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European Central Bank Governing Council member Mario Centeno expressed concerns about the potential consequences of the US deviating from enhanced bank capital rules, urging Europe to adhere to Basel III standards. The proposed new bank capital rules, referred to as Basel 3.1, aim to impose stricter capital requirements on banks to prevent future financial crises. However, there are concerns about varying implementation timelines and adjustments made by different jurisdictions, with some arguing against a "race to the bottom" on Basel rules. French President Emmanuel Macron and Italian central banker Fabio Panetta have also weighed in on the issue. [Extracted from the article]

The Swiss National Bank's President, Martin Schlegel, believes that the bank's equity is insufficient to cover the risks posed by its large balance sheet. Schlegel suggests that increasing the central bank's capital base should take precedence over distributing profits to the Swiss government and cantons. This may result in the SNB withholding payouts to state coffers, despite recording a solid profit in the first nine months. The institution's substantial balance sheet, largely due to foreign-currency purchases post-2008 financial crisis, is subject to market fluctuations and has led to skipped payouts in recent years. [Extracted from the article]

The Swiss National Bank's President, Martin Schlegel, has expressed concerns that the bank's equity is insufficient to cover the risks posed by its large balance sheet. Schlegel emphasized the need to prioritize increasing the central bank's capital base over distributing profits to the Swiss government and cantons. This may result in the SNB withholding payouts to state coffers, despite recording a solid profit in the first nine months of the year. The institution's substantial balance sheet, largely due to foreign-currency purchases post-2008 financial crisis, is subject to market fluctuations and has led to the SNB forgoing payouts for two consecutive years. [Extracted from the article]

The Basel Committee on Banking Supervision has delayed the deadline for climate-risk disclosure by banks to the first half of 2025, after facing opposition from the US Federal Reserve. The Committee aims to finalize its Pillar 3 disclosure proposal by then, as different members have varied approaches to climate change risks, causing tensions. The US's refusal to endorse a compromise proposal earlier this year led to frustrations among other Committee members, potentially stalling global efforts to include climate considerations in bank reporting regulations. [Extracted from the article]

Emmanuel Macron has called for the European Union to align its financial regulations with the United States to maintain competitiveness. He emphasized the need to synchronize regulations and delay implementing stricter rules, especially in the banking sector. Macron also supported the idea of an EU-wide banking supervision system and suggested that a smaller group of states could form a capital markets union if all 27 member states cannot agree within 18 months. [Extracted from the article]

Singapore's Oversea-Chinese Banking Corp. CEO Helen Wong stated that the bank has sufficient capital for mergers and acquisitions as well as business expansion. The bank is focused on investing in its wealth platform and artificial intelligence, while maintaining a 50% dividend payout ratio. OCBC, along with other top Singaporean banks, is experiencing a profitable year driven by wealth management, with share prices reaching record levels. DBS Group Holdings Ltd. announced a share buyback plan, while UOB is considering similar options, but OCBC prefers using dividends to manage its capital. Analysts estimate OCBC's excess capital to be higher than its competitors, with varying figures ranging from S$3.6 billion to S$7 billion. [Extracted from the article]

The article from Bloomberg.com discusses Atlas Merchant CEO Bob Diamond's views on the potential impact of President-elect Donald Trump's administration on banking regulations. Diamond believes that Trump's administration will likely lead to even lighter regulation, benefiting US banks in comparison to their UK counterparts. He suggests that US regional banks, which provide better services to smaller businesses, are a good investment, and that consolidation may be necessary for smaller lenders to survive. Diamond's perspective highlights the differences in regulatory approaches between the US and UK banking sectors. [Extracted from the article]

NatWest Group Plc repurchased £1 billion of its shares from the UK government, reducing the government's voting rights in the lender to about 11.4%. This buyback is the first time NatWest has done two directed buybacks in a twelve-month period, following regulatory changes that increased the limit of directed share buybacks to 15%. The UK government has been rapidly selling down its stake in NatWest, aiming to fully privatize the bank by 2026, with plans to offload shares to institutional shareholders under the new Labour Party government. [Extracted from the article]

The article discusses how the European Union and the UK may face pressure to relax or delay the implementation of stricter bank capital requirements following Donald Trump's election victory, which is expected to lead to a more lenient regulatory environment in the US. While some argue for a pause or changes to the rules, others emphasize the importance of maintaining internationally agreed-upon standards to prevent regulatory uncertainty. The outcome of the US election has created uncertainty around the implementation of Basel rules in Europe, with some European regulators expressing concerns about aligning their timelines with the US. [Extracted from the article]

The article discusses the potential impact of Donald Trump's victory on EU bank capital rules, with calls to delay or soften the planned increase in requirements. Trump's win may lead to a de-regulatory path for the financial sector, affecting the Basel rules. While some EU bankers advocate for relaxing rules if the US does so, senior EU regulators warn against weakening internationally agreed rules. The EU and UK are set to implement most of their bank capital packages in 2025 and 2026, respectively, with uncertainty surrounding the US timeline. [Extracted from the article]

Citigroup Inc. CEO Jane Fraser believes that Wall Street will benefit from less stringent banking regulations under the incoming Trump administration. She anticipates that the Basel III Endgame regulations will be relaxed, with potential lower increases in capital requirements for US banks. The election of Trump has already boosted banking stocks, reflecting optimism for a more favorable regulatory environment. Fraser also expressed confidence in the US economy compared to Europe and China, highlighting a positive outlook for mergers and acquisitions, particularly in technology, media, and telecommunications sectors. [Extracted from the article]

The article discusses how major US banks are anticipating a regulatory reprieve under the incoming Trump administration, particularly regarding capital rules. The industry had previously united against proposed higher capital rules known as Basel III Endgame, leading to a lobbying effort that resulted in a softer version being considered by regulators. While the banks are optimistic about a more favorable regulatory environment, there are concerns about potential impacts on diversity, inclusion efforts, and environmental, social, and governance metrics. Additionally, the article highlights the potential implications of regulatory changes on international banking standards and the influence of populist elements within the new administration and Republican party. [Extracted from the article]

Commerzbank AG's CEO, Bettina Orlopp, is focusing on reducing the growth of risk-weighted assets to maintain the bank's independence. By lowering the expected amount of risk-weighted assets to €186 billion, the bank aims to free up capital for investor payouts and investments. Orlopp's strategy includes increasing profitability and payout targets to demonstrate the value of Commerzbank as a standalone entity, rather than being acquired by UniCredit SpA. The bank plans to enhance its RWA efficiency and explore significant risk transfers to further optimize its strategy. [Extracted from the article]

Commerzbank AG CEO Bettina Orlopp is implementing a plan to reduce the growth of risk-weighted assets to maintain the bank's independence. The bank has revised its expected RWA for 2027 to €186 billion, down from €189 billion, allowing for increased investor payouts and investments. Orlopp aims to demonstrate that Commerzbank's standalone strategy offers more value to investors than a potential takeover by UniCredit SpA, which holds a significant stake in the bank. The focus on improving RWA efficiency and utilizing significant risk transfers will be crucial components of Orlopp's future strategy. [Extracted from the article]

Private credit lenders, such as MaxCap Group and Pallas Capital, are increasingly focusing on lending to Australia's commercial real estate sector as traditional banks reduce their exposure due to stricter capital regulations. This shift has allowed non-bank lenders to double their asset size in the last three years. Global investors, like Warburg Pincus and PGIM, are also entering the Australian market, making it a hotspot for the private credit industry. Despite concerns from regulators about the rapid growth of private credit, the real estate market in Australia is rebounding, with commercial real estate sales increasing by 48% in the first nine months of the year. [Extracted from the article]

Swiss Finance Minister Karin Keller-Sutter stated that UBS Group AG's capital level for its foreign units will depend on the bank's emergency preparedness. The financial regulator Finma has recommended increasing the capital backing for big banks' foreign units to 100% from the current 60%. There is disagreement between the government and UBS over this proposal, with potential implications for UBS's capital requirement. [Extracted from the article]

Private credit lenders, such as MaxCap Group and Pallas Capital, are increasingly focusing on lending to Australia's commercial real estate sector as traditional banks reduce their exposure due to stricter capital regulations. This shift has allowed non-bank lenders to double their asset size in the last three years. Global investors are also entering the Australian market, making it a hotspot for the private credit industry. Despite concerns from regulators about the rapid growth of private credit, the real estate market in Australia is rebounding, with commercial real estate sales increasing by 48% in the first nine months of the year. [Extracted from the article]

China is considering a $1.4 trillion fiscal stimulus package to boost the economy and address local governments' debt risks, as reported by Reuters. The package includes 6 trillion yuan in debt over three years to help resolve off-balance-sheet debt, and 4 trillion yuan in bonds for regional governments' purchases of idle land and properties over five years. The stimulus may increase if Donald Trump wins reelection, with the top legislative body set to meet in early November to discuss the plan. [Extracted from the article]

China is considering a $1.4 trillion fiscal stimulus package to boost the economy and address local governments' debt risks, as reported by Reuters. The package includes 6 trillion yuan in debt over three years to help resolve off-balance-sheet debt and 4 trillion yuan in bonds for regional governments' purchases of idle land and properties. The stimulus may increase if Donald Trump wins reelection, with the top legislative body set to meet in early November to discuss the plan. [Extracted from the article]

European Central Bank Vice President Luis de Guindos emphasized the importance of European banking consolidation over national approaches in a recent interview. He stated that genuine pan-European banks are necessary for a single banking market and that a European approach should take precedence for European integration. Guindos also highlighted the need for a pro-European stance in various economic aspects, including ESM reform. [Extracted from the article]

Russia's troops have captured the town of Selydove, a key logistics hub for Ukrainian forces in the Donetsk Region, marking a significant advance in their offensive in eastern Ukraine. The capture of Selydove is seen as a strategic goal towards occupying the entirety of the Donetsk region, posing new threats to neighboring regions. Russian forces have reportedly gained up to 170 square kilometers in the last week, representing their largest territorial gain in the region this year. [Extracted from the article]

The article from Bloomberg.com discusses Citigroup Inc. Chair John Dugan's prediction that the new bank-capital rules, known as Basel III, will not be finalized until after the next presidential inauguration due to a stalemate at the Federal Deposit Insurance Corp. US regulators are making significant changes to the proposals, with resistance from some FDIC directors. The proposed revisions would reduce the planned 19% capital hike for the eight largest US banks, following a lobbying campaign by Wall Street lenders. The article highlights the ongoing regulatory challenges and potential impact of personnel changes depending on the outcome of the upcoming election. [Extracted from the article]

The International Monetary Fund has raised concerns about the risks posed by significant risk transfers (SRTs) in the financial sector, warning that these transactions could impact financial stability. SRTs, popular on Wall Street, may create negative feedback loops and mask traditional lenders' resiliency, potentially exposing banks to liquidity challenges. While SRTs have been used to boost solvency ratios and attract new investors, financial sector supervisors are advised to closely monitor these risks and ensure transparency to safeguard banks' regulatory capital. [Extracted from the article]

The chair of the Financial Stability Board, Klaas Knot, has cautioned against neglecting financial regulation in favor of other policy areas, warning of potential economic collapse. Knot highlighted the importance of implementing agreed-upon measures to safeguard the financial system, citing concerns about existing vulnerabilities that could lead to another crisis. He emphasized the need for ongoing evolution of financial policies to address emerging risks, such as those posed by the non-bank financial sector. [Extracted from the article]

LCM Partners Ltd., a London-based alternative asset manager partially owned by Brookfield Asset Management, is raising €6 billion for a new fund that will invest in non-performing loans, performing loans, and rescheduled loans for individuals and small- to mid-size companies. The fund aims to capitalize on banks needing to offload loans due to new Basel III rules, while competitors are restructuring after taking on excessive debt. LCM's CEO, Paul Burdell, highlighted the firm's efficiency through proprietary technology and in-house servicing as key competitive advantages. The fund plans to use leverage selectively and expects to close the fund in March, with Brookfield owning 49.9% of LCM Partners. [Extracted from the article]

Loans tied to significant risk transfers (SRTs) have reached $1 trillion, with deals at a record pace for the fourth consecutive year. SRTs allow banks to retain loan assets while transferring risk to investment firms, reducing regulatory capital requirements. The market is busy, with global issuance of SRTs reaching $16.6 billion in the first nine months of 2024, primarily driven by European banks. Large corporate loans are the most popular asset type for SRTs, comprising 57% of issuance volumes. [Extracted from the article]

Loans tied to significant risk transfers (SRTs) have reached $1 trillion, with deals at a record pace for the fourth consecutive year. SRTs allow banks to retain loan assets while transferring risk to investment firms, reducing regulatory capital requirements. The market is busy, with global issuance of SRTs reaching $16.6 billion in the first nine months of 2024, primarily driven by European banks. Various banks, including JPMorgan Chase and Banco Santander, are actively engaging in SRT transactions to manage credit risk. [Extracted from the article]

Italy's Prime Minister Giorgia Meloni's cabinet plans to raise €3.5 billion from banks and insurers to fund budget promises made to voters. The majority of the funds will come from delaying tax deductions for banks until 2025 and 2026. The budget, totaling €30 billion for 2025, includes measures to reduce the tax burden on workers, increase defense and healthcare spending, and support low-income households and small businesses. The government aims to improve Italy's financial situation by reducing deficits and debt levels, with a focus on fiscal credibility and market stability. [Extracted from the article]

JPMorgan Chase & Co. is engaging in a significant risk transfer involving a $3 billion loan portfolio, with a $250 million size of the protection provided. This type of transaction allows banks to retain loan assets while transferring the risk to investment firms. The popularity of significant risk transfers has been increasing, with global issuance expected to reach a record high this year. [Extracted from the article]

Italy's Prime Minister Giorgia Meloni's cabinet plans to raise €3.5 billion from banks and insurers to fund budget initiatives promised to voters. The majority of the funds will come from delaying tax deductions for banks until 2025 and 2026. The budget, totaling €30 billion for 2025, includes measures to reduce the tax burden on workers, increase defense and healthcare spending, and support low-income households and small businesses. Finance Minister Giancarlo Giorgetti aims to balance deficit reduction with election promises, emphasizing contributions from all sectors of society. The plan has been submitted to the European Union for review and requires approval from parliament. [Extracted from the article]

Italy's Prime Minister Giorgia Meloni's cabinet plans to raise €3.5 billion from banks and insurers to fund budget initiatives without imposing new taxes on citizens. The measures include postponing tax deductions for banks and insurers, with the aim of allocating the funds to healthcare and vulnerable populations. Finance Minister Giancarlo Giorgetti is set to provide more details in a press conference, as the government aims to balance deficit reduction with fulfilling election promises. [Extracted from the article]

Biggest US banks, including JPMorgan Chase, Wells Fargo, Citigroup, and Bank of America, are facing pressure on their revenue due to recent Federal Reserve rate cuts. These rate cuts have impacted net interest income, which is a major revenue source for banks. Analysts predict a decline in net interest income for the third quarter compared to the same period last year. However, the rate cuts may stimulate economic growth and loan demand in the long run, benefiting banks. Additionally, banks may focus on share buybacks and dividends in response to smaller capital hikes proposed by regulators. [Extracted from the article]

According to Germany's top financial regulator, over 50 smaller banks in Germany would see their capital reserves drop below required levels in an economic shock scenario, as revealed in a stress test. This is twice as high as the previous test two years ago. While German banks have improved their financial strength in recent years, they still face challenges such as soured commercial real estate loans and potential economic risks. The results of the stress test will help determine the recommended capital levels for these banks. The test also found that 54% of the banks surveyed could potentially merge with a competitor in the coming years. [Extracted from the article]

According to the European Banking Authority (EBA), the European Union's banking sector has a Tier 1 capital shortfall of €900 million in order to comply with the updated Basel III standards. The EBA states that this additional capital can be easily raised before the full implementation of the standards by 2033. Larger banks will face higher capital requirements compared to smaller banks, with a 8.6% increase for large and internationally active banks and a 12.2% increase for global systemically important institutions. The EBA notes that this impact cannot be directly compared to previous monitoring exercises. [Extracted from the article]

The Reserve Bank of Australia (RBA) is facing scrutiny over its practice of holding off-the-record briefings with market participants, as leaks from these discussions have resulted in bans for the institutions involved. The RBA has excluded Royal Bank of Canada and Westpac Banking Corp. from briefings due to breaches of confidentiality. Former RBA Governor Philip Lowe also faced criticism for attending a private lunch with an investment bank. Current Governor Michele Bullock is working to improve the RBA's communications and transparency in response to an independent review. Some experts suggest that the RBA should abandon these briefings and focus on press conferences for greater transparency. The Bank of England has already ceased off-the-record briefings between its rate-setting committee and private financial institutions. [Extracted from the article]

UniCredit CEO Andrea Orcel has stated that Europe's banks are not large enough to meet the funding needs of the bloc. Orcel, who is pursuing a potential takeover of Commerzbank, believes that Europe needs bigger and stronger banks to support its industry and overcome growth challenges. While the move has caused frustration within the German government, Italian officials and stakeholders outside of Germany have reacted more positively, seeing the acquisition as in line with EU goals of breaking down barriers to the flow of goods and services. BlackRock CEO Larry Fink has also called for more European integration, emphasizing the need for a stronger capital markets system and a more unified banking system. [Extracted from the article]

BlackRock CEO Larry Fink has called for Europe to further unify its banking market, emphasizing the need for a stronger capital markets system. Fink refrained from commenting on the potential merger between Commerzbank and UniCredit, as BlackRock is a shareholder in both banks. UniCredit recently acquired a 21% stake in Commerzbank, causing tension with the German government, which owns 12% of Commerzbank. Analysts suggest that a merger between the two banks is the most likely outcome. Fink expressed his support for a banking and capital markets union in Europe. [Extracted from the article]

BlackRock CEO Larry Fink has called for Europe to further unify its banking market, emphasizing the need for a stronger capital markets system. Fink refrained from commenting on the potential merger between Commerzbank and UniCredit, as BlackRock is a shareholder in both banks. UniCredit recently acquired a 21% stake in Commerzbank, causing tension with the German government, which owns 12% of Commerzbank. Fink expressed his support for a banking and capital markets union, but did not provide specific details on the matter. [Extracted from the article]

BlackRock CEO Larry Fink has called for a more unified banking market in Europe, emphasizing the need for a stronger capital markets system. Fink refrained from commenting on the potential merger between Commerzbank AG and UniCredit SpA, as BlackRock is a shareholder in both banks. UniCredit currently holds a 21% stake in Commerzbank and has not ruled out a full takeover. BlackRock, with over $10 trillion in client assets, is one of the largest investors in both banks. [Extracted from the article]

HSBC Holdings Plc is repaying a $900 million preferred security issued in 2000, causing a significant increase in its price. This is part of HSBC's ongoing effort to clean up its books and get rid of outdated instruments following the global financial crisis. The move is in line with Basel III regulations, which require banks to supplement common equity with Additional Tier 1 capital. HSBC plans to continue evaluating its options to reduce its volume of legacy securities. [Extracted from the article]

European banks have issued a record amount of Additional Tier 1 (AT1) bonds in September, despite concerns about their future following a recommendation from Australia's regulator to phase them out. These bonds were created after the global financial crisis to absorb losses when a bank is in trouble. European banks have taken advantage of high demand for high yields and the Federal Reserve's rate cuts to issue these bonds instead of more expensive common equity. Despite the Australian regulator's snub, European banks believe AT1 bonds will remain mainstream in Europe and the UK. [Extracted from the article]

China is planning to recapitalize its major commercial banks for the first time in over a decade in order to strengthen the industry, which is facing low margins, sinking profits, and rising bad debt. The country's authorities announced this move along with other measures to support the real estate market and the economy. The capital injection will be done in different banks with different policies, according to Li Yunze, the minister of the National Financial Regulatory Administration. This marks the first time since 2008 that China has injected capital into its major banks and the first time since they became public companies. [Extracted from the article]

Austrian regulators have instructed European American Investment Bank AG, owned by investors with ties to Adler Group SA, to raise additional capital or begin winding down its operations. The bank must hold a shareholder meeting by October 18th to decide on a cash injection of at least €25 million. If the capital raise is not approved or implemented within two weeks, the bank will be required to wind down voluntarily. The bank's auditor, KPMG, has not signed off on its 2023 annual accounts, citing insufficient evidence of recoverability for seven loan cases. Euram Bank has also held debt issued by Aggregate Holdings SA, a firm that has temporarily halted debt payments as part of a restructuring process. The bank's supervisory board chair, Peter Maser, was previously the chairman of Adler Group but stepped down in 2022 after criticism from a short seller. [Extracted from the article]

GoldenTree Asset Management has purchased a risk transfer linked to approximately €1.2 billion ($1.3 billion) of loans from Bawag Group AG. The deal will allow Bawag to insure a portfolio of consumer loans, while GoldenTree emerged as the winner after a competitive process. Bawag is strengthening its loss-absorbing buffers as it finalizes the acquisition of Barclays Plc's German consumer finance business. The transaction was arranged by Alantra Partners SA. [Extracted from the article]

The Reserve Bank of New Zealand Board has determined that Governor Adrian Orr did not violate the bank's code of conduct in his dispute with a think tank regarding bank capital requirements. The New Zealand Initiative, a business-funded think tank, had accused Orr of wrongdoing in letters to the board and the Finance Minister. The details of the claim were not disclosed, but it followed Orr's response to criticism from the think tank's chair. Orr defended the bank's approach and questioned the think tank's sponsorship by retail banks. The board's decision not to uphold the complaint has been met with criticism from some government coalition partners. [Extracted from the article]

The Bank of England (BOE) has made significant changes to new bank capital rules, resulting in key requirements remaining "virtually unchanged" for lenders in the UK. The measures will lead to less than a 1% increase in the amount of Tier 1 capital that banks must hold as a cushion against financial shocks, which is an improvement from previous estimates of a 3% increase. The implementation of the new capital rules has been delayed until 2026, and the BOE hopes to align with other international jurisdictions. The changes aim to address concerns of UK lenders and align with global capital reform efforts. [Extracted from the article]

The Bank of England (BOE) has announced changes to new bank capital rules, which will have minimal impact on key requirements. The measures will result in less than a 1% increase in the amount of Tier 1 capital that lenders must hold as a cushion against financial shocks, an improvement from previous estimates of a 3% increase. The implementation of the new capital rules will be delayed until 2026, aligning the BOE with other international jurisdictions. These changes aim to support growth and competitiveness while ensuring alignment with international standards. [Extracted from the article]

The Bank of England (BOE) has made significant changes to new bank capital rules, resulting in key requirements remaining "virtually unchanged" for lenders in the UK. The measures will lead to less than a 1% increase in the amount of Tier 1 capital that banks must hold as a cushion against financial shocks, which is an improvement from previous estimates of a 3% increase. The implementation of the new capital rules has been delayed until 2026, and the BOE hopes to align with other international jurisdictions. The changes aim to address the concerns of UK lenders and bring more certainty to the banking system. [Extracted from the article]