* The European Banking Authority recommended that the European Commission amend the capital requirements regulation and securitization regulations that govern banks' disposal of nonperforming exposures to remove constraints, including "very high capital requirements on investor credit institutions" and compliance challenges on risk retention and due diligence processes.
* EU officials expect to make a final decision tomorrow on whether or not they would approve the U.K.'s request to postpone Brexit until Jan. 31, 2020, according to Bloomberg News. Three senior EU diplomats told Reuters that a decision on another Brexit extension will likely be reached since envoys want to avoid an emergency summit.
* Simon Lewis, the outgoing CEO of the Association for Financial Markets in Europe, said close cooperation between financial regulators in the U.K. and the EU must begin as soon as possible to maintain order in financial trade post-Brexit, Reuters reported.
UK AND IRELAND
* The U.K. could have a claim on profits from the European Investment Bank Group, according to a U.K. parliamentary report into a £39 billion bill that the country has agreed to pay to the EU to quit the bloc. The report noted that the financial settlement contained within the Withdrawal Agreement, under which Britain will quit the EU, provides for the U.K. to be repaid €3.5 billion of capital from its EIB membership, although only over a 12-year period.
* Royal Bank of Scotland Group PLC booked third-quarter losses attributable to ordinary shareholders of £315 million, compared with year-ago profits of £448 million, largely driven by an expected £900 million provision to cover missold payment protection insurance claims. The bank's attributable profit for the nine months to Sept. 30 increased on a yearly basis to £1.72 billion from £1.34 billion.
* U.K. lender Metro Bank PLC swung to a third-quarter statutory loss of £4.9 million from a year-ago profit of £10.0 million. CEO Craig Donaldson said Metro will undertake a strategy update to be unveiled along with its full-year results, adding that while any consideration of a sale would be a matter for the board, he would not comment on speculation. CFO David Arden, meanwhile, said the bank had a strong and resilient business and was focused on organic growth.
* The Bank of England and the U.K. Treasury must coordinate efforts to address a "crisis" of legitimacy and accountability at the central bank, think tank Positive Money said in a report, in which it also made recommendations focused primarily on reforming the relationship between both authorities.
* British peer-to-peer lender FundingSecure entered administration, appointing CG Recovery Ltd. as administrators, the U.K. Financial Conduct Authority said. FundingSecure, the second P2P lender in the U.K. to fail in six months, has been suffering from rising defaults and legal issues, the Financial Times noted.
GERMANY, SWITZERLAND AND AUSTRIA
* Germany's Aareal Bank AG is open to beginning discussions with potential bidders for software business Aareon AG, insiders told Reuters. The German real estate lender reportedly tapped Société Générale and Deutsche Bank to advise on the potential divestment, which follows pressure on the bank from activist investor Teleios Capital Partners LLC to consider selling the business.
* Landesbank Hessen-Thüringen Girozentrale will "look closer" at its corporate lending practices for the car industry given the structural changes the sector is undergoing, the bank's head of sales strategy, Henrich Maass, said, Die Welt reported after Bloomberg.
* Michael Mandel, head of private and business customers at Commerzbank AG and chairman of the supervisory board at Comdirect Bank AG, resigned from the latter role to avoid a potential conflict of interest in the planned takeover of Comdirect by Commerzbank, Börsen-Zeitung wrote.
* Austria's association for consumer information has lodged 16 class suits against three life insurance companies in connection with the controversial eternal right to resign from life insurances in case of false or missing instructions, Die Presse wrote, adding that 851 clients want to obtain the right to withdraw from their life insurances and claim a total of €14 million back.
* Swiss Life Asset Managers AG, the asset management division of Swiss Life Holding AG, acquired fund and investment management company Fontavis AG, which will bring more than CHF1 billion of AUM on board, finews.ch wrote.
FRANCE AND BENELUX
* French lender Société Générale SA is selling its leasing unit in the Nordics, Norway-based SG Finans AS, as part of its plan to exit nonstrategic businesses and bolster its capital ratios, unnamed sources told Reuters. SocGen is also reportedly looking to sell a portfolio of nonperforming loans linked to small and midsize companies to private equity investors.
* The Dutch Authority for the Financial Markets received 2,752 reports of possible fraud in the first half, Het Financieele Dagblad reported. The AFM, which is making its fraud report statistics public for the first time, plans to release a similar report every six months from now on, partly to encourage tipsters to come forward.
* Dutch insurers reported a record 12,879 fraud cases last year, an increase of 12%, Het Financieele Dagblad reported, citing data from insurance crime watchdog CBV. The successful tracking and catching of fraudsters has saved the insurance industry €82 million in payouts.
SPAIN AND PORTUGAL
* Artisan Partners Asset Management Inc., the largest private shareholder in Spanish bank Bankia SA, is pushing for a merger between the state-controlled lender and Dutch bank ING Groep NV, in which the fund manager also holds a stake, Spanish financial daily Expansión reported.
* Banco Bilbao Vizcaya Argentaria SA is to close Denizen, its start-up bank aimed at expatriates, in mid-December, Expansión reported. The U.S.-based start-up has not achieved its objectives and not reached the "scale necessary to sustain its operations in the current market," CEO Joaquin Ayuso de Paul was quoted as saying.
* As part of the strategy to cut costs down and simplify the structure, Novo Banco SA decided to absorb Bank Espírito Santo Internacional, a process expected to be concluded by year-end, Expresso wrote.
* Nordea Bank Abp reported net losses attributable to shareholders of €332 million in the third quarter, compared with a year-ago profit of €724 million. The Finland-based lender saw its operating expenses climb year over year to €2.18 billion from €1.14 billion. Nordea also said it now aims to achieve a return on tangible equity of over 10% and a cost-to-income ratio of 50% in 2022, among other targets.
* DNB ASA's third-quarter profit attributable to shareholders rose on a yearly basis to 5.75 billion Norwegian kroner from 5.44 billion kroner. Additionally, DNB will repurchase 7,901,506 shares, equivalent to a 0.5% stake, at between 10 kroner and 250 kroner each. The buyback program will run until the end of March 2020.
* Slovenia's parliament passed a bill on bank bail-in repayments, which would have the country's central bank cover all possible repayments to investors who lost their money when the local banking sector was rescued in 2013, Reuters wrote. The central bank and the ECB had criticized the bill since it would breach EU monetary financing rules.
* Georgia's central bank hiked its refinancing rate by 1.0 percentage point to 8.5%, the third consecutive hike since September, when inflation overshot the central bank's target.
* U.S. President Donald Trump said the U.S. will lift all sanctions imposed on Turkey, which has vowed to stop its military offensive in northeastern Syria and achieve a "permanent" ceasefire.
* Moody's changed its outlook for the Russian banking system to stable from positive, noting that Russia's slow economic growth and structural problems could worsen development prospects for local lenders, RBC reported.
* Reuters cited VTB Bank PJSC CEO Andrei Kostin as saying that the lender may need a capital boost in 2020 and is considering various possibilities, including a subordinated bond issuance, to raise additional funding. The Russian bank and its partners plan to sell a 20% stake in Banco VTB Africa to the latter's management, news agency Prime reported.
* A database containing personal information of PAO Sberbank of Russia clients has once again been leaked to the black market, Kommersant reported.
IN OTHER PARTS OF THE WORLD
Asia-Pacific: China to expand financing regulation; S&P: contagion risk in Indian finance up
Middle East & Africa: Zenith Bank results out; Bank Audi charged; Lebanese banks remain shuttered
Latin America: Brazil pension reform passes Senate; Panama set to finance entrepreneurs
North America: Tennessee banks in deal; Malaysia, Goldman privately discuss lower 1MDB penalty
Global Insurance: Execs bemoan litigious environment; tornado damage estimate; USAA cat bond
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Sheryl Obejera, Arno Maierbrugger, Danielle Rossingh, Gerard O'Dwyer, Beata Fojcik, Heather O'Brian, Stephanie Salti, Sophie Davies and Mariana Aldano contributed to this report.
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