* Some large European banks may be unprepared to deal with the effect of interest rate rises, the European Central Bank has concluded after a stress test, owing to miscalculations of derivative exposures, depositor loyalty or the estimated value of their own assets in changing market conditions. The regulator might go as far as demanding additional reserve capital from the banks it deemed the least prepared.
* Italian Finance Minister Pier Carlo Padoan has weighed in on the ECB's plan to force banks to set aside more cash to cover newly classified bad loans, saying he had "doubts" about the proposal, the Financial Times reported. Meanwhile European Parliament President Antonio Tajani, an Italian national, told ECB President Mario Draghi he was "deeply concerned" about the decision-making process around the new guidelines, the newswire reported.
UK AND IRELAND
* Authorities in Indonesia are investigating reports that Standard Chartered Plc transferred $1.4 billion of assets, primarily on behalf of Indonesian clients, from Guernsey to Singapore just months before the Channel Island adopted new rules on the exchange of tax data, Reuters reported.
* The British government is likely to wait for Royal Bank of Scotland Group Plc to settle a potentially hefty fine with the U.S. Department of Justice over its alleged mis-selling of mortgage-backed securities before selling its 71% holding in the lender, insiders told the Financial Times.
GERMANY, SWITZERLAND AND AUSTRIA
* Deutsche Bank AG CEO John Cryan is losing the support of some of the lender's investors amid increasing frustration about the slow progress of his turnaround plans, Bloomberg News reported. Three of the bank's 10 largest stakeholders said they want to see an improvement in the next few quarters, particularly in the lender's trading business.
* Deutsche Bank plans to provide an aligned trading platform for funds managers to ease the transition to new new MiFID II regulations, Bloomberg News reported.
FRANCE AND BENELUX
* Dutch Finance Minister Jeroen Dijsselbloem will resign as president of the Eurogroup by mid-January, Het Financieele Dagblad reported. Dijsselbloem, who has chaired the group of finance ministers of eurozone countries since 2013, is leaving after his party, the social-democratic PvdA, suffered a heavy defeat in the Dutch general elections in March.
* French financial regulator AMF has made two insider trading cases public, Les Echos reported. One involved a Deutsche Bank subsidiary located in London, which was accused of market manipulation on a series of CAC 40 shares in 2012 and 2013 and agreed to pay a €300,000 fine.
SPAIN AND PORTUGAL
* Amid political turmoil in Spain and Catalonia's possible secession, CaixaBank SA's insurance unit VidaCaixa and investment funds management company CaixaBank Asset Management will transfer of their registered offices from Barcelona to Madrid, Expansión reported.
* Banco Bilbao Vizcaya Argentaria SA will today pay out a 9 euro cents gross dividend charged for 2017, the first time it has distributed a dividend following the end of its scrip dividend program, Europa Press reported.
* After an eight-year absence from the debt markets, Caixa Económica Montepio Geral caixa económica bancária SA successfully issued €750 million of covered bonds, surpassing the initial offer by five times, Economia Online reported.
ITALY AND GREECE
* Deutsche Bank SpA is dividing its business into two structures, one focused on advisory clients and one on retail and small business clients, MF reported.
* The Malacalza family, the main shareholder in Banca Carige SpA, has decided to dissolve the shareholding pact it has with the banking foundation that used to control Carige, reported MF.
* Azimut Holding SpA signed an agreement to buy a 20% stake in Iranian asset manager Mofid Entekhab, Reuters reported.
* Banca Sistema SpA successfully placed its first bond with institutional investors, selling €175 million in three-year senior, unsecured bonds with a fixed annual coupon of 1.75%, Reuters said.
* Danske Bank A/S has been blacklisted by several U.S. states after the bank put two Israeli producers of cluster bombs and illegal surveillance equipment on its list of investments it will avoid for ethical reasons, Finans reported, citing Berlingske Business. Several states have written to Danske Bank, in the belief that the bank supports a boycott of Israel.
* Tryg A/S this morning reported a third-quarter after-tax net profit of 671 million Danish kroner, down from 732 million kroner in the same period a year ago.
* Salling Bank A/S' recent rights issue was fully subscribed, with the bank receiving a gross profit of 137.6 million Danish kroner, FinansWatch reported.
* PAO Sberbank of Russia wants to wind down point-of-sale lending offered via its unit Cetelem by mid-2018, with its plans also including laying off around 1,000 employees offering POS services, Kommersant reported.
* A group of private investors, including former Russian Economic Development Minister Andrey Nechaev, are interested in acquiring Russian lender PJSC Norvik Bank from Latvia-based JSC Norvik Banka, Kommersant reported, citing Nechaev. However, Norvik's beneficiary shareholder, Grigory Guselnikov, denied plans to sell the lender, the newspaper noted.
* PAO Credit Bank of Moscow invited shareholders to use their preemptive rights to acquire additional shares in the lender worth 3.2 billion Russian rubles. The lender's management board chairman, Vladimir Chubar, also said that the bank could carry out a secondary public offering on the Moscow Exchange by the end of 2017, news portal RNS reported.
* The National Bank of Serbia cut its key policy rate to 3.5% from 3.75%, amid low inflationary pressures.
IN OTHER PARTS OF THE WORLD
Asia-Pacific: Indonesia to probe StanChart asset transfer; Reliance General files for IPO
Middle East & Africa: SBM offers to buy Chase Bank; NBK Q3 profit up; Zimbabwe gets new finance chief
Latin America: Balboa-BCT deal approved; Prisma's potential buyers named
North America: OneMain may sell itself; CIT inks deal to sell reverse mortgage servicing biz
North America Insurance: Trump order could split insurance market; judge tosses suit against UnitedHealth
NOW FEATURED ON S&P GLOBAL MARKET INTELLIGENCE
Data Dispatch EMEA: ECB to have 'intense discussions' with 17 banks over interest rate risks: The ECB warned that it will deepen its scrutiny of banks that do not carefully model interest rate risks, as well as those that use derivatives to place bets rather than hedge. Some lenders may even see their capital requirements go up as a result.
Data Dispatch EMEA: Southern eurozone countries see bank NPLs trend down as economy picks up: Most of the countries in the so-called periphery of the eurozone are experiencing a steady decline in nonperforming bank loans, but the region's banking sectors still have a long way to go.
Ben Meggeson, Arno Maierbrugger, Danielle Rossingh, Esben Svendsen, Beata Fojcik, Heather O'Brian, Stephanie Salti, Praxilla Trabattoni and Mariana Aldano contributed to this report.
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