Study: Poor risk management hits state banks’ performance

03 July 2017

A total of eight state-owned commercial and specialised banks in Bangladesh bear the brunt of poor risk management, according to a study by the London-based Economic Intelligence Unit (EIU). In its latest report titled “Banking sector faces challenge”, the EIU said the poor risk management system contributes to a high level of non-performing loans (NPLs), low profitability, large capital shortfalls and balance sheet weaknesses of the banks.

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The European Union fourth Anti-Money Laundering Directive

03 July 2017

When the 4AMLD was enacted on June 25, 2015, the European Commission established a 2-year window for implementation by EU Member States. A 2016 amendment to the Directive identified additional “obliged entities” and shortened the implementation deadline by six months.

EU Member States are now transposing it into their national laws and all “obliged entities” must have compliance programmes in place to mitigate risk. Věra Jourová, the EU’s commissioner for Justice, Consumers and Gender Equality said: “The update of the Fourth Anti-Money Laundering Directive will prevent any loopholes in Europe for terrorists, criminals or anyone trying to play with taxation rules to finance their activities. ”

A Deeper Look at the 4AMLD : Naturally, the 4AMLD focuses on traditional financial services organisations such as credit and financial institutions, but the list of “obliged entities” from the original Directive also includes other professionals.

Retail Banking in the UK

29 June 2017

It is hard to think of many more important subjects in our world than the future of retail banking – that is, if we heroically put Brexit to one side for a day. There are over 72 million personal current accounts in the UK, with retail deposits of over £1.5 trillion, comprising current accounts, savings products and SME banking. Retail lending is a key driver of economic activity. On the latest evidence, UK households owe £1.3 trillion in mortgages and £198 billion in consumer credit. There are over 5.4 million SMEs in the UK. There are over 61 million credit cards in issue in the UK.

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Nordea steps into the Green Bond market

29 June 2017

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.
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Framework for supervisory stress testing of central counterparties

28 June 2017

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).

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CO.E.RI. KO

Certification of Credit Risk Management

26 June 2017

CO.E.RI.KOSMOS SRL located in Turin, has been working in the field of Credit Risk Management for over 30 years.

Since 2016, CO.E.RI.KOSMOS is the scheme owner of the standard template CRMS FP 07: 2015. This is the first standard template for the Certification of the Commercial Credit Management System approved by “Accredia (MISE)” under the requirements of the European Application Document EA-1/22 – AB: 2015.

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ECB deemed Veneto Banca and Banca Popolare di Vicenza failing or likely to fail

26 June 2017

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.
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