BANKS


No Picture

EU Banks: Surprises for 2015

MADRID | The Corner | The ECB’s non-conventional measures, the banking restructuration and the adaptation to the new regulation make 2015 a crucial year. According to experts at Morgan Stanley, the many stories about restructuration, dividends and regulatory changes will allow to differentiate the performance of the different assets.


draghi

Why ABS drive will fail, Barclays reckons

MADRID | By Alberto Vigil at Barclays | The ABS purchases by the European Central Bank will not work basically because it is necessary for a regulatory change that does not penalise (in capital terms) either banks or insurance companies who have those securities. That is, if the ECB’s intention is to increase the amount of credit in the real economy, then it should have two specific goals: first, spreading the risk that banks assume when they provide credit; second, reducing banks’ costs of financing.


TLTRO

TLTRO alone might not be a game changer for Eurozone credit recovery

MADRID | The Corner | Supply and demand conditions for Eurozone credit generation are improving – this is clearly reflected in the ECB’s latest Bank Lending Survey – but the way towards a full normalisation is still long. We believe that reduced bank funding costs might support, but will not aggressively accelerate, the recovery in credit growth. 


big banks mergers

GLAC, a term you’ll need to become familiar with after the summer

MADRID | By Raimundo Poveda | Those who are interested in banking policy are doomed to learn some new term day in, day out. GLAC (i.e. “gone-concern loss-absorbing capacity”) is the capacity to absorb the losses of an unfeasible bank. Let us recall that the banking regulation declares a bank “unfeasible” not when it collapses but when it fails to comply with the minimum capital requirements –even if its financial assets are positive.


draghi yellen

Draghi steals the limelight in Jackson Hole

MADRID | By  J.P. Marín Arrese | Draghi’s performance in Jackson Hole has largely overshadowed other central bankers. Undoubtedly he surpasses himself in summertime. Just remember his landmark defence of the Euro back in August, 2012.



No Picture

Jackson Hole: Without inflationary pressures on the horizon

MADRID | The Corner | Central bankers are meeting this week in Jackson Hole to talk about employment and its weakness in general terms. Unlike what is happening in Europe, US and UK are seeing improvement in employment (their unemployment rates have decreased from 10% to 6.2% and from 8.4% to 6.4%, respectively) with the curiosity that they’re not coming with wage increases. In fact, last British data shows the first fall since 2009. This circumstance means less inflationary pressures, therefore Bankinter analysts think that central banks will not start to tense its monetary policy until wages begin to invigorate, something that will take some months to arrive.


genel mudurluk gorsel

ING could bring forward the return of €10bn public aids

MADRID | The Corner | ING Group 2Q14 underlying net profit of EUR 1,181 million from EUR 901 million in 2Q13 and EUR 988 million in 1Q14. The company has announced that it would repay the state aid received in 2008  earlier than planned (May 2015) and confirmed the growth targets for 2017 (as well as the payment of dividends, with a payout of 40%), set last March.


20140804 CARLOSCOSTA

Portugal rescues BES with €4.9bn coming from Troika’s bail-out

BERLIN | Alberto Lozano | The Portuguese government splits BES into two banks. On the one hand, it will inject €4.9 billion of capital in a new company called “Novo Banco”, which will get all the assets and employees from the crisis-hit bank. On the other hand, all toxic assets mostly related to its exposure to the Espirito Santo family will stay in the current Espirito Santo’s “bad bank”.