UnipolSai cuts back bond portfolio while Italy's debt crisis worsens

August 7, 2020.
Italian insurer and financial services company UnipolSai is selling off domestic bond holdings to preserve its capital reserves as the country’s public debt mounts, the company said.

Unicredit holds firm on 2021 earnings targets as it bounces back to profitability

August 6, 2020.
Unicredit rebounded from a dismal first quarter to post a second-quarter profit, as it projected strength going forward and forged ahead, despite the pandemic, in purging nonperforming loans and non-core assets.

Spanish banks face loan loss surge, declining capital as pandemic continues: DBRS Morningstar

August 4, 2020.
Despite government efforts to ease the shock, Spanish banks will likely suffer balance sheet pressures as fallout from the coronavirus pandemic continues to weigh on the country’s financial sector, DBRS Morningstar said.

UBI Banca CEO resigns after shareholders OK Intesa deal

August 3, 2020.
Unione di Banche Italiane said Monday that CEO and General Manager Victor Massiah has resigned, effectively immediately, a decision that comes just days after its shareholders overwhelmingly approved a takeover by fellow Italian bank Intesa Sanpaolo.

BNP Paribas expects full economic recovery for Europe by mid-2022

July 31, 2020.
BNP Paribas said Friday that it finished the second quarter with higher year-over-year revenue, thanks in part to a stronger-than-anticipated rebound in June as some countries ended lockdowns, but it predicted that the European economy will not bounce back soon.

Intesa achieves UBI takeover with more than 90% of shareholder support

July 30, 2020.
Italian bank Intesa Sanpaolo assured its acquisition of smaller rival Unione di Banche Italiane on Thursday, gaining 90.2% of shareholder approval after months of tense back-and-forth between the financial institutions.

Fed extends dollar swap lines with nine central banks

July 30, 2020.
The U.S. Federal Reserve has extended its dollar swap lines with nine central banks through March 2021 in order to ease international demand for the currency and facilitate lending to businesses and households domestically and abroad.

Deutsche Bank restructuring unimpeded by COVID-19

July 29, 2020.
Deutsche Bank executives said Tuesday that they see signs for “cautious optimism” in the second half of the year as the company reported a second quarter profit despite the coronavirus pandemic and ongoing internal restructuring.

ECB asks banks to forgo dividends, share buybacks through January

July 28, 2020.
The European Central Bank on Tuesday asked banks not to pay dividends or buy back shares until at least Jan. 1, extending its previous guidance as the coronavirus pandemic continues to create economic uncertainty for the global financial system.

Hungarian central bank strikes repo deal with ECB, capping EUR 10B safety net

July 23, 2020.
Hungary’s central bank said Thursday that it secured access to as much as EUR 4 billion ($4.64 billion) in liquidity from the European Central Bank, the latest addition to the country’s growing foreign-currency buffers.

HSBC, SocGen among France’s choices to run digital currency experiments

July 21, 2020.
The Bank of France chose eight finance businesses to test central bank digital currencies to improve payments between banks, following months of exploration by the country into a digital alternative to paper money.

EU banks expected to endure EUR 400B in COVID-19-related losses

July 21, 2020.
European banks will likely face EUR 400 billion ($461 billion) in credit losses and years of weak earnings as a result of the coronavirus pandemic, and may require support from a broad network of management, regulators and other stakeholders to fully bounce back, a consulting firm said.

Deutsche Bank updates key capital ratio, signaling better-than-expected Q2

July 21, 2020.
Deutsche Bank on Tuesday revised a key metric of financial strength ahead of its July 29 earnings release, indicating the lender has outperformed expectations for the second consecutive quarter.

Regulatory relief inflates European banks’ reported leverage ratios: Moody’s

July 20, 2020.
Adjustments by the European Central Bank in calculating leverage ratios has made European banks appear more solvent than they actually are, according to a report from Moody’s published Monday.

European Central Bank holds steady on interest rates, pandemic stimulus

July 16, 2020.
The European Central Bank left its key interest rates and stimulus budget unchanged as it continues trying to buoy the pandemic-stricken European economy and waits for inflation to stabilize.

Eurozone banks warn of tightening credit standards in Q3

July 14, 2020.
After fiscal and monetary policy measures helped eurozone financial institutions keep credit standards “broadly unchanged” for loans or credit lines to firms in the second quarter of the year, banks are expecting those standards to “tighten considerably” in the coming months.

EU puts Bulgaria, Croatia on a track to adopt the euro as early as 2023

July 10, 2020.
Bulgaria and Croatia were accepted into a waiting room to the eurozone on Friday, as European Union officials agreed to put the countries on a path to adopt the euro as an official currency as early as 2023.

Banks’ declining interest revenue, asset quality will accelerate digitization: S&P Global

July 9, 2020.
The global banking sector may see structural shifts that last beyond the COVID-19 pandemic, as declining revenues and asset quality push banks toward consolidation and digitization, according to S&P Global in a mid-year report released Thursday.

BIS recommends FDIC-like deposit insurance to manage failing European banks

Last modified July 26, 2020. Published July 9, 2020.
An international banking institution offered reforms to better handle failing banks in the European Union in a report published Thursday, suggesting that the EU should implement deposit insurance and standardize nation-level insolvency laws.

ECB was right to fine French bank but gave poor reasons, EU court rules

July 8, 2020.
Europe's second-highest court ruled Wednesday that the European Central Bank gave "inadequate reasons" for imposing €4.8 million ($5.4 million) in regulatory fines on French bank Crédit Agricole and its subsidiaries in 2018.