by Simon Lelieveldt

So what’s the deal with the ING 2018 attempt to raise the salary of Hamers? How should non-Dutchies understand the recent reprimand of former CEO Ralph Hamers, former supervisory board chair Jeroen van der Veer and some guy Breukink (former supervisory board member acting as the head of remuneration committee)? Quite a number of people are asking me to provide my perspective, and while I’ve documented quite a lot on this topic in the Dutch media (notable a range of articles at Follow the Money and an open youtube public lecture), I didn’t do so in English. But now that the disciplinary action and reprimand is final, it seems a good moment to try and explain the Dutch peculiarities and board dynamics ING to a wider international audience. Continue reading…

The Financial Conduct Authority (FCA) has used its powers to inspect sites in Exeter, Nottingham and Sheffield suspected of hosting illegally operated crypto ATMs, as part of a continued crackdown on this illicit sector. The inspections were part of a joint operation with the South West Regional Organised Crime Unit, Yorkshire and Humber Regional Organised Crime Unit and the Nottinghamshire Police force.   Continue reading…

by Ida Wolden Bache

The Norwegian economy had recovered after the sharp downturn during the pandemic. High energy prices and a sharp rise in international goods prices had driven up consumer price inflation to a level markedly above the inflation target. Economic activity was strong, and job vacancies were high. Norges Bank expected rising wage growth and higher imported goods inflation to push up inflation through the year, and overall price inflation was projected to be 3.4 percent in 2022. The policy rate was projected to rise towards 2 percent over spring 2023. These forecasts were less than accurate. The policy rate has been raised faster and more than projected in March 2022. The policy rate was raised in response to a considerably faster rise in inflation than projected. Norges Bank’s task is to keep inflation low and stable. The operational target is inflation of close to 2 percent over time. Inflation targeting shall be forward-looking and flexible so that monetary policy can also contribute to high and stable output and employment and to countering the build-up of financial imbalances. High inflation is costly for society. It increases uncertainty about future inflation and makes economic planning difficult. Uncertainty can also lead to a situation where investment projects with longer horizons must give way to investment projects with shorter horizons. Rapid and unexpected price increases hit low-income households with the smallest margins hardest.
Continue reading…

The finish line for US dollar (USD) LIBOR transition at end-June 2023 is now less than three months away. There has been significant progress made to date, and market participants must continue to act in order to ensure an orderly transition and to support the foundations necessary for a sustainable and stable financial system going forward. Given the limited time ahead, the FSB stresses that it is critical that market participants act expeditiously to ensure that their legacy contracts are prepared to transition by end-June 2023. Continue reading…

by Fabio Accardi

In the first part of the book “Risk and Control Governance” [*1] I have highlighted, also with simple examples, how the theme of risk management pertains, in the first place, to our personal dimension. Indeed, in daily choices, if we want to face a decision that concerns us, we always need to make assessments that relate to the probability of running into some events or not. Of course, this relates to decisions that have an impact on the environment and the social context in which we live. The principles and values that guide our conduct constitute the foundations of our “culture of risk”. This can eventually condition the creation of value for the areas that interest us most directly. In terms of environment, the terms “nimby” (not in my backyard) and “pimby” (please in my backyard) are now widely applied. We cannot assess in advance whether a certain type of behavior attributable to these two patterns leads or not to value creation for us and for others. In any case, our choices are not always guided (only) by rationality and compensated by adequate returns or personal advantages. It is known, for example, that the phenomenon of illegal landfills of materials harmful to health, as well as a serious violation of the rules with the subsequent risks of sanctions also constitutes a serious damage to people and the environment. Yet, willing people have allowed them to be built not far from their homes, demonstrating a poor perception of the risks to which they are exposed. In order to obtain easy immediate profits, in fact, the consequences that these landfills have on them and their families are not evaluated. Similarly, if we have a large garden, we can agree on the benefits that can derive to us and our neighbors from the installation of solar panels, but we oppose because we do not renounce to sacrifice a portion of space to devote to these installations.
Continue reading…

The RBI and the BIS have on 4 May jointly launched the fourth edition of the G20 TechSprint Initiative, a global technology competition to promote innovative solutions aimed at improving cross-border payments, under India’s G20 presidency. Following the success of the three previous competitions in the areas of regulatory compliance (regtech) and supervision (suptech), green and sustainable finance, and central bank digital currencies (CBDCs), the 2023 TechSprint will focus on three problem statements on cross-border payments, as formulated by the RBI and the BIS Innovation Hub. Continue reading…

Yesterday, the Commission has taken decisive action to fight corruption in the EU and worldwide, delivering on the commitment made by President von der Leyen in her 2022 State of the Union address. The anti-corruption proposals presented yesterday represent a milestone in the fight against corruption at national and EU level. The Commission will step up its action: building on measures in place, strengthening efforts to integrate the prevention of corruption into the design of EU policies and programmes, and actively supporting Member States’ work to put in place strong anti-corruption policies and legislation. Through its annual Rule of Law Report cycle, the Commission also monitors anti-corruption developments at national level, identifies challenges and issues of recommendations to Member states.
Continue reading…

The European Commission has adopted a package to further simplify its procedures for reviewing concentrations under the EU Merger Regulation. The package includes: (i) a revised Merger Implementing Regulation (‘Implementing Regulation’), (ii) a Notice on Simplified Procedure (‘Notice’), and (iii) a Communication on the transmission of documents (‘Communication’). The  package is expected to bring significant benefits for businesses and advisers in terms of preparatory work and related costs. It aims to simplify and expand the scope of the Commission’s review process of unproblematic mergers (‘simplified cases’). It also seeks to reduce the amount of information required for notifying transactions in all cases and to optimise the transmission of documents. As such, today’s package contributes to achieving the Commission’s objective to reduce reporting requirements by 25%, as announced in its Communication on Long-term competitiveness of the EU. The new rules will be applicable as of 1 September 2023. Continue reading…

“The thriving payments industry in our country is reflected in the enthusiastic use of your services by tonnes of Dutch businesses and organisations. I only touched on integrity risks, cyber risks and credit risks, but many risks loom around the corner. In order for people and businesses to continue to rely on you, those risks need to be dealt with. They need to be mapped and measured, monitored and mitigated. And they definitely need to be a topic of conversation.” On 14 April with these words, Steven Maijoor invited all participants of the DNB Seminar ‘Supervision of Payment Institutions’ to a frank and fruitful discussion.  Continue reading…

iGaming, which covers ​​any form of online wagering, has snowballed over almost 20 years of its existence. The global online gambling and betting industry was valued at US$ 61.5 billion in 2021 and is expected to rise to US$ 114.4 billion by 2028, according to Statista. This growth is primarily due to the rising popularity of mobile devices and the availability of internet access across the world. Additionally, the introduction of new payment methods has made it easier for players to access and engage with online gaming and gambling platforms. As technologies develop, preferences shift and new tools emerge, the iGaming industry is constantly evolving. Open banking has proved to be a transformational force for a broad range of sectors – and iGaming is no exception. By using open banking, operators are given a better understanding of players’ affordability and their financial situation on the basis of bank records, income and credit reports, and other data. Thus, increasing trust between operators and players while also providing an easy and secure payment method. Continue reading…