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In This List

Leaked Brexit crisis plan; ECB clears Carige rescue; NatWest data breach

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Leaked Brexit crisis plan; ECB clears Carige rescue; NatWest data breach

* A group that provides counsel to the ECB has urged European lenders and other financial institutions to expedite the phasing out of the Eonia interest rate benchmark, which prices derivatives, loans and bonds worth over €24 trillion, the Financial Times wrote. The euro short-term rate, or €STR, benchmark is set to replace Eonia in early October.

UK AND IRELAND

* Senior civil servants have warned that U.K. businesses are not ready for a "no deal" Brexit and that the nation may experience shortages of fuel, food and medicine in such a situation. A government report leaked to The Sunday Times stated that ports along the English Channel could see major disruption that could go on for three months if the U.K. leaves the EU without a deal on Oct. 31, as looks increasingly likely.

* Meanwhile a group of U.K. MPs has urged Prime Minister Boris Johnson to recall parliament from the summer recess because of the "economic emergency," City AM reported.

* Royal Bank of Scotland Group PLC failed to keep its customers in the loop about a serious data breach involving the critically sensitive data of over 1,600 clients of unit National Westminster Bank PLC, The Times wrote. The information is being held by a former employee who was dismissed by the lender in 2009, and who has allegedly been trying to negotiate a safe return of the information.

* U.K.-based CYBG PLC may have to take another large provision for payment protection insurance, The Sunday Times wrote.

* London-based consultancy PwC has won a £16.5 million contract to manage the remaining assets of Britain's crisis-era "bad bank" UK Asset Resolution Ltd., which housed assets from Northern Rock and Bradford & Bingley, Reuters reported, citing a government contract notice.

* Trading on the FTSE commenced 100 minutes late Aug. 16 after suffering the worst outage in more than eight years due to a "trading services issue." The London Stock Exchange said earlier in the day it was "investigating a potential trading services issue," causing a delayed open for the FTSE 100 and 250 indexes.

* Standard Chartered PLC is facing a penalty of more than £10 million for failing to prevent sanctions breaches, Sky News reported. The U.K.'s Office of Financial Sanctions Implementation has notified the bank that it plans to impose the penalty in the next few weeks, but Standard Chartered is expected to appeal against the fine. The reasons behind the agency's decision are unclear at this point.

* The U.K.'s Upper Tribunal found that the former COO of Barclays PLC's wealth and investment management unit, Andrew Tinney, failed to meet the required standard of integrity when suggesting that a dossier into working conditions at the division did not exist. However, Tinney had a lifetime ban from working in financial services overturned.

GERMANY, SWITZERLAND AND AUSTRIA

* The SIX Swiss Exchange Ltd. denied reports that it is considering a potential acquisition of a stock exchange based in the EU should the ban on trading of Swiss equities in the bloc continue or escalate, Reuters reported.

* German lender Bayerische Landesbank AöR, or BayernLB, reported a 30.3% year-over-year fall in first-half pretax profit, but CEO Stephan Winkelmeier said the bank's results for the period are in line with expectations amid a "still hugely challenging" market environment.

* Frankfurt-based Fintech Group AG, operator of online broker Flatex, said it is up for sale and urged interested bidders to make indicative offers for the company by Aug. 20, Handelsblatt wrote, noting that Goldman Sachs Group Inc. and Morgan Stanley may be among interested parties.

* Deutsche Bank AG's chairman, Paul Achleitner, is under increasing pressure as investors want to prevent an extension of his current term, which ends in 2020, and advise him to start dealing with his succession, Handelsblatt wrote.

* Austria's Raiffeisen Bank International AG is considering selling its shares in Austrian credit card service provider Card Complete Service Bank AG, following the decisions of BAWAG PSK and UniCredit Bank Austria AG to do so, Die Presse reported.

* Swissquote Bank SA has obtained a license to operate in Singapore, according to official documents issued by the Monetary Authority of Singapore.

FRANCE AND BENELUX

* Netherlands-based Volksbank NV reported first-half consolidated net result of €154 million, up from €149 million in the same period in 2018. Chairman Maurice Oostendorp said the lender expects profit for the second half to be lower than in the first half, but that the net result for 2019 will likely be in line with that of 2018, which came in at €268 million.

SPAIN AND PORTUGAL

* Spanish banks have returned a total of €2.2 billion to 495,179 people affected by "mortgage floor" clauses through an extrajudicial mechanism created in January 2017, Europa Press reported. In late 2016, the European Court of Justice ordered lenders to pay back to their clients all the money they made on the home loans, which had an interest rate that couldn't drop below a certain level and meant customers missed out when rates fell.

* Portugal's government issued a decree merging two deposit guarantee funds from January 2020, meaning depositors at rural credit unions will be protected by the same entity as savers at the country's banks, Jornal de Negócios reported.

ITALY AND GREECE

* The ECB gave its clearance to Banca Carige SpA's rescue plan, paving the way for the Italian bank's administrators to call a shareholders meeting to approve the bailout, said Il Sole 24 Ore. That meeting is expected to be held on Sept. 20.

* The chairman of the Intrum Italy joint venture between Intrum and Intesa Sanpaolo SpA told Milano Finanza that the group will continue to invest in coming years in Italy, where it sees itself playing a role in the consolidation of bad loan servicing. He said he expects the Italian nonperforming loan sector to continue to be "vibrant" over the next two or three years.

* Italian banks will post higher profits in the coming years thanks largely to decreasing costs, according to a study from the banking sector union FABI published by Il Messaggero. The study showed Italian banks posted a combined net profit of €10 billion in both 2017 and 2018 and forecasts profits of €10.9 billion for 2019 and €14.3 billion in 2020.

NORDIC COUNTRIES

* Danish insurer Topdanmark A/S and Finland-based Nordea Bank Abp entered into a cooperation agreement on the distribution of Topdanmark’s general insurance products, Børsen reported. The agreement comes after Danske Bank A/S terminated a similar collaboration with Topdanmark earlier in 2019.

* Denmark-based Jyske Bank A/S will pay customers to take out mortgages, with a mortgage rate of negative 0.5% before fees, Bloomberg News reported. The move comes as another milestone in a zero or negative interest rate environment.

EASTERN EUROPE

* Georgia-based TBC Bank Group PLC will acquire a 65% stake in ecommerce firm LLC My.ge.

* The former owner of AS PNB Banka, Grigory Guselnikov, has accused the ECB of not giving the Latvia-based lender enough time to hand over ownership and inject capital, even though he had found buyers for his stake, Reuters reported. He said that left the bank vulnerable to being "looted" in a too-rapid wind-up. The ECB took over the direct supervision of the bank in April.

* The Polish Financial Supervision Authority launched administrative proceedings against financially-troubled Idea Bank SA due to the lender's failure to meet required capital adequacy ratios, news agency PAP reported. The regulator wants to find out as part of the proceedings whether the introduction of supervisory measures, such as limiting the scope of Idea Bank's activities, would contribute to reducing risks and support remedial actions already implemented by the lender.

* Tajikistan's central bank plans to introduce a national money transfer system that will require all foreign money transfer operators to open correspondent accounts with the central bank, Kommersant reported. After the new rules are launched Sept. 1, Tajikistani lenders will not be able to interact with money transfer operators directly, but only through the national system, the newspaper noted.

IN OTHER PARTS OF THE WORLD

Asia-Pacific: China revises loan prime rate mechanism; Malaysia eases forex policy

Middle East & Africa: Bahrain's Al Salam Bank denies merger rumors; Africa growth risks increasing

Latin America: Mexico central bank cuts rate to 8%; Davivienda's Q2 profit jumps 28.8%

NOW FEATURED ON S&P GLOBAL MARKET INTELLIGENCE

Four horsemen of the growthpocalypse' in full stride point to 2020 recession: Oil and copper prices, 10-year Treasury yields and the Korea Composite Stock Price Index show signs of a potential downturn, according to the CEO of Morgan Creek Capital Management.

Strait of Hormuz tensions hardening marine war insurance market: Cargo war prices are now also starting to respond to the recent spate of ship attacks and vessel seizures, and hull war rates remain high.

Prudential PLC 'disappointed' as UK High Court blocks £12B annuity transfer: The life insurer had been planning to transfer business to Rothesay Life as part of its exit from the bulk annuity market.

Ben Meggeson, Arno Maierbrugger, Meike Wijers, Esben Svendsen, Beata Fojcik, Heather O'Brian, Stephanie Salti, Sophie Davies and Helen Popper 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.

This S&P Global Market Intelligence news article may contain information about credit ratings issued by S&P Global Ratings. Descriptions in this news article were not prepared by S&P Global Ratings.