UK AND IRELAND
* The U.K. government agreed to "open discussions" on a proposal that would set a November deadline for the government to hammer out an agreement on exiting the bloc, quelling a move that would have given Parliament veto power over Prime Minister Theresa May's EU withdrawal bill, the Financial Times reported.
* Andrew Bailey, CEO of the U.K. Financial Conduct Authority, said the regulator has started reviewing asset manager disclosure standards following criticism that funds have been providing false or misleading information to savers, the Financial Times reported.
* Lloyd's of London warned that it will close down consistently unprofitable syndicates if they fail to submit a credible plan to reach profitability, the Insurance Insider reported. The insurance market has reportedly threatened more than 20 syndicates with closure if they did not submit plans.
* Barclays PLC and HSBC Holdings PLC shifted part of their euro derivatives clearing to Frankfurt in light of Brexit and are among the top 10 users of an incentive scheme run by Deutsche Börse AG, the Financial Times reported.
* Bank of Ireland Group PLC outlined plans to increase its investments over the 2016-2021 period to €1.4 billion as part of a new strategic plan, saying the investments will allow it to reduce its absolute cost base to around €1.7 billion in 2021 from €1.9 billion. The group, which aims for a return on tangible equity of more than 10% by 2021, also expects its loan book to grow by approximately 20% over the same period.
GERMANY, SWITZERLAND AND AUSTRIA
* Deutsche Bank AG CEO Christian Sewing said in Berlin yesterday that Europe needs to create better conditions for banking consolidation in order to compete with financial institutions in the U.S. and China since the European banking market was "too fragmented" and "overbanked" and would need some cross-border mergers, Handelsblatt reported.
* Allianz Group is looking to make acquisitions and has included Zurich Insurance Group AG, the U.K.'s RSA Insurance Group PLC and Aviva PLC, U.S.-based The Hartford Financial Services Group Inc., Australia's QBE Insurance Group Ltd. and Bermuda's Argo Group International Holdings Ltd. and Aspen Insurance Holdings Ltd. among its list of possible targets, insiders told Bloomberg News.
* Roland Folz, CEO of Berlin-based fintech solarisBank AG, told Bloomberg that the bank plans to become profitable by 2019-end and thereafter would consider "all options" for its shareholders including an IPO.
* Credit Suisse Group AG reached an agreement with Lehman Brothers Holdings Inc. to resolve legacy claims reaching back to 2009 and will receive a payment of $385 million.
* Former Raiffeisen Gruppe Switzerland CEO Pierin Vincenz has been released from custody yesterday after 106 days while investigations into his alleged company fraud continue, Blick reported.
* Swiss Re AG will buy a 13.81% stake in Kenya-based insurer Britam Holdings PLC from shareholder Plum LLP for an undisclosed sum, Reuters reported.
* Aargauische Kantonalbank CEO Pascal Koradi is resigning after two years in the role, saying he seeks to avoid tarnishing the image of the bank because of his previous capacity as CFO of Swiss Post AG, which is embroiled in a massive subsidies scandal.
* Entris Banking AG entered a cooperation with Six Group AG to launch a market for repurchase agreements for regional Swiss banks.
FRANCE AND BENELUX
* Société Générale SA is looking to sell its private banking unit in Belgium, according to L'Echo. The sale process is still in its early stages but there potential buyers are circulating, including Crédit Agricole's Indosuez, Banque Transatlantique, KBC Group NV and Belfius Banque SA.
* SocGen is also considering selling Polish subsidiary Euro Bank SA amid pressure from bigger competitors in the country, insiders in Warsaw told Reuters. The French banking group is said to be withdrawing from retail banking in Poland.
* Netherlands-based payment solutions provider Adyen NV has raised €947 million from its IPO, with shareholders General Atlantic and Index Ventures selling 13.4% of the company's outstanding shares, assuming a full exercise of an overallotment option, at €240 per share, Bloomberg News reported, noting that the price gives Adyen a market capitalization of €7.1 billion.
SPAIN AND PORTUGAL
* Moody's raised the outlook on the Spanish banking system to positive from stable, driven by robust economic growth and disposals of troubled assets, which the agency said helped banks boost their asset quality.
* Spain will host the second office of Germany-based N26 GmbH in Europe in September. It will be the company's third office globally.
* Portugal's banks further reduced their reliance on financing from the ECB last month, with loans falling 5.29% year over year to their lowest level for May since 2009, Jornal de Negócios reported.
* Portugal's Court of Auditors will have access to documents related to Caixa Geral de Depósitos SA's sale of South African subsidiary Mercantile Bank and its 99.79% stake in Spain's Banco Caixa Geral, which are part of the state-run lender's ongoing restructuring, Jornal de Negócios reported. Meanwhile, in France, where employees of Caixa's local unit have been on strike for two months to demand better pay and conditions, a court ordered the appointment of a mediator to resolve the conflict, Lusa reported.
* Portugal's APB banking association has proposed that banks be given protection if borrowers rent out mortgaged homes in order to shield them against any potential loss of value resulting from the rental, Jornal de Negócios and Jornal Económico reported.
ITALY AND GREECE
* Banca Carige SpA CEO Paolo Fiorentino said the Italian lender is accelerating its request to tap the country's GACS state guarantee scheme for the bank's sale of approximately €1 billion of bad loans due to concerns that Italy's new government will not renew the scheme, Reuters reported.
* Emergency liquidity funding from the Bank of Greece for lenders declined by €650 million in May from April, Reuters reported.
* Danske Bank A/S would be a likely buyer of the Swedish government's SBAB mortgage bank, according to an analysis from UBS, Børsen reported. SBAB could be sold if political party Moderaterna wins the Swedish election in September.
* Meanwhile, Danske Bank said the whistleblower in the money laundering case concerning the bank's Estonian branch is not bound by secrecy rules, Berlingske Business reported. The whistleblower was not interviewed in connection with the Danish FSA's investigation into the case, and said that he would like to talk to the regulator if he was allowed.
* Nordea has entered into an agreement to invest an undisclosed sum in Danish fintech company Subaio, Affärsvärlden reported.
* The Czech central bank has introduced new rules for mortgage lending and increased countercyclical buffer requirements for banks to 1.5% from 1% as it looks to mitigate risks in the country's property market.
* Latvia's Financial and Capital Market Commission said it has approved the voluntary self-liquidation of ABLV Bank AS, which U.S. authorities earlier accused of involvement in money laundering.
* A potential merger of Bank Pekao SA and Alior Bank SA could generate significant synergies, but a final decision on the merger has not yet been taken, news agency PAP reported.
* The Polish FSA allowed Getin Noble Bank SA to merge with fully owned unit BPI Bank Polskich Inwestycji SA.
* Bulgarian Finance Minister Vladislav Goranov said the country will aim to join both the EU's banking union and the bloc's Exchange Rate Mechanism — a precursor for EU membership — simultaneously within one year, Bloomberg News reported.
* The Kazakh central bank allowed JSC Halyk Savings Bank of Kazakhstan to acquire the banking, insurance and other units of JSC Kazkommertsbank as part of the ongoing merger process between the two companies, Kapital.kz reported.
IN OTHER PARTS OF THE WORLD
Asia-Pacific: China eases foreign investment rules; Malaysia to review insurer ownership rules
Middle East & Africa: Abraaj to file for provisional liquidation; Swiss Re snaps up stake in Britam
Latin America: Arrest warrant for JPMorgan Mexico chief; Banco Macro investors file claims
North America: Wells Fargo bans cryptocurrency buys; Seacoast Banking buying First Green
North America Insurance: ISS supports AmTrust deal; Allianz hunting for M&A; Axa sells healthcare broker
NOW FEATURED ON S&P GLOBAL MARKET INTELLIGENCE
Europe's private banks face tougher operating challenges but outlook is positive: The end of the secrecy associated with private banking and technological disruption in the wealth management market have forced European lenders to differentiate, but many are well positioned to benefit from the continuing growth in global assets.
European banks' capital survives new accounting impact, but concerns remain: Most big European banks have seen a fairly small impact on their capital levels from the first-time implementation of the new IFRS 9 accounting rules, but the early disclosures are patchy and concerns over future provisioning remain.
CEO: Morgan Stanley relocating up to 10% of UK workforce: Morgan Stanley CEO James Gorman said Brexit will lead to the relocation of about 400 to 500 of the company's 5,000 positions in the United Kingdom.
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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