NewzIntel.com

Category: Banking

  • MIL-OSI Europe: Empowering the Next Generation: OSCE Trains Over 3,000 Youth in Financial Literacy across Kyrgyzstan

    Source: Organization for Security and Co-operation in Europe – OSCE

    Headline: Empowering the Next Generation: OSCE Trains Over 3,000 Youth in Financial Literacy across Kyrgyzstan

    Engaged participants share their ideas as part of a practical training exercise. Osh, April 2025. (OSCE) Photo details

    For several years, the OSCE Programme Office in Bishkek (POiB) has been leading a sustained effort to promote financial literacy among youth in Kyrgyzstan. Through comprehensive training programmes held annually across the country, the POiB helps young people build the skills they need to make informed financial decisions and navigate the digital economy with confidence. These efforts contribute directly to the OSCE’s broader mandate of fostering inclusive economic participation, democratic resilience, and equal access to education.According to the OECD “Financial Literacy Levels in the Commonwealth of Independent States” survey, there is a positive trend in improving the financial literacy of the country’s population. In 2017, the degree of financial behaviour of the country’s citizens was 11.1 out of the maximum of 21. In 2021, this indicator increased to 11.6 (an increase of 0.5).
    Building on these encouraging results and with the goal of further improving these indicators, the OSCE continues to conduct training sessions for youth across the country.Between 2022 and 2025, the POiB, in close co-operation with the National Bank of the Kyrgyz Republic, conducted 137 financial literacy trainings across all regions of the country, reaching more than 3,000 students. Each year, participants improve their financial literacy skills by over 15% on average — clearly showing the programme’s effectiveness and lasting impact.In April 2025, the POiB expanded this initiative to the southern regions of Osh, Jalal-Abad, and Batken — areas where young people often have fewer opportunities to access financial education.
    From 14 to 26 April, nearly 500 students participated in practical, interactive trainings on budgeting, saving, banking services, investment basics, digital financial platforms, financial safety, taxation, and insurance. Later this year, additional sessions are planned in the northern regions of Kyrgyzstan, aiming to ensure full national coverage and reach students in all seven regions of the country.
    The OSCE Programme Office in Bishkek will continue expanding its financial literacy programme in collaboration with the National Bank and other partners, empowering the next generation of Kyrgyz citizens to take charge of their financial futures — and to do so with clarity, confidence, and resilience.

    MIL OSI Europe News –

  • MIL-OSI China: Xi’s diplomacy injects certainty, stability into turbulent world

    Source: People’s Republic of China – State Council News

    BEIJING, May 2 — Chinese President Xi Jinping has engaged in extensive diplomatic efforts both at home and abroad this spring, cementing a closer bond with neighboring countries, advocating unity and cooperation, and injecting certainty and stability into a turbulent world.

    CLOSER BOND WITH NEIGHBORING COUNTRIES

    In a world grappling with growing uncertainty and instability fueled by protectionism and unilateralism, China has reaffirmed the continuity and stability of its neighborhood diplomacy and its vision for lasting peace and shared development in Asia.

    The first major international event that China hosted in 2025 is the 9th Asian Winter Games from Feb. 7 to 14 in the city of Harbin, capital of northeast China’s Heilongjiang Province. It brought together leaders from many of China’s neighboring countries, including Brunei, Kyrgyzstan, Pakistan, Thailand and the Republic of Korea.

    At a banquet hosted by Xi and his wife, Peng Liyuan, ahead of the opening ceremony of the games, the Chinese leader called on Asia to uphold the common dream of peace and harmony, jointly respond to all sorts of security challenges, and contribute to building an equal and orderly multipolar world.

    Xi’s Southeast Asia visit, his first overseas trip this year, highlighted China’s dedication to deepening traditional ties, expanding practical cooperation, and advancing its vision of building a community with a shared future with its neighbors.

    From April 14 to 18, Xi paid state visits to Vietnam, Malaysia and Cambodia. China signed a record 108 cooperation documents with the three countries in total, which span a wide range of fields, from infrastructure to digital and green economy. A focal point of the tour was high-quality Belt and Road cooperation with the aim of enhancing regional connectivity and creating development opportunities.

    The trip came after a central conference on work related to neighboring countries held in Beijing from April 8 to 9. At the conference, Xi called for building a community with a shared future with neighboring countries and striving to open new ground for the country’s neighborhood work.

    The conference noted China’s relations with its neighboring countries are currently at their best in modern times, and are also entering a critical phase where regional dynamics and global transformations are deeply intertwined.

    A flurry of diplomatic activities show how China, a major country, gets along with its neighbors, international observers said.

    In his talks with Sri Lankan President Anura Kumara Dissanayake on Jan. 15, Xi said China will continue to support Sri Lanka in maintaining its national independence, sovereignty and territorial integrity.

    Extending condolences to Myanmar leader over the massive earthquake in late March, Xi said China is ready to provide assistance, and support efforts to overcome the disaster and rebuild homes at an early date.

    INJECTING CERTAINTY INTO WORLD

    Amid the international trade chaos caused by the so-called “reciprocal tariffs” of the United States, China has taken swift and firm countermeasures not only to safeguard its own legitimate rights and interests, but also to protect the common interests of the international community and defend international fairness and justice.

    On April 11, Xi had a three-hour-long meeting with Spanish Prime Minister Pedro Sanchez, who made his third trip to China in three years. Xi called on China and the EU to fulfill their international responsibilities, work together to safeguard economic globalization and the international trade environment, and jointly reject unilateral and bullying actions.

    Noting that China is an important partner of the EU, Sanchez said Spain always supports the stable development of EU-China relations. Facing the complex and challenging international situation, Spain and the EU are willing to strengthen communication and coordination with China to maintain the international trade order, he said.

    Malaysia is ASEAN chair and the Country Coordinator for ASEAN-China Dialogue Relations for 2025. On April 16, during a meeting with the visiting Chinese president, Malaysian Prime Minister Anwar Ibrahim said facing the rise of unilateralism, Malaysia is willing to strengthen cooperation with China to jointly address risks and challenges, noting that ASEAN will not endorse any unilaterally imposed tariffs, and will promote collective advancement through cooperation to maintain economic growth.

    On April 24, Xi held talks with Kenyan President William Ruto in Beijing, saying the fundamental purpose of China-Africa cooperation for win-win results and common development will not change, which is a welcome policy statement from a major country in a world full of uncertainty.

    Trade wars undermine the existing international rules and order, and Kenya appreciates China’s role as a stabilizer in the current volatile situation, Ruto said.

    After the talks, the two heads of state witnessed the signing of 20 cooperation documents in areas such as the Belt and Road Initiative, new and high technology, people-to-people and cultural exchanges, economy and trade, and media.

    As certainty and stability increasingly become scarce globally, not only political leaders but also business community turn to China for certainty and stability.

    On March 28, Xi met with more than 40 global chairmen and chief executive officers of foreign businesses as well as representatives of business councils, including leaders from FedEx Corporation, Mercedes-Benz Group AG, Sanofi SA, HSBC Holdings Plc, Hitachi Ltd., SK Hynix Inc and Saudi Aramco.

    A key message Xi sent is that China has been and will remain an ideal, secure, and promising destination for foreign investors, and that investing in China is investing in the future. He pointed out that China offers a vast stage for business development, vast market prospects, stable policy outlook, and a secure environment, making it a favored choice for foreign investment and business operations.

    Having the world’s second-largest consumer market and largest middle-income group, China offers great potential for investment and consumption. China is now a major trading partner with more than 150 countries and regions. China continues to build up industrial strength and foster institutional opening-up, drawing influential foreign investors such as tech giants and automakers into the world’s second-largest economy.

    Aramco is currently investing in projects in China that have a collective and total value of over 240 billion yuan, covering petrochemical projects and equity acquisition deals. Amin H. Nasser, president and CEO of the company, said: “China is becoming an oasis of certainty in an increasingly unpredictable global environment.”

    CALLING FOR SOLIDARITY

    This year marks the 80th anniversary of the victory of the World Anti-Fascist War and the founding of the United Nations. In response to the provocative actions of certain nations inciting great power strategic competition, China emphasizes the roles of major countries, the Global South and the UN in global peace and development.

    Xi talked with Russian President Vladimir Putin via video meeting on Jan. 21 and held a phone conversation with him on Feb. 24, conducting in-depth strategic communication on major international and regional issues and steering China-Russia relations at a critical moment.

    Despite changes in the international situation, China-Russia relations will proceed with ease, which will help each other’s development and revitalization, and inject stability and positive energy into international relations, Xi said.

    To develop relations with China is a strategic choice made by Russia with a long-term perspective, rather than an expedient measure, Putin told Xi, adding that the strategy is not subject to any temporary trend or external interference.

    In his phone conversation with European Council President Antonio Costa on Jan. 14, Xi said there exists no clash of fundamental interests or geopolitical conflicts between China and the EU, making them partners that can contribute to each other’s success.

    Both the EU and China respect the principles of the UN Charter, uphold multilateralism, safeguard free trade, and oppose bloc confrontation, and they should cooperate rather than compete, Costa said, adding that in this era full of challenges, the world needs closer EU-China cooperation to tackle global challenges such as climate change, and to contribute to world peace, stability and development.

    Global South is also a priority in Xi’s diplomatic agenda.

    On April 29, Xi visited the New Development Bank in Shanghai and met with Dilma Rousseff, president of the institution, calling the bank “a pioneering initiative for the unity and self-improvement of the Global South” and noting that the Global South countries have risen collectively into an important force in maintaining world peace, promoting common development and improving global governance.

    His other interactions on the Global South include sending congratulations respectively to the 38th African Union Summit and the 9th summit of the Community of Latin American and Caribbean States (CELAC), having in-depth exchanges on regional cooperation with leader of Malaysia, and hosting leaders of Grenada, Sri Lanka, Bangladesh, Azerbaijan and Kenya.

    As the rotating chair of the Shanghai Cooperation Organization (SCO), China will host an SCO summit this autumn in the northern city of Tianjin. China will also host the fourth ministerial meeting of the China-CELAC Forum in Beijing.

    Xi delivered a speech via video link at the Leaders Meeting on Climate and the Just Transition on April 23. Calling for adherence to multilateralism, Xi said that all countries should firmly safeguard the UN-centered international system and the international order underpinned by international law, and firmly safeguard international fairness and justice.

    “However the world may change, China will not slow down its climate actions, will not reduce its support for international cooperation, and will not cease its efforts to build a community with a shared future for mankind,” Xi said.

    “In these trying times, the world yearns for steadiness, reliability and purpose. We see this in China’s conduct,” said Malaysian Prime Minister Anwar Ibrahim. “Amid this turbulence, China has been a rational, strong and reliable partner. Malaysia values this consistency,” he said.

    MIL OSI China News –

  • MIL-OSI United Kingdom: Bank Holiday Bin Collections

    Source: Northern Ireland City of Armagh

    Please remember to leave your bin out by 7am on Monday 5 May for scheduled collections. For further holiday arrangements and information on council services please download the ABC Council App – https://bit.ly/4adeKnw

    MIL OSI United Kingdom –

  • MIL-OSI Asia-Pac: FS to depart for Milan

    Source: Hong Kong Information Services

    Financial Secretary Paul Chan will depart for Milan, Italy, on Sunday to attend the 58th Annual Meeting of the Asian Development Bank.

    The theme of this year’s meeting is “Sharing Experience, Building Tomorrow”, focusing on development issues and challenges facing the Asia-Pacific region, such as climate change, digital transformation, and promoting mutually beneficial co-operation and inclusive economic growth. Mr Chan will deliver remarks at the Governor’s Plenary.

    He will also meet the bank’s President Masato Kanda as well as financial officials from other countries and regions attending the meeting.

    Mr Chan will return to Hong Kong on May 7, arriving on the morning of May 8. During his absence, Deputy Financial Secretary Michael Wong will be Acting Secretary.

    MIL OSI Asia Pacific News –

  • MIL-OSI United Kingdom: Two new Non-Executive Board Members appointed to the Department for Culture, Media and Sport

    Source: United Kingdom – Executive Government & Departments

    News story

    Two new Non-Executive Board Members appointed to the Department for Culture, Media and Sport

    The Secretary of State has appointed Jude Kelly and Janet Pope as Non-Executive Board Members for terms of three years from 23 April 2025 to 22 April 2028.

    Jude Kelly

    Jude Kelly CBE is an internationally acclaimed creative leader who has founded and steered some of the world’s most prestigious cultural institutions, arts festivals, charities, and outreach programmes. A pioneer for social progress, Jude is renowned for championing inclusion, gender equality and diversity. She is the former Artistic Director of the Southbank Centre , founder Artistic Director of the West Yorkshire Playhouse ( now Leeds Playhouse) and the Founder and current Head of Global Advisory of WOW – Women of the World which runs festivals and programmes in  many parts of the UK including Bradford, Durham, Hull, Manchester Rotherham and internationally in 26 countries . Jude has directed over 200 theatre and opera productions, led the Culture programme for the London Olympic and Paralympic 2012 bid and was  a Cultural Leader in Residence for the World Economic Forum 2024. She is the eighth Master of St Catherine’s College, University of Oxford, a Board member of Creative UK and cultural adviser to The Eden Project. She is the inaugural Chair of One Creative North.

    Janet Pope

    Janet Pope is currently Chair of the Charities Aid Foundation (CAF) Bank and Environment and Social Purpose Committee Chair at Yorkshire Building Society. She is also a Trustee at StepChange, the debt advisory charity. Janet recently retired from her role as Chief of Staff and Chief Sustainability Officer at Lloyds Banking Group where she was a Group Director for more than ten years and previously Savings Director.  Her earlier roles include CEO Alliance Trust Savings, EVP Strategy at Visa and Retail Banking Director (Africa) at Standard Chartered Bank. Janet’s previous non-executive roles include board roles at the Banking Standards Board and government audit committee roles at DCLG and ODPM. Janet read Economics at the LSE and holds an MSc Economics and MBA from London University.

    As well as sitting on the Departmental Board, Janet has been appointed to chair the Department’s Audit and Risk Committee.

    Remuneration and Governance Code

    These roles receive an annual remuneration of £15,000 per annum (£20,000 for Audit and Risk role). These appointments have been made in accordance with the Cabinet Office’s Governance Code on Public Appointments.

    The appointments process is regulated by the Commissioner for Public Appointments. Under the Code, any significant political activity undertaken by an appointee in the last five years must be declared. This is defined as including holding office, public speaking, making a recordable donation, or candidature for election. 

    Jude Kelly has declared that she is a member of The Labour Party and canvassed on their behalf at the last general election.  Janet Pope has declared that she was a Labour  Councillor for the London Borough of Camden from 1986-1990, Chair of Camden Town with Primrose Hill Branch of Holborn & St Pancras Labour Party 2021-2023 and from 2024 she is currently Treasurer of Camden Central branch Holborn & St Pancras Labour Party 2024

    DCMS has around 400 regulated Public Appointment roles across 42 Public Bodies (https://www.gov.uk/government/organisations) including Arts Council England, Theatres Trust, the National Gallery, UK Sport and the Gambling Commission. DCMS is committed to ensuring that the boards of public bodies benefit from a range of talents, backgrounds, and perspectives, and welcome applications from across the country. To find out more about Public Appointments or to apply for a role visit the HM Government Public Appointments Website.

    Updates to this page

    Published 2 May 2025

    MIL OSI United Kingdom –

  • MIL-OSI Economics: Sharing Experience, Building Tomorrow: Solutions to Complex Challenges in Asia and the Pacific

    Source: Asia Development Bank

    In a fast-changing and uncertain world, countries must solve complex challenges to forge a sustainable future. At ADB’s 58th Annual Meeting in Milan, Italy, a broad range of partners and stakeholders will discuss how shared solutions can deliver stability, progress, and lasting positive change in Asia and the Pacific.

    MIL OSI Economics –

  • MIL-OSI Video: Gaza, Sudan & other topics – Daily Press Briefing | United Nations

    Source: United Nations (Video News)

    Noon Briefing by Stéphane Dujarric, Spokesperson for the Secretary-General.

    Highlights:

    – Gaza
    – Occupied Palestinian Territory
    – Sudan
    – Democratic Republic of the Congo
    – Afghanistan
    – Resident Coordinator – Maldives
    – Briefing Today

    GAZA
    In a statement today, Tom Fletcher, the Emergency Relief Coordinator, said that the hostages in Gaza must be released, but international law is unequivocal: As the occupying power, Israel must allow humanitarian support in. Aid, and the civilian lives it saves, should never be a bargaining chip, he said.
    Mr. Fletcher said that the humanitarian movement is independent, impartial and neutral and believes that all civilians are equally worthy of protection. But as the UN Secretary-General has made clear, the latest modality proposed by Israeli authorities does not meet the minimum bar for principled humanitarian support.
    He called on the Israeli authorities to lift this brutal blockade and let humanitarians save lives. And he told the civilians of Gaza: We won’t give up, even if the world has given you every reason to give up on us.

    OCCUPIED PALESTINIAN TERRITORY
    The Office for the Coordination of Humanitarian warns that humanitarian operations continue to be stifled by severe movement restrictions inside Gaza, as well as military activity and attacks that jeopardize the safety of aid workers and their premises.
    Recent strikes have reportedly hit residential buildings and tents sheltering displaced people, especially in Rafah and eastern Gaza City. As of this Tuesday, our humanitarian partners estimate that more than 423,000 people in Gaza have been displaced once again, with no safe place to go.
    With most commodities unavailable, attacks on humanitarian convoys and looting are increasing, including two incidents in Gaza City yesterday. This not only endangers the lives of aid workers but also disrupts their operations.
    The World Health Organization and its partners report severe shortages of vital medicines and medical equipment. They also warn that acute watery diarrhea cases have risen by 4 per cent compared to previous weeks, as the weather gets warmer and hygiene conditions continue to deteriorate.
    Meanwhile, our colleagues on the ground have not been enabled to retrieve remaining stocks of desperately needed fuel located in areas that require coordination with Israeli authorities. Eight out of nine such attempts have been denied by the Israeli authorities since mid-April.
    Our partners working to provide child protection support warn that children – who make up half of Gaza’s population – face escalating levels of trauma, violence and neglect, as ongoing military operations, mass displacement, and funding shortages disrupt education and critical child protection services.
    Meanwhile, in the West Bank, today marks 100 days since the Israeli operation in northern areas began, causing a wave of deaths, injuries, destruction and displacement. To date, some 40,000 Palestinians remain displaced and unable to return to their homes.
    The UN and our partners continue to respond to the deepening needs of displaced families, including by providing food, water and sanitation assistance, health services, psycho-social support and cash assistance. Since the beginning of the Israeli forces’ operation in the northern West Bank on 21 January, and as of yesterday, nearly 7,000 families have received a first round of cash assistance.

    Full Highlights: https://www.un.org/sg/en/content/ossg/noon-briefing-highlight?date%5Bvalue%5D%5Bdate%5D=01+May+2025

    https://www.youtube.com/watch?v=gbIzhVGa3mk

    MIL OSI Video –

  • MIL-OSI Asia-Pac: India’s Total Exports Grow by 6.01% to Reach Record $824.9 Billion in 2024–25, Up from $778.1 Billion in 2023–24:RBI Report

    Source: Government of India

    Posted On: 02 MAY 2025 3:12PM by PIB Delhi

    India’s total exports have touched an all-time high of US$824.9 billion in the financial year 2024–25, as per the latest data released by the Reserve Bank of India on services trade for March 2025. This marks a growth of 6.01% over the previous year’s export figure of US$778.1 billion, setting a new milestone in the country’s trade trajectory.

     

    Services exports continued to drive the growth momentum, reaching a historic high of US$387.5 billion in 2024–25, up 13.6% from US$341.1 billion in the previous year. For March 2025, services exports stood at US$35.6 billion, reflecting a year-on-year growth of 18.6% compared to US$30.0 billion in March 2024.

     

    In 2024–25, merchandise exports excluding petroleum products rose to a record US$374.1 billion, registering a 6.0% increase from US$352.9 billion in 2023–24 — the highest ever annual non-petroleum merchandise exports.

     

     

    ***

    Abhishek Dayal/Abhijith Narayanan

    (Release ID: 2126119) Visitor Counter : 44

    MIL OSI Asia Pacific News –

  • MIL-OSI Asia-Pac: FS to attend 58th Annual Meeting of Asian Development Bank in Milan, Italy

    Source: Hong Kong Government special administrative region

         The Financial Secretary, Mr Paul Chan, will depart for Milan, Italy, in the early hours of May 4 (Sunday) to attend the 58th Annual Meeting of the Asian Development Bank (ADB). The theme of this year’s meeting is “Sharing Experience, Building Tomorrow”, focusing on development issues and challenges facing the Asia-Pacific region, such as climate change, digital transformation, and promoting mutually beneficial co-operation and inclusive economic growth. Mr Chan will deliver remarks at the Governor’s Plenary.

         He will also meet with the President of the ADB, Mr Masato Kanda, and financial officials from other countries and regions attending the meeting.

         Mr Chan will return to Hong Kong on May 7 (local time) and arrive on the morning of May 8. During his absence, the Deputy Financial Secretary, Mr Michael Wong, will act as the Financial Secretary.

    MIL OSI Asia Pacific News –

  • MIL-OSI Asia-Pac: Fraudulent websites and internet banking login screens related to Bank of China (Hong Kong) Limited

    Source: Hong Kong Government special administrative region

    Fraudulent websites and internet banking login screens related to Bank of China (Hong Kong) Limited 
    The HKMA wishes to remind the public that banks will not send SMS or emails with embedded hyperlinks which direct them to the banks’ websites to carry out transactions. They will not ask customers for sensitive personal information, such as login passwords or one-time password, by phone, email or SMS (including via embedded hyperlinks).
     
    Anyone who has provided his or her personal information, or who has conducted any financial transactions, through or in response to the websites or login screens concerned, should contact the bank using the contact information provided in the press release, and report the matter to the Police by contacting the Crime Wing Information Centre of the Hong Kong Police Force at 2860 5012.
    Issued at HKT 17:00

    NNNN

    MIL OSI Asia Pacific News –

  • MIL-OSI Europe: Say cheese, but without the cow

    Source: European Investment Bank

    To help meet the growing demand for protein-rich dairy substitutes, the European Investment Bank signed a €35 million loan with Formo in January 2025.

    “This project supports the EU’s Farm to Fork Strategy, which promotes the transition to more sustainable food systems,” adds Machado Mendes. “It’s one of the reasons we stand behind it.”

    Backed by the European Union’s InvestEU guarantee programme, the EIB investment enables Formo to continue developing its fermentation processes and produce more alternatives to products such as milk and eggs.

    “It’s a clear indication of our growing role in the bioeconomy,” says Alberto Casorati, the loan officer overseeing this initiative at the European Investment Bank. “Formo is bringing an innovative, sustainable product to the EU market, catering to a broad range of consumers, including those who are lactose intolerant or follow a vegan diet.”

    MIL OSI Europe News –

  • MIL-OSI Banking: Christodoulos Patsalides: The economy of Cyprus – developments and outlook

    Source: Bank for International Settlements

    Intoduction

    Your Excellency, the President of the Republic of Cyprus, distinguished guests, esteemed colleagues, and friends,

    It is a great pleasure to address the 3rd Capital Link Cyprus Business Forum here in New York, a city that has long served as a global hub for business, finance, and innovation. I would like to extend my sincere gratitude to the organizers for bringing us together today to exchange insights on the economic trajectory of Cyprus. Events like this are crucial in fostering dialogue and reinforcing the strong economic ties between Cyprus and the international business community.

    Key metrics of the Cypriot Economy

    The Cypriot economy and its banking sector have continued to demonstrate remarkable resilience, despite an increasingly volatile global environment marked by geopolitical uncertainty and rising trade tensions. In 2024, Cyprus achieved robust economic growth, significantly outpacing the euro area average and primarily driven by foreign investment, robust tourism, and rapid expansion in Information and Communication Technologies. At the same time, unemployment declined notably, falling well below the euro area average and approaching conditions of full employment, while inflation declined significantly and remains well on track. Fiscal performance also strengthened considerably, with public debt reduced to levels well below the euro area average, highlighting the country’s improved fiscal discipline.

    Meanwhile, key indicators of banking sector strength remained solid. Capital adequacy levels, as measured by the Common Equity Tier 1 (CET1) ratio, are significantly above the EU average, and profitability, as measured by Return on Equity, reached one of the highest levels across the Union. Cypriot banks also continue to maintain some of the strongest liquidity positions in the EU, further reinforcing the sector’s soundness and resilience.

    The remarkable economic performance of Cyprus was recently acknowledged by the International Monetary Fund. As mentioned in its Concluding Statement of its recent Article IV Mission:

     “Cyprus has demonstrated impressive resilience to successive shocks. Growth has remained among the highest in the euro area, mainly supported by foreign investment, strong tourism, and a boom in the ICT sector.”

    All major credit rating agencies have also recognized the notable progress of the economy, upgrading Cyprus’s credit rating to the ‘A’ category. This progress not only reflects solid economic performance but also acts as a safeguard against global uncertainty and constitutes key factor for sustaining strong growth potential.

    Domestic Economy

    Growth Outlook

    Having outlined the broader context of the Cyprus economy, I will now turn to the growth outlook in more detail. In 2024, GDP growth reached 3.4% compared to 0.9% in the euro area. Domestic demand, and most specifically, private consumption has been a key driver of growth, complemented by a positive contribution from net exports, particularly export of services. Investments also registered an increase in 2024, across both housing and other private investments, such as ongoing implementation of major infrastructure projects with foreign financing as well as projects under the Recovery and Resilience Facility. Despite geopolitical challenges, tourism arrivals and revenue reached record levels in 2024, exceeding four million tourists for the first time. On the production side, the services sectors of the economy were the key drivers for economic activity. Specifically, the sectors of trade, transportation (particularly shipping), hotels and restaurants gave the greatest support to GDP growth. The information and communication sector as well as financial and professional services were also important contributors to growth. Finally, healthcare and education, real estate management activities, construction and manufacturing sectors also fueled economic activity.

    I would like to highlight at this point that the steps taken to diversify our economy-both across sectors, including services, tourism, and non-tourism-related industries, as well as across different markets-have played a key role in strengthening our resilience. These efforts have significantly enhanced our ability to withstand external shocks, particularly in times of geopolitical turmoil.

    Looking ahead, based on March 2025 projections of the Central Bank of Cyprus, GDP is expected to continue to grow robustly at around 3% per year over 2025-2027. This continued expansion is anticipated to largely stem from domestic demand, with external demand playing, to a lesser extent, a supporting role. Investments are also expected to remain strong. Nevertheless, persistent geopolitical tensions may introduce downside risks to the speed of external recovery.

    Fiscal Developments and Public Debt Reduction

    On the fiscal side, Cyprus has made significant strides in reinforcing fiscal stability, a cornerstone of sustainable economic progress. Notably, public debt declined substantially from 113.6% of GDP in 2020 to 65.4% in 2024. As of January 2025, the debt-to-GDP ratio had fallen further to 61.9%, reflecting disciplined fiscal policies and sound economic management. It should be noted that in the euro area, public debt stood at 88.2% at the end of the third quarter of 2024.

    Looking forward, the Ministry of Finance projects that this downward trajectory will persist, with public debt expected to fall below 50% of GDP by 2028. This fiscal consolidation not only strengthens Cyprus’ financial resilience but also enhances investor confidence, reinforcing the country’s attractiveness for foreign direct investment and securing long-term economic stability.

    Inflation Trends

    Turning to inflation, price stability remains a key focus. Inflationary pressures have eased significantly, with the headline inflation significantly declining to 2.3% in 2024 from 3.9% in 2023. This reduction has been largely driven by the correction of external supply-side shocks, particularly in energy markets, as well as the European Central Bank’s monetary policy tightening.

    Over the period 2025-2027, inflation is projected to sustainably stabilize around 2%. This is in line with the medium-term target we set at the Governing Council of the ECB. Although certain services sectors continue to experience relatively elevated price growth, overall inflationary pressures remain well-contained, ensuring a stable environment for households and businesses alike. However, we must remain vigilant, as exceptionally high uncertainty continues to pose upside risks to inflation, alongside climate-related factors.

    The Cyprus Banking Sector

    The banking sector in Cyprus has demonstrated remarkable progress and resilience over the past years. Our financial institutions have not only navigated a challenging global environment but have also shown notable strides in strengthening their foundations. A primary indicator of this resilience is the enhancement of the solvency capacity, with the Common Equity Tier 1 (CET1) ratio increasing to 24.5% in December 2024. This increase places Cyprus at the top of the EU spectrum, well above the EU average of 16.1%.

    Despite the ongoing challenges from successive crises, Cyprus has experienced no clear signs of a decline in credit quality. On the contrary, the Non-Performing Loans (NPL) ratio has continued to show improvement. As of December 2024, it has decreased to 6.2%. Even though this is a positive trend, we must acknowledge that more work is needed, especially considering the EU’s average NPL ratio of 1.9% as of the same period.

    Profitability has remained strong and persistent, with the Return on Equity (RoE) reaching 20.0% in December 2024, significantly higher than the EU average of 10.5% in the same period. Operational efficiency has also seen progress, as the cost-to-income ratio decreased to 37% in December 2024, a considerable improvement compared to previous years and lower than the EU’s 54% average in the same period.

    Cypriot banks maintain some of the highest liquidity levels within the EU. This strong liquidity position enhances their capacity to navigate potential market disruptions and to continue supporting economic stability. As of December 2024, the Liquidity Coverage Ratio (LCR), which reflects a bank’s ability to withstand significant liquidity outflows during stressful periods, stands at 333%, well above the EU average of 163% as of the same period and the minimum requirement of 100%. Similarly, the Net Stable Funding Ratio (NSFR), which measures the stability of a bank’s funding sources, is at 188% in December 2024, exceeding both the EU average of 127% recorded in the same period and the required 100%.

    Looking ahead, the banking industry must navigate several challenges, including integrating AI, managing cyber risks, responding to geopolitical instability, shifting towards a more sustainable economy, addressing the growing need for substantial investments in technology, and adapting to heightened competition from the non-banking sector, particularly in the area of payment services. Addressing these key issues is crucial for maintaining the sector’s positive growth and will continue to be a primary focus of our oversight efforts.

    Conclusion

    Cyprus has demonstrated resilience and strong economic performance against a backdrop of global uncertainties. Despite elevated international risk and the increasing geopolitical fragmentation, it is my belief that Cyprus will continue to prosper thanks to its commitment on prudent, yet business-friendly policies.

    Let me bring my speech to a close by quoting Warren Buffett’s renowned advice: “Risk comes from not knowing what you’re doing.” This obviously highlights the necessity for informed decision-making. I therefore urge you to examine the country’s track record and to assess the ingredients of its pursued policies. I am confident that Cyprus will stand out as a compelling and reliable destination for investment.

    Thank you.

    MIL OSI Global Banks –

  • MIL-OSI Banking: Lesetja Kganyago: Challenges of the Group of Twenty

    Source: Bank for International Settlements

    Good morning.

    Thank you for inviting me to Brookings. We have long benefited from your expertise, most recently when one of your fellows, Don Kohn, gave a star performance last month at our South African Reserve Bank Research Conference in Cape Town. It is great to be with you in DC today.

    The focus of my talk is the Group of Twenty (G20), for which South Africa currently has the presidency. As you will all know, the G20 started in the 1990s as an informal arrangement for discussing macroeconomic developments and financial stability. It was designated the premier forum for international economic cooperation during the Global Financial Crisis (GFC)1 and, at the time, it proved this status was well deserved.2

    It did this by demonstrating two great strengths.

    First, unlike the Group of Seven, it brought together all the major economies, not just the richer ones. This balanced participation made it a genuinely global institution.
    Second, it was just small enough that it could act decisively.

    In the years since the GFC, the G20 has worked on many important issues, with some real successes. The global regulatory reform agenda stands out as perhaps one of the most significant achievements of the G20. Today we can say the core of the global financial system is more resilient than it was during the GFC.

    The G20 has demonstrated its value during crises, most notably at the onset of the COVID-19 pandemic, where it served as a central forum for coordinating responses and mobilising finance.

    It has strengthened the global financial safety net, with a better-resourced International Monetary Fund at its centre, and has facilitated expanded resource commitments for the multilateral development banks.

    In 2020, the Debt Service Suspension Initiative helped create fiscal space for poor countries at a moment of great peril. The Common Framework that grew out of this is still the most promising mechanism available for working out unsustainable sovereign debts.

    It is a testament to the G20’s value that even now, at a time of extraordinary global change, all its members agree about its importance, and all of them are committed to continuing its work.

    At the same time, I think we are all in agreement that the G20 faces many challenges. I would like to discuss some of them today as a prelude to the discussion to come. I hope you will forgive me for focusing today on how process subverts better policy formulation, but I believe this is a serious concern and detracts from what the G20 might achieve.

    Let me start by drawing attention to the need for more focused agenda-setting, supported by better processes.

    From a very operational perspective, G20 meetings are large. There is a rule of thumb, sometimes called Parkinson’s law,3 that the maximum size of an effective committee is around 20 participants. Once you get past that threshold, it seems to become difficult to make decisions efficiently.

    It would seem that an organisation called the G20 would be perfectly designed for satisfying Parkinson’s law. But, in addition to the G20’s 21 members, we also have a roster of invited countries and many international organisations. Counting in these invited participants, we had a total of 52 countries and institutions at our recent Finance Ministers and Central Bank Governors meeting in Cape Town.

    In this context, it can be challenging to have spontaneous conversations and robust debates.

    One high-level observation is that the G20 functions best in a global crisis. Minds are focused and participants move quickly to find each other in identifying root causes, analysing options and defining the path forward. I think of the meetings of Washington in 2008, London in 2009, and Toronto and Pittsburgh in 2010 as exemplars.

    Once we are no longer in the throes of a crisis, it becomes harder to find purpose. When we say, for instance, that the G20’s relevance is fading, I think we mean that the agenda, always rich in topics, is overloaded and too complex. While there are many agenda items suitable for reasoned, technocratic discussions, such as improving payment systems or helping heavily indebted poor countries, the G20 cannot effectively address itself to all of them.

    Against this, the G20 has powerful mechanisms for adding issues to its agenda. Each year, we have a new presidency, and each presidency wants to make its mark by putting new issues on the table. This means we add more than we subtract. Because the G20 is powerful, prestigious and global, it is tempting to bring it all the problems of the world. It does not follow, however, that, just because something is important, it should be on the G20’s agenda. There are many important issues for which the G20 is not the right forum.

    So, we should be more intentional in how we choose which issues to discuss – especially when the world is in between crises. Narrowing the G20’s scope might also make for more focused discussions that say something more meaningful about the top two or three priorities chosen each year.

    Keeping those priorities central to our discussions would also encourage a better kind of engagement – more intimate conversations that help participants find each other and craft common views.

    In the end, with too much content and not enough conversation, our messaging and communication becomes loaded with vague ‘priors’ rather than more concrete solutions. We tend to sacrifice clarity and purpose in favour of finding relevance among only the most specialist audiences.

    Refocusing on solutions would help to avoid falling into the trap of drafting long and formulaic communiqués. Finally, we would do better by having shorter statements, written in plain language.

    Of course, it is easier to communicate when you have clear decisions to share. The path here is to zero in on our inherently common challenges and then to work harder, partly with better agenda-setting, to develop common views.

    In its early years, the G20 worked well for economic and financial stability issues. We need to preserve that focus and enhance it.

    Another way of doing this could be to separate the various tracks, making them more distinct from one another, creating the space for the principals of the G20 Finance Track to focus, in part, on defining the agenda. Such a step might also mean rethinking the structure of the Finance Track itself and of its multiple working groups and their processes.

    It has also been suggested that we should establish a permanent G20 secretariat. There are obstacles to this, including who hosts it, who gets which roles and who foots the bill. We would have to be very disciplined about keeping it small, meritocratic and well governed.

    That said, establishing a secretariat for each track might address the problem that each year a new country assumes the presidency, puts in a huge effort and financial resources to learn the ropes, and then, just as it starts to really understand the system, its term is over and someone else starts all over again.

    I cannot say I’m convinced a secretariat for each standalone track is a good idea, but maybe it is better than what we have now. It would be great to hear other suggestions.

    To conclude, one of the best parts of the G20 is building relationships and social capital through meeting regularly. In doing so, we enhance our ability to cooperate in crises, gaining perspective and defining better, sustainable solutions.

    Such a dynamic and engaged process is arguably even more critical now as the global community feels its way into a new era. It is in these times that we will find it harder to agree, and it therefore becomes more important to hear each other and seek to redefine our common interests. That there may be contestation over certain topics and how to approach them is a positive outcome of the G20, not a weakness. This is where value we add should, in fact, be found.

    The G20 remains the premier forum for international economic cooperation, and should not have to be reinvented for every crisis. There is no doubt that global cooperation is difficult, even in less crisis-prone times. But the alternatives are worse. And the G20 could, with concerted effort, reach its previous levels of excellence.

    Thank you.

    MIL OSI Global Banks –

  • MIL-OSI Economics: Leonardo Villar-Gómez: Speech – XVIII Asofondos Congress

    Source: Bank for International Settlements

    Good morning to all Asofondos Congress attendees. I extend a special greeting to my esteemed fellow panelists in this opening session: Mr. Juan David Correa, President of the Board of Directors of the Association; the Minister of Labor, Mr. Antonio Sanguino; and the Financial Superintendent, Mr. César Ferrari.

    I would also like to express my sincere appreciation to Andrés Velasco and Daniel Wills, President and Technical Vice-President of Asofondos, respectively, as well as to all the members of the Association, for their kind invitation and the opportunity to participate in this vital forum.

    On this occasion, I will first share Banco de la República‘s perspective on Colombia’s macroeconomic and monetary outlook. Additionally, I will conclude my remarks with reflections on the Bank’s role in administering the Contributory Pillar Savings Fund, established by the Congress of the Republic as part of the pension reform approved last year.

    It is important to clarify that the views I will present today do not necessarily reflect the position of the Bank’s Board of Directors, nor do they represent the opinions of its individual members, who may hold differing interpretations on some issues I will address.

    On the Bank’s autonomy and essential objectives

    I would like to begin by addressing recent allegations directed at the Board of Directors, particularly some of its members, regarding alleged political motivations behind the decision made on Monday, March 31 to keep interest rates unchanged. My response to these claims is a strong reaffirmation of the institutional integrity of the Board, which operates strictly on technical grounds and within the clear constitutional mandate of safeguarding the purchasing power of the peso in tandem with general economic policy.

    It is essential to emphasize that none of the Board Members, except for the Minister of Finance, represent any particular government or political opposition. The Constitution is unequivocal on this matter. Article 372 explicitly states: “The members of the Board of Directors shall exclusively represent the interests of the Nation.”

    I have had the distinct honor of serving as member of the Board of Directors of Banco de la República for the past twelve years and, more recently, for over four years as Governor. I can state with absolute clarity and conviction that throughout these sixteen years, I have never witnessed any Board Member-or the Board as an institution-act with any motivation other than pursuing what is best for the country and its people. Our sole objective has always been to fulfill the constitutional mandate of preserving the purchasing power of the peso while ensuring that this goal aligns with the highest possible level of sustainable economic growth and employment.

    In this endeavor, the Board has been fortunate to rely on what I consider to be the most highly qualified team of economists in the country. Every decision the Board makes is preceded by a comprehensive recommendation document prepared by this technical staff. While these recommendations are not necessarily adopted in full, they serve as a crucial point of reference, providing the strongest available evidence to guide Board Members in making informed decisions. Ultimately, each vote is cast with the highest level of diligence, in adherence to the constitutional mandate, and with an unwavering commitment to the nation’s best interests.

    Over the past 25 years, throughout this century, the Board has implemented its mandate to preserve the currency’s purchasing power through an inflation-targeting strategy. This approach seeks to maintain inflation at approximately 3%, with a flexible exchange rate and a very short-term interest rate as the primary policy instrument.

    When inflation exceeds the target, it becomes necessary to uphold a contractionary monetary policy to bring it back under control. However, the short-term economic cost of such a policy-reflected in reduced productive activity-can be more pronounced and prolonged under certain conditions. This occurs, for instance, when prices and wages are heavily indexed to past inflation. Similarly, factors that elevate country risk premiums-such as global uncertainty or political idiosyncrasies, such as rising public debt or fiscal deficits exceeding expectations-can further complicate monetary policy efforts.

    Under these circumstances, the burden on monetary policy intensifies as it seeks to steer inflation back to its target while restoring the conditions necessary for more substantial and sustainable economic growth in the medium and long term.

    Colombia’s recent adjustment process: a success story

    The high policy interest rates maintained over the past three years reflect a deliberately restrictive monetary policy necessary in response to a significant inflationary shock-one that affected most economies worldwide between 2021 and 2023. Our policy response, characterized by elevated interest rates, entailed notable short-term costs regarding its impact on aggregate demand and productive activity. However, these costs were considerably lower than many had anticipated. Contrary to some forecasts, the economy did not enter a recession, and the observed slowdown in productive activity did not hinder the current unemployment rate from standing below pre-pandemic levels.

    Concurrently, this restrictive monetary policy effectively contributed to a substantial reduction in inflation-more than eight percentage points-bringing it down from its peak of 13.4% to the current level of 5.3%. Additionally, the domestic demand imbalances that had manifested in a current account deficit exceeding 6% of GDP in 2022 were significantly corrected, reducing the deficit to just 1.8% of GDP by 2024. The technical staff now projects that this deficit will rise slightly to 2.4% of GDP in 2025, reflecting clear signs of recovery in domestic demand. Even so, the projected deficit remains well below its level three years ago, leaving the economy less reliant on external financing and less vulnerable to abrupt changes in domestic and international conditions-an especially important factor given our current uncertainties.

    I believe that this macroeconomic adjustment process has been successful. It is particularly noteworthy that, within this context, we are witnessing an evident recovery in economic activity. Growth is expected to reach 2.8% in 2025, a rate that compares favorably with forecasts for many regional economies and more advanced economies, including the United States and several European nations.

    According to data from the National Administrative Department of Statistics (DANE), domestic demand grew by 4.4% in real terms in the last quarter of 2024. Similar growth rates are expected in 2025, providing the foundation for the projected recovery in GDP. This improvement is also reflected in labor market indicators, including the seasonally adjusted unemployment rate recorded last February, which was the lowest for any month since April 2017.

    Undoubtedly, the reduction in policy interest rates implemented by this Board between December 2023 and December 2024 played a key role in supporting the recovery of domestic demand, productive activity, and employment.

    Why do interest rates remain relatively high?

    At this point, it is essential to emphasize that our monetary policy interest rates remain at levels indicative of a contractionary monetary stance. Both nominal and real interest rates are currently higher than what the Bank’s technical staff considers neutral and desirable in the medium and long term-conditions in which inflationary pressures are absent and the economy grows close to its potential rate.

    In this context, I would like to reiterate a point I have made publicly on multiple occasions: I consider that interest rates lower than those currently in place would be desirable. Moreover, I am convinced that there is consensus among all members of the Bank’s Board of Directors on this matter.

    Why do we maintain interest rates that we deem contractionary and higher than what would be ideal in the medium and long term? The reason is that, despite our success in significantly reducing inflation from its peak in March 2023, the pace of disinflation in Colombia has been slower than in many other countries in the region and around the world, where inflation has already returned to the target ranges set by their central banks. This slower adjustment is primarily due to the high degree of price and wage indexation in Colombia and other idiosyncratic and circumstantial factors that have complicated the disinflation process.

    Furthermore, the process of lowering interest rates-which we all wish to continue-had to be temporarily halted during the last two Board meetings in January and March. This decision was driven by a slowdown in the pace of inflation’s convergence toward the target, alongside factors that exerted upward pressure on inflation expectations and international interest rates relevant to Colombia’s external financing. Notably, the rise in long-term interest rates in global markets coincided with an increase in Colombia’s country risk spreads. The latter occurred in a context where fiscal deficit figures significantly exceeded forecasts, and public debt as a percentage of GDP was rising at a rate well above what is consistent with macroeconomic stability.

    When comparing Colombia with other Latin American countries that, like us, follow a target inflation strategy, we observe that nations such as Perú, Uruguay, Paraguay/span>, and Costa Rica have made greater progress in reducing interest rates. This has been possible because inflation in these countries has already returned to the target ranges established by their respective central banks. In the case of Chile, inflation remains slightly above its target range due to specific factors related to public utility tariffs. However, inflation expectations suggest that by the end of 2025, Chile will be very close to its target of 3%-the same target set by Colombia.

    The experiences of the region’s two largest economies, México and Brazil, are particularly relevant to our analysis. In México, inflation currently stands at 3.7%, within the target range of 3% ± 1 percentage point. This allowed the Mexican Central Bank to lower its monetary policy interest rate last week from 9.5% to 9%. It is worth noting, however, that even after this reduction, the real ex-post policy rate (the difference between the nominal rate and observed inflation) remains at 5.3% (9% – 3.7%), significantly higher than Colombia’s current level of 4.2% (9.5% – 5.3%).

    The case of Brazil is particularly striking and serves as an important reference for the risks Colombia faces. Inflation in Brazil is currently at 5.1%, slightly lower than in Colombia. The Brazilian Central Bank had been making steady progress in lowering its monetary policy interest rate, reducing it from 13.75% in August 2023 (slightly above Colombia’s at the time) to 10.5% by mid-2024. However, concerns over the country’s fiscal situation in the latter half of 2024 led to a sharp depreciation of the real and rising inflation expectations. In response, the Central Bank was forced to rapidly reverse course, raising the policy rate from 10.5% to its current level of 14.25%. In real ex-post terms, this rate is nearly five percentage points higher than Colombia’s. Additionally, the Brazilian Central Bank has signaled to markets that further rate hikes may be necessary in the coming months. Fortunately, Colombia has not faced such a scenario recently, and clearly, avoiding such a situation remains a priority.

    In Colombia, inflation remains above the 3% target set by the Central Bank. The technical staff’s central forecast for year-end 2025 places inflation above the tolerance range of ±1 percentage point around the target, as announced by the Board last November. If this projection materializes, 2025 would mark the fifth consecutive year in which the inflation target is not met. This would pose a challenge to the credibility of the inflation-targeting framework, which relies on the firm anchoring of inflation expectations as a key element of its effectiveness. Unfortunately, recent analysts’ surveys suggest that inflation expectations among many economic agents have risen in recent months and remain above the target level.

    The combination of deteriorating inflation expectations, fiscal risks in Colombia, and uncertainty surrounding the global economy-exacerbated by the trade tensions triggered by the United States-led the majority of the Board to decide last Monday to maintain the pause in the process of reducing the policy interest rate. As stated in the press release following that meeting: “The decision to maintain the interest rate unchanged reflects a cautious approach to monetary policy, anticipating new information in the coming months that will provide further evidence on the feasibility of additional rate cuts. This decision reaffirms the Board’s commitment to achieving convergence with the inflation target in the context of recovering economic growth.” I believe this statement clearly conveys our expectations moving forward.

    The role of Banco de la República in administering the pension system’s Contributory Pillar Savings Fund

    Before concluding, I would like to address the role that Banco de la República will play in administering the pension systems’ Contributory Pillar Savings Fund (FAPC), as established by the reform approved last year by Congress.

    As you know, Law 2381 of 2024 stipulates that, within the contributory pillar, pension contributions from all workers will include an average premium component administered by Colpensiones, covering contributions on incomes between 1 and 2.3 times the legal monthly minimum wage. Since a portion of these contributions currently goes to the individual savings component, this change will significantly increase the resources received by Colpensiones once the reform takes effect. However, in the long term, this situation will reverse, as Colpensiones’ pension obligations will eventually surpass the resources it collects.

    To address this, the law mandates that the temporary surplus of funds received by Colpensiones-expected to last for two or three decades-be allocated to the Contributory Pillar Savings Fund (FAPC). Congress also determined that Banco de la República would be responsible for administering this Fund. The resources administered through the FAPC will be channeled into capital markets via professional asset managers, generating returns that will help the government meet future pension obligations.

    Currently, even before the reform is enacted, Colpensiones operates with a significant deficit, requiring substantial transfers from the national government. These transfers are included in the annual national budget and contribute to the fiscal deficit. The creation of the FAPC, administered by Banco de la República, has been structured to ensure that its funding is adjusted in a way that neither affects the national government’s current pension expenditures nor undermines aggregate savings in the economy.

    It is essential to underscore that the temporary surplus of resources allocated to the FAPC will be insufficient to meet future pension obligations. According to the projections outlined in the bill, the Fund is expected to be fully depleted by 2070, at which point the government will need to allocate additional resources to cover the resulting deficit. Ensuring the long-term sustainability of the pension system will likely require adjustments to key parameters, particularly in retirement ages and contribution rates. The necessity of these reforms remains unchanged and is in no way diminished by Banco de la República’s role as a financial resource manager.

    A little over a month and a half ago, on February 13, I addressed this very auditorium during the Treasury Congress of the Banking Association, stressing the urgency of issuing the government decree regulating the FAPC’s operation. I noted that without the prompt issuance of this decree, it would be impossible to establish the fundamental elements necessary to begin administering the Fund on time, as mandated by law for July 1.

    Banco de la República’s team worked intensively and constructively with officials from the Ministry of Finance and the Financial Regulation Unit (URF) throughout the last months of 2024, expecting that by year-end, the decree would be in place, allowing us to begin developing the institutional and financial framework required for the Fund’s timely launch. Unfortunately, the process has been significantly delayed. In late February, a version of the decree was released for public consultation, which contained multiple provisions that had not been previously disclosed to the Bank, some of which were inconsistent with the law. Consequently, we submitted a detailed letter on March 7 highlighting our many concerns. Fortunately, several of these observations were taken into account by the Ministry of Finance and the URF, for which we are grateful. A revised draft was published for further comments last Friday, March 28. However, as of yesterday, we had to submit another letter reiterating key concerns that had not yet been addressed, raising the possibility that the decree’s issuance could be further delayed or that it may not fully resolve our outstanding issues. I mention these dates to convey the pressing urgency we currently face in securing the regulatory framework needed to fulfill our legal mandate, which takes effect in less than three months.

    Only once the regulatory decree is issued can we move forward with drafting and signing the FAPC administration contract between the government and the Bank. This will allow us to initiate the selection and hiring of the first administering entities responsible for overseeing the resources, which are expected to accumulate at a rate of approximately 1.4 trillion pesos per month starting July 1. Among many other matters, the contract must explicitly establish that Banco de la República will administer the FAPC’s resources in its capacity as the government’s fiscal agent, as it does with other funds. It will provide the necessary technical and operational infrastructure while ensuring a strict separation between the Fund’s resources and the Bank’s own, both in budgetary and accounting terms. Furthermore, the administration of these resources will adhere to principles of prudence and diligence, as is standard in fiduciary mandates, with responsibility over the means rather than specific financial outcomes.

    The law establishes a Steering Committee as the highest authority of the FAPC, composed of three government representatives and four independent experts appointed by the Board of Directors of Banco de la República. However, the selection process for these four experts can only begin once the corresponding regulatory decree is in place. The draft decree published for public observations last Friday incorporated the Bank’s proposal for a transition period, during which the Bank could operate under provisional rules, investing resources in moderate-risk portfolios similar to those currently administered by the AFPs. Nonetheless, the challenge of establishing these delegated portfolios within such a short timeframe remains considerable.

    Several regulatory elements still require definition. In particular, I want to highlight three pressing issues.

    1. First, a provision included in the latest draft of the decree must be revised, as it allows for the use of savings accumulated in the FAPC to make payments under the contributory and semi-contributory pension frameworks. This pertains to the decumulation of the Fund, which should be explicitly regulated in a separate decree concerning generational sub-accounts-an essential regulation that is still pending. The law stipulates that this decree must undergo review and include a binding opinion from the Fund’s Steering Committee, which has not yet been established. Consequently, incorporating mechanisms for decumulating the Fund’s resources in the decree currently under discussion would not only be premature but also contrary to the law.
    2. For Banco de la República, as administrator of the FAPC, it is essential to clarify which Government entity will be responsible for the Fund’s accounting and which will oversee the corresponding auditing functions. After the bill was approved in the Senate and debated in the House of Representatives, the Bank highlighted the need for such clarity. While many House and government representatives showed willingness to make the necessary adjustments, procedural constraints in the legislative process prevented them. Given these circumstances, the government must define these key accounting and resource oversight aspects through a regulatory decree.
    3. Regarding hiring delegated administrators during the transition period, it is imperative that government regulations establish clear limits on their remuneration in strict accordance with the law. Specifically, compensation should be structured as a fee based on the balance administered rather than as a percentage of the base income for contributions, as proposed in the version published last Friday. The latter approach is inapplicable for resources that do not correspond to individual contributions. Additionally, certain sections of the draft decree contain inconsistencies regarding the nature of the FAPC, treating it as if it were a savings fund for individual contributions-an interpretation that does not align with its legal framework.

    Banco de la República remains fully committed to collaborating with all relevant stakeholders to ensure a coordinated and efficient implementation of the new pension system and the successful launch of the Contributory Pillar Savings Fund. However, I must reiterate the urgency of establishing adequate regulations, without which we simply will not be able to fulfill the mandate assigned to us by law.

    Thank you very much. 

    MIL OSI Economics –

  • MIL-OSI Economics: Christopher Kent: Australia’s external position and the evolution of the FX markets

    Source: Bank for International Settlements

    Introduction

    I would like to thank Bloomberg for hosting this event. Today I will discuss Australia’s evolving external position and the development of foreign exchange (FX) markets. I will emphasise the growing footprint of superannuation funds in Australia’s capital flows and the importance of these and other ‘buy-side’ firms of adopting best practices in FX markets.

    Australia’s capital account and FX markets since the float

    The removal of capital account restrictions and the floating of the Australian dollar in 1983 reshaped our economy. Free capital movement facilitated large increases in foreign investment in Australia and allowed Australian households and firms to diversify their portfolios by investing overseas. Deep, well-functioning FX markets that developed following the float helped banks, businesses and fund managers to manage their foreign exposures.

    Australia’s integration into global capital markets saw two distinct trends in our net investment position with the rest of the world (Graph 1). First, in the decades after the float, Australia’s high investment rate was associated with rising foreign debt. This saw net foreign liabilities rise substantially to around 50 per cent of GDP. Second, over more recent years, outbound investment has grown as a share of GDP as Australia’s saving rate rose and domestic investment declined. This accumulation of foreign assets has contributed to an extraordinary decline in Australia’s net foreign liabilities to levels last seen prior to 1983.

    MIL OSI Economics –

  • MIL-OSI Economics: Primož Dolenc: Green finance and investment

    Source: Bank for International Settlements

    Ladies and gentlemen, distinguished guests,

    I am delighted to welcome you to today’s conference organized jointly by Banka Slovenije and the European Investment Bank.

    The event builds on the discussions from our 2023 conference, once again placing green finance and investment at the center of our debate.

    This underscores the recognition that risks linked to climate and environmental change are among the most pressing global challenges of our time.

    Confronting these challenges calls for collective action and a shared responsibility towards future generations.

    Achieving carbon neutrality by 2050 requires significant investments across the EU, alongside other measures.

    According to Mr Draghi’s report and other studies, the EU will have to allocate additional green investments amounting to around two percent of GDP annually by 2030.

    Despite the funds available at the EU level and the reformed EU fiscal governance framework, we can expect a public funding gap for green investments in the years to come.

    As public finances are increasingly strained due to security concerns and an ageing population, Europe needs a strong framework to also attract and efficiently deploy private capital.

    The recently launched Savings and Investment Union strategy, which builds on the Capital Markets Union and Banking Union projects, is an important element to support the massive green investment needs.

    A more integrated and deeper EU financial system – complemented by advances in financial literacy and, ideally, a positive shift in mindset – would enable a more efficient allocation of savings from businesses and citizens.

    While Europe remains committed to ambitious climate goals, the strategies and processes guiding the green transition continue to evolve.

    A perspective that has gained traction over the last year is how Europe can reconcile the complexities of global competition and environmental imperatives and balance ambitious climate goals with economic vitality.

    In February this year, the European Commission unveiled its proposal for a Clean Industrial Deal, outlining strategies to unlock investments in clean energy and decarbonize and revitalize Europe’s industry.

    Another important initiative is the Omnibus Simplification Package, introduced by the Commission in February.

    By simplifying the business environment and reducing administrative burdens, Europe would enhance its global competitiveness and ultimately spur investments, including those supporting the green transition.

    However, this drive for simplification is not without its critics and concerns that easing regulations could undermine corporate accountability and stall progress towards our climate objectives.

    When introducing adjustments, policymakers must ensure that the underlying strategies are both ambitious and pragmatic. 

    At Banka Slovenije and within the Eurosystem, we are committed to play our part by:

    • increasingly incorporating climate-related issues into our analyses;

    • decarbonizing our monetary policy-related corporate bond holdings and implementing climate-related measures in our collateral framework;

    • greening our non-monetary portfolio;

    • and, as supervisors, encouraging and directing banks to identify, measure and manage climate-related risks in a timely and comprehensive manner, ensuring they remain well positioned to support the economy and the green transition.

    Before we move on to the discussion, let me first give the floor to the Head of the European Investment Bank Group Office in Slovenia, Mr Simon Savšek.

    Thank you.

    MIL OSI Economics –

  • MIL-OSI United Kingdom: Former St Helens pub landlord failed to declare he was bankrupt when applying for Covid loan

    Source: United Kingdom – Executive Government & Departments

    News story

    Former St Helens pub landlord failed to declare he was bankrupt when applying for Covid loan

    Suspended sentence for former St Helens pub owner

    • Gary Wright was the owner of the Talbot Ale House in St Helens before it ceased trading in 2019, prior to the pandemic 

    • Wright was subsequently declared bankrupt in early 2020 

    • This did not stop him applying for a £25,000 Bounce Back Loan on behalf of the pub, failing to tell the bank he was bankrupt in the process 

    • The loan was repaid in full earlier this year

    A former St Helens pub owner who failed to disclose his bankruptcy when he applied for Covid support funds has been handed a suspended sentence.  

    Gary Wright did not inform the bank that he was bankrupt when he obtained a £25,000 Bounce Back Loan in the summer of 2020. 

    The 46-year-old made the application on behalf of the Talbot Ale House on Duke Street in St Helens town centre, the pub he ran before his bankruptcy earlier that year. 

    Wright, of Bleak Hill Road, St Helens, was sentenced to two years in prison, suspended for two years, at Liverpool Crown Court on Thursday 24 April. 

    He was also ordered to complete 150 hours of unpaid work and pay £1,500 in costs. 

    The Bounce Back Loan was repaid in full shortly before Wright was sentenced. 

    David Snasdell, Chief Investigator at the Insolvency Service, said: 

    Gary Wright incurred significant debts after his business failed and he was ultimately declared bankrupt. 

    He then attempted to take advantage of a scheme which was backed by taxpayers and designed to support viable small businesses through the pandemic. 

    Bankrupts are legally required to declare their status when applying for loans or credit. Wright clearly failed to do this which is why he now has a criminal conviction. 

    Talbot Ale House ceased trading in September 2019 and Wright was declared bankrupt in February 2020 due to debts owed to a major utility company. 

    Despite this, Wright applied for a £25,000 Bounce Back Loan in June 2020, claiming the turnover of the pub was £400,000. 

    Wright remains an undischarged bankrupt, meaning he has not been officially released from his bankruptcy. 

    Individuals subject to a bankruptcy order must disclose their status if they borrow or obtain credit of £500 or more. 

    A pub continues to run from the same address but under different management. 

    Further information 

    Updates to this page

    Published 2 May 2025

    MIL OSI United Kingdom –

  • MIL-OSI Economics: Sanjay Malhotra: India – a partner in progress and prosperity

    Source: Bank for International Settlements

    I am very happy to be here amongst you in this historic location. I thank CII and USISPF for giving me this opportunity to be present here and share my thoughts. Both CII and USISPF have played important roles in fostering partnerships in trade, technology, investment and innovation between India and USA. I compliment them for their efforts in strengthening the bond between two important economies. In my remarks today, I wish to present my perspective on how India is poised to be a dynamic powerhouse of opportunities, innovation, and sustainable growth in the years to come.

    The Indian economy has demonstrated remarkable resilience and dynamism. Over the past four years (2021-22 to 2024-25), it has recorded an average annual growth rate of 8.2 per cent. It was and continues to be the fastest-growing major economy in the world. This is a significant step up from the average growth rate of 6.6 per cent in the preceding decade (2010 to 2019).

    Even this year, our growth is expected to remain robust at 6.5 per cent. This is despite the tremendous increase in uncertainty and volatility in global financial markets. While this rate is lower than in recent years and falls short of India’s aspirations, it remains broadly in line with past trends and the highest among major economies.

    No wonder, over the last ten years, we have leapfrogged from the tenth largest economy to the fifth. In terms of purchasing power parity, we are already third. Even nominally, we are poised to become the third largest economy shortly. We aspire to become Viksit Bharat, i.e., a developed economy by 2047, when we complete 100 years of our independence. While there is indeed a scope for India’s growth trajectory to rise over the medium to long-term, I am sanguine of our continued success. There are a lot of positive factors that give me this confidence. Let me outline a few of these.

    Policy continuity and stability

    First and foremost, we are all aware of the research that shows that political and policy stability with certainty are prerequisites for long-term planning of investments to fuel growth in any economy. Our vibrant democracy has been able to ensure the same, especially since the initiation of economic reforms, despite change of political parties in government. Economic liberalisation focusing on market oriented policies has been a consistent theme across successive governments. While the pace and specific focus of reforms may have varied from time to time, the commitment to a more market-oriented economic structure has not changed. In a phased manner, almost all sectors have been opened up to 100% foreign direct investment (FDI). Almost 90% of the FDI is now under the automatic route. In the recent years, we have introduced a series of liberalisation measures to further open up the economy, particularly in key sectors such as Defence, Insurance, Petroleum & Natural Gas, Telecom, and Space.

    MIL OSI Economics –

  • MIL-OSI Economics: Darryl Chan: Global outlook – unlocking market potential through financial connectivity

    Source: Bank for International Settlements

    Mr Peng Yang (CEO, Ant International), distinguished guests, ladies and gentlemen:

    Good morning.  To those of you who have travelled from far and wide, a very warm welcome to Hong Kong!

    It gives me great pleasure to join you today for MO·MENTS 2025 organised by Ant International.  This is a great gathering of forward-looking, innovative people who bring and share remarkable expertise, experience and ideas to shape the future of payments.  Indeed, payments is shaping the future of finance by unlocking the many possibilities and immense potential. 

    The theme of this event is global connectivity.  In my discussion today, I will share with you the exciting journey Hong Kong is going through to promote connectivity in the payments space, both locally and globally.  Our objective is to achieve cheaper, faster, more transparent, and more accessible payment services.  Before going global, we started with local.  There were two starting points: stored value facilities (or SVF in short) and faster payment system, or FPS.

    In 2015, the Hong Kong Monetary Authority (HKMA) introduced a regime to regulate SVF operators who take the form of e-wallets or prepaid cards.  Today we have a robust SVF ecosystem of 15 operators.  These operators serve a wide range of institutional and retail customers from mass market to more niched segments.  In less than a decade, the number of SVF accounts have doubled, from around 40 million in end 2016 to 80 million in end 2024; and the total number of transactions has grown by almost 60%, from around 15 million per day in Q4 2016 to 24 million in Q4 2024.   

    The FPS is another success story.  Launched in 2018, it is a platform that supports full connectivity among banks and SVFs.  It provides real-time, 24×7 interbank transfers with just a few clicks on mobile devices.  Since its launch, FPS has experienced phenomenal growth.  It now has 16.4 million registrations in total, on the back of a local population of 7.5 million.  

    The SVF and FPS, working individually or in combination, provide a powerful tool that facilitates cheaper, faster payments and enhances user experience.  They promote not just financial inclusion but also the growth of e-commerce.  

    The use of SVF and FPS goes beyond Hong Kong.  For example, Hong Kong e-wallets can now be used at over 30 million merchants in Mainland China.  Between 2021 and 2024, the number of cross-border transactions in the Mainland has grown by almost 50 times.  

    In the case of FPS, in 2023 the HKMA joined hands with the Bank of Thailand to link up FPS and Thailand’s PromptPay, enabling cross-border QR payments between the two jurisdictions.  Meanwhile, we are working closely with the People’s Bank of China to connect FPS with the Mainland’s Internet Banking Payment System.  Our plan is to formally roll out the link by the middle of this year.  Looking ahead, we are also exploring the possibility of further expanding the linkage of FPS with other fast payment systems in the region. 

    There is enough to keep us busy just by enhancing the interoperability and connectivity of the existing payment systems and networks.  Yet we are keenly aware of the need to keep taps on developments that bring new dimensions to the form and functioning of money.  Here I am referring to the emergence of central bank digital currency or CBDC, tokenised bank deposits, and stablecoins. 

    In terms of CBDC, our flagship project mBridge achieved the minimum viable product stage in 2024.  It is a seamless cross-border wholesale CBDC platform co-founded by the HKMA and several other central banks.  Supported by a comprehensive legal framework and a fit-for-purpose governance structure, the platform seeks to address the typical pain points in cross-border payments by enhancing efficiency and reducing costs through central bank digital money.  Going forward, the project will continue to expand the participation of public and private institutions with a view to achieving greater network effect.

    We also leverage on our CBDC research to support the development of the tokenisation market.  Last year, the HKMA initiated Project Ensemble and established an Architecture Community to develop common industry standards that support interoperability between CBDC, tokenised money and tokenised assets.  In August, we launched the Ensemble Sandbox, working with our securities regulator and the private sector to explore and experiment with tokenisation of financial assets and real-world assets.  Currently, the use cases cover liquidity management, supply chain finance, green finance, and investment funds. We are pleased that Ant Group is an active participant of the Sandbox.  Project Ensemble also goes beyond Hong Kong.  We are partnering with other central banks including Thailand, Brazil and France to explore cross-border tokenisation use cases. 

    On stablecoin, we are in the final stage of passing the law that empowers the HKMA to license and supervise stablecoin issuers in Hong Kong.  Together with other regulatory efforts governing the exchange, trading and custody of crypto assets, the stablecoin licensing regime is an important element to nurture a responsible and sustainable crypto ecosystem in Hong Kong.

    Running in parallel to the legislative process, a stablecoin sandbox was set up last year to provide a controlled environment for potential issuers to test the various features and controls of their proposed schemes, as well as their use cases that cover supply chain, capital market activities, cross-border payments, and Web3.0 applications.  The sandbox also enables the HKMA team to gain insights that inform the formulation of specific regulatory requirements and ensure they are fit-for-purpose.

    Ladies and gentlemen, the payments industry has seen exponential growth in recent years and we should expect the momentum to sustain-if we do the right things.  On this, I don’t think people in this room need to be convinced.  Let me share some thoughts on how to capture those opportunities.

    First is to make good use of technology.  Technology is the key driver in this growth story and it keeps pushing the possibility frontier.  Just imagine the potential of combining the ever growing computing power, artificial intelligence (A.I.), machine learning and big data. 

    What technology can deliver is amazing:

    • in terms of making payment so much easier through one-click payment or voice-automated payments;
    • in terms of capturing new customer demands such as buy-now-pay later or subscription payments; and
    • in terms of tailoring payment service to the needs of individual customers.

    What we need is to stretch our imagination and be innovative.

    In the process, one thing we always need to bear in mind is the fundamental value proposition of payment services-how payments can be made easier, faster, cheaper, and equally important, more accessible.  It is therefore heartening that we have a session today dedicated to inclusive growth. 

    Technology is a double-edged sword.  One increasingly troubling aspect related to banking and payments is the prevalence of fraud and scams.  In Hong Kong, more than 44,000 deception cases were reported last year, an increase of close to 12% year-on-year.  In a way we are victim of our own success by making payments much faster and more convenient.  This has now become one of the top challenges facing financial regulators across jurisdictions.  If unchecked, it will seriously undermine public confidence in the safety of the banking and payments sector, not to mention the issue of how to apportion the loss.

    The HKMA and the banking and payments industries have therefore been in close collaboration with law enforcement agencies to raise public awareness, share intelligence and good practices, and use Scameter data to alert potentially at-risk customers.  This is a never ending battle, and technology can help address the risk.  We look forward to payments operators leveraging A.I. and machine learning in fraud detection and prevention of money laundering.  We at the HKMA stand ready to work with the industry in testing and deploying such technology.

    My second point is about collaboration.  Deglobalisation, reglobalisation, fragmentation-it may take on different names or different forms, but one thing is for sure, the global economy is entering uncharted waters, in search of the more stable state when the dust gets a little settled. 

    For an industry like payments that thrives on interoperability and connectivity, this is not good news.  But the reshaping of the global economic order and the realignment of global supply chain can also mean new business opportunities for the payments sector:

    • think about the possible shifts, within a relatively short timeframe, in trade patterns and trade flows;
    • think about new relationships to be established between buyers and suppliers; and
    • think about the new payment corridors across countries and regions that may involve more local currencies. 

    These changes call for more timely, in-depth collaboration between different players in the payments space to better support customers.  And as long as payments remains a regulated space, we also need cross-border collaboration in the official sector, either through system linkage or policy coordination, to make this happen. 

    If I may quickly turn to my third point, which is the significance of operational resilience.  With increased connectivity and collaboration, system outage or cyber incidents will have much pronounced consequences.  It is crucial therefore, that operational resilience is a core objective and KPI.  And always have a contingency plan ready should anything untoward happen. 

    Ladies and gentlemen, as we look to the future, we need to be resilient, be agile, embrace technology, and, most importantly, remain customer-centric.  This should be the winning formula to unlock market potentials and promote a more efficient and inclusive financial ecosystem.

    With that, I wish the event a great success.  Thank you very much.

    MIL OSI Economics –

  • MIL-OSI Economics: Denis Beau: Our payment system at a time of geopolitical risks

    Source: Bank for International Settlements

    Slides accompanying the speech

    [Slide 1 Cover slide]

    The payments sector has undergone significant changes in recent decades, driven by digitalisation and the rise of new technologies. While the latter provide opportunities, they also bring risks, particularly in terms of financial stability and sovereignty. These risks have been amplified since the inauguration of the new US administration and the upheavals to the international order that its challenges to multilateralism and its deregulatory and protectionist policies could cause. 

    Against this backdrop of great uncertainty and the major shocks to the financial system since the start of the month, the financial authorities have an important role to play in fostering stability and trust among the players in the French and European economy and financial system. Accordingly, in addition to ensuring price stability, the objective of the Banque de France, in keeping with its monetary and financial stability mandates, is to help maintain stable access to financial services, particularly credit, and to encourage innovation and diversification. It also strives to ensure the smooth functioning of our economy and the infrastructures on which it relies, and especially our payment system.

    In my presentation this morning, I would first like to review the main trends and challenges facing the European payments ecosystem, and then present the levers we are using at the Banque de France to ensure its efficient operation and the security of payment systems and payment means, and to help strengthen Europe’s sovereignty over its payment system. 

    [Slide 2 – I. Trends and challenges for payments in France and Europe]

    I. The digitalisation of payments and its implications    

    A. Progress in technology is leading to the rapid digitalisation of the payments ecosystem

    [Slide 3: A rapid payment digitalisation process]

    For a little over a decade now, we have been witnessing a strong move towards digitalisation and the increasing use of electronic payment solutions, with an attendant decrease in the use of cash. Payment cards are now the most commonly used means of payment at the points of sale, accounting for more than 48% of transactions in France in 2024. Conversely, cash payments are gradually decreasing, falling to 43% of point-of-sale transactions in France in 2024, whereas they stood at 50% in 2022, and as high as 68% in 2016.

    This trend accelerated even further with the rise of online shopping and the Covid pandemic. The share of e-commerce in the number of transactions thus doubled between 2019 and 2024 to reach a quarter of all transactions in France. At the same time, contactless payments and mobile payments have developed rapidly, with the aim of making payments increasingly seamless and almost invisible to consumers. This trend has been facilitated by the development of new technologies that have modernised payments, such as near-field communication (NFC) and QR codes, which have enabled the roll-out of contactless payments. 

    Against this backdrop, new players in payments have emerged, whose value added stems from technological innovation. These new players are now competing with traditional financial institutions such as banks. They include not only FinTechs but also “non-financial” players, namely telecom operators, technical service providers (specialising, for example, in the tokenisation of payment card data), and BigTechs, in particular the American GAFAMs – ApplePay, GooglePay – which dominate the mobile payments market. They also include Chinese and Korean platforms such as AliPay and WeChatPay.

    The growth in the tokenisation of financial instruments, driven by the use of distributed ledger technologies (DLT) such as blockchain, represents a significant opportunity for our markets. Significant benefits are expected: faster exchanges, lower operating costs and greater transparency of transactions. However, this trend is now going hand in hand with a plethora of uncoordinated DLT initiatives, giving rise to the emergence of new private settlement assets, most notably stablecoins. These initiatives are largely controlled by non-European players and mechanisms, whose reference currency is the dollar. 

    B. The challenges raised by changes in the payments landscape

    [Slide 4: Issues and challenges posed by the digitalisation of the European payments system]

    While the digitalisation of payment means has delivered many benefits, in particular by enabling simpler, faster, more convenient and more secure payments, it also poses challenges.

    The decline in the use of cash raises questions about the sustainability of some of its characteristics, particularly confidentiality, universal acceptance and accessibility, which are not currently available in the digital sphere. Furthermore, the increase in the use of digital payments raises questions about the role of central bank money, as opposed to commercial money used for card payments, even though central bank money plays a key role in anchoring confidence in our monetary system. 

    Furthermore, expanding the use of digital solutions has steadily upped our reliance on non-European entities (particularly from the United States and China), which already leverage significant network effects, thanks notably to their ability to harness extensive datasets and customer bases. They also control a number of widely used proprietary standards (Visa, Mastercard). Beyond the question of operational resilience, this situation raises concerns over competition, strategic autonomy and data protection. With the emergence of these international players, European payment solutions appear highly fragmented and their market share has been eroding.1

    The growing digitalisation of payments also represents a challenge to maintain a high level of payment security. Fraud schemes are becoming increasingly complex, involving the manipulation of payers and the circumvention of the strong authentication mechanisms put in place to ensure the security of digital payments in Europe. In particular, artificial intelligence (AI) is a double-edged sword. 

    AI amplifies cyber risk and, in payments, it can considerably facilitate payment scams, for example through deepfakes. But this technology can also become an invaluable ally in the fight against fraud, by enabling fraud schemes to be more rapidly and effectively identified. Against this backdrop, integrating AI into anti-fraud models could help to improve the security of the digital payment means available to the public.

    It should also be noted that digitalisation could extend to financial assets, through tokenisation, although at present there are no suitable and really secure payment solutions available for these financial transactions. Therefore, without a central bank money-based payment solution for these “wholesale” transactions, private non-European solutions could become dominant, in particular stablecoins. However, almost all stablecoins are currently pegged to the dollar, and their issuance in the United States is not currently subject to any protective federal regulatory framework. If the tokenisation of financial assets were to gather pace, the lack of a central bank money payment solution in euro might therefore threaten the role of central bank money as the anchor of the euro area’s monetary architecture, with concrete adverse consequences: an increase in counterparty and liquidity risks, increased fragmentation of settlement, and ultimately a loss of sovereignty and a weakening of financial stability.

    In this context, the recent positions adopted by the new US administration, and in particular the adoption on 23 January of an Executive order, are likely to amplify these risks as this Executive Order (i) prohibits all work related to the development of a new form of central bank money compatible with technological changes, (ii) promotes the development of dollar-backed stablecoins, and (iii) encourages citizens and businesses to use public blockchains. This new political direction reinforces the need for Europe to preserve its monetary sovereignty, which means developing its payment sovereignty.

    II. To meet these challenges, the Banque de France is using several additional levers for action

    [Slide 5: Transition – Two additional responses: regulation/support and innovation.]

    A. Adapting regulatory frameworks and supporting innovation within a framework of trust

    [Slide 6: Adapting regulatory frameworks at national and international level]

    First and foremost, the Banque de France promotes clear, standardised and balanced regulatory frameworks that allow innovation to flourish within a framework of trust conducive to their sustainable deployment. It therefore supports and contributes to the development of frameworks that aim to:

    • Maintain a level playing field between players. For example, this has made it possible for operators other than Apple to have access to NFC antennae on iPhones at the European level to promote better competition.
       
    • Adapt to technological progress to support the development of new players, while ensuring they are adequately regulated, based on the principle of “same activity, same risk, same regulation”. This approach has guided the deployment of the Markets in Crypto-Assets (MiCA) regulation, which standardises the rules applicable to crypto-asset service providers, enabling them to develop their business while ensuring that risks to users and the financial system are properly managed. 
       
    • Protect consumers. This was, for example, the aim of the second European Payment Services Directive (PSD2), which introduced “strong customer authentication” (SCA) for more secure payments. The Instant Payment Regulation (IPR) follows the same logic, requiring payment service providers (PSPs) to deploy fraud protection measures (e.g. checking the name of the beneficiary against the IBAN) to ensure the orderly development of instant payments.

    [Slide 7: Strengthening the security of means of payment]

    As part of its statutory mission, which includes ensuring the security of means of payment, the Banque de France supports innovation by ensuring that it does not jeopardise the security of payment methods. The following tasks are performed within the framework of the Observatory for the Security of Payment Means (OSMP).

    • Communication campaigns targeting the general public, such as “never give out your data”, carried by various audio-visual media and radio, and aiming to raise awareness of the personal nature of passwords in particular,
    • Initiatives aimed at boosting cooperation with data protection, cybersecurity and telecommunications authorities to limit fraud as much as possible.

    [Slide 8: Promoting innovation by supporting private initiatives]

    Support for innovation also seeks to ensure that private initiatives help to strengthen European sovereignty over the euro payment system:

    • At the national level, this support aims to consolidate the position of high-performance French payment solutions, such as the Groupement carte bancaire (CB bank card group), which has been allocated specific support within the framework of the new national retail payments strategy for 2025-30, implemented by the National Payments Committee (CNMP) last October.
       
    • At the European level, pan-European solutions, such as the European Payments Initiative (EPI), are strongly supported. EPI launched the ‘Wero’ digital payment wallet for consumers last autumn, providing instant payments across five European countries (Belgium, France, Germany, Luxembourg and the Netherlands). This initiative with pan-European ambition aims to promote competition and strengthen Europe’s strategic autonomy in retail payments.

    B. The provision of new central bank money services to preserve the key role of central bank money in a digitalised world

    Alongside regulating and supporting private initiatives, the Banque de France is making a strong and decisive contribution to the Eurosystem’s work on developing its services through the creation of a central bank digital currency for both retail and wholesale transactions. This work has become more strategically important in terms of ensuring European sovereignty over its payment system since the policy shift initiated by the new US administration that I referred to a few minutes ago.

    [Slide 9: Innovating with the digital euro: a European payment solution] 

    1. The digital euro

    Given the strong dependence on American payment solutions and networks, the Banque de France thus supports and participates fully in the digital euro project spearheaded by the Eurosystem, which will constitute a public alternative, preserving the freedom to choose means of payment, sovereignty and competition in the euro area. 

    The digital euro aims to provide everyone with the possibility to use a ‘digital banknote’ in the digital payments sphere that incorporates the main features of a ‘physical’ banknote. Its off-line mechanism will provide a cash-like level of privacy and will be a guarantee of resilience. It will be free of charge for individuals. Its characteristics will foster digital financial inclusion, including for people without bank accounts or smartphones. It will also be a new form of public money, which will safeguard the anchoring role of central bank money and trust in our single currency.

    The digital euro also aims to strengthen European integration and strategic autonomy in payments thanks to the legal tender status it would be given, making it usable anywhere and in any circumstances within the euro area. It will also be based on open and harmonised standards, which private payment solutions such as Wero will be able to use to expand their reach. In this way, the digital euro aims to foster the development of private solutions under European governance, which can be used across the euro area, whereas most solutions are currently restricted to certain countries or use cases.

    The Eurosystem is currently in a preparation phase that will last until the end of 2025. At the same time, a democratic debate is taking place at the European level to define, by means of legislation, the conditions in which the digital euro may be used. A decision on issuance can be taken once this legislation has been approved by the European Parliament and the Council.

     [Slide 10: From Wholesale CBDC to a shared European ledger]

    2. Wholesale central bank digital currency

    With the development of tokenised assets, the Banque de France is also firmly committed to providing a payment solution in central bank money that includes making it available in tokenised form, in other words, a “wholesale CBDC”. 

    The Banque de France has been resolutely committed to this solution since 2020, playing a pioneering role at the European level in an experimental programme conducted between 2020 and 2022, in partnership with various private and institutional sector players. This work, which allowed the Banque de France to develop and test its own blockchain (DL3S), was followed by that of the Eurosystem in 2024. This was used to test three solutions for settling tokenised assets in central bank currency through around 40 or so experiments.

    Drawing on the lessons learned from these experiments and their confirmation of a demand for adapting central bank money services, in February 2025, the ECB Governing Council decided to quickly make available a settlement service in CB money adapted for tokenised assets, which will include money in token form, i.e. a “wholesale” CB digital currency. 

    This decision also paves the way for discussions on building a European shared ledger that could be used to adapt European payment infrastructures to the digital era to ensure sovereignty. By providing a credible alternative to non-European solutions, based on a standardised legal and regulatory framework, a European shared ledger could support financial integration within the EU and help strengthen the resilience and attractiveness of our financial market. 

    Conclusion : As a central bank tasked with safeguarding monetary and financial stability, and notably the security and efficiency of payment systems and means of payment for the euro, the Banque de France is fully committed to monitoring, understanding and supporting the major transformations currently taking place in the payments landscape. These transformations have recently assumed major strategic importance for the monetary sovereignty of euro area countries, necessitating the mobilisation of all the European players concerned to respond in an appropriate and adequate manner. This involves developing secure, efficient public and private pan-European payment solutions that contribute to European sovereignty over its payment system. As both supervisor and provider of central bank money services, we are determined to play our part.

    [Slide 11: Thank you for your attention]

    MIL OSI Economics –

  • MIL-OSI Economics: Portfolios of Deputy Governors

    Source: Reserve Bank of India

    Consequent on the appointment and assumption of charge by Dr. Poonam Gupta as Deputy Governor, the distribution of portfolios among the Deputy Governors with effect from May 2, 2025 will be the following:

    Name Departments
    Shri M. Rajeshwar Rao 1. Co-ordination
    2. Department of Regulation
    3. Enforcement Department
    4. Legal Department
    5. Risk Monitoring Department
    6. Secretary’s Department
    Shri T Rabi Sankar 1. Central Security Cell
    2. Department of Currency Management
    3. Department of External Investments & Operations
    4. Department of Government and Bank Accounts
    5. Department of Information Technology
    6. Department of Payment and Settlement Systems
    7. Fintech Department
    8. Financial Markets Regulation Department
    9. Foreign Exchange Department
    10. Human Resource Management Department
    11. Internal Debt Management Department
    12. Right to Information (RIA) Division
    Shri Swaminathan Janakiraman 1. Consumer Education and Protection Department
    2. Department of Supervision
    3. Deposit Insurance and Credit Guarantee Corporation
    4. Financial Inclusion and Development Department
    5. Inspection Department
    6. Premises Department
    7. Rajbhasha Department
    Dr. Poonam Gupta 1. Corporate Strategy and Budget Department
    2. Department of Communication
    3. Department of Economic and Policy Research
    4. Department of Statistics and Information Management
    5. Financial Markets Operations Department
    6. Financial Stability Department
    7. International Department
    8. Monetary Policy Department

    (Puneet Pancholy)  
    Chief General Manager

    Press Release: 2025-2026/229

    MIL OSI Economics –

  • MIL-OSI Economics: Adnan Zaylani Mohamad Zahid: Next-generation fintech ecosystem – harnessing the full potential of innovation

    Source: Bank for International Settlements

    It is a privilege to be here at Money 20/20 Asia, joining these conversations and discussing the evolving roles of fintech and financial innovation in redefining the future of finance. It also gives me the opportunity to share some perspectives from Malaysia as well as what we gathered from ASEAN meetings that took place in recent weeks. We have only just come out of a series of ASEAN Finance Ministers’ and Central Bank Governors’ meetings held in Kuala Lumpur that focused much on sustainability, climate, and inclusion or well-being, certainly areas of great interest for fintech and financial innovation.

    Indeed, if we look at the past decade, the financial sector has experienced significant advancements in this space, and at the same time, the ASEAN region has emerged as a key player. Propelled by the digital revolution and evolving consumer expectations, technology has rapidly transformed financial services, unlocking new opportunities for inclusion, resilience and efficiency. Today, ASEAN stands as one of the world’s most dynamic regions with a GDP size of US$3.8 trillion1 and a population of more than 650 million. It is also becoming a vibrant fintech landscape that fuels economic activity with improving financial access for millions. The region’s fintech sector has demonstrated remarkable resilience in the face of uneven global funding trends, achieving a more than tenfold increase in fintech funding over the last decade.2 This surge in fintech activity has not only spurred growth in sectors like payments and alternative lending, enhancing financial inclusion, but also played a pivotal role in facilitating regional trade and investment across ASEAN.

    Progress does not come by chance. As a region, ASEAN has come together under the ASEAN Economic Community, aimed at fostering economic and financial advancements. Under Malaysia’s chairmanship this year, for example, we have committed focus towards catalysing financing for climate resilient and a just transition, accelerating growth of our regional capital markets and fostering inclusive instant payment connectivity in ASEAN. We have also committed to greater collaboration and strengthening integration, as a key strategy and mitigation in dealing with rising geopolitical and economic uncertainties.

    Looking ahead, the financial sector will need to play a critical role in supporting ASEAN’s continued economic integration and social advancement. The region is projected to need over USD3 trillion in infrastructure investment by 20403 to sustain growth and improve living standards. Meeting these demands – while also addressing climate goals, demographic shifts, and the digital economy – would require ASEAN’s financial ecosystem to be adaptive and future-ready. This means building a progressive financial sector that is not only resilient and inclusive, but also capable of harnessing the full potential of emerging technologies such as artificial intelligence (AI), cloud, blockchain, and quantum computing, while managing attendant risks.

    So, the question before us today is: how can we shape our financial ecosystem to further expand the frontiers of financing and meet our future needs as a region? Specifically, I believe this means strengthening the foundation for a collaborative environment that includes:

    1. First, facilitative regulatory frameworks;
    2. Second, fit-for-purpose ecosystem enablers; and
    3. Third, responsible innovation by ecosystem players.

    Allow me to share my reflections on these three aspects.

    Regulators play a vital role in enabling innovation through safeguarding market integrity and public trust. A credible and trusted regulatory framework goes some way in supporting confidence in something new. And as technology rapidly evolves, regulatory approaches must be agile, forward-looking, and anchored on clear principles. To fully harness innovation, a balanced ecosystem with a blend of future-proof technologies, inclusive innovation pathways, and a thriving mix of players is essential. This will go beyond updating rules and regulations. It may even require more principle-based frameworks that can offer clarity and confidence to investors and consumers, a direction increasingly embraced by regulators across ASEAN.

    In Malaysia, our regulatory philosophy is grounded by three key principles:

    1. Parity, to ensure a level playing field for all market participants;
    2. Proportionality, to calibrate regulatory rigour with the level of risk; and
    3. Neutrality, to prioritise desirable outcomes while remaining agnostic to different technologies, systems and approaches.

    This approach allows us to foster a regulatory environment that encourages responsible experimentation and healthy competition. At the same time, we remain alert to new and emerging risks – such as cyber threats, digital fraud, and data privacy concerns – which must be managed to ensure long-term resilience in the financial sector.

    To support innovation while managing the associated risks, an effective tool that has been widely adopted by regulators globally and regionally is the Regulatory Sandbox. The Sandbox model helps innovators refine their solutions while regulators assess its potential risks. Malaysia was among the early adopters of the Regulatory Sandbox globally. Since its inception in 2016, the Sandbox has played a pivotal role in shaping Malaysia’s fintech ecosystem by facilitating innovations such as fully digital account openings, digital insurance and takaful models as well as cross-border remittance solutions. These experiments have informed the development of new frameworks, including the newly launched licensing application for Digital Insurers and Takaful Operators (DITO) aimed at promoting greater inclusion, competition, and efficiency in the insurance and takaful sectors.

    Recognising the growing diversity of innovation, we recently refreshed the Sandbox initiative to introduce two distinct tracks:

    1. A Standard Sandbox with a simplified eligibility assessment process to encourage broader participation; and
    2. A Green Lane with an accelerated pathway for financial institutions with strong risk management capabilities, allowing them to test innovations more swiftly.

    This was followed by a significant increase in the volume and diversity of innovations submitted, with a total of 11 Standard Sandbox and three Green Lane applications received in 2024. Certainly, affirming our perspective that regulators and regulations also need to be agile.

    Looking ahead, we must also be prepared for transformative technologies on the horizon. These include not only AI and digital assets, but also more recent developments such as quantum computing. While at various stages of maturity, these technologies have the potential to further reshape the financial landscape and may require proportionate and appropriate regulatory responses that keep evolving alongside them.

    But none of us can do this alone. The pervasive reach and global nature of these transformative technologies necessitate cross-border approaches. For example, further exploration of joint innovation use cases through cross-border sandboxes can facilitate collaborative experimentation and mutual learning, while a coordinated approach to supervisory oversight is important to ensure a more holistic understanding of risk and collective resilience across economies.

    At the same time, the role of regulators needs to keep evolving. While mandates may remain, the delivery of such mandates in many cases now require whole-of-ecosystem approach, as regulators may need to collaborate more closely with other sectoral regulators or consider expanding the remit of its regulation when other parts in the supply chain can affect the performance of the mandates. A strong collaboration between regulators, industry players, and key stakeholders is also vital to fostering an ecosystem that is innovative and robust. By working together, we can build financial systems that not only embrace technology well but can channel it towards strengthening economic resilience and promoting long-term financial well-being.

    The second pillar underpinning a future-ready financial system is the digital infrastructure. As digital finance becomes increasingly embedded in our everyday life, we must ensure that the right foundational enablers are in place. These include robust digital identity systems that facilitate secured access to financial services, interoperable payment networks that expand inclusion and reduce costs, and real-time fraud prevention capabilities that sustain public trust. Together, I believe these elements lay the foundation for innovative growth.

    Across the globe, countries are at varying stages of developing capabilities for digital financial infrastructure. ASEAN is an active voice and proponent on this pursuit. In 2024, the region made notable strides in strengthening its digital financial infrastructure, focusing particularly on the payments sector. Efforts to enhance cross-border payments connectivity have gained significant momentum across the region, with many countries exploring real-time linkages and multi-currency settlements. Malaysia has been a contributor to this progress, establishing real-time QR payment linkages with Thailand, Indonesia, Singapore and Cambodia, alongside peer-to-peer (P2P) fund transfer capabilities with Singapore and Cambodia. Through these linkages, alongside other bilateral linkages within ASEAN and Asia, customers and businesses benefit from faster, cheaper and more seamless cross-border payments. Looking ahead, Project Nexus – a collaboration with the BIS Innovation Hub and central banks from Singapore, Thailand, the Philippines, and India, aims to create a multi-country instant payment network. This will allow users to send cross-border payments using proxies such as mobile phone numbers, reducing costs and promoting regional financial and economic integration.

    The adoption of digital payments – particularly QR-based payments – has also grown significantly in ASEAN. With over 80 e-wallets in ASEAN linking 205 million users and 25 million merchants4, the region is experiencing a transformative shift towards a more digital economy. Malaysia is no exception. Our interoperable QR payment standard, DuitNow QR, has seen widespread adoption, with a 30% increase of QR acceptance points across Malaysia that has contributed to more than two-fold increase in QR transactions in 2024. This success reflects a concerted effort to build an open and efficient payment ecosystem. At the same time, safeguarding public trust remains a top priority. The launch of the National Fraud Portal – a collaboration between Bank Negara Malaysia and Payments Network Malaysia (PayNet), the country’s retail payment system operator – has equipped financial institutions with tools to detect, trace, and freeze suspicious transactions instantaneously. Such initiatives have empowered financial institutions, including our Islamic finance players, to develop more digital and innovative solutions, ensuring the financial sector remains secure.

    Digital transformation is also unlocking unique opportunities to advance innovation in Islamic finance through value-based solutions. Globally, impact-driven finance is gaining traction as investors and institutions seek to better align financial activities with social and environmental outcomes. Islamic finance plays a crucial role in this shift, offering ethical and inclusive financial solutions grounded in principles of sustainability and social responsibility. In Southeast Asia, Islamic finance assets reached USD 859 billion or 17% of the global market in 2023, a growth of 11% from the previous year.5 Building on this momentum and leveraging on the Value-Based Intermediation (VBI) framework, Malaysia continues to support financial intermediation that promotes long-term positive impact. Since its inception in 2017, VBI-aligned initiatives have mobilised nearly RM650 billion (or USD140 billion) through various channels including social finance, impact-based lending, and sustainability-focused sukuk.

    Complementing these efforts, the Islamic fintech sector in ASEAN has experienced rapid growth in recent years, driven by strong demand for Shariah-compliant financial solutions. As of 2024, Southeast Asia is home to 145 Islamic fintech startups, with Malaysia and Indonesia emerging as key hubs. The region accounted for approximately 13.7% of the global Islamic fintech market size in 2024. This growth is now evolving with the entry and expansion of full-fledged Islamic digital banks. In Malaysia, an Islamic digital bank launched its operations last year and another has been approved to commence operations earlier this year, offering Shariah-compliant savings, financing, and lifestyle services entirely via mobile. Similarly in Indonesia, digital Islamic banking is featured to serve the underserved and promote financial inclusion. This trend signals a broader transformation of the Islamic finance landscape in ASEAN – blending tradition with innovation to meet the evolving needs of Muslim consumers.

    Ultimately, stronger regional integration will be a key to unlocking future growth, particularly within the ASEAN region. A well-developed financial ecosystem – comprising both conventional and Islamic finance, supported by digital readiness and progressive regulations – provides fertile ground for competition and innovation. Malaysia’s experience highlights how the right infrastructure and policy environment can empower institutions to build solutions that are not only technologically advanced but also socially meaningful. As we look to the future, the priority for regulators and industry alike is clear: to create a dynamic and inclusive financial sector – one that leverages innovation to strengthen resilience, promote prosperity, and leaves no one behind.

    Innovation flourishes in a collaborative environment where creativity is encouraged, risks are well-managed, and failures are seen as learning opportunities. While regulators establish the foundation for a stable and well-functioning financial system, industry players – including incumbent financial institutions, technology firms, and agile startups – are the true driving force behind financial innovation. Across ASEAN, several financial providers have successfully expanded into areas such as digital payments, micro-lending, and insurance, leveraging their extensive customer networks to enhance financial access for the unserved and underserved such as gig economy workers and small businesses.

    At the same time, growing collaborations between traditional financial institutions and fintech startups have led to innovative product offerings that blend conventional risk management expertise with the speed and adaptability of startups. However, as financial services evolve, these advancements have also introduced new challenges that must be carefully managed to ensure responsible and sustainable innovation.

    Responsible innovation, the third aspect in strengthening our foundations, requires strong governance, sound risk management, and an unwavering commitment to market integrity. Industry leaders must ensure that technological advancements are supported by robust safeguards while continuously strengthening talent and technological capabilities. By doing so, we can welcome new ideas responsibly, challenge the status quo, and continuously seek better ways to serve our customers and communities.

    One key area of focus is Open Finance, which aims to empower consumers by giving them greater control over their personal financial data in an increasingly interconnected financial ecosystem. The success of Open Finance relies on industry leadership in developing safe, responsible, and innovative products that maximise the benefits of data sharing while safeguarding consumer interests. By proactively shaping secure standards and building public confidence in an open ecosystem, financial players can unlock new opportunities for financial inclusion, efficiency and competition.

    Beyond Open Finance, emerging technologies such as alternative credit scoring models and AI-driven lending solutions present significant potential to address longstanding challenges, particularly in bridging financing and protection gaps for underserved communities. Thoughtful product design, strategic partnerships, and improved accessibility will be key to ensuring that these innovations reach those who need them most while maintaining financial system integrity.

    Ultimately, innovation should drive meaningful impact by fostering efficiency, financial inclusion, and economic resilience. However, success depends on two fundamental factors: accessibility and trust. It is crucial to bridge geographical, economic, and digital divides by integrating financial literacy into digital solutions to bring about real, positive change. While regulators will continue to promote financial literacy initiatives, it is equally important for innovators to embed educational elements into everyday financial interactions. Leveraging digital platforms, AI-driven advisory tools, and personalised financial solutions can empower individuals and businesses to navigate an increasingly digital economy – ensuring that innovation remains a force for good, benefiting society as a whole.

    Let me conclude. As we navigate this era of rapid technological transformation, innovation must be both inclusive and purposeful. The advancements we witness today – whether in AI, digital assets, or payments – underscore the importance of a collective commitment to shaping a fintech ecosystem that is dynamic, resilient, and responsive to the real needs of businesses and communities.

    At Bank Negara Malaysia, we believe that responsible innovation is best achieved through collaboration and co-creation – where key stakeholders are brought to the table early to jointly navigate trade-offs and shape practical solutions. Platforms such as the Regulatory Sandbox provide space for innovators to engage with regulators, test emerging technologies, and develop solutions that improve financial access and efficiency. On this, we actively support the exploration of innovative solutions that expand the frontiers of traditional finance in our Sandbox, including in the areas of AI, asset tokenisation, digital insurance, electronic Know-Your-Customer solutions and advanced income estimation models.

    Key global gatherings such as this demonstrate the promise of collaboration in driving progress and innovation. Similarly, throughout this year, events across ASEAN will serve as important platforms for effective dialogue and partnership. In Malaysia, we seek to contribute to this exchange at the MyFintech Week 2025, happening on 4–7 August in Kuala Lumpur. This event, which we organise alongside other regulators and industry players, will bring together thought leaders, innovators, and policymakers in conversation to collectively shape the future of finance.

    We will also have the 9th edition of the Global Islamic Finance Forum and the 2nd Impact Challenge Prize on 6–8 October 2025, aimed to sustain the momentum in advancing financial inclusion and impact-driven solutions by showcasing how Islamic finance can drive business progression while empowering societies. By blending ethical foundations with cutting-edge advancements, the event provides insight into the pathways to sustainable growth, fostering inclusivity, innovation and resilience.

    Finally, as the ASEAN chairman this year, Malaysia looks forward to further advancing ASEAN’s aspirations in deepening regional financial integration and advancing a more connected, sustainable, and inclusive ASEAN financial ecosystem. We all here today have an invaluable role to play in seizing these opportunities, embracing partnerships and ensuring that innovation is grounded in trust, security, and inclusivity.

    Together, we can shape a financial future that is progressive, resilient and forward-looking. Thank you.

    MIL OSI Economics –

  • MIL-OSI Europe: Results of the March 2025 Survey on credit terms and conditions in euro-denominated securities financing and OTC derivatives markets (SESFOD)

    Source: European Central Bank

    2 May 2025

    • Price and non-price credit terms and conditions remained largely unchanged between December 2024 and February 2025
    • Financing rates/spreads and haircuts in securities financing transactions decreased across most asset classes
    • Demand for funding secured against domestic government bonds decreased for the first time since 2021

    Price and non-price credit terms and conditions remained largely unchanged between December 2024 and February 2025[1], which broadly corresponds to expectations expressed in the previous quarter. For price terms, survey responses indicated no net change, while for non-price terms a very minor net tightening was reported. For the second quarter of 2025, some survey respondents expected a slight tightening in credit terms and conditions. However, the vast majority (88%) stated that, overall, no changes were foreseen (Chart 1).

    Chart 1

    Expected and realised quarterly changes in overall credit terms and price/non-price terms offered to counterparties across all transaction types

    (net percentages of survey respondents)

    Source: ECB.

    Note: Net percentages are calculated as the difference between the percentage of respondents reporting “tightened somewhat” or “tightened considerably” and the percentage reporting “eased somewhat” or “eased considerably”.

    Turning to financing conditions for funding secured against the various types of collateral, respondents pointed to a decrease in haircuts across nearly all asset classes. Only for high-quality government, sub-national and supra-national bonds were no net changes reported. In particular, credit secured against high-quality corporate bonds, both financial and non-financial, experienced considerable net decreases in haircuts, with a net 20% of respondents marking a decline (Chart 2, panel a). Moreover, financing rates/spreads have now reversed a three-year trend of net increases across all collateral types except equities. For corporate bonds, asset-backed securities and covered bonds, a net decrease of financing rates/spreads has materialised for the first time since 2021 (Chart 2, panel b). At the same time, demand for funding secured against government bonds experienced a net decrease for the first time in more than three years (Chart 2, panel c).

    Chart 2

    Securities financing transactions experienced reversals of multiple long-term trends

    a) Change in haircuts for funding secured against high-quality financial corporate bonds

    b) Change in financing rates/spreads for funding secured against high-yield corporate bonds

    c) Change in demand for funding secured against domestic government bonds

    (net percentages of survey respondents)

    (net percentages of survey respondents)

    (net percentages of survey respondents)

    Source: ECB.

    Note: Net percentages are calculated as the difference between the percentage of respondents reporting “tightened somewhat” or “tightened considerably” and the percentage reporting “eased somewhat” or “eased considerably”.

    Looking at credit terms and conditions for the various types of non-centrally cleared OTC derivatives, initial margin requirements, credit limits and liquidity remained largely unchanged. However, survey respondents pointed out a noticeable change for the duration and persistence of valuation disputes, which decreased somewhat across all types of derivatives.

    The ECB included a number of special questions in the March 2025 survey to look at longer‑term trends. The survey asked respondents to compare credit terms and conditions at the end of February 2025[2] with those reported in the March 2024 survey. Compared to the previous year, overall terms and conditions for securities financing and OTC derivatives transactions had remained largely unchanged, skewed very slightly towards tightening across all counterparties. Respondents reported a minor tightening of credit terms for secured funding of equities and convertible securities, and a very slight easing with regard to non-domestic government bonds.

    The results of the March 2025 SESFOD survey, the underlying detailed data seriesSESFOD guidelines and the are available on the ECB’s website, together with all other SESFOD publications.

    The SESFOD survey is conducted four times a year and covers changes in credit terms and conditions over three-month reference periods ending in February, May, August and November. The March 2025 survey collected qualitative information on changes between December 2024 and February 2025. The results are based on the responses received from a panel of 27 large banks, comprising 14 euro area banks and 13 banks with head offices outside the euro area.

    For media queries, please contact Verena Reith, tel.: +49 172 2570849.

    MIL OSI Europe News –

  • MIL-OSI: Middlefield Canadian Income PCC – Proposed Rollover into UCITS ETF

    Source: GlobeNewswire (MIL-OSI)

    THIS ANNOUNCEMENT AND THE INFORMATION CONTAINED IN IT ARE NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO, THE UNITED STATES OF AMERICA (INCLUDING ITS TERRITORIES AND POSSESSIONS, ANY STATE OF THE UNITED STATES AND THE DISTRICT OF COLUMBIA), AUSTRALIA, CANADA, JAPAN, NEW ZEALAND, THE REPUBLIC OF SOUTH AFRICA, IN ANY MEMBER STATE OF THE EEA OR IN ANY OTHER JURISDICTION IN WHICH THE SAME WOULD BE UNLAWFUL.

    This announcement is not an offer to sell, or a solicitation of an offer to acquire, securities in the United States or in any other jurisdiction in which the same would be unlawful. Neither this announcement nor any part of it shall form the basis of or be relied on in connection with or act as an inducement to enter into any contract or commitment whatsoever.

    The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014 which forms part of domestic law in the United Kingdom pursuant to The European Union Withdrawal Act 2018, as amended by The Market Abuse (Amendment) (EU Exit) Regulations 2019.

    Middlefield Canadian Income PCC (the “Company”)
    Including Middlefield Canadian Income – GBP PC (the “Fund”), a cell of the Company
    Registered No:  93546 Legal Entity Identifier: 2138007ENW3JEJXC8658

                    
    2 May 2025

    Proposed Rollover into UCITS ETF

    Middlefield Canadian Income PCC (the “Company”) and Middlefield Canadian Income – GBP PC (the “Fund”) today announce their intention to propose a transaction whereby shareholders in the Fund (the “Shareholders”) would have the option to receive shares in a newly established, actively managed, listed and London Stock Exchange traded fund in the form of an authorised UCITS (Undertakings for Collective Investment in Transferable Securities) (the “ETF”) in exchange for their shareholding in the Fund (the “Transaction”). It is envisaged that the Transaction would involve the voluntary winding up of the Company and the Fund. The ETF would be managed by Middlefield Limited, the Company’s investment manager (“Middlefield”) and would offer continued exposure to the Company’s existing investment objective and policy. Advisory work on the structure of the Transaction is ongoing, and the Company will release an announcement with further details in due course.

    Under the proposed terms of the Transaction, Shareholders who do not wish to continue their exposure to the Company’s existing investment objective and policy via the ETF (whether with respect to their entire shareholding, or part thereof) would be able to participate in an uncapped cash exit at close to the Company’s net asset value (“NAV”) per share, or elect to receive a combination of both shares in the ETF and cash.

    As previously announced on 13 February 2025, the Company received a requisition notice from Saba Capital Management, L.P. (“Saba”) proposing that Shareholders be asked to consider, and, if thought fit, approve, the taking by the Company of all necessary steps to implement a scheme or process by which Shareholders would have the option of becoming shareholders of a UK-listed open-ended investment vehicle with a substantially similar strategy as that of the Company and managed by the Company’s existing manager (the “Requisition Notice”).

    Following receipt of the Requisition Notice, the board of the Company (the “Board”) consulted with a number of the Company’s largest Shareholders, including Saba. Following constructive discussions, Saba agreed to withdraw the Requisition Notice for a period of 60 days to enable the Company and its advisers to formulate proposals that would best serve the interests of all Shareholders.

    Further to the feedback received, the Board has concluded that the interests of Shareholders would be best served by proposing the Transaction and an alternative investment vehicle which would address the issue of limited liquidity in the Company’s shares and the discount to NAV at which the shares have been trading, whilst enabling those Shareholders who wish to retain exposure to high quality, Canadian and US large capitalisation businesses focusing on high levels of stable and increasing income, the option to do so. Further to ongoing discussions with the Company’s legal, tax and financial advisers and Middlefield, and having considered other potential closed-end fund rollover options, the Board has concluded that the ETF represents the most suitable rollover option for Shareholders.

    The intention in proposing the ETF as an alternative investment option for Shareholders would be to create a cost-effective vehicle which is positioned to grow and which should benefit from a tight bid-offer spread, a total expense ratio (“TER”) lower than the Company’s current TER and a share price that trades close to or at the NAV per share of the ETF, whilst offering continued exposure to the Company’s existing investment objective and policy. ETFs trade at prices close to or at NAV due to the in-kind creation and redemption mechanism which underpins their structure and which is utilised by authorised participants to address any material surplus or deficit of ETF shares in the market.

    The Company notes that over the last ten years, Middlefield has successfully rolled several of its Canadian closed-end funds into exchange traded funds listed on the Toronto Stock Exchange. For the year ended 31 December 2024, three of the exchange traded funds managed by Middlefield were ranked among the Top 10 Best-Performing Canadian ETFs, as recognised by Morningstar*.

    Saba has publicly expressed its support for enhanced liquidity options and, consistent with its earlier requisition, has indicated that it would vote in favour of the Transaction at any general meeting of Shareholders to be convened in due course to approve the Transaction.

    The ETF

    It is proposed that shares in the ETF would be admitted to trading on the London Stock Exchange’s main market for listed securities. In due course, the ETF may also seek listings on additional European exchanges to broaden investor access. The ETF would adopt the Company’s current investment objective and policy, maintaining a focus on delivering a high level of income and long-term capital growth through investment in a portfolio of larger capitalisation, high-yielding Canadian equities, with a focus on companies that consistently pay and grow their dividends. The ETF is expected to pay quarterly distributions at a level similar to the current dividends paid by the Company and to operate with a lower TER, targeted to be below 1 per cent. The Company uses short term borrowings to support its dividend policy. It is intended that the ETF may seek to use financial derivative instruments, such as total return equity swaps, to support its dividend policy with a similar effect to that provided by the use of borrowings by the Company.

    Middlefield has appointed HANetf, a leading white-label provider of exchange traded products, to advise on the structuring and establishment of the ETF. HANetf has extensive experience in structuring, distributing and marketing exchange traded funds and will provide ongoing operational, administrative and marketing support to Middlefield in its capacity as the manager of the ETF. The set-up costs of the ETF will be borne by Middlefield.

    Expected timetable

    Subject to the satisfactory completion of ongoing advisory work, the ETF is expected to be established and a circular relating to the Transaction sent to Shareholders by August 2025. The Transaction would be subject to usual regulatory and tax approvals.

    Michael Phair, the Chair of the Company and Fund, commented:

    “The Board continues to have strong conviction in the Company’s investment proposition and its ability to deliver a high level of income and long-term capital growth. However, the Board has listened to feedback from Shareholders and recognises that the constrained liquidity and persistent discount to NAV remain impediments to new and further investment.

    Accordingly, the Board is actively working on the terms of the Transaction, which, if approved, would provide Shareholders with an opportunity to continue their investment in the existing strategy through the ETF option, or the realisation of their investment at close to NAV, or a combination of both.”

    For further information, please contact:

    Middlefield Canadian Income – GBP PC                                via Investec Bank plc
    Michael Phair (Chairman)

    Investec Bank plc
    Corporate Broker
    Helen Goldsmith/David Yovichic/Denis Flanagan
    Tel: 020 7597 4000

    JTC Fund Solutions (Jersey) Limited
    Secretary
    Matt Tostevin/Hilary Jones/Jade Livesey
    Tel: 01534 700 000

    Burson Buchanan
    PR Advisers
    Charles Ryland/Henry Wilson
    Tel: 020 7466 5000

    * Middlefield Innovation Dividend ETF (Global Equity): over 5 years; Middlefield Sustainable Global Dividend ETF (Global Dividend & Income Equity): over 3, 5 and 10 years; Middlefield U.S. Equity Dividend ETF (US Dividend & Income Equity): over 5 years (source: Morningstar, Inc.) All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete, or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.

    The MIL Network –

  • MIL-OSI: Bank of Åland Plc to cut prime rate

    Source: GlobeNewswire (MIL-OSI)

    Bank of Åland Plc
    Stock exchange release
    May 2, 2025, 9.00 EET

    Bank of Åland Plc to decrease prime rate

    The Bank of Åland Plc (Ålandsbanken Abp) has decided to cut its prime rate by 0.25 percentage points, from 2.50 per cent to 2.25 per cent. The basis for this decision is falling market interest rates. The change goes into effect on May 16, 2025.

    Bank of Åland Plc

    For further information, please contact:

    Peter Wiklöf, Managing Director and Chief Executive, Bank of Åland Plc, tel +358 40 512 7505

    The MIL Network –

  • MIL-OSI: Shell plc First Quarter 2025 Interim Dividend

    Source: GlobeNewswire (MIL-OSI)

    London, May 2, 2025 − The Board of Shell plc (the “Company”) (XLON: SHEL, XNYS: SHEL, XAMS: SHELL) today announced an interim dividend in respect of the first quarter of 2025 of US$ 0.358 per ordinary share.

    Details relating to the first quarter 2025 interim dividend

    Per ordinary share
    (GB00BP6MXD84)    		 Q1 2025
    Shell Shares (US$) 0.358

    Shareholders will be able to elect to receive their dividends in US dollars, euros or pounds sterling.

    An alternative ‘Electronic Election Entitlement’ (‘EEE’) process is available in CREST for dividends with options elections.

    Absent any valid election to the contrary, persons holding their ordinary shares through Euroclear Nederland will receive their dividends in euros.

    Absent any valid election to the contrary, shareholders (both holding in certificated and uncertificated form (CREST members)) and persons holding their shares through the Shell Corporate Nominee will receive their dividends in pounds sterling.

    The pound sterling and euro equivalent dividend payments will be announced on June 9, 2025.

    Per ADS
    (US7802593050)    		 Q1 2025
    Shell ADSs (US$) 0.716

    Cash dividends on American Depositary Shares (“ADSs”) will be paid, by default, in US dollars.

    Each ADS represents two ordinary shares. ADSs are evidenced by an American Depositary Receipt (“ADR”) certificate. In many cases the terms ADR and ADS are used interchangeably.

    Dividend timetable for the first quarter 2025 interim dividend

    Event Date
    Announcement date May 2, 2025
    Ex- Dividend Date for ADSs May 16, 2025
    Ex- Dividend Date for ordinary shares May 15, 2025
    Record date May 16, 2025
    Closing of currency election date (see Note below) June 2, 2025
    Pound sterling and euro equivalents announcement date June 9, 2025
    Payment date June 23, 2025

    Note

    A different currency election date may apply to shareholders holding shares in a securities account with a bank or financial institution ultimately holding through Euroclear Nederland. This may also apply to other shareholders who do not hold their shares either directly on the Register of Members or in the corporate sponsored nominee arrangement. Shareholders can contact their broker, financial intermediary, bank or financial institution for the election deadline that applies.

    Taxation – cash dividends

    If you are uncertain as to the tax treatment of any dividends you should consult your tax advisor.

    Dividend Reinvestment Programmes (“DRIP”)

    The following organisations offer Dividend Reinvestment Plans (“DRIPs”) which enable the Company’s shareholders to elect to have their dividend payments used to purchase the Company’s shares:

    • Equiniti Financial Services Limited (“EFSL”), for those holding shares (a) directly on the register as certificate holder or as CREST Member and (b) via the Shell Corporate Nominee;
    • ABN-AMRO NV (“ABN”) for Financial Intermediaries holding shares via Euroclear Nederland;
    • JPMorgan Chase Bank, N.A. (“JPM”) for holders of ADSs; and
    • Other DRIPs may also be available from the intermediary through which investors hold their shares and ADSs.

    These DRIP offerors provide their DRIPs fully on their account and not on behalf of the Company. Interested parties should contact the relevant DRIP offeror directly.

    More information can be found at https://www.shell.com/drip

    To be eligible to participate in the DRIPs for the next dividend, shareholders must make a valid dividend reinvestment election before the published date for the close of elections. 

    Enquiries
    Media: International +44 (0) 207 934 5550; U.S. and Canada: https://www.shell.us/about-us/news-and-insights/media/submit-an-inquiry.html

    Cautionary Note

    The companies in which Shell plc directly and indirectly owns investments are separate legal entities. In this announcement “Shell”, “Shell Group” and “Group” are sometimes used for convenience to reference Shell plc and its subsidiaries in general. Likewise, the words “we”, “us” and “our” are also used to refer to Shell plc and its subsidiaries in general or to those who work for them. These terms are also used where no useful purpose is served by identifying the particular entity or entities. ‘‘Subsidiaries’’, “Shell subsidiaries” and “Shell companies” as used in this announcement refer to entities over which Shell plc either directly or indirectly has control. The terms “joint venture”, “joint operations”, “joint arrangements”, and “associates” may also be used to refer to a commercial arrangement in which Shell has a direct or indirect ownership interest with one or more parties.  The term “Shell interest” is used for convenience to indicate the direct and/or indirect ownership interest held by Shell in an entity or unincorporated joint arrangement, after exclusion of all third-party interest.

    Forward-Looking statements

    This announcement contains forward-looking statements (within the meaning of the U.S. Private Securities Litigation Reform Act of 1995) concerning the financial condition, results of operations and businesses of Shell. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. Forward-looking statements are statements of future expectations that are based on management’s current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in these statements. Forward-looking statements include, among other things, statements concerning the potential exposure of Shell to market risks and statements expressing management’s expectations, beliefs, estimates, forecasts, projections and assumptions. These forward-looking statements are identified by their use of terms and phrases such as “aim”; “ambition”; ‘‘anticipate’’;  “aspire”; “aspiration”; ‘‘believe’’; “commit”; “commitment”; ‘‘could’’; “desire”; ‘‘estimate’’; ‘‘expect’’; ‘‘goals’’; ‘‘intend’’; ‘‘may’’; “milestones”; ‘‘objectives’’; ‘‘outlook’’; ‘‘plan’’; ‘‘probably’’; ‘‘project’’; ‘‘risks’’; “schedule”; ‘‘seek’’; ‘‘should’’; ‘‘target’’; “vision”; ‘‘will’’; “would” and similar terms and phrases. There are a number of factors that could affect the future operations of Shell and could cause those results to differ materially from those expressed in the forward-looking statements included in this announcement, including (without limitation): (a) price fluctuations in crude oil and natural gas; (b) changes in demand for Shell’s products; (c) currency fluctuations; (d) drilling and production results; (e) reserves estimates; (f) loss of market share and industry competition; (g) environmental and physical risks, including climate change; (h) risks associated with the identification of suitable potential acquisition properties and targets, and successful negotiation and completion of such transactions; (i) the risk of doing business in developing countries and countries subject to international sanctions; (j) legislative, judicial, fiscal and regulatory developments including tariffs and regulatory measures addressing climate change; (k) economic and financial market conditions in various countries and regions; (l) political risks, including the risks of expropriation and renegotiation of the terms of contracts with governmental entities, delays or advancements in the approval of projects and delays in the reimbursement for shared costs; (m) risks associated with the impact of pandemics, regional conflicts, such as the Russia-Ukraine war and the conflict in the Middle East, and a significant cyber security, data privacy or IT incident; (n) the pace of the energy transition; and (o) changes in trading conditions. No assurance is provided that future dividend payments will match or exceed previous dividend payments. All forward-looking statements contained in this announcement are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. Readers should not place undue reliance on forward-looking statements. Additional risk factors that may affect future results are contained in Shell plc’s Form 20-F for the year ended December 31, 2024 (available at www.shell.com/investors/news-and-filings/sec-filings.html and www.sec.gov). These risk factors also expressly qualify all forward-looking statements contained in this announcement and should be considered by the reader.  Each forward-looking statement speaks only as of the date of this announcement, May 2, 2025. Neither Shell plc nor any of its subsidiaries undertake any obligation to publicly update or revise any forward-looking statement as a result of new information, future events or other information. In light of these risks, results could differ materially from those stated, implied or inferred from the forward-looking statements contained in this announcement.

    Shell’s net carbon intensity

    Also, in this announcement we may refer to Shell’s “net carbon intensity” (NCI), which includes Shell’s carbon emissions from the production of our energy products, our suppliers’ carbon emissions in supplying energy for that production and our customers’ carbon emissions associated with their use of the energy products we sell. Shell’s NCI also includes the emissions associated with the production and use of energy products produced by others which Shell purchases for resale. Shell only controls its own emissions. The use of the terms Shell’s “net carbon intensity” or NCI is for convenience only and not intended to suggest these emissions are those of Shell plc or its subsidiaries.

    Shell’s net-zero emissions target

    Shell’s operating plan and outlook are forecasted for a three-year period and ten-year period, respectively, and are updated every year. They reflect the current economic environment and what we can reasonably expect to see over the next three and ten years. Accordingly, the outlook reflects our Scope 1, Scope 2 and NCI targets over the next ten years. However, Shell’s operating plan and outlook cannot reflect our 2050 net-zero emissions target, as this target is outside our planning period. Such future operating plans and outlooks could include changes to our portfolio, efficiency improvements and the use of carbon capture and storage and carbon credits. In the future, as society moves towards net-zero emissions, we expect Shell’s operating plans and outlooks to reflect this movement. However, if society is not net zero in 2050, as of today, there would be significant risk that Shell may not meet this target.

    Forward-Looking non-GAAP measures

    This announcement may contain certain forward-looking non-GAAP measures such as adjusted earnings and divestments. We are unable to provide a reconciliation of these forward-looking non-GAAP measures to the most comparable GAAP financial measures because certain information needed to reconcile those non-GAAP measures to the most comparable GAAP financial measures is dependent on future events some of which are outside the control of Shell, such as oil and gas prices, interest rates and exchange rates. Moreover, estimating such GAAP measures with the required precision necessary to provide a meaningful reconciliation is extremely difficult and could not be accomplished without unreasonable effort. Non-GAAP measures in respect of future periods which cannot be reconciled to the most comparable GAAP financial measure are calculated in a manner which is consistent with the accounting policies applied in Shell plc’s consolidated financial statements.

    The contents of websites referred to in this announcement do not form part of this announcement.

    We may have used certain terms, such as resources, in this announcement that the United States Securities and Exchange Commission (SEC) strictly prohibits us from including in our filings with the SEC.  Investors are urged to consider closely the disclosure in our Form 20-F, File No 1-32575, available on the SEC website www.sec.gov.

    LEI number of Shell plc: 21380068P1DRHMJ8KU70
    Classification: Additional regulated information required to be disclosed under the laws of the United Kingdom

    The MIL Network –

  • MIL-OSI: Increase of Share Capital in Connection with the Exercise of the Options Programme and Subscription Results

    Source: GlobeNewswire (MIL-OSI)

    The Supervisory Board of AS LHV Group has decided to increase the share capital of the LHV Group by EUR 366,721.30. The increase was triggered by the need to issue new shares to staff members participating in the share options programme approved by the resolution of the general meeting on 13 March 2020, and amended by the resolution of the general meeting on 26 March 2025. A total of 163 current and former employees participated in the subscription of LHV Group shares, subscribing in total for 3,667,213 options for an aggregate amount of EUR 8,001,858.77. Unsubscribed options in the total amount of 19,977 will be cancelled.

    Decisions of the Supervisory Board of LHV Group:

    • LHV Group’s share capital will be increased by increased by EUR 366,721.30, from EUR 32,418,893.30 to EUR 32,785,614.60.
    • In connection with the increase, LHV Group will issue 3,667,213 new ordinary shares with a nominal value of EUR 0.1 per share. The shares will be issued with a share premium. The issue price is EUR 2.182 per share, with the nominal value of the share amounting to EUR 0.1 and the share premium to EUR 2.082.
    • Pursuant to the resolution of the general meeting of 13 March 2020, which approved the LHV Group’s share options programme and its basic conditions, and pursuant to the resolution of the general meeting of 26 March 2025, which approved the amendments to the LHV Group’s share option programme, the management and equivalent staff as well as key employees of the companies incorporated within the LHV consolidation group, as determined by the Supervisory Board and with whom LHV Group has concluded the relevant option agreements (option beneficiaries), have the pre-emptive right to subscribe the new shares.
    • LHV Group’s shareholders who are not beneficiaries of the share options programme did not have a pre-emptive right to subscribe for shares in connection with the share capital increase.
    • The share capital increase and payment for the new shares have been fully effected through monetary contributions. The deadline for exercising the pre-emptive subscription right and subscribing for shares was 30 April 2025 at 5:00 p.m. The subscription period was not extended. The option beneficiaries who intended to participate submitted their subscription applications and paid for the subscribed options on time; four option beneficiaries did not submit subscription applications, and one subscribed only partially for the options granted under the option agreement. The unsubscribed options, in the total amount of 19,977, will be cancelled.
    • The share capital increase in the amount subscribed by the option beneficiaries will be registered in the Estonian Central Register of Securities (Nasdaq CSD) and in the Commercial Register.
    • The increase of the share capital does not involve any specification or special rights attached to LHV Group’s ordinary shares. The newly issued shares will grant the right to receive dividends starting from the financial year 2025.

    All new shares issued by LHV Group will be listed on the Nasdaq Tallinn Stock Exchange on the day following the day on which the Estonian Central Register of Securities (Nasdaq CSD) ranks the additionally issued shares (initially carrying a temporary ISIN-code) pari passu with the existing shares (carrying the main ISIN-code).

    LHV Group is the largest domestic financial group and capital provider in Estonia. LHV Group’s key subsidiaries are LHV Pank, LHV Varahaldus, LHV Kindlustus, and LHV Bank Limited. The Group employs over 1,160 people. As at the end of March, LHV’s banking services are being used by 465,000 clients, the pension funds managed by LHV have 113,000 active customers, and LHV Kindlustus is protecting a total of 174,000 clients. LHV Bank Limited, a subsidiary of the Group, holds a banking licence in the United Kingdom and provides banking services to international financial technology companies, as well as loans to small and medium-sized enterprises.

    Priit Rum
    Communications Manager
    Phone: +372 502 0786
    Email: priit.rum@lhv.ee

    The MIL Network –

  • MIL-OSI Economics: Result of the 14-day Variable Rate Repo (VRR) auction held on May 02, 2025

    Source: Reserve Bank of India

    Tenor 14-day
    Notified Amount (in ₹ crore) 25,000
    Total amount of bids received (in ₹ crore) 149
    Amount allotted (in ₹ crore) 149
    Cut off Rate (%) 6.01
    Weighted Average Rate (%) 6.01
    Partial Allotment Percentage of bids received at cut off rate (%) NA

    Ajit Prasad          
    Deputy General Manager
    (Communications)    

    Press Release: 2025-2026/228

    MIL OSI Economics –

  • MIL-OSI: Solid results for the first quarter of 2025 driven by good customer activity across the business and strong credit quality in an uncertain global environment. Net profit of DKK 5.8 billion.

    Source: GlobeNewswire (MIL-OSI)

    Press release Danske Bank
    Bernstorffsgade 40
    DK-1577 København V
    Tel. + 45 45 14 14 00

    2 May 2025

    Page 1 of 3

    Solid results for the first quarter of 2025 driven by good customer activity across the business and strong credit quality in an uncertain global environment
    Net profit of DKK 5.8 billion.

    Carsten Egeriis, Chief Executive Officer, comments on the financial results:

    “For Danske Bank, the first quarter of 2025 was a continuation of our satisfactory and stable performance in 2024. We delivered solid results in line with our expectations, driven by a steady development in core income and a stable cost level. In addition, credit quality remained strong, and this resulted in low loan impairments.

    Our solid financial results and capital position enable us to be a strong financial partner that offers expert advice and helps our customers and society navigate the uncertainty. We continue to invest in technology and customer offerings, and we are well on track to meet our targets and to deliver on our Forward ’28 strategy.”

    Solid financial performance

    In a challenging market environment, we continued our work to deliver on our strategic ambitions and achieved a strong return on shareholders’ equity of 13.3% in the first quarter of 2025, up from 12.9% in the first quarter of 2024, while also reducing the cost/income ratio from 45.4% to 45.2%.

    Net profit increased 2% to DKK 5.76 billion as a result of an 8% increase in net fee income, driven by solid customer demand for cash management and everyday banking activities, a 15% increase in net trading income, which also benefited from good customer activity, as well as lower operating expenses and low loan impairment charges. The increases in net fee income and net trading income were partly offset by slightly lower net interest income due to rate cuts and the divestment of the personal customer business in Norway as well as lower net income from insurance business, which was affected by a one-off provision.

    The improvement was based on strong business customer activity as our Business Customers and Large Corporates & Institutions units both saw solid growth in lending volumes and an expanding customer base, underpinning core income line increases.

    Continuously good demand for our products from personal customers in Denmark resulted, among other things, in an increase in deposits as well as in the market share of bank lending. We have therefore seen a stable performance, despite the divestment of the personal customer business in Norway, as deposit growth and the rise in net fee income due to strong customer activity partially offset the effect of interest rates coming down.

    Sustainability remains a core pillar of our Forward ’28 strategy, and we have published our Climate Action Plan Progress Report 2024, which provides an update on the Group’s climate targets set in January 2023.

    “Thanks to our strong capital and liquidity positions, we continue to support our customers in these uncertain times, as evidenced by our Q1 results. We saw a solid financial performance, driven in particular by strong business customer activity, which resulted in stable core banking income and higher net trading income. The increase in net profit was supported by stable costs and a low level of impairments,” says Cecile Hillary, Chief Financial Officer.

    First quarter 2025 vs first quarter 2024

    Total income of DKK 13.9 billion (DKK 14.0 billion in the first quarter of 2024)

    Operating expenses of DKK 6.3 billion (DKK 6.3 billion in the first quarter of 2024)

    Loan impairments of DKK 50 million (DKK 101 million in the first quarter of 2024)

    Net profit of DKK 5.8 billion (DKK 5.6 billion in the first quarter of 2024)

    Return on shareholders’ equity of 13.3% (12.9% in the first quarter of 2024)

    Strong capital generation further supported capital ratios: Total capital ratio of 22.9 % and CET1 capital ratio of 18.4% (total capital ratio of 23.0% and CET1 capital ratio of 18.5% in the first quarter of 2024)

    Stable economies in uncertain environment

    Danske Bank’s results for the first quarter of 2025 highlight the resilience of the Nordic economies amid global uncertainty. In the first quarter of 2025, we saw an increasingly promising outlook for growth and inflation and robust employment across the Nordic countries. Although household credit demand remained modest, consumer spending continued to hold up well throughout the Nordic countries, despite the higher degree of uncertainty.

    Globally, US tariffs and potential retaliatory measures have created significant uncertainty regarding global growth prospects. While a potential risk of recession is highlighted in the US, a more moderate impact is expected on European growth, including in the Nordic countries.

    “A trade war and tariffs are likely to dampen growth in the Nordic countries, but the foundation is still in place for a decent economic outlook, as many interest rates have been lowered, real incomes are increasing and export markets other than the US continue to grow,” says Las Olsen, Head of Macro Research.

    Personal Customers

    Despite challenges, the housing market in Denmark showed consistent growth, and signs of recovery emerged in Finland, while Sweden’s housing market continued to face difficulties. Profit before tax for Personal Customers decreased 18% relative to the level in the first quarter of 2024 and amounted to DKK 2.25 billion. The decrease was due mainly to higher loan impairment charges. Additionally, both income and operating expenses were affected by the divestment of our personal customer business in Norway. We concluded negotiations with Blackrock to implement their Aladdin Wealth platform to enhance investment services and improved the digital self-service tools that customers use to manage their mortgages.

    Business Customers

    In the first quarter of 2025, we expanded our customer base in the mid-sized segment across the Nordic markets and grew our business with international subsidiaries. Profit before tax amounted to DKK 2.83 billion and increased 64% from the level in the same period last year, primarily on the back of loan impairment reversals and increased net fee income, although the increase was to some degree offset by lower income from our leasing company. We continued to support our customers’ business growth as a strategic financial partner, sharing expert insights on economic issues and launching training programmes to enhance the skills of our leaders and advisers.

    Large Corporates & Institutions

    Despite increased geopolitical uncertainty, macroeconomic conditions remained stable. We supported customers with advisory services, backed by a strong product offering, and supported major bond issues in the Nordic region. Our fee business maintained the positive momentum across all areas. Profit before tax decreased to DKK 2.4 billion, or 12% relative to the level in the same period last year, due to higher loan impairment charges, although the return on allocated capital before impairments increased to 27.2%.

    Danica

    Danica experienced a decrease in net income from insurance business to DKK 201 million in the first quarter of 2025, a fall of 59% from DKK 492 million in the same period last year. This was due primarily to a decrease in the insurance service result, which was impacted by provisions related to legacy life insurance products in run-off and more expensive claims in the health and accident business, partly offset by adjustment of an accrued interest income. The return on customer pension savings was impacted by large volatility in the equity markets, but bonds and alternative investments saw a more stable development.

    Northern Ireland

    Profit before tax increased 32% to DKK 602 million, reflecting strong growth in net interest income and net impairment recoveries. Profit before impairments was 15% higher than for the same period in 2024.

    Outlook for 2025

    We maintain our guidance and expect net profit to be in the range of DKK 21-23 billion. The outlook is subject to uncertainty and depends on economic conditions.

    Danske Bank        

    Contact: Helga Heyn, Head of Media Relations, tel. +45 45 14 14 00

    Attachments

    The MIL Network –

  • MIL-OSI Economics: Result of the Daily Variable Rate Repo (VRR) auction held on May 02, 2025

    Source: Reserve Bank of India

    Tenor 3-day
    Notified Amount (in ₹ crore) 25,000
    Total amount of bids received (in ₹ crore) 6,231
    Amount allotted (in ₹ crore) 6,231
    Cut off Rate (%) 6.01
    Weighted Average Rate (%) 6.01
    Partial Allotment Percentage of bids received at cut off rate (%) NA

    Ajit Prasad          
    Deputy General Manager
    (Communications)    

    Press Release: 2025-2026/226

    MIL OSI Economics –