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  • ‘Aggressive’ UniCredit springs surprise after targeting P2R capital relief

    ‘Aggressive’ UniCredit springs surprise after targeting P2R capital relief

    Bank capital experts were taken aback this week after UniCredit suggested that it would use subordinated debt to count towards its Pillar 2 capital requirements — a development that, if copied, could lead to a surge in the supply of additional tier one (AT1) and tier two bonds. It could also help financial institutions offset the negative capital impact of Basel IV. Tyler Davies reports.

  • UniCredit is striving not to be a hostage to fortune

    UniCredit is striving not to be a hostage to fortune

    European banks are waiting for relief from central bankers, politicians and regulators. But UniCredit is positioning itself to offset several of the biggest problems facing the sector, giving it greater room to forge its own destiny.

  • UniCredit pivots to targeting distributions

    UniCredit pivots to targeting distributions

    UniCredit’s plan until 2023, revealed in London on Tuesday, involves rewarding shareholders with larger distributions on the back of a growth in revenue. The payment of these distributions will be given greater protection, thanks to the creation of a new intermediate holding company to lessen the bank’s regulatory capital burden. Meanwhile, chief executive Jean Pierre Mustier was clear that large M&A does not form part of the bank’s plans.

  • Freshfields: can investors put impact before return?

    Freshfields: can investors put impact before return?

    A research project to be conducted by Freshfields over the next 10 months will attempt to clarify the hazy area of whether it is legal for investors to prioritise the impact of their investments on the real world, including where this might impair returns.

  • Equity investors: more aware of climate risk?

    Equity investors: more aware of climate risk?

    Economists at the European Central Bank said that stock markets were better than banks at reallocating investment towards greener sectors because of the greater role that equity plays in financing energy efficient sectors.

  • Bid-asks to gap out under buy-in rules, ICMA warns

    Bid-asks to gap out under buy-in rules, ICMA warns

    The mandatory buy-in regime under the EU’s regulation for central securities depositories (CSDR) is expected to cause bid-ask spreads across bond markets to widen significantly, according to a warning from the International Capital Markets Association. The lobby group would like the rules changed.

  • PRA charges Citi’s UK branch for failings in reporting

    PRA charges Citi’s UK branch for failings in reporting

    The UK’s Prudential Regulation Authority has handed three Citigroup subsidiaries a fine of £43.9m for problems with its regulatory reporting, in particular in relation to one of their capital and liquidity positions.

  • FSB slashes Deutsche's G-SIB score, maintains HSBC's bucket

    FSB slashes Deutsche's G-SIB score, maintains HSBC's bucket

    Deutsche Bank has moved down a bucket in the Financial Stability Board’s latest assessment of global systemically important banks (G-SIBs), with the German firm expecting further ‘efficiencies’ to stem from its broad-ranging restructuring plan.

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