A European Commission report says that the value of nonperforming loans on banks' balance sheets is declining but that the total is still excessive. The commission plans to introduce "statutory prudential backstops" to ensure banks set aside enough capital to absorb losses from loans that go bad.
Macron and UK Prime Minister Theresa May (WPA Pool/Getty Images)
French President Emmanuel Macron said that if the UK wants its banks to retain free access to the European single market, Britain must contribute financially to the EU budget and submit to the authority of EU courts. The approach is commonly called the "Norway model" because that's Norway's relationship with the EU.
Bundesbank President Jens Weidmann has dismissed criticism from Christine Lagarde, managing director of the International Monetary Fund, that Germany's current-account and budget surpluses are excessive and that some cash reserves should be diverted to public spending. Lagarde contends lowering the surpluses would reduce global imbalance and curb protectionism, but Weidmann has countered an increase in public spending "would likely be a futile undertaking".
The European Securities and Markets Authority is expected to publish updated guidance concerning post-trade reporting requirements for over-the-counter derivatives under the revised Markets in Financial Instruments Directive after reviewing industry comments, sources say.
The European Securities and Markets Authority has invited public comments on proposed restrictions to the sale of contracts for difference and binary options by spread-betting firms. The restrictions include limits on leverage and retail customer losses, as well as a standardised risk warning, for CFDs and a ban on selling binary options to retail customers.
Sam Woods, CEO of the Bank of England's Prudential Regulatory Authority, has told lawmakers that an agreement concerning post-Brexit passporting rules is "both desirable and it is entirely technically feasible" and that EU countries should honour existing cross-border derivatives contracts. "Common sense suggests to me that a solution will be found -- if we get a transition period, it doesn't solve the problem, but it does give more time to fix it and firms' self-serving activity," he said.
Policymakers in South Korea are concerned about cryptocurrency exchanges. The government "is considering both shutting down all local virtual-currency exchanges or just the ones who have been violating the law", the head of the Financial Services Commission said.
The Chinese economy expanded 6.8% in the fourth quarter compared with Q4 of 2016, faster than expected. The development is expected to help policymakers, who are trying to reduce debt and pollution without reining in growth.
Financial-technology startup Visible Alpha has received a $38 million investment from Goldman Sachs, Wells Fargo, Banco Santander, Macquarie Group and others. Research-fee rules under Europe's revised Markets in Financial Instruments Directive have been a boon to Visible Alpha tools that gauge research quality, according to the firm.
AFME's 9th Annual Spanish Funding Conference is the essential industry gathering for recent developments in securitisation and covered bonds markets in Europe. This full-day conference features presentations and panel debates on the challenges facing Spanish markets and what the future may hold. 8 February 2018, Gran Melia Fenix Hotel, Madrid
This award-winning conference focuses on the new frontier for fixed-income trading, venues and technology and offers an opportunity for market participants, policymakers and regulators to discuss issues affecting European financial markets. Topics include:
The brick walls are not there to keep us out. The brick walls are there to give us a chance to show how badly we want something. Because the brick walls are there to stop the people who don't want it badly enough.