Management is understood to have hit aroadblock thanks to Brexit. But analysts were never convinced by the dealanyway.

HandelsbankenCFO positive on UK, as unit leads the way in terms of ROE: SvenskaHandelsbanken's appetite for the U.K. remains as strong as ever despite theeconomic uncertainty surrounding Brexit, Ulf Riese said.

Bank troublesmake Unipol worst-performing European insurer post-Brexit: Unipol'sshares have fallen more than any other European insurer since the U.K. voted toleave the EU. Its bank is dragging it down.

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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