Bank mergers: the ECB publishes its doctrine

Bank mergers: the ECB publishes its doctrine

The European Central Bank (ECB) has published its guidelines on mergers and acquisitions. It shows itself a priori ready to recognize the amounts of “badwill” that will be presented to it. It remains to be seen whether the banks will take the buck. Well, merge now! The European Central Bank published Tuesday in its final version a kind of user manual specifying to the banks of the euro zone its doctrine and its expectations in…

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Central banks call for continued support for the economy

Central banks call for continued support for the economy

The presidents of the ECB and the Fed, and the governor of the Bank of England welcomed the progress on the vaccine against Covid 19. But the coming months should remain difficult, especially in the United States where the contagion is progressing. Strong monetary and budgetary support remains essential. This Thursday all eyes were on Sintra. Or more exactly to the virtual version of the Central Banks Forum that the ECB organizes every year in…

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Business credit: granting conditions tighten in Europe

Business credit: granting conditions tighten in Europe

European banks expect a further tightening of credit distribution conditions in early 2021, for businesses and households alike. In question, persistent doubts about the recovery and the gradual exhaustion of public measures to support the economy. Reading the figures published each month by the Banque de France, there is no doubt: companies still remained at the end of 2020 still massively supported by bank credit. But the survey carried out each quarter by the European…

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Commercial real estate: a risk for bank balance sheets

Commercial real estate: a risk for bank balance sheets

The exposure of French banks to commercial real estate increased before the crisis. However, this financing is partly guaranteed by assets whose value could deteriorate with the crisis, estimates the Banque de France. Prevention is better than cure. In its annual financial risk assessment report, the Banque de France warns credit players: if the commercial real estate financing market is not large enough on its own to put banks in difficulty, “ it could nevertheless…

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Ariane de Rothschild takes up the torch alone after the death of her husband Benjamin

Ariane de Rothschild takes up the torch alone after the death of her husband Benjamin

The baroness will chair the holding company of the Edmond de Rothschild group after the death on Friday of the heir to the founder of the Franco-Swiss bank at the age of fifty-seven. She had been supervising this heavyweight in wealth management for five years. Baroness Ariane de Rothschild will alone preside over the destinies of the Edmond de Rothschild wealth management galaxy. Benjamin, her husband and heir to the founder of the Franco-Swiss bank…

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US banks allowed to buy back shares

US banks allowed to buy back shares

The US Federal Reserve again allows banks to repurchase shares under certain conditions and extends restrictions on payment of bank dividends until March 2021. American banks will be able to resume share buybacks for the first quarter of 2021, more than six months after their freeze. So decided the Federal Reserve of the United States Friday after carrying out new stress tests on thirty-three of the most important players in the sector. “The big banks…

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In search of a buyer, the Italian bank Monte dei Paschi cuts nearly 3,000 jobs

In search of a buyer, the Italian bank Monte dei Paschi cuts nearly 3,000 jobs

The Sienese bank does not foresee a return to profits until 2023. By then it will launch a capital increase of around 2.5 billion euros and is hoping for a merger with another bank. The Italian State, its main shareholder, favors UniCredit. The world’s oldest bank still in operation is preparing to be taken over by a competitor. Saved by the Italian state in 2017, Banca Monte dei Paschi di Siena (BMPS) confirmed on Friday…

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The Turkish lira, a rise from hell

The Turkish lira, a rise from hell

The Turkish currency has gained more than 10% since President Erdogan separated from the governor of the central bank. The dollar slipped back below 8 pounds at 7.70 pounds and the euro is worth 9.10 pounds on Thursday. The markets are anticipating a hike in interest rates on November 19 to limit inflation. The dismissal of the governor of the Turkish central bank by President Erdogan caused a massive rebound of the Turkish lira in…

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Monetary policy: European Central Bank stays on course

Monetary policy: European Central Bank stays on course

At its monetary policy meeting on Thursday, the ECB confirmed its December decision. It then hit hard by increasing the envelope of its emergency program by 500 billion euros. The central bank will calibrate its action according to changes in financing conditions. For its first monetary policy meeting of the year, the European Central Bank played the stability card. Its key rates therefore remain at their historically low levels: they remain fixed at -0.5% for…

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European Commission calls for caution on bank dividends

European Commission calls for caution on bank dividends

A few days before a much-awaited decision by the European Central Bank (ECB) on the subject, the European Commission considers it justified to maintain the freeze imposed on banks last spring to deal with the persistent uncertainties linked to the Covid-19 pandemic. A few days before a long-awaited decision by the European Central Bank (ECB) on the subject, the European Commission in turn called on Tuesday for caution on bank dividends, considering it justified to…

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