* The ECB will discuss next week whether to begin winding down its €2.55 trillion bond-buying program amid signs that headline inflation is moving toward its target, according to the central bank's chief economist, Peter Praet.
* The Financial Stability Board has is seeking feedback on the technical implementation of the total loss absorbing capacity standard for banks, which will be phased in from January 2019. The regulator, however, clarified that it is not seeking views on the standard itself or any desired changes.
* French officials will press German Chancellor Angela Merkel in the coming weeks for additional concessions to reform the eurozone and to establish a European banking union, according to Reuters.
* Danuta Hübner, member of the European Parliament's economic affairs committee, said Britain's call for two-way market access based on "mutual recognition" after Brexit will not work, as it might "endanger the regulatory autonomy" of the EU, Reuters wrote.
UK AND IRELAND
* The U.K. Prudential Regulation Authority has suspended work on changing a controversial part of the Solvency II pan-European insurance capital regime, prompting a backlash from insurers. PRA CEO Sam Woods wrote to Nicky Morgan, the chair of the parliamentary Treasury Select Committee, to say that although the regulator had found a solution to calculating the Solvency II risk margin that had some merit, it does not see a "durable way" to implement a change due to the ongoing uncertainty regarding Britain's relationship with the EU.
* The Bank of England is in no hurry to wind down its quantitative easing stimulus program, BoE Monetary Policy Committee member Ian McCafferty told London-based LBC Radio, Reuters reported.
* TSB Banking Group PLC CEO Paul Pester said the bank has already spent some £70 million as a result of the IT failure that it has been experiencing since moving to a new platform in April. An investigation by the U.K. Financial Conduct Authority into the issue will involve an examination of liability by top executives at the lender through the framework of the Senior Managers Regime.
* David Drumm, the former CEO of Anglo Irish Bank, now known as Irish Bank Resolution Corp. Ltd., has been found guilty by a Dublin court of false accounting and conspiring to defraud in connection with the bank's near-collapse in 2008, the Irish Independent reported.
* The U.K. FCA fined Canara Bank £896,100 for failing to maintain adequate anti-money laundering systems, while also imposing a restriction that prevents the Indian lender from accepting deposits from new customers for 147 days.
* U.K.-based guarantor loans provider Amigo Holdings Ltd. said it intends to launch an IPO on the London Stock Exchange.
GERMANY, SWITZERLAND AND AUSTRIA
* Deutsche Bank AG CFO James von Moltke said the German lender "will remain a leading European corporate and investment bank with a global network" and will achieve its profitability targets over the next few years. The bank aims to reduce adjusted costs in CIB by more than €1 billion by the end of 2019, driven in large part by planned job cuts.
* UBS Group AG is laying off employees at its asset management unit with at least 100 jobs in areas such as distribution have already been cut over recent months, insiders told Bloomberg News. The staff reductions come as UBS focuses on growth in China and passive and sustainable investing.
* Credit Suisse Group AG agreed to pay about $47 million to the U.S. Justice Department to end a probe into whether it hired referrals from government entities in the Asia-Pacific region between 2007 and 2013 in exchange for investment banking business and/or regulatory approvals.
* Zurich Insurance Group AG CFO George Quinn told CNBC said the Swiss company will emphasize efforts to improve its operations and will consider only "bolt-on acquisitions."
* Banque Lombard Odier & Cie SA Managing Director Arnaud Leclercq told Reuters the Swiss private bank is in discussions regarding a potential partnership with a Saudi Arabian bank as it looks to boost its presence in the Gulf region.
* The Hamburg state parliament will vote on the privatization of state-owned HSH Nordbank AG on June 13, Handelsblatt reported.
FRANCE AND BENELUX
* Bermuda-based XL Group Ltd.'s shareholders have approved the company's pending $15.3 billion takeover by French insurer Axa. The deal is expected to be completed in the second half of the year.
* The Dutch central bank has called for an easing of banking regulations, saying the increasing homogeneity of the banking sector could post a systemic risk, Les Echos reported.
* The NewB cooperative is ready to apply for a banking license from the Belgium's central bank, L'Echo reported.
SPAIN AND PORTUGAL
* Bank of Portugal Deputy Governor Elisa Ferreira said an incomplete setup of the planned EU banking union and a full implementation of the regime is a "dangerous combination," Reuters reported. It comes as eurozone countries have yet to agree on a bank deposit insurance scheme.
* A commission in Spanish Congress that is currently investigating the country's financial crisis, the bankruptcy of its savings banks and bank rescues will begin to focus its activity next month on the bankruptcy of Banco Popular Español SA and its subsequent sale to Banco Santander SA for a symbolic €1, Europa Press wrote.
* A court in Barcelona has annulled the purchase of 6,700 shares in Banco Popular Español that took place in March 2017 after a controversial capital increase in 2016, Europa Press reported.
ITALY AND GREECE
* New Italian Prime Minister Giuseppe Conte is expected to appoint Antonio Guglielmi, currently head of equity markets at Mediobanca - Banca di Credito Finanziario SpA, director general of the country's treasury as soon as next week, insiders told Bloomberg News.
* Meanwhile, Conte told the Italian parliament that his new government will review the previous administration's overhaul of mutual and cooperative banks, according to Reuters. Prominent lawmaker Alberto Bagnai said the reform must be amended as it would allow foreigners to gain further traction in the local market.
* Unione di Banche Italiane SpA CEO Victor Massiah warned of bank funding risks if concerns over the new Italian government continue to unsettle markets, Reuters wrote.
* Zurich Italia is expected to tap Alessandro Castellano as its new chief executive to replace Camillo Candia, who will remain in the group in a job within the insurer's audit division, Il Sole 24 Ore reported.
* Banca Sistema SpA said its board has not received offers to buy the bank while it has also not assigned a mandate to an adviser to put itself up for sale, Reuters reported.
NORDIC COUNTRIES
* The Norwegian Financial Supervisory Authority wants to extend restrictions on residential mortgage lending, saying an upturn in Norway's housing prices is contributing to high borrowing by the household sector.
EASTERN EUROPE
* A total of 117 Russian banks, holding 30.6% assets of the country's banking sector, would be at a risk of capital deficit in a negative macroeconomic scenario, with the total capital shortfall amounting to 500 billion Russian rubles, RBK Daily reported, citing the results of stress tests carried out by the Russian central bank.
* The Russian central bank intends to prepare legislative measures over the next three years that would give it the right to strike deals with market whistleblowers, such as insiders and market manipulators, Vedomosti reported.
* VTB Bank (PJSC) is close to reaching an agreement to acquire Vozrozhdenie Bank, Vedomosti reported.
* Rosgosstrakh Insurance Co. PJSC, bailed out by the Russian central bank together with its parent Otkritie Financial Corp. Bank in 2017, lodged a 116.6 billion Russian ruble claim against Rosgosstrakh Life with the Moscow Arbitration Court, Vedomosti wrote.
* Poland's central bank maintained the reference rate at 1.50% and Lombard rate at 2.50%, while the deposit rate was left unchanged at 0.50%, and the rediscount rate will remain at 1.75%.
* Czech premier Milos Zeman reappointed Andrej Babis, the leader of the anti-establishment ANO party, as the country's prime minister and gave him a mandate to form a government, Reuters reported.
IN OTHER PARTS OF THE WORLD
Asia-Pacific: UK fines Canara Bank; Malaysia may replace bourse CEO; Aussie lender defers IPO
Middle East & Africa: Equity Group chairman retires; Kuwaiti creditor rejects Abraaj debt settlement
Latin America: Mexican peso down as country unveils tariffs on US food, steel
North America: OCC finds improper sales practices at more banks; Invesco buys UK's IntelliFlo
North America Insurance: $320B man-made disaster risk; more ACA rate hikes; Zurich prefers small M&A
NOW FEATURED ON S&P GLOBAL MARKET INTELLIGENCE
Man-made disasters pose $320B GDP risk to world's biggest cities, Lloyd's says: The Lloyd's City Risk Index identifies a financial market crash as the biggest man-made threat to the global economy and Asia as the most at-risk region. Tokyo, New York and Manila are the most exposed cities.
RBS opens 'new chapter' with stake sale, but further work needed, analysts say: As privatization gains traction, Royal Bank of Scotland needs to keep restructuring its technology capabilities and SME lending operations in order to fully recover, said analysts.
Deutsche CFO reiterates commitment to i-bank as staff exodus continues: Deutsche Bank will remain a leader in investment banking and will achieve the profitability targets it set over the next few years, CFO James von Moltke said at a conference June 6.
Sheryl Obejera, Ed Meza, Danielle Rossingh, Esben Svendsen, Beata Fojcik, Heather O'Brian, Brian McCulloch, Sophie Davies and Mariana Aldano contributed to this report.
The Daily Dose has an editorial deadline of 7 a.m. London time. Some external links may require a subscription. Links are current as of publication time, and we are not responsible if those links are unavailable later.
