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Full trade deal unlikely by Brexit date; EU moves to boost green investments


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Full trade deal unlikely by Brexit date; EU moves to boost green investments

* Valdis Dombrovskis, the European Commission's vice president for the euro, said the EU's executive body could lower capital charges for banks' ecofriendly investments. Dombrovskis noted that such a discount on capital requirements could be modeled on the existing discount for banks' exposure to certain small and medium-sized enterprises.

* Michel Barnier, the EU's chief Brexit negotiator, said it is not possible for the U.K. and the EU to reach a full free trade agreement by the time Britain exits the bloc in March 2019, noting that only a "political declaration" outlining future trading relations would be ready by then, Reuters wrote.


* A research by the Financial Times showed that the U.K.'s biggest international lenders are set to move fewer than 4,600 jobs from London as a result of Brexit, contrary to claims that tens of thousands of jobs could relocate. That figure represents just about 6% of their total staff headcount in the financial center.

* Aldermore Group Plc appointed Pat Butler as a nonexecutive director and as chairman-designate, effective from Jan. 1, 2018. Interim Chairman Danuta Gray will continue in her role as interim chairman until then.

* Lloyds Banking Group Plc entered into merger talks with several banks, including Netherlands-based ABN AMRO Group NV, in 2008 before agreeing to acquire HBOS Plc, The Times of London reported. Truett Tate, Lloyds' former wholesale and internal banking head, revealed the talks in a court hearing for claims that Lloyds misled investors about HBOS' true financial health.

* The Qatar Investment Authority, a key shareholder in London Stock Exchange Group Plc, has indicated that it would support LSE Chairman Donald Brydon during an upcoming extraordinary meeting called by activist shareholder Children's Investment Fund, which is seeking to oust Brydon, according to the FT.

* Royal Bank of Scotland Group Plc is unlikely to significantly change its bonus pool this year after cutting the compensation pool 8% to £343 million last year, insiders told Bloomberg News.


* Deutsche Börse AG said the trading platform on Xetra was "experiencing issues," the FT reported. Eurex, meanwhile, said the opening of trading will be delayed.

* Deutsche Bank AG mulls creating a joint platform with Commerzbank AG, Landesbank Baden-Württemberg and Landesbank Hessen-Thüringen Girozentrale for the storage of know-your-customer information, Bloomberg reported.

* DZ BANK AG hired Goldman Sachs to advise on strategic options for transport finance arm DVB Bank SE, including selling the business in one transaction or in segments, insiders told Reuters.

* German online payment service provider paydirekt GmbH appointed Christian von Hammel-Bonten its new CEO with immediate effect. Former Co-CEOs Niklas Bartelt and Helmut Wissmann will remain in the executive board, taking on new areas of responsibilities, Handelsblatt wrote.

* Gothaer Krankenversicherung AG CEO Oliver Schoeller criticized the proposal of the Social Democratic Party of Germany to introduce a common mandatory health insurance for all citizens, arguing that this would come at the expense of private insurers and lead to a loss of competitiveness, Handelsblatt noted.

* Swiss financial technology startup Monetas AG, whose business model was to provide a global online payment platform for people without bank accounts or access to financial services via mobile phones, has filed for bankruptcy and had to dismiss its entire staff, Finews reported.


* Ageas SA/NV reached an amended settlement agreement with claimant organizations connected to legal proceedings relating to the former Fortis group over certain events that took place in 2007 and 2008, such as Fortis' acquisition of parts of ABN AMRO and the divestment of its banking activities and Dutch insurance activities. The overall budget for the settlement was raised by €100 million to €1.3 billion.

* The Dutch Anti-Fraud Agency raided the offices of Amsterdam Trade Bank NV, the Dutch subsidiary of Russia-based JSC Alfa-Bank, in connection with money laundering and funding of terrorism, Het Financieele Dagblad wrote.

* Optima Bank NV co-founder Jeroen Piqueur has been charged with money laundering and abuse of corporate assets, among others, De Tijd reported. Piqueur and his two children were arrested Monday.

* Belfius Banque SA is under pressure to grant a higher dividend payout ratio to the Belgian government after its IPO, scheduled in April 2018, according to L'Echo. The government could sell between 25% and 35% of its shares in the bank, potentially yielding up to €2.8 billion.

* KBC Group NV said PKO Bank Polski SA completed the acquisition of 100% of the shares in KBC TFI from KBC Asset Management NV.


* Caixa Geral de Depósitos SA and Banco BPI SA have increased their stakes in Mozambique's Banco Comercial e de Investimento SA to 61.5% and 35.67%, respectively, from 51% and 30%, following the exit of Insitec Capital SA, Jornal de Negocios and O País reported.

* The mutual association that controls Portugal's troubled Caixa Económica Montepio Geral caixa económica bancária SA expects the savings bank to make a profit in 2018 due to the reduction of impairment charges, Jornal de Negócios wrote.

* U.S. private equity fund Lone Star, which recently bought a 75% stake in Novo Banco SA, has hired Egon Zehnder to evaluate the management of the Portuguese bank, ECO reported.


* PricewaterhouseCoopers said it expects 2018 to be a "breakthrough" year for nonperforming loan transactions in Italy, with transaction volumes seen reaching about €70 billion.

* Unione di Banche Italiane SpA's supervisory board approved governance revision guidelines that will see the bank adopt a single-tier governance system, comprising a 15-member board of directors.

* Carmelo Barbagallo, chief of supervision at the Bank of Italy, denied in a parliamentary hearing that the failed Banca Etruria had been under pressure to merge with Banca Popolare di Vicenza SpA, certain assets of which are now under Intesa Sanpaolo SpA, according to MF.

* Banco BPM SpA received six offers for its Sun nonperforming loan portfolio, Il Sole 24 Ore wrote, adding that Hoist is in pole position for the portfolio.


* PAO Sberbank of Russia has abandoned plans for an e-commerce tie-up with Chinese e-commerce group Alibaba Group Holding Ltd. after a year of talks, insiders told the FT.

* Ukrainian businessman Oleksandr Yaroslavsky is interested in acquiring PSC Prominvestbank, the local unit of Russia's Vnesheconombank, and submitted relevant purchase documents to the Ukrainian central bank for approval, Vedomosti and Kommersant reported.

* The Russian central bank placed Crimea-based Bank VVB into provisional administration and imposed a three-month moratorium on creditor claims due to financial problems of the lender, the regulator said.

* The idea of merging Poland's two biggest lenders PKO Bank Polski and Bank Pekao SA is a concept worth considering, although it would be precluded by the potential merger of Pekao and Alior Bank SA, PAP reported, citing Pawel Borys, head of Poland's development fund PFR, which holds a stake in Pekao.

* Bulgaria-based Euroins Insurance Co. doubled its capital to 32.5 million Bulgarian leva via a new share issuance and now meets the requirements of the EU Solvency II Directive, SEENews reported.

* Pozavarovalnica Sava dd intends to purchase all shares of Macedonia-based pension fund manager NLB Nov Penziski fond AD Skopje from Nova Ljubljanska banka dd and NLB Banka AD Skopje.


Asia-Pacific: Australia, Canada ink fintech deal; Far Eastern International Bank fined

Middle East & Africa: Mauritius gets new central bank chief; Moody's takes actions on Egyptian lenders

Latin America: Proposed bankruptcy law to give Brazil banks more power; S&P cuts Colombia

North America: TriCo Bancshares to buy FNB Bancorp for $315.3M; Clayton urges caution on ICOs

North America Insurance: House GOP urges individual mandate repeal in tax bill; Enstar may buy Novae book


Lack of supply could stunt growth in fledgling green bond market: Although the green bond market has been growing rapidly as investors seek to increase their investments in environmentally friendly products, supply is still lagging behind demand, market participants say.

Lower capital requirements on green lending could meet regulatory opposition: Encouraging banks to increase green lending by lowering their capital requirements would help the market, but the idea could come up against opposition from regulators, market participants say.

Credit in the crosshairs as European banks face refinancing CoCos in 2018: Weaker banks could come under pressure if widely-anticipated pullback in credit markets materializes.

China's private sector needs to play major role in green financing: The country's private sector has to provide 90% of China's green financing to facilitate its energy transition and green investments, according to an advisor from the People's Bank of China.

Leo Magno, Arno Maierbrugger, Meike Wijers, Gerard O'Dwyer, Beata Fojcik, Yael Schrage, Stephanie Salti, Praxilla Trabattoni and Helen Popper contributed to this report.

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