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RBS unveils ring-fenced face; layoffs loom at ING; Sberbank's blockchain push


Insight Weekly: US bank stress tests; cracks in housing market; summer energy supply risks


Insight Weekly: US inflation soars; real estate faces slowdown; megadeals drive tech M&A


Commercial Banking: June 22nd Edition


Insight Weekly: Path to net-zero; US manufacturing momentum; China's lithium M&A frenzy

RBS unveils ring-fenced face; layoffs loom at ING; Sberbank's blockchain push

Brussels draws lineon bank capital rules: European Commission Vice President ValdisDombrovskis warned that Brussels would reject any banking reforms that couldlead to a significant increase in the overall capital requirements of Europeanbanks, the Financial Times writes.BloombergNews and Reutersalso have reports.

* Meanwhile, ECB Governing Council member Ewald Nowotny saidEurope is not facing a new banking crisis and is instead in a"transitional and learning phase," Reuters reports.

* Separately, ECB Governing Council member Boštjan Jazbecsaid it remains unclear whether buying stocks would be an appropriate tool forthe central bank to boost inflation and growth in the eurozone, Reuters reports.Jazbec also said the ECB is looking for ways to make its quantitative easingprogram more efficient, Bloomberg News notes.

* Inflation in Germany and Spain increased in September, inwhat is considered a sign that the ECB's loose monetary policy is producingresults, Reuters notes.

* Data from Thomson Reuters Equity Capital Markets showedthat year-to-date equity fundraising across the globe declined 30% from a yearearlier to $463.5 billion despite an increase in the third quarter, Reuters reports.Bankers expect conditions to improve over the next two quarters, but equitydeals are unlikely to reach 2015 levels.

* IMF research indicates that the rise of the shadow bankingsector is giving monetary policy a boost, Bloomberg News reports.The fund also found that shadow banks tend to adjust balance sheets faster thantraditional financial institutions.

* Deutsche BankAG, UBS GroupAG and Royal Bank ofScotland Group Plc are considering selling their shares in TradewebMarkets LLC, insiders tellBloomberg News. Potential buyers also approached and about their stakesin the New York-based bonds and derivatives trading system.


RBS unveilsring-fenced structure: RBS unveiled this morning a sweepingoverhaul of its structure and banking brands as it mapped out plans toseparate its retail operations from its riskier investment business by 2019.Among other changes, the lender said its ring-fenced bank would be calledNatWest Holdings, comprising its core NatWest, Coutts & Co., Ulster BankLtd. and Ulster Bank Ireland DAC brands.

* HeliosUnderwriting Plc is looking to place through an accelerated bookbuildingprocess up to 3.5 million new ordinary shares to raise £5.25 million. Thecompany seeks to raise a further £3.2 million through a conditional open offerto existing shareholders.

* Fiera Capital Corp. and Charlemagne Capital Ltd. agreed on the terms of an offerby the former company to acquire Charlemagne Capital.

* The U.K. Financial Conduct Authority launched aconsultation on its third set of implementation proposals for the Markets inFinancial Instruments Directive II. The key proposals, which include extendingthe telephone taping requirement for certain bankers to financial advisers, arepart of the regulator's crackdown on bad behavior and market abuse, The Daily Telegraph notes.

* The Association of British Insurers signaled that it willseek changes to the Solvency II regime post-Brexit, accordingto the Financial Times.

* U.K. Chancellor Philip Hammond said the government willend its Help to Buy scheme at the end of 2016, Sky News reports.

* Irish Finance Minister Michael Noonan said an IPO of 25%of Allied Irish BanksPlc is possible in 2017 if market conditions improve, Reuters reports.


Commerzbank 4.0:Commerzbank AG willscrap 7,300 net jobs, cancel its dividend "for the time being" andtarget a 6% return on tangible equity by 2020 under its "Commerzbank4.0" strategy. The restructuring process will cost the lender €1.1 billion.

* Commerzbank's head of corporate lending, Markus Beumer, isset to leave by October-end as the group seeks to split up the unit heoversees, Reuters reports.

* UBS Group CEO Sergio Ermotti said the lender experienced a"challenging" third quarter and is mulling over ways of passing onnegative interest rates to a "broader client base" than justcorporate depositors and wealthy private account holders, Handelszeitungnotes.

* Meanwhile, UBS opened a technology lab at its Hong Kongbranch that will function as a think tank for innovative fintech solutions,

* Separately, Deutsche Bank openedits digital factory in Frankfurt where approximately 800 software and ITspecialists will develop new digital banking products.

* Ralph Müller, board member for corporates and markets atDeutsche Postbank AG,toldHandelsblatt that the bank wants to expand its market share of creditvolume for small and medium-sized enterprises to 50% and increase the number ofbranches specialized in advising corporate clients to 50 from 15 in themedium-term.

* Sascha Klaus, new CEO of , toldBörsen-Zeitung that he wants to increase the bank's business incommercial property. He also said he doubts whether a discussed merger ofBerlin Hyp with DekaBank DeutscheGirozentrale and Landesbank Hessen-Thüringen Girozentrale would makesense.

* Russia's deposit protection fund plans a lawsuit againstMeinl Bank AG inrelation to an escrow loan it granted to now-bankrupt Moscow-based Witas Bank,Die Presse reports.

* Private health insurers in Germany will raise premiums byup to 12% beginning in 2017, Frankfurter Allgemeine Zeitung writes.Stuttgarter Zeitung also has a report.


Layoffs loom at ING:ING Groep NV, whichwill announce its restructuring plans Monday, is preparing for a majorreorganization, Het Financieele Dagbladreports.CEO Ralph Hamers says thousands of jobs are on the line. Accordingto L'Echo, in Belgium, the plan couldinvolve the merger between ING and subsidiary Record Bank. Meanwhile, De Tijd writes,citing La Capitale, that several jobcuts are expected at ING BelgiëNV, with about 4,000 employees to be affected.

* Fintech fund NewAlpha AM and invested more thanhalf of the €7 million raised by mobile payment platform Lydia, L'Agefi says.

* Nethys Group is taking a 25% stake in brokerAlliance-Bokiau for €1.4 million and has an option to take over 100% of thecompany, L'Echo writes.


BPI may pull NovoBanco interest: may drop out of therace to buy Novo BancoSA due to opposition from leading shareholder , which has launched afull takeover bid for BPI, BloombergNews and DinheiroVivo report. Diário Económico, Expresso and Jornal de Negócios also cover this news.

* NovoBanco will have to cut another 500 jobs if the bank is not sold by the end ofthe year, Jornalde Negócios says. The paper adds that a government resolutionto extend maturities on state loans to the country's bank resolution fund didnot assume any revenue from the sale of Novo Banco, meaning it couldtheoretically be sold for €1.

* Some1,000 former customers of filed a classaction against the governor of the central bank and the state over theinstitutions' handling of the bank's collapse, Económico and Expresso report.

* MAPFRESA will appoint Fernando Mata Verdejo CFO, effective Jan. 1, 2017,Reuters reports.Esteban Tejera Montalvo, head of finance, is set to retire at year-end.

* BancoSantander SA is holding its annual Investor Day in London today topresent its updated strategic plan and objectives for 2018, Expansión writes.


Atlante II could seeOctober launch: The Atlante II fund will be ready to be kicked off bymid-October and will have an endowment of €3 billion, Il Sole 24 Ore writes.

* The Uilca union, which along with Fabi represents the majorunions of Banca Popolare diMilano Scarl, said it will vote in favor of a merger withBanco Popolare SocietàCooperativa, MF reports.

* The supervisory and management boards of are onalert for a meeting today to approve a nonbinding offer for , and Cassa diRisparmio della Provincia di Chieti SpA, three of the four bailed-outlenders, MF writes. According to Il Messaggero, UBI is willing to pay less than €400 million.Reuters also reportson this story.

* The industrial plan that willpresent Oct. 11 includes 1,000 redundancies, MF writes. Union sources tell LaRepubblica redundancies are expected to total 2,000.

* The findings of the ECB's probe into are expected to bereleased in November, MF reports.

* After completing a financial turnaround, faces an industrialturnaround, CEO Philippe Donnet told Il Sole 24 Ore.

* Following reports thatAttica Bank SA isreluctant to comply with the central bank's directives, the Greek bank said itis willing to follow the Bank of Greece's instructions and plans to propose anew business plan, Kerdos reports.The lender yesterday reporteda first-half group after-tax loss of €8.7 million, compared to the year-agoloss of €300.3 million.


Ex-Danske exec headsFSA: Former CFO HenrikRamlau-Hansen was named chairman of Finanstilsynet, the Danish FSA, Børsen reports.

* Danishbanks are bolstering the surveillance and reporting side of their operations tomore effectively comply with anti-money laundering regulations, Politiken reports.

* The Danish Tax Authority paid nearly 6 million kroner inexchange for information on Danish citizens exposed in the Panama Papers,Bloomberg News reports.


Sberbank inblockchain push: PAO Sberbankof Russia joined the Hyperledger blockchain project, Kommersant reports. Sberbank is also a member of the R3 blockchain consortium.

* A tool thatwill help Russian banks refinance mortgages by issuing mortgage bondsguaranteed by the Agency for Housing Mortgage Lending will become available tolocal lenders next month, Kommersant reports.

* The Czech central bank delayed the earliest possible endof FX interventions until the second quarter of 2017, Reuters reports.

* The Ukrainian central bank intends to introducemarket-makers, which will limit the access of lenders to the regulator's forexauctions, reports.

* The banking agency of theFederation of Bosnia and Herzegovina decided to revoke the license of PrivrednaBanka Sarajevo due to its merger with BOR Banka, SEENews reports. The merged lender will provide services asPrivredna Banka Sarajevo.

* FitchRatings upgraded the viability ratings of Kereskedelmi es Hitelbank Zrt, and to reflect thestabilization of the operating and regulatory environments for Hungarian banks.


Asia-Pacific:ADB to lend Bangladesh US$8B; Fedissues consent order to China AgBank

Middle East & Africa: New ratings for Iranian banks; Kenyan rate cap boostslending

Latin America: Generali selling Guatemalan business; no agreement in Brazilianbanking labor strike

North America: Senators not done with Stumpf; Scottrade Financial said to be forsale

North America Insurance: Assured Guaranty to acquire MBIA UK Insurance; Justice Departmentamends lawsuit to block Anthem/Cigna deal


Commerzbank's'ambitious' 6% return target provokes skepticism: A 6% return ontangible equity would be unlikely to cover Commerzbank's cost of capital, butanalysts nevertheless described it as ambitious given recent history.

Greek banksoffload recycled politicos, but bad loans remain: National Bank ofGreece must find a new chairman while its peer Piraeus Bank has been on thehunt for a new CEO since January. New Greek laws againstpoliticians-turned-bankers, plus towering NPL stocks, mean that the pool of candidatescould be small.

Data DispatchEurope: State aid rumors haunt Deutsche Bank amid capital fears:Rumors of German state aid continue to emerge as Deutsche Bank struggles tomeet its capital and earnings targets.

Risk &Regulation: NAIC leader warns Congress that Germany could face reinsurancemarket retaliation for Solvency II measures: A successful insurancecovered agreement would prevent jurisdictions from penalizing each other, theFederal Insurance Office director said.

Xana Kakoty, ArnoMaierbrugger, Meike Wijers, Gerard O'Dwyer, Beata Fojcik, Thanasis Kakalis, AliKayalar, Yael Schrage, Stephanie Salti, Praxilla Trabattoni and Helen Poppercontributed to this report.

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