* Mário Centeno, chairman of the Eurogroup of finance ministers, said he expects the group to reach an agreement in principle on a backstop for the Single Resolution Fund for banks at the end of June, Reuters reported.
UK AND IRELAND
* HSBC Holdings PLC plans to invest between $15 billion and $17 billion by 2020, primarily in technology and its core Asian markets, with CEO John Flint saying: "After a period of restructuring, it is now time for HSBC to get back into growth mode." The British lender is also looking to complete the establishment of its U.K. ring-fenced bank and increase its share of the mortgage market.
* The U.K. Financial Conduct Authority said its probe into Scottish Widows Group Ltd. related to the fair treatment of longstanding customers has concluded and that there is insufficient basis for taking any enforcement action. The regulator noted that its investigations into Prudential PLC, Countrywide Assured Plc, Old Mutual PLC and Abbey Life Assurance Co. Ltd. are continuing.
* Senior Standard Chartered PLC executives responsible for enforcing proper behavior at the bank have themselves fallen short of expectations, insiders told Bloomberg News.
* Lloyd's of London has temporarily removed reinsurance from the scope of its electronic trading mandate.
* London-based Aquis Exchange Ltd. priced its IPO at 269 pence per share and is set to begin trading on the London Stock Exchange's Alternative Investment Market on June 14. The share trading venue will place 4,460,967 new and 7,456,014 existing ordinary shares to raise £32.1 million. Polish stock exchange operator Gielda Papierów Wartosciowych w Warszawie SA will sell its 20.3% stake in Aquis for £12.4 million gross, Polish news agency PAP said.
* The U.K. Financial Reporting Council has fined KPMG LLP £3.2 million after the accountancy firm admitted to misconduct related to the audit of failed insurance company Quindell's 2013 financial statements, City A.M. reported.
GERMANY, SWITZERLAND AND AUSTRIA
* Shareholders in Deutsche Bank AG have called for the German lender to ditch or significantly shrink its U.S. investment banking arm, saying CEO Christian Sewing's plans to scale back the unit's operations are not enough for the bank to return to profitability, Financial News reported. Newly appointed CFO James von Moltke dismissed the calls, reportedly saying the bank's plan will generate the best possible return for shareholders.
* Norddeutsche Landesbank Girozentrale plans to cut around 1,000 staff at real estate financing subsidiary Deutsche Hypothekenbank AG as part of its cost-cutting strategy, Handelsblatt wrote.
* The German government is considering a cap on retail costs of life insurance, Handelsblatt reported. Details are expected in the second half.
* Thomas Bischof has been appointed chairman of the executive boards of Wüstenrot & Württembergische AG and Württembergische Lebensversicherung AG, succeeding Norbert Heinen from July 1.
* Vontobel Holding AG CFO Martin Sieg Castagnola said the Swiss firm plans to issue a subordinated, equity-linked Additional Tier 1 bond worth CHF350 million to CHF450 million to finance its acquisition of Notenstein La Roche Privatbank AG, Reuters reported. He also said the bank will re-evaluate its financial targets for the year after closing the acquisition, Handelsblatt reported.
* Yves Robert-Charrue, Julius Bär Gruppe AG's head for European business, told Reuters that the Swiss lender aims to expand in the U.K., Germany and Spain.
* Giorgio Pradelli, new CEO of EFG International AG, told Finanz und Wirtschaft that the bank — after its recent restructuring and top-management shake-up — will focus on organic growth in the Swiss private banking market and on further reducing costs by CHF240 million until 2019.
FRANCE AND BENELUX
* France's High Council for Financial Stability will impose a countercyclical buffer of 0.25% on banks to rein in the country's fast pace of lending. Banks will have 12 months from July 1 to enforce the new measure, which will also be applicable to EU banks operating within France.
* Shares in Dutch payment solutions provider Adyen NV's planned IPO are expected to price at the top end of the €220 per share and €240 per share indicative price range set earlier in June, Reuters reported. The potential final pricing will value the company at about €7.3 billion.
* Axa sold healthcare broker Health and Protection Solutions Ltd. to U.S. private equity firms Highbridge Principal Strategies and Madison Dearborn Partners for an undisclosed amount, Insurance Age reported. The deal is expected to close in the second quarter.
SPAIN AND PORTUGAL
* Portugal's Novo Banco SA
* Portugal's Caixa Geral de Depósitos SA plans to close about 70 branches this year, most of them by the end of June, Jornal de Negócios reported. The closures mean the lender will exceed the 40 closures by 2020 stipulated in its restructuring plan agreed with European authorities.
ITALY AND GREECE
* Italian finance minister Giovanni Tria said the country's new government is not discussing any plan to exit the euro single currency, the Financial Times reported. Mario Nava, the newly appointed head of Italian markets watchdog Consob, echoed Tria's comments, saying Italian citizens' savings would remain denominated in euros, Reuters reported.
* Intesa Sanpaolo SpA is also in talks with parties other than U.S.-based asset management firm BlackRock that are interested in buying a stake in asset management arm Eurizon Capital SGR SpA, Il Sole 24 Ore wrote, noting that a study from brokerage Equita values Eurizon at €3.8 billion with a capital gain for the Italian bank of between €300 million and €400 million.
* The ECB and the Bank of Italy approved the integration of Mediocredito del Friuli Venezia Giulia into Iccrea Holding SpA, MF wrote.
NORDIC COUNTRIES
* The Swedish Parliament's Riksbank committee has proposed forcing major Swedish lenders to offer cash withdrawals and handle daily receipts in a bid to stop the nation's transition to complete cashlessness, Bloomberg News reported. Reuters had a report.
EASTERN EUROPE
* The latest stress tests carried out by the Polish central bank showed that local banks would require 4.3 billion Polish zlotys of additional capital in a baseline scenario and 13.6 billion zlotys in a shock scenario, news agency PAP reported. The regulator noted that even in the shock scenario, systemic risk would not emerge thanks to relatively high levels of capital ratios in banks.
* The Polish central bank also said that the cost of bank financing in a five-year horizon could increase due to the need for banks to issue financial instruments to meet minimum requirements for own funds and eligible liabilities, PAP wrote. The regulator believes that the introduction of a new debt category in the Polish law, namely senior nonpreferred debt, will be important for banks to help them meet MREL requirements.
* Bank BGZ BNP Paribas SA launched the issuance of up to 13.3 million new shares through which it plans to increase own funds by around 800 million Polish zlotys, news agency PAP wrote.
* The Ukrainian central bank has launched legal proceedings in Switzerland and Ukraine against former Privatbank 4242242 owner Ihor Kolomoisky over unpaid loans of nearly 10 billion Ukrainian hryvnia provided to the bank between 2008 and 2015.
IN OTHER PARTS OF THE WORLD
Asia-Pacific: Malaysia to name central bank head; ICICI Bank responds to reported US SEC probe
Middle East & Africa: UAE's Waha Capital scraps plans for PE fund; Ghana's GN Bank eyes London
Latin America: Cryptocurrency traders in Brazil, Chile clash with banks
North America: Wells Fargo faces patent infringement suit; BofA division to hire 10,000 people
North America Insurance: AIG must defend Cosby; CFIUS signs off on Genworth/China Oceanwide deal
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CYBG eyes Virgin brand name for its digital arm after proposed takeover: The Clydesdale and Yorkshire bank intends to scrap its own digital brand "B" and look to offer online current accounts under the brand created by Sir Richard Branson, a source close to CYBG said.
ECB set to keep cards close to chest as it ponders QE exit: The European Central Bank will discuss winding up QE at its meeting in Riga June 14, but is unlikely to announce an end date for now.
Sheryl Obejera, Arno Maierbrugger, Meike Wijers, Esben Svendsen, Beata Fojcik, Yael Schrage, Stephanie Salti, Sophie Davies, and Helen Popper contributed to this report.
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