On 26 June, Nordea issued its first-ever Green Bond. The issuance was very well received by investors, including new groups of sustainability investors, and on the back of solid demand, Nordea managed to issue the EUR 500m 5-year bond at a more attractive price compared to Nordea’s normal senior unsecured bond issuances. In addition to providing cost-efficient funding, the Green Bond issuance is a natural step to manifest Nordea’s increased ambition level in the sustainability area.
Continue reading…

The Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) have today published for public comment the CPMI-IOSCO consultative report Framework for supervisory stress testing of central counterparties (CCPs) (the framework). The framework is designed to support supervisory stress tests (SST) conducted by one or more authorities that examine the potential macro-level impact of a common stress event affecting multiple CCPs (multi-CCP SSTs).

Continue reading…

Technology-enabled innovation in financial services, or FinTech, is growing rapidly. As a result, the Financial Stability Board (FSB) has been analysing the potential financial stability implications from FinTech with a view toward identifying supervisory and regulatory issues that merit authorities’ attention.
Continue reading…

On 23 June, the European Central Bank (ECB) determined that Veneto Banca S.p.A. and Banca Popolare di Vicenza S.p.A. were failing or likely to fail as the two banks repeatedly breached supervisory capital requirements. The determination was made in accordance with Articles 18(1a) and 18(4a) of the Single Resolution Mechanism Regulation. The ECB had given the banks time to present capital plans, but the banks had been unable to offer credible solutions going forward.
Continue reading…

Building resilient growth requires international cooperation

The current economic upswing provides an opportunity to build greater economic resilience, the Bank for International Settlements (BIS) writes in its 87th Annual Report, released on Sunday 25 June 2017. This involves shoring up the global economy’s ability to withstand shocks and adapt to new trends, and preventing the emergence of imbalances.

Continue reading…

This is a volatile, uncertain, complex and ambiguous (VUCA) world that demands new strategic approaches from organisations, according to James Moncrieff, professor of practice in strategy at Ashridge Executive Education. Continue reading…

British and European Union banks need a new system to let them do business with each other after Brexit to avoid splitting markets, Britain’s finance minister Philip Hammond said on Tuesday. Britain, the EU’s biggest financial market, is leaving the bloc in 2019, raising the prospect of an abrupt cut in cross-border links without a new trade deal. Rival financial centers, including Frankfurt, Paris and Luxembourg, are vying to benefit.

Continue reading…

Sen. Elizabeth Warren is calling for the ouster of 12 board members at Wells Fargo due to the fake accounts scandal that has rocked the bank. In a letter sent Monday to Federal Reserve Chair Janet Yellen, the Massachusetts Democrat said the scandal has “revealed severe problems with the bank’s risk management practices.” Warren said the central bank has the authority under federal statute to remove the members who were on the board as the matter transpired.

Continue reading…

The FCA statement after Serious Fraud Office charges in Barclays Qatar capital raising case is as follows :  “We are pleased that this matter, which led to the stay of our own case, is now in the public domain. We welcome a fair and transparent hearing on the basis of the charges set out today by the SFO. We work closely with the SFO across a range of matters, in pursuit of our distinct objectives. ”

Moving transactions to rival hubs could affect much of their investment banking work

Some of the biggest US financial groups including Morgan Stanley, Bank of America and Citigroup, are examining whether to move transactions totalling hundreds of billions of dollars out of London to rival hubs because of Brexit, calling into question the City’s role as one of the world’s leading centres for investment banking.
Continue reading…