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Category: Banking

  • MIL-OSI USA: Cassidy, Cramer Reintroduce Fair Access to Banking Act to Protect Legal Industries from Debanking

    US Senate News:

    Source: United States Senator for Louisiana Bill Cassidy

    WASHINGTON – U.S. Senators Bill Cassidy, M.D. (R-LA), Kevin Cramer (R-ND), and 39 Republican colleagues reintroduced the Fair Access to Banking Act, which protects fair access to financial services and ensures banks operate in a safe and sound manner. The legislation requires that lending and services decisions must be based on impartial, risk-based analysis, not political or reputational favoritism. 
    “It’s wrong for banks to single out individuals or industries for political and social reasons,” said Dr. Cassidy. “This legislation guarantees fairness for essential employers in Louisiana, such as oil and gas development.”
    “When progressives failed at banning these entire industries, what they did instead is they turned to weaponizing banks as sort of a backdoor to carry out their activist goals,” said Senator Cramer. “Financial institutions are backed by taxpayers, for crying out loud! They should be obligated to provide services in an unbiased, risk-based manner. The Fair Access to Banking Act ensures that banks provide fair access to services and enacts strict penalties for categorically discriminating against legal industries and individuals.”
    In recent years, prominent American banks have engaged in a discriminatory practice, referred to as debanking. Banks and financial institutions use their economic standing to categorically exclude law-abiding, legal industries by refusing to lend or provide services to them. This includes industries such as firearms, ammunition, crypto, federal prison contractors, as well as energy producers. 
    Specifically, this legislation penalizes banks and credit unions with over $10 billion in total consolidated assets, or their subsidiaries, if they refuse to do business with any legally compliant, credit-worthy person. It also prevents payment card networks from discriminating against any qualified person because of political or reputational considerations. The bill requires qualified banks to provide written justification for why they are denying a person financial services. Further, the Fair Access to Banking Act would penalize providers who fail to comply with the law by disqualifying institutions from using discount window lending programs, terminating status as an insured depository institution or credit union, or imposing a civil penalty of up to $10,000 per violation. 
    The bill is based on President Trump’s Fair Access Rule, which was introduced during his first administration and required financial institutions to make individual risk assessments rather than broad decisions regarding entire industries or categories of customers. The Fair Access to Banking Act codifies these protections. The Biden administration paused the rule’s implementation in early 2021.
    The legislation is a response to United States banks and financial institutions increasingly using their economic standing to categorically discriminate against legal industries and conservatives. For example, Citigroup instituted a policy in 2018 to withhold project-related financing for coal plants, and in 2020, five of the country’s largest banks announced they would not provide loans or credit to support oil and gas drilling in the Arctic National Wildlife Refuge, despite explicit congressional authorization. Such exclusionary practices also extend to industries protected by the Second Amendment, with Capital One, among other banks, previously including “ammunitions, firearms, or firearm parts” in the prohibited payments section of its corporate policy manual, and payment services like Apple Pay and PayPal denying their services for transactions involving firearms or ammunition. First Lady Melania Trump and technology companies alike allege banks have debanked them or refused to do business. During his address to the World Economic Forum in January, President Trump highlighted big banks and their discriminatory practices of targeting conservatives.  
    Cassidy and Cramer were joined by U.S. Senators Jim Banks (R-IN), John Barrasso (R-WY), Marsha Blackburn (R-TN), John Boozman (R-AR), Katie Britt (R-AL), Ted Budd (R-NC), Shelley Moore Capito (R-WV), John Cornyn (R-TX), Tom Cotton (R-AR), Mike Crapo (R-ID), Ted Cruz (R-TX), John Curtis (R-UT), Steve Daines (R-MT), Joni Ernst (R-IA), Deb Fischer (R-NE), Lindsey Graham (R-SC), Bill Hagerty (R-TN), John Hoeven (R-ND), Cindy Hyde-Smith (R-MS), Ron Johnson (R-WI), Jim Justice (R-WV), John Kennedy (R-LA), James Lankford (R-OK), Cynthia Lummis (R-WY), Roger Marshall (R-KS), Dave McCormick (R-PA), Jerry Moran (R-KS), Bernie Moreno (R-OH), Markwayne Mullin (R-OK), Pete Ricketts (R-NE), Jim Risch (R-ID), Eric Schmitt (R-MO), Rick Scott (R-FL), Tim Scott (R-SC), Tim Sheehy (R-MT), Dan Sullivan (R-AK), Thom Tillis (R-NC), Tommy Tuberville (R-AL), and Roger Wicker (R-MS) in cosponsoring the legislation. U.S. Representative Andy Barr (R-KY-06) introduced similar legislation in the U.S. House of Representatives. 
    Support for the Fair Access to Banking Act has grown every Congress. At the state level, Florida and Tennessee passed Fair Access laws and similar legislation was introduced in Louisiana, Arizona, Georgia, Idaho, Indiana, Iowa, Kentucky, and South Dakota. Banks have dropped membership in discriminatory groups which were aimed at starving specific industries.
    The Fair Access to Banking Act is endorsed by the National Shooting Sports Foundation, National Rifle Association, National Cattlemen’s Beef Association, The Digital Chamber, Blockchain Association, Independent Petroleum Association of America, Online Lenders Alliance, Day 1 Alliance, GEO Group, Lignite Energy Council, National Association of Wholesaler-Distributors, and National Mining Association.

    MIL OSI USA News –

  • MIL-OSI Africa: Secretary-General’s remarks to the opening of the 2025 session of the Committee on the Exercise of the Inalienable Rights of the Palestinian People [as delivered]

    Source: United Nations – English

    r. Chair, Ambassador Coly Seck,

    Bureau members,

    Let me begin by congratulating you on your election.

    I want to salute this Committee for its work.

    At its essence, the exercise of the inalienable rights of the Palestinian people is about the right of Palestinians to simply live as human beings in their own land.

    We have seen the realization of those rights steadily slip farther out of reach.

    We have seen a chilling, systematic dehumanization and demonization of an entire people.

    Of course, nothing justifies the horrific Hamas attacks of October 7.

    And nothing justifies what we have seen unfold in Gaza over the last many months. 

    We all know too well the catalogue of destruction and unspeakable horrors.

    The nearly 50,000 people — 70% of them women and children — who have been reported killed.

    The majority of Gaza’s civilian infrastructure — hospitals, schools, and water facilities – that has been destroyed.

    The overwhelming majority of the entire population who have faced displacement after displacement, hunger, and disease.

    Children, out of school for over a year.

    A generation, left homeless and traumatized.

    I welcome the ceasefire and hostage release deal. 

    I thank the mediators —Egypt, Qatar, and the United States— for the continued efforts to ensure implementation.

    Now it is time to be crystal clear about objectives going forward. 

    First, we must keep pushing for a permanent ceasefire and the release of all hostages without delay.

    We cannot go back to more death and destruction.

    For our part, the UN is working around the clock to reach Palestinians in need and scale up support. 

    That requires humanitarian access that is rapid, safe, unimpeded, expanded, and sustained.

    I call on Member States, donors, and the international community to fully fund humanitarian operations and meet urgent needs.

    And I once again urge Member States to support the essential work of UNRWA.

    Second, in the search for solutions, we must not make the problem worse. 

    It is vital to stay true to the bedrock of international law.  It is essential to avoid any form of ethnic cleansing. 

    Third, we must reaffirm the two-State solution. 

    Any durable peace will require tangible, irreversible and permanent progress toward the two-State solution, an end to the occupation, and the establishment of an independent Palestinian State, with Gaza as an integral part.

    A viable, sovereign Palestinian State living side-by-side in peace and security with Israel is the only sustainable solution for Middle East stability.

    Excellencies,

    Beyond Gaza, the situation continues to unravel in the occupied West Bank, including East Jerusalem.

    I am gravely concerned by rising violence by Israeli settlers and other violations.

    The violence must stop.

    As affirmed by the International Court of Justice, Israel’s occupation of the Palestinian Territory must end.

    International law must be respected, and accountability ensured.

    We must work toward preserving the unity, contiguity, and integrity of the Occupied Palestinian Territory and the recovery and reconstruction of Gaza.

    A strong and unified Palestinian governance is crucial.

    The international community must support the Palestinian Authority to this end.

    Excellencies,

    The UN is fully committed to peace, stability, and the inalienable rights of the Palestinian people.

    I commend this Committee for its steadfast dedication to these goals and call on the international community to fully support these efforts.

    And I thank you. 

    MIL OSI Africa –

  • MIL-OSI United Nations: Experts of the Committee on the Elimination of Discrimination against Women Commend Nepal on Increased Representation of Women in the Public Sector, Raise Questions on the “Chhaupadi” Practice and Women’s Right to Confer Citizenship

    Source: United Nations – Geneva

    The Committee on the Elimination of Discrimination against Women today concluded its consideration of the seventh periodic report of Nepal, with Committee Experts commending the State for increasing the representation of women in the public sector, while raising questions on the “Chhaupadi” practice affecting menstruating women and girls, and Nepalese women’s right to confer citizenship to their spouses and children.

    Hiroko Akizuki, Committee Expert and Country Rapporteur for Nepal, reading questions on behalf of another expert, commended Nepal for its recent increases in the representation of women in the public sector, increasing over the last decade from just 8 per cent to almost 30 per cent now, with targets to increase this to 35 per cent by 2030.

    Another Expert said the Chhaupadi practice forcibly exiled menstruating women and girls from their homes to menstruation huts. Although this practice had been criminalised, its practise continued, and this had resulted in the deaths of menstruating women and girls from animal attacks. What was being done in this area and in the area of period poverty? How could the engagement of men and boys be mobilised against Chhaupadi?

    A Committee Expert noted that despite recent amendments to the Constitution, many discriminatory provisions still caused immense hardship to women, girls and their families, particularly when it came to passing on citizenship. Did the State party plan to address this gross violation of women’s rights by repealing several articles in the Constitution, allowing Nepalese women to transfer their nationality to their spouses on equal terms? How would the State party enable stateless children to access social services? Were there plans to ensure universal birth registration in the State party, and to ratify the two United Nations conventions on statelessness?

    The delegation said the Government had conducted many programmes in the provinces where practices of Chhaupadi were practised. Ending traditional, harmful practices in society was not easy, and it took time to bring about change. The State had developed Chhaupadi guidelines in 2007 and was developing guidelines for the concept of dignified menstruation.

    The delegation said Nepal’s Constitution ensured that women had equal rights to confer citizenship to their children. In January 2025, the Government submitted the citizenship bill to address challenges for individuals and children whose mothers had passed away. If the father’s identity was unknown, citizenship could be granted based on the maternal line. This amendment aimed to confer citizenship to those born to a Nepalese mother outside Nepal’s borders. If the father of a child was not identified, the mother could register her family name at the birth of the child.

    Introducing the report, Nawal Kishor Sah Sudi, Minister for Women, Children and Senior Citizens of the Government of Nepal, said the State was proud to have four high-ranking women policymakers of the Government of Nepal in the delegation, as well as Ms. Bandana Rana, as a distinguished Committee Member of this Committee. Since the promulgation of the Constitution, the Federal Parliament had enacted 16 different laws related to fundamental rights, including the rights of women. The State had also made notable progress in women’s political representation and participation, with women holding 34 per cent of seats in the Federal Parliament. The Government also recently appointed its first woman Chief Secretary and the first woman Registrar in the Supreme Court of Nepal in history.

    In closing remarks, Ram Prasad Subedi, Permanent Representative of Nepal to the United Nations Office at Geneva, said the dialogue had been wonderful and constructive. The participation of all stakeholders was greatly appreciated. The Government was fully committed to upholding the Convention’s objectives.

    In her closing remarks, Nahla Haidar, Committee Chair, thanked the State party for its commitment and political will, and for the constructive dialogue.

    The delegation of Nepal was comprised of representatives of the Ministry of Women, Children and Senior Citizens; the Ministry of Law, Justice and Parliamentary Affairs; the Office of the Prime Minister and Council of Ministers; and the Permanent Mission of Nepal to the United Nations Office at Geneva.

    The Committee on the Elimination of Discrimination against Women’s ninetieth session is being held from 3 to 21 February. All documents relating to the Committee’s work, including reports submitted by States parties, can be found on the session’s webpage . Meeting summary releases can be found here . The webcast of the Committee’s public meetings can be accessed via the UN Web TV webpage.

    The Committee will next meet at 10 a.m. on Thursday, 6 February to consider the ninth periodic report of Belarus (CEDAW/C/BLR/9).

    Report

    The Committee has before it the seventh periodic report of Nepal (CEDAW/C/NPL/7).

    Presentation of Report

    NAHLA HAIDAR, Committee Chair, said the Committee was proud to have Ms. Bandana Rana as a member of the Committee from Nepal.

    NAWAL KISHOR SAH SUDI, Minister for Women, Children and Senior Citizens of the Government of Nepal, said the State was proud to have four high-ranking women policymakers of the Government of Nepal in the delegation, as well as Ms. Bandana Rana, as a distinguished Committee Member of this Committee. Nepal remained fully committed to the implementation of the Convention and had made substantial progress in developing a robust legal and policy framework that supported the empowerment of women and girls.

    Since the promulgation of the Constitution, the Federal Parliament had enacted 16 different laws related to fundamental rights, including the rights of women. These laws comprehensively addressed women’s rights and reflected the State’s commitment to strengthening legal protections. The Government of Nepal had commenced its sixteenth Periodic Plan (2024/25–2028/29) in 2024, which recognised the critical importance of gender-sensitive policies and prioritised gender equality and women’s empowerment as fundamental pillars of its development agenda.

    The citizenship (amendment) bill had been registered in Parliament, aiming to address citizenship challenges for individuals whose mothers had died early or were out of contact. Provisions ensured that if a father’s identity was unknown, citizenship could be granted based on maternal descent. Nepal had ratified the United Nations Palermo Protocol in 2020, and in 2024, an act to amend some of Nepal’s laws had been amended by widening the definition of trafficking to include foreigners and immigrants, and also criminalising human smuggling.

    Nepal was the second country in Asia to recognise same-sex marriage. Other legal processes, including marriage and identity cards for sexual and gender minorities, were underway. The Nepal Law Commission, an autonomous research body of the Government, was currently conducting a comprehensive study on discriminatory laws against the rights of gender and sexual minorities to initiate necessary legal reform in this regard. The State had also made notable progress in women’s political representation and participation, with women holding 34 per cent of seats in the Federal Parliament. The Government also recently appointed its first woman Chief Secretary and the first woman Registrar in the Supreme Court of Nepal in history.

    Nepal remained committed to combatting gender-based violence and had established women, children, and senior citizen service centres in 1996 as part of a dedicated unit within the Nepal Police to investigate gender-based violence cases effectively. Today, 232 fully functioning centres operated across the country, strengthening Nepal’s law enforcement response to violence against women.

    The Government provided free physical and mental healthcare services and protective measures. Currently, 94 government health institutions functioned as one-stop crisis management centres, alongside 21 service centres that served as transit homes, and 276 additional support centres. The Government of Nepal had established long-term rehabilitation centres, one at the national level and another at the provincial level. There were also 10 dedicated rehabilitation centres for victims of human trafficking and 53 community-based safe shelters, operating in collaboration with provincial governments, civil society organizations, and other stakeholders. Over 6,000 community-based networks were actively engaged in the fight against gender-based violence, reflecting Nepal’s strong commitment to protecting vulnerable groups and ensuring justice to the survivors.

    Nepal recognised the link between climate change, natural disasters, and gender equality, and had strengthened disaster preparedness to support and protect women, especially in vulnerable communities. The September 2024 floods in Kathmandu and nearby areas saw effective disaster management, ensuring shelter, healthcare, and essential services for affected communities. Nepal continued to integrate gender considerations into national climate policies to build long-term resilience.

    Nepal remained committed to ensuring justice for victims of past human rights violations, particularly in cases affecting women. The third amendment to the enforced disappearances enquiry, truth, and reconciliation commission act 2014, approved in August 2024, now explicitly included serious human rights violations in its amendment such as rape and grave sexual violence, intentional or arbitrary killings, enforced disappearances, inhumane or cruel treatment, and torture. A Special Court had been designated to adjudicate these cases and a dedicated investigative unit for sexual violence cases had been established.

    Nepal remained steadfast in its commitment to gender equality, women’s empowerment, and social justice. The State aimed to expand access to quality education for girls, particular in rural areas, enhance women’s economic independence, strengthen maternal health and gender-based violence support services, develop gender-sensitive infrastructure, and promote women’s leadership. While challenges remained, the State’s resolve was stronger than ever, and the Committee’s guidance was welcomed.

    Statement by the National Human Rights Institution

    LILY HAJUR BASNYAT THAPA, National Human Rights Commission of Nepal, said it was crucial to acknowledge progress made by the State. The affirmative actions taken by the Government of Nepal were highly appreciated. Despite constitutional guarantees, Nepal’s legal framework still contained critical gaps. Nepalese laws lacked comprehensive definitions of discrimination, particularly around direct, indirect, and intersectional forms of discrimination affecting women. While some protective measures existed, implementation remained inconsistent. A distinct legal provision with a comprehensive definition of discrimination was essential to ensure justice for women facing severe discrimination. More action needed to be taken to strengthen the institutional mechanism, the National Women’s Commission.

    The legal prohibition of entrenched harmful practices such as child marriage, Chhaupadi, discrimination against widows, and dowry, continued to persist. The Government of Nepal had expedited its efforts to amend almost a dozen laws to make them compatible with the Palermo Protocol, but it was too late to make amendments to the laws related to human trafficking. Furthermore, women often faced significant barriers in employment and migration. In sectors like tea plantations, where women constituted 80 per cent of the workforce, they lacked adequate maternity protections and faced potential wage cuts during pregnancy. Migrant women workers were particularly vulnerable, experiencing exploitation in destination countries with insufficient pre-departure training and reintegration support. Similarly, critical challenges persisted in sexual and reproductive healthcare. Rural and Madhesi women faced limited access to family planning and safe abortion services. Moreover, a deeply entrenched son preference continued to drive sex-selective practices, with statistics showing 112 boys born for every 100 girls in 2021.

    Several critical areas demanded immediate attention. Women faced substantial restrictions in conferring citizenship to children and spouses, unlike their male counterparts. Rural women had limited access to sexual and reproductive health services, and comprehensive sexuality education remained restricted. Indoor pollution where 80 per cent of rural cooking happened without ventilation, caused around 7,500 annual deaths, disproportionately affecting women. The Commission proposed several critical interventions including to enact comprehensive anti-discrimination legislation, establish robust mechanisms for women’s protection, strengthen political representation through practical measures, improve migrant worker protections, enhance sexual and reproductive healthcare access, and address systemic gender stereotypes. The Committee was urged to strongly recommend the full and immediate implementation of women’s constitutional and legal rights in line with the Convention and the Committee’s previous recommendations.

    Questions by a Committee Expert

    HIROKO AKIZUKI, Committee Expert and Country Rapporteur for Nepal, said the Committee commended Nepal for its commitment to fulfilling its obligation and participation in the exchange despite repeated earthquakes and natural disasters. What efforts had been taken to adopt comprehensive anti-discrimination legislation, including a definition of discrimination against women, in both the public and private spheres? How did the State party address cross-cutting discrimination against women, including women with disabilities, lesbian, gay, bisexual, transgender and intersex women, indigenous women, and elderly women, among others? What measures had been taken to ensure the effective implementation of laws? What was the status and content of the special opportunity bill? Were women’s rights organizations participating in the drafting of the bill? What measures had been implemented to enhance women’s awareness of their rights, and the legal remedies available under the Convention? Were human rights being recognised as including the collective rights of indigenous women?

    Responses by the Delegation

    The delegation said Nepal was doing its best to implement legal reforms with a legal perspective. The State had a plan for an integrated gender-based violence act, which was underway and moving in a positive direction. Nepal’s Constitution provided the framework for fighting all acts of discrimination. The State was aware that there should not be any multiple and intersecting forms of discrimination. Nepal had several special laws which provided remedy for discrimination, including the human trafficking act, the domestic violence act, the sexual harassment at work act, the witchcraft accusation act, the labour act, and the victim crime act, among others, along with the Criminal Code, which provided no room for discrimination on any ground.

    At present, there were special opportunity provisions scattered in various laws. It was expected that the special opportunity bill would soon be enacted by the Parliament. There were paid lawyer systems in the court, and more than 41,000 people received these services last year. It was required that for any lawmaking, there should be consultation with stakeholders with all three tiers of Government, to ensure a participatory approach. This would be occurring with the legal aid bill in a few weeks. In 2024, 200 young lawyers were mobilised, with 121 being women, to provide legal aid. The State had begun to have a roster of pro-bono lawyers within the Nepal Bar Association, already this year they had provided 79 victims with pro-bono support, 79 of whom were women. There was no special law concerning the rights of indigenous women, but scattered laws covered these rights.

    Questions by Committee Experts 

    A Committee Expert asked what plans were in place to provide necessary resources to implement the national gender equality policy? Were there plans to establish provincial offices of the National Women’s Commission? What measures had been taken to address recommendations of the National sub-Committee, so it could fully comply with the Paris Principles? There were allegedly issues with financing for the resources assigned to the Ministry of Women; could more light be shed on this issue? How was the budget distributed and how were the issues dealt with? How effective were the decisions taken by the National Women’s Commission? Were their decisions binding? 

    Another Expert said temporary special measures were essential for ensuring equal opportunities for women in economic and social life. Could more information be provided about the State’s gender quotas? When would a gender equality principle be implemented directly into the Election Code of Conduct? How could temporary special measures be used to mitigate specific discrimination faced by minorities?

    Responses by the Delegation

    The delegation said the Government was actively implementing the gender equality policy, but faced challenges in this regard, including a lack of resources. Financial resources were being prioritised by the plan. After the federal election in 2017, 16 parliamentary panels were formed to monitor the Government’s work. A division was responsible for monitoring and implementing recommendations from the treaty bodies.

    Recently, Nepal had been taking many steps in the area of temporary special measures. In line with the Committee’s previous recommendations, the Government had enacted temporary special measures to accelerate women’s participation at all levels, particularly in the decision-making processes. One of the most notable achievements had been the gender balance in leadership at the highest level of the Government. It was mandated that the House of Representatives needed to include at least one woman. At the recent elections of the local level, it was mandated that at least one nominee for the position of Mayor or Deputy Mayor should be a woman. In the 2022 elections, over 40 per cent of women were elected as representatives, a notable improvement from the 2017 elections. In the Office of the Prime Minister, there was a committee to facilitate the recommendations of the National Human Rights Commission.

    Nepal had seven provinces and budgets were allocated at federal, provincial and local levels. The budget at the federal level was a bit low. The proposed civil services bill had proposed initiatives for indigenous women and other minorities. The provincial services act already sought to provide for minorities.

    Questions by Committee Experts

    A Committee Expert said Nepal had a new opportunity to address historical conflicts in ways which would set an example to other countries in the sub-continent. Despite the reconciliation commission and the commission on enforced disappearances, impunity for conflict-related violations persisted. There should be no amnesty or sentence reductions for rapists. Nepal’s long awaited transitional justice law was adopted in 2024, and the Committee congratulated the State on its many positive elements. But Nepal was encouraged to go further along the women, peace and security agenda. Was Nepal providing reparations for victims of conflict-related sexual violence? Had the law been changed? Nepal was the first Asian country to safeguard the rights of sexual and gender minorities which should be applauded. Nepal’s climate-related gender-based violence was correlated to climate crisis and this should be recognised and included in climate change action plans. How could the laws in Nepal be brought in line with the United Nations treaty on cybercrimes?

    The Chhaupadi practice forcibly exiled menstruating women and girls from their homes to menstruation huts. Although this practice had been criminalised, its practise continued, and this had resulted in the deaths of menstruating women and girls from animal attacks. What was being done in this area and in the area of period poverty? How could the engagement of men and boys be mobilised against Chhaupadi? How could the Kumari practices be modernised in line with modern sciences?

    A Committee Expert took note that the State party had ratified the Palermo Protocol in 2020. When was full compliance with the Protocol expected? Would the State party consider removing a provision which allowed the judiciary to fine victims if they failed to appear in court? Was the State party planning to change the provision which conflated trafficking with sex work? What steps were being taken to ensure trafficking cases were being dealt with in an acceptable time frame? The Committee noted with concern that the Government continued to impose restrictive age bans for women under 24 seeking domestic work, making them at a higher risk of becoming victims of trafficking. Would the State consider lifting these bans. How were migrant women’s needs addressed in bilateral labour agreements? Was pre-departure training provided for women migrants on labour rights or gender specific challenges?

    No progress seemed to have been made to secure the rights of adult sex workers. How and when would the State party formulate a comprehensive policy and legislative framework to ensure the protection of women in prostitution? How would Nepal punish law enforcement officers who targeted sex workers? How would the State support sex workers in leaving the profession and seeking new forms of work.

    Responses by the Delegation

    The delegation said the Government had conducted many programmes in the provinces where practices of Chhaupadi were practised. Ending traditional, harmful practices in society was not easy, and it took time to bring about change. The State had developed Chhaupadi guidelines in 2007 and was developing guidelines for the concept of dignified menstruation.

    Nepal had ratified the Palermo Protocol in 2020, and an act amended in 2024 widened the definition of trafficking. A draft policy and action plan aimed to address several elements of trafficking, including providing for reparations for victims and training for police and judges in human trafficking cases.

    The amended law had provided specialised scope to examine the issue of sexual violence, and had provided for a special court for cases of sexual violence. The amendment included the victim-centric approach, and aimed to ensure victims were satisfied with outcomes, including reparations.

    Nepalese law did not recognise prostitution. The Nepalese police were taking legal measures to criminalise the clients of prostitutes. The State was aware of the rights of sex workers, which needed to be protected. The 35 day statute of limitations had been abolished and extended to three months. Sex workers were equally entitled to enjoy their rights under the Nepalese Constitution.

    The State was in the process of amending the domestic violence act and would consider the aspect of technology-related gender-based violence. Legal reform was not the only means to intervene in harmful practices. For example, the Government, in cooperation with civil society organizations, was dedicated to controlling the exploitation of sex workers. Public awareness campaigns were being launched in the adult entertainment sector, and multiple efforts had been made to reduce the demand for prostitution through the distribution of leaflets and other media. Collaborative efforts were being made in border areas to monitor human trafficking issues.

    The Government, in support with partners, was working to implement programmes in the provinces with regard to child marriage, including through declaring “child marriage free areas”.

    Questions by Committee Experts

    HIROKO AKIZUKI, Committee Expert and Country Rapporteur for Nepal, reading questions on behalf of another expert, said last session the Committee adopted its latest general recommendation on parity in politics. The State party was commended for its implementation of electoral quotas; however, the low numbers of representation were concerning. What measures was the State party taking to address the low representation of women, particularly from minority groups? In the 2022 election, male voters greatly outnumbered female voters. Did the State party take any measures to ensure political literacy, and engagement among women and girls, to encourage their participation in democratic processes?

    Nepal was commended for its recent increases in the representation of women in its public sector, increasing over the last decade from just 8 per cent to almost 30 per cent now, with targets to increase this to 35 per cent by 2030. Could current data on the gender breakdown of management and decision-making positions in the public sector be provided, as well as any plans in place to increase these figures? Did the State party have any data on women in board and management positions in Nepal and what was being done to increase these figures? What was being done to protect women human rights defenders in the digital sphere?

    Another Expert said despite recent amendments to the Constitution, many discriminatory provisions still caused immense hardship to women, girls and their families, particularly when it came to passing on citizenship. Did the State party plan to address this gross violation of women’s rights, by repealing several articles in the Constitution, allowing Nepalese women to transfer their nationality to their spouses on equal terms. How would the State party enable stateless children to access social services? Were there plans to ensure universal birth registration in the State party, and to ratify the two United Nations conventions on statelessness? Was there a special arrangement in the new proposed bill which addressed Nepalese women married to refugees?

    Responses by the Delegation

    The delegation said the Government had introduced many special measures to accelerate gender equality. Recently, the Government had introduced issues of intersectional disparity, with bills drafted in this regard. Currently, the level of Nepalese female diplomats was low. The Government had taken steps last year to foster inclusivity in international representation, to encourage more diverse representation in foreign engagement. Nepal’s Constitution ensured that women had equal rights to confer citizenship to their children. in January 2025, the Government submitted the citizenship bill to address challenges for individuals and children whose mothers had passed away. If the father’s identity was unknown, citizenship could be granted based on the maternal line. This amendment aimed to confer citizenship to those born to a Nepali mother outside Nepal’s borders. If the father of a child was not identified, the mother could register her family name at the birth of the child.

    Nepal’s representation of women in the public sector had significantly improved, and the Government was making efforts to improve women’s participation in the private sector.

    Questions by a Committee Expert

    A Committee Expert said the Committee had noted with satisfaction significant progress made in the field of education, particularly the act approving compulsory, free education in 2018. The Committee also noted with satisfaction the adoption of the 10-year school education plan to 2032, prioritising female education and gender equality. What measures had been taken to strengthen the institutional capacities of local Governments, including dissemination in local languages? What measures were being taken to ensure access to education for all children, regardless of their caste or citizenship status, including girls of all ethnic or religious groups? The high prevalence of child marriage in certain provinces had resulted in a high dropout rate from schools. What measures were being taken to ensure pregnant and married girls could continue their education?

    Responses by the Delegation

    The delegation said every citizen had the right to access education. Persons with disabilities had the right to free education and every Nepalese community had the right to receive education in their mother tongue. Nepal had adopted the policy of no discrimination in education, whatever the status of citizens. There were some difficulties with children who did not have citizenship, but it was hoped the citizenship bill, currently under review by parliament, would rectify this issue. The Government had to provide free textbooks and other logistic support under the act on education for all. The central Government was providing around 11 per cent of the total budget to education, with around seven per cent being allocated to local levels. This allocation had been steadily increasing over recent years.

    In 2016, the median marriage age of Nepalese women was 17.9; it had now risen to 18.3 years. There were some cases of early marriage, and the State acknowledged this. The legal age of marriage had now been raised to 20. Other measures to combat early marriage included night school, counselling programmes, and youth programmes, which contributed to raising awareness and mitigating this issue.

    Responses by the Delegation

    The delegation said the Education Act prioritised education for marginalised communities. The State strove to ensure that education was inclusive for children with disabilities. Many scholarships were provided at local levels and there were policies for providing special grants in 2025. A commitment had been adopted which aimed to eradicate discrimination in education.

    Questions by a Committee Expert

    A Committee Expert commended the State party for policies and legislation in the field of employment, including the labour act, the social security act and the five-year strategic national action plan to 2025 on moving workers in the informal sector to the formal sector. However, there were still discrepancies, including the much lower level of female employment rate, compared to males. What measures had been taken to address the low representation of women in the workforce? What was the timeline for ensuring full payment for women in all sectors? Were enhanced provisions for equal sharing of work for women being envisaged with the new national action plan?

    Women made up only around 10 per cent of migrant workers. What was the timeline to remove the ban and preconditions for women going abroad for domestic work? What protection measures were available for women from online harassment? When would the State party amend the law on sexual harassment and ensure justice for women victims and access to legal aid? How many cases of sexual harassment were prosecuted in the past two years and how many convictions were issued? What measures were envisaged to ensure equal opportunities for women and girls, including those with disabilities, in the digital economy?

    Responses by the Delegation

    The delegation said an employment service centre supported women’s participation in the workforce. Nepal had made substantial progress in reducing the wage gap and promoting equal opportunities, but challenges still persisted. Women were overrepresented in lower sectors and underrepresented in leadership positions. To address these challenges, Nepal was introducing gender responsive policies and conducting leadership training, among other measures. The Government conducted monitoring through regulatory oversight and audits, supported by trade unions and workers. Collaboration was also undertaken with partners, including the World Bank and the International Labour Organization.

    Nepal’s five-year national action plan sought to integrate vulnerable groups into the formal economy through skills training and offering opportunities for workers to formalise their employment. The social security scheme provided support to women in the informal sector and assisted them to transfer to formal employment.

    Nepal was committed to protecting all its citizens, including female migrant workers. Equal treatment policies were in place for both men and women, prioritising their security and health. Nepal was working closely with destination countries, such as the United Arab Emirates, to ensure the safety of its workers. Nepal was incorporating assistive technology to address the needs of persons with disabilities. Specific programmes were being developed to provide training and employment opportunities for persons with disabilities.

    Recently, Nepal had adopted an action plan on business and human rights, which provided a human rights friendly approach for all workers. The State was also implementing the fifth national human rights action plan, which covered employment as a major issue.

    The sexual harassment at workplace act allowed for cases of sexual harassment to be reported, and cases could also be reported to the police. However, it was hard for the Government to collect data on this topic. The safe motherhood and reproductive health act also provided paternity leave to fathers. This equally applied to the public and private sectors. The legal provisions were there but people were often not aware of their rights under these acts.

    Questions by a Committee Expert

    A Committee Expert said since the last review, Nepal had made significant progress in its health policy, particularly in sexual and reproductive health, with the adoption of the national strategy against discriminatory sex selection. However, the maternal mortality rate remained high and there were serious deficiencies in care and health centres. Some women refrained from using contraception unless they gave birth to a male child, putting them at risk of sexually transmitted diseases. The stigma around these diseases and HIV/AIDS prohibited women from seeking timely access to healthcare. What measures did the State intend to adopt to confront these challenges? What would be done to improve maternal mortality and prevent women from contracting venereal diseases and HIV/AIDS? How would it be ensured that women and girls had access to family planning and reproductive health services?

    Abortion services were not easy to obtain or affordable for many women. What would be done to ban selective abortions? What mental health and suicide prevention services were available for women in Nepal? Would the invasive treatment of intersex persons be criminalised? Would forced sterilisation be criminalised, including against women and children with disabilities? How would free, prior and informed consent for women be guaranteed, including with respect to abortion?

    Responses by the Delegation

    The delegation said Nepal had begun a vaccination programme against the human papilloma virus for all women and girls across the country. There were several programmes in place which focused on sexual and reproductive health, including the Safe Motherhood Programme and the Safe Abortion Programme. Any woman could undertake an abortion up to 12 weeks without issue. Safe abortions were available in all seven provinces of the country. The Government acknowledged the importance of mental health support for women. Healthcare providers were provided with training to offer support to women who were navigating fertility issues.

    There were inconsistencies between the sexual and reproductive health act and the Criminal Code. Because of this, the process of the amendment of the Criminal Code had been enacted, in line with the safe motherhood act. Dignified menstruation guidelines had been introduced, and work was being done to ensure the school curriculum covered sexual and reproductive health education.

    Nepal had no record of cases in regard to forced sterilisation of persons with disabilities. A social service unit programme provided access to free health services for specific groups, including women and girls with disabilities.

    Questions by a Committee Expert

    A Committee Expert said in December 2024, the National Planning Committee introduced a framework to increase access to social security programmes for those from marginalised groups. However, women in Nepal still faced significant financial challenges when it came to property ownership, obtaining bank loans, and accessing credit. Family benefits such as pensions and social security were often controlled by male family members, leaving women financially dependent. How did the Government monitor and evaluate the effectiveness of laws and policies aimed at eliminating discrimination in economic and social life? What steps were being taken to address the gaps between legal provisions and their implementation? How were women’s equal inheritance and property rights being enforced? How did the Government ensure women from marginalised communities had equal access to economic resources? What measures were in place to ensure single mothers received the social security benefits they were entitled to? How did the Government ensure pensions and other benefits reached the rightful female beneficiaries rather than be controlled by male relatives?

    Responses by the Delegation

    The delegation said Nepal had launched several programmes for economic empowerment in different areas, with different financial incentives. A programme had supported 90,000 entrepreneurs, with 70 per cent of them being women. The integrated subsidised loan scheme for women entrepreneur development aimed to enhance women’s economic empowerment.

    Questions by Committee Experts

    A Committee Expert said agriculture contributed to one third of Nepal’s gross domestic product. However, most elements within the sector remained male dominated. What measures had been implemented to ensure equal measures to credit and financial support for women? How was their financial literacy being enhanced? What was being done to introduce agricultural tools specifically for women? How was rural women’s access to information being improved? What steps were being taken to mitigate regional disparities? Indigenous women and girls, including those with disabilities, remained largely invisible. What measures had been taken to collect disaggregated data by sex, location and other factors to fully understand the challenges faced by indigenous women and girls? What was being done to recognise indigenous women as a distinct group in laws and policies, and to address their unique vulnerabilities and exclusion?

    Another Expert said Nepal was ranked among the countries most impacted by climate change. Significant rainfall had led to major challenges, including landslides and floods. Could more information be provided on the national action plan 2023? How did it address the negative impact of climate change on women? How did the plan ensure the full and effective participation of indigenous women and recognise their crucial role as caretakers and agents of change?

    Responses by the Delegation

    The delegation said different financial literacy programmes had been introduced for women in different provinces. In one programme, whenever a girl was born, a bank account was opened and the provincial government would contribute 500 Nepalese rupees a month for up to 20 years to support her education and wellbeing. A programme supported vegetable production and was making technology more accessible to women and girls. The Government of Nepal was committed to implementing the Convention. The national gender equality policy 2027 emphasised gender equality in all areas, including indigenous women. In the House of Representatives, the deputy speaker belonged to an indigenous group, and quotas were in place to ensure indigenous women’s representation in politics.

    Nepal was a victim of the climate crisis; the country protected the environment but felt the impact of climate change. Women and indigenous women were disproportionately affected.

    Questions by Committee Experts

    A Committee Expert asked who was eligible for legal aid and for what legal matters? Did legal aid include representation in court? How did women, particularly those from marginalised communities, learn about the right to legal aid? Was legal aid provided through a gender lens? What measures were in place to provide targeted support to marginalised women facing intersectional discrimination, such as sex workers, to access legal aid? Could non-citizens access legal aid in some circumstances?

    Only 52 cases of child marriage were handled by the Nepalese police in 2023. What explained the wide gap between the figures and enforcement? What was being done to protect child brides from being prosecuted? What was being done to eradicate the practice of dowry? Could the delegation clarify the status of gay marriages? How was the safety of inter-caste couples ensured? What legal measures were in place to protect the rights of women in unregistered marriages, such as polygamous marriages?

    Responses by the Delegation

    The delegation said the free legal aid act had been enacted in 1997. Under the act, low earners, victims of domestic violence, and senior citizens could receive free legal aid. The State was working to change the criteria to ensure more vulnerable groups of people could receive access to free legal aid. Legal aid services included the preparation of documents, pleading in front of the court, and different administrative services. There was no particular law to provide non-citizens with legal aid, but this was a fundamental right for everyone.

    Same sex marriage was valid but there was no legal instrument legalising these marriages yet. The State was assessing laws and how they could be reformed to better protect the rights of this community. All marriages had to be registered. There was no discrimination on the grounds of sex when it came to properties; men and women had equal rights. The dowry system had been criminalised by the National Criminal Code. Nepal was committed to having a collaborative approach with civil society and other partners to eliminate harmful practices and sensitise people at the grassroots level. This was a continuous effort.
    Closing Remarks

    RAM PRASAD SUBEDI, Permanent Representative of Nepal to the United Nations Office at Geneva, said the dialogue had been wonderful and constructive. The participation of all stakeholders was greatly appreciated. Nepal had made significant progress in certain areas, including on the Committee’s past recommendations. While there was a lack of data, there was not a lack of action. The Government was fully committed to upholding the Convention’s objectives.

    NAHLA HAIDAR, Committee Chair, thanked the State party for its commitment and political will, and for the constructive dialogue. The Committee would send specific recommendations through for immediate follow-up.

     

     

    Produced by the United Nations Information Service in Geneva for use of the media; 
    not an official record. English and French versions of our releases are different as they are the product of two separate coverage teams that work independently. 

    CEDAW25.003E

    MIL OSI United Nations News –

  • MIL-OSI United Nations: Secretary-General’s remarks to the opening of the 2025 session of the Committee on the Exercise of the Inalienable Rights of the Palestinian People [as delivered]

    Source: United Nations secretary general

    Mr. Chair, Ambassador Coly Seck,

    Bureau members,

    Let me begin by congratulating you on your election.

    I want to salute this Committee for its work.

    At its essence, the exercise of the inalienable rights of the Palestinian people is about the right of Palestinians to simply live as human beings in their own land.

    We have seen the realization of those rights steadily slip farther out of reach.

    We have seen a chilling, systematic dehumanization and demonization of an entire people.

    Of course, nothing justifies the horrific Hamas attacks of October 7.

    And nothing justifies what we have seen unfold in Gaza over the last many months. 

    We all know too well the catalogue of destruction and unspeakable horrors.

    The nearly 50,000 people — 70% of them women and children — who have been reported killed.

    The majority of Gaza’s civilian infrastructure — hospitals, schools, and water facilities – that has been destroyed.

    The overwhelming majority of the entire population who have faced displacement after displacement, hunger, and disease.

    Children, out of school for over a year.

    A generation, left homeless and traumatized.

    I welcome the ceasefire and hostage release deal. 

    I thank the mediators —Egypt, Qatar, and the United States— for the continued efforts to ensure implementation.

    Now it is time to be crystal clear about objectives going forward. 

    First, we must keep pushing for a permanent ceasefire and the release of all hostages without delay.

    We cannot go back to more death and destruction.

    For our part, the UN is working around the clock to reach Palestinians in need and scale up support. 

    That requires humanitarian access that is rapid, safe, unimpeded, expanded, and sustained.

    I call on Member States, donors, and the international community to fully fund humanitarian operations and meet urgent needs.

    And I once again urge Member States to support the essential work of UNRWA.

    Second, in the search for solutions, we must not make the problem worse. 

    It is vital to stay true to the bedrock of international law.  It is essential to avoid any form of ethnic cleansing. 

    Third, we must reaffirm the two-State solution. 

    Any durable peace will require tangible, irreversible and permanent progress toward the two-State solution, an end to the occupation, and the establishment of an independent Palestinian State, with Gaza as an integral part.

    A viable, sovereign Palestinian State living side-by-side in peace and security with Israel is the only sustainable solution for Middle East stability.

    Excellencies,

    Beyond Gaza, the situation continues to unravel in the occupied West Bank, including East Jerusalem.

    I am gravely concerned by rising violence by Israeli settlers and other violations.

    The violence must stop.

    As affirmed by the International Court of Justice, Israel’s occupation of the Palestinian Territory must end.

    International law must be respected, and accountability ensured.

    We must work toward preserving the unity, contiguity, and integrity of the Occupied Palestinian Territory and the recovery and reconstruction of Gaza.

    A strong and unified Palestinian governance is crucial.

    The international community must support the Palestinian Authority to this end.

    Excellencies,

    The UN is fully committed to peace, stability, and the inalienable rights of the Palestinian people.

    I commend this Committee for its steadfast dedication to these goals and call on the international community to fully support these efforts.

    And I thank you. 

    MIL OSI United Nations News –

  • MIL-OSI Europe: Philip R. Lane: A middle path for ECB monetary policy

    Source: European Central Bank

    Speech by Philip R. Lane, Member of the Executive Board of the ECB, at the Peterson Institute for International Economics (PIIE)

    Washington, D.C., 5 February 2025

    It is a pleasure to be here at the Peterson Institute for International Economics (PIIE): your impressive research on a wide range of topics is extremely valuable for policymakers.[1]

    At last week’s monetary policy meeting, the ECB’s Governing Council decided to lower the deposit facility rate – the rate through which we steer the monetary policy stance – by 25 basis points from 3.0 per cent to 2.75 per cent. In cumulative terms, the deposit facility rate has declined by 125 basis points since last June. The decision reflected our updated assessment of the inflation outlook, the dynamics of underlying inflation and the strength of monetary policy transmission.

    In what follows, I will explain in more detail the basis for this decision. I will review inflation developments, economic developments, our risk assessment, and financial and monetary conditions. Finally, I explain why pursuing a middle path for monetary policy is best suited to the current environment.

    Inflation developments

    The disinflation process remains well on track. Inflation has continued to develop broadly in line with the staff projections and is set to return to our two per cent medium-term target in the course of this year. Most measures of underlying inflation suggest that inflation will settle at around our target on a sustained basis. The Persistent and Common Component of Inflation (PCCI), which has the best predictive power among underlying inflation indicators for future headline inflation, continued to hover around two per cent in the December data, indicating that headline inflation is set to stabilise around our target.

    Domestic inflation, at 4.2 per cent, stayed well above all the other indicators in December mostly because wages and prices in certain sectors are still adjusting to the past inflation surge with a substantial delay. However, the PCCI for services, which should act as an underlying attractor for services inflation and domestic inflation, fell to 2.3 per cent.

    The anticipation of a downward shift in services inflation in the coming months also relates to the expected deceleration in wage growth in the course of 2025. Wages have been adjusting to the past inflation surges with a substantial delay, but the ECB wage tracker and the latest surveys point to a significant moderation in wage pressures this year. According to the latest results of the Survey on the Access to Finance of Enterprises (SAFE), firms expect wages to grow by 3.3 per cent on average over the next twelve months, down from 4.5 per cent this time last year. Similarly, the latest Corporate Telephone Survey indicates that wage growth should decelerate from 4.6 per cent in 2024 to 3.3 per cent in 2025 and 2.9 per cent in 2026. This assessment is shared broadly among forecasters. Consensus Economics, for example, foresees a decline in wage growth by about one percentage point between 2024 and 2025.

    Most measures of longer-term inflation expectations continue to stand at around two per cent, despite an uptick at shorter horizons that may reflect the recent rise in energy prices. While the inflation expectations of firms have stabilised at three per cent across horizons, according to the SAFE, larger firms that are aware of the ECB’s inflation target show convergence towards two per cent. Consumer inflation expectations have edged up recently, especially for the near term, which can at least be partly explained by their higher sensitivity to the recent uptick in realised inflation. Inflation expectations of professionals – as captured by the latest vintages of the Survey of Professional Forecasters and Survey of Monetary Analysts – as well as market-based measures of inflation compensation have ticked up for the near term but, over longer horizons, remain stable at levels consistent with our medium-term target of two per cent.

    Economic developments

    On a fourth-quarter-to-fourth-quarter basis, the 2024 growth rate came in at 0.9 per cent, constituting a material improvement in momentum relative to the 2023 growth rate of 0.1 per cent. While 2024 saw a modest recovery in consumption, investment remained weak and exporters continued to suffer competitiveness challenges. In terms of the quarterly profile, growth stagnated in the final quarter following a comparatively robust third quarter.

    The incoming survey indicators suggest that the euro area economy is set to remain subdued in the near term. While unemployment remained low at 6.3 per cent in December, there has been some softening in labour demand, as reflected in lower vacancies and lower employment growth.

    At the same time, our baseline assessment is that the conditions for a recovery remain in place. Higher incomes, lower interest rates and stronger household balance sheets should allow a faster pick-up in consumption. More affordable credit should also boost housing and business investment over time. Exports should also support the recovery as global demand rises, although this is highly conditional on developments in international trade policies.

    Financial and monetary conditions

    Global and euro area bond yields have increased significantly since our last meeting. Amongst other factors, the spillover impact of the rise in US and global longer-term rates has contributed to the steepening of the euro area yield curve.

    Our past interest rate cuts are gradually making it less expensive for firms and households to borrow. The cost of borrowing for firms has declined by 92 basis points and mortgage rates have declined by 62 basis points since their peaks in autumn 2023. However, the interest rates on existing corporate and household loan books remain high, especially in real terms, with pre-2022 debt still re-pricing at higher rates as fixation periods expire.

    In overall terms, financing conditions remain tight. While credit is expanding, lending to firms and households remains subdued relative to historical norms. Growth in bank lending to firms rose to 1.5 per cent in December. In part, the pick-up in December reflects firms substituting market-based long-term financing for bank-based borrowing amidst tightening market conditions and increasing upcoming redemptions of long-term corporate bonds. Overall external debt financing of firms increased by 1.9 per cent in December, but remained well below the historical average of 4.9 per cent.[2] Loans to households continued to rise gradually, driven by mortgages, but remained muted overall, with an annual growth rate of 1.1 per cent in December, notably below the long-term average of 4.2 per cent.

    According to the latest bank lending survey, the demand for loans by firms increased slightly in the fourth quarter. At the same time, credit standards for loans to firms have tightened again, after having broadly stabilised over the previous four quarters. The renewed tightening of credit standards for firms was driven by the fact that banks see higher risks to the economic outlook and have lower tolerance for taking on credit risk. This finding is consistent with the results from the SAFE, in which firms reported a small decline in the availability of bank loans and more demanding non-rate lending conditions. In terms of households, the demand for mortgages increased strongly, mostly on the back of more attractive interest rates and better prospects for the property market. Credit standards for housing loans remained unchanged overall.

    Risk assessment

    Risks to economic growth remain tilted to the downside. In addition to trade policy uncertainty, lower confidence could prevent consumption and investment from recovering as fast as expected. This could be amplified by geopolitical risks, such as Russia’s unjustified war against Ukraine and the tragic conflict in the Middle East, which could disrupt energy supplies and further weigh on global trade. Growth could also be lower if the lagged effects of monetary policy tightening last longer than expected. In the other direction, growth could be higher if easier financing conditions and falling inflation allow domestic consumption and investment to rebound faster.

    We take a two-sided approach to assessing inflation risk. Inflation could turn out higher if wages or profits increase by more than expected. Upside risks to inflation also stem from the heightened geopolitical tensions, which could push energy prices and freight costs higher in the near term and disrupt global trade. Moreover, extreme weather events, and the unfolding climate crisis more broadly, could drive up food prices by more than expected. By contrast, inflation may surprise on the downside if low confidence and concerns about geopolitical events prevent consumption and investment from recovering as fast as expected, if monetary policy dampens demand by more than expected, or if the economic environment in the rest of the world worsens unexpectedly. Greater friction in global trade would make the euro area inflation outlook more uncertain.

    A middle path for monetary policy

    Taken together, the incoming data since our previous meeting meant that it was clear that we should take a further step in monetary easing by lowering the deposit facility rate to 2.75 per cent. By excessively dampening demand, the alternative of holding the deposit facility rate at the level of 3.0 per cent would not have been consistent with the set of rate paths that would best ensure that inflation stabilises sustainably at our two per cent medium-term target. At the same time, the new level for the deposit facility rate at 2.75 per cent preserves considerable optionality in responding to shocks. In particular, the rate path can adjust as appropriate in the event of material upside or downside shocks to the inflation outlook and/or to economic momentum.

    While our baseline is that inflation should decline from 2.5 per cent in January to around our target in the coming months, it is still important to take into account that this deceleration might take longer than expected and that new upside risks to inflation could emerge, including due to external developments. These considerations explain why we have taken a step-by-step approach to rate cutting since last June.

    At the same time, an excessive abundance of caution in monetary easing could threaten the recovery in domestic demand that is needed to support the pricing environment compatible with our medium-term two per cent target. Under this too-cautious path, a below-target inflation dynamic could take hold, which would then require a more sizeable policy response to ensure inflation returns to our symmetric two per cent medium-term target.

    Balancing these considerations suggest a middle path is appropriate, which neither over-weighs upside risk nor over-weighs downside risk. That is, a robust monetary policy approach should balance the risks of moving too slowly against the risks of moving too quickly. Accordingly, it is prudent to maintain agility in adjusting the stance as appropriate on a data-dependent and meeting-by-meeting basis and to not pre-commit to any particular rate path.

    In closing, let me comment on two much-discussed concepts: restrictiveness and neutrality.

    When inflation is materially above target and requires a monetary response to ensure that it returns to target in a timely manner and that inflation expectations remain anchored, the monetary stance must be clearly restrictive. As inflation returns close to target, policymakers need to shift their focus to adjusting monetary policy in line with the incoming economic and financial data and the evolving risk assessment to deliver the two per cent target over the medium term. In other words, policymakers should deliver the monetary stance that is appropriate to the situation.

    In exiting a restrictive phase, much energy could be diverted towards creating a summary “restrictiveness” index. Any such index would have to incorporate at least nine factors: (i) the still-important rolling off of super-cheap debt that was taken out in the “low for long” era that is now being re-financed at higher rates; (ii) in the other direction, the transmission of the easing since the peak of the hiking cycle; (iii) the impact of the anticipation of future rate cuts on current financing conditions; (iv) the evolving contribution of quasi-exogenous influences on financing conditions (such as global upward pressure on term premia); (v) the dynamics of bond and equity risk premia; (vi) the evolution of credit standards in bank lending; (vii) the different timelines for market-based and bank-based transmission; (viii) the responsiveness of consumption and investment to shifting monetary conditions; and (ix) the responsiveness of price setting to shifting monetary conditions.

    All of these factors enter our calibration of monetary policy (our assessment of the strength of monetary policy transmission has been highlighted as central to our reaction function) and cannot be summarised by a single indicator such as comparing the prevailing policy rate to a highly-uncertain estimate of the so-called neutral rate.[3]

    In terms of policy making, uncertainty about the level of the neutral rate and, more generally, about the strength of monetary transmission inescapably sits alongside uncertainty about the inflation outlook and uncertainty about the economic outlook.

    This is why our 2021 monetary policy strategy statement highlights that our decisions are based on an integrated assessment of all relevant factors. Over the last two years, we have emphasised in particular the importance of underlying inflation and the strength of monetary transmission as particularly relevant in complementing our analysis of the inflation outlook. More generally, it is essential that all relevant risks are incorporated in monetary policy decisions.

    MIL OSI Europe News –

  • MIL-OSI Europe: Written question – Former Commissioner Thierry Breton’s new lobbying activities for Bank of America – E-000358/2025

    Source: European Parliament

    Question for written answer  E-000358/2025
    to the Commission
    Rule 144
    Pascale Piera (PfE), Anne-Sophie Frigout (PfE), Marie-Luce Brasier-Clain (PfE), Mathilde Androuët (PfE), Catherine Griset (PfE), Julie Rechagneux (PfE), Christophe Bay (PfE), Séverine Werbrouck (PfE), Jean-Paul Garraud (PfE), Malika Sorel (PfE), Aleksandar Nikolic (PfE), Julien Sanchez (PfE), Elisabeth Dieringer (PfE), Tomáš Kubín (PfE), Barbara Bonte (PfE), Anna Bryłka (PfE), Nikola Bartůšek (PfE), Ton Diepeveen (PfE), Jorge Martín Frías (PfE), Jorge Buxadé Villalba (PfE), Ondřej Knotek (PfE), Tomasz Froelich (ESN), Markus Buchheit (ESN), Hans Neuhoff (ESN), Erik Kaliňák (NI), Katarína Roth Neveďalová (NI), Diana Iovanovici Şoşoacă (NI), Kateřina Konečná (NI), Nicolas Bay (ECR), Fernand Kartheiser (ECR)

    On 15 January 2025, the Commission gave the green light for Thierry Breton’s new role lobbying for the Global Advisory Board of Bank of America[1].

    However, according to Articles 245 and 339 of the Treaty on the Functioning of the European Union, as a former European Commissioner, he is bound by ‘the duty to behave with integrity and discretion’ and to ‘not disclose information’ covered by the obligation of professional secrecy, including post term of office.

    The Commission’s Ethical Committee rightly pointed out in its opinion that there is nevertheless ‘a link between former Commissioner Breton’s portfolio responsibilities and the scope of the notified activity’, given the size of his portfolio.

    • 1.How does the Commission justify the obvious contradiction between, on the one hand, its decision to authorise Breton taking up this role for a foreign entity and, on the other hand, him being prohibited from using any information acquired during his term of office, when that mandate is precisely why he was asked to join the advisory board?
    • 2.Will it at long last review the composition of the Ethical Committee, whose members are ‘appointed by the Commission, on a proposal from the President’ (Article 12(4) of the Code of Conduct), with a view to making it properly independent?

    Submitted: 27.1.2025

    • [1] Commission Decision C(2025)9000 final

    MIL OSI Europe News –

  • MIL-OSI Europe: EIB Board approves €2.4 billion of financing for business innovation, energy grids, flood resilience and transport

    Source: European Investment Bank

    • Discussion of EIB Global strategic reorientation and support for European electricity grids
    • Energy-saving for businesses across Europe
    • Financing to expand hydrogen refuelling in Europe and rebuild damaged heating infrastructure in Ukraine

    The European Investment Bank (EIB) today approved €2.4 billion of new financing for business investment, clean energy, transport, telecommunications and flood protection in Europe.

    The EIB Board of Directors also discussed the strategic orientation of EIB Global. Reflecting the changing geopolitical context and even better aligning with EU external policy priorities, the Bank’s investments outside of the EU will continue contribute to a stronger Europe in a more stable, more prosperous and sustainable world.

    The Board examined ways to further increase support for electricity networks in Europe. In 2024, the Bank mobilised over €100 billion of additional investment for energy and financed a record high of €8.5 billion for electricity grids, which mobilised 40% of total EU investment in electricity grids.

    “We are ahead of the investment targets of the RePowerEU programme to bring cheaper and clean energy to European households and businesses. Last year the EIB marked a record in investment in energy grids and inter connectors, to bolster Europe’s competitiveness and security”, said EIB Group President Nadia Calviño.

    Energy networks, flood defences

    The first EIB Board of Directors of the year approved financing totalling €791 million to expand hydrogen production for transport, strengthen electricity distribution, and improve flood protection in Poland.

    This includes funding to boost research into and development of hydrogen and to increase the number of hydrogen refueling stations for cars and trucks.

    In support of Ukraine, the Board paved the way for financing of €100 million to repair damaged municipal heating infrastructure in the country.

    Outside the EU, the EIB agreed to provide financing to upgrade and extend electricity distribution in Panama. The goal is to increase renewable/energy use, bolster grids and expand power distribution to unserved communities in the country.

    Green innovation

    The Board also approved financing totalling €879 million for innovation and investment by businesses to improve energy efficiency and environmental sustainability.

    This includes backing automotive-component research and development at 15 manufacturing sites across Europe and low-carbon glass production in France and Spain.

    The EIB endorsed a new securitisation scheme to support Dutch business investment in climate action and environmental sustainability.

    Better connections

    The Board agreed €768 million in financing for transport and telecom networks in the EU and beyond.

    In Colombia, the Board approved EUR 418 million for construction of and the acquisition of trains for Metro Line 1 in the capital Bogota – a service expected to carry more than 1 million passengers a day when operational.

    The Board also gave the green light for financing of €350 million to expand mobile-phone networks across Italy.

    Background information  

    EIB 

    The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. Built around eight core priorities, we finance investments that contribute to EU policy objectives by bolstering climate action and the environment, digitalisation and technological innovation, security and defence, cohesion, agriculture and bioeconomy, social infrastructure, high-impact investments outside the European Union, and the capital markets union.  

    The EIB Group, which also includes the European Investment Fund (EIF), signed nearly €89 billion in new financing for over 900 high-impact projects in 2024, boosting Europe’s competitiveness and security.  

    All projects financed by the EIB Group are in line with the Paris Climate Agreement, as pledged in our Climate Bank Roadmap. Almost 60% of the EIB Group’s annual financing supports projects directly contributing to climate change mitigation, adaptation, and a healthier environment.  

    Fostering market integration and mobilising investment, the Group supported a record of over €100 billion in new investment for Europe’s energy security in 2024 and mobilised €110 billion in growth capital for startups, scale-ups and European pioneers

    Approximately half of the EIB’s financing within the European Union is directed towards cohesion regions, where per capita income is lower than the EU average.

    MIL OSI Europe News –

  • MIL-OSI Economics: Philip R. Lane: A middle path for ECB monetary policy

    Source: European Central Bank

    Speech by Philip R. Lane, Member of the Executive Board of the ECB, at the Peterson Institute for International Economics (PIIE)

    Washington, D.C., 5 February 2025

    It is a pleasure to be here at the Peterson Institute for International Economics (PIIE): your impressive research on a wide range of topics is extremely valuable for policymakers.[1]

    At last week’s monetary policy meeting, the ECB’s Governing Council decided to lower the deposit facility rate – the rate through which we steer the monetary policy stance – by 25 basis points from 3.0 per cent to 2.75 per cent. In cumulative terms, the deposit facility rate has declined by 125 basis points since last June. The decision reflected our updated assessment of the inflation outlook, the dynamics of underlying inflation and the strength of monetary policy transmission.

    In what follows, I will explain in more detail the basis for this decision. I will review inflation developments, economic developments, our risk assessment, and financial and monetary conditions. Finally, I explain why pursuing a middle path for monetary policy is best suited to the current environment.

    Inflation developments

    The disinflation process remains well on track. Inflation has continued to develop broadly in line with the staff projections and is set to return to our two per cent medium-term target in the course of this year. Most measures of underlying inflation suggest that inflation will settle at around our target on a sustained basis. The Persistent and Common Component of Inflation (PCCI), which has the best predictive power among underlying inflation indicators for future headline inflation, continued to hover around two per cent in the December data, indicating that headline inflation is set to stabilise around our target.

    Domestic inflation, at 4.2 per cent, stayed well above all the other indicators in December mostly because wages and prices in certain sectors are still adjusting to the past inflation surge with a substantial delay. However, the PCCI for services, which should act as an underlying attractor for services inflation and domestic inflation, fell to 2.3 per cent.

    The anticipation of a downward shift in services inflation in the coming months also relates to the expected deceleration in wage growth in the course of 2025. Wages have been adjusting to the past inflation surges with a substantial delay, but the ECB wage tracker and the latest surveys point to a significant moderation in wage pressures this year. According to the latest results of the Survey on the Access to Finance of Enterprises (SAFE), firms expect wages to grow by 3.3 per cent on average over the next twelve months, down from 4.5 per cent this time last year. Similarly, the latest Corporate Telephone Survey indicates that wage growth should decelerate from 4.6 per cent in 2024 to 3.3 per cent in 2025 and 2.9 per cent in 2026. This assessment is shared broadly among forecasters. Consensus Economics, for example, foresees a decline in wage growth by about one percentage point between 2024 and 2025.

    Most measures of longer-term inflation expectations continue to stand at around two per cent, despite an uptick at shorter horizons that may reflect the recent rise in energy prices. While the inflation expectations of firms have stabilised at three per cent across horizons, according to the SAFE, larger firms that are aware of the ECB’s inflation target show convergence towards two per cent. Consumer inflation expectations have edged up recently, especially for the near term, which can at least be partly explained by their higher sensitivity to the recent uptick in realised inflation. Inflation expectations of professionals – as captured by the latest vintages of the Survey of Professional Forecasters and Survey of Monetary Analysts – as well as market-based measures of inflation compensation have ticked up for the near term but, over longer horizons, remain stable at levels consistent with our medium-term target of two per cent.

    Economic developments

    On a fourth-quarter-to-fourth-quarter basis, the 2024 growth rate came in at 0.9 per cent, constituting a material improvement in momentum relative to the 2023 growth rate of 0.1 per cent. While 2024 saw a modest recovery in consumption, investment remained weak and exporters continued to suffer competitiveness challenges. In terms of the quarterly profile, growth stagnated in the final quarter following a comparatively robust third quarter.

    The incoming survey indicators suggest that the euro area economy is set to remain subdued in the near term. While unemployment remained low at 6.3 per cent in December, there has been some softening in labour demand, as reflected in lower vacancies and lower employment growth.

    At the same time, our baseline assessment is that the conditions for a recovery remain in place. Higher incomes, lower interest rates and stronger household balance sheets should allow a faster pick-up in consumption. More affordable credit should also boost housing and business investment over time. Exports should also support the recovery as global demand rises, although this is highly conditional on developments in international trade policies.

    Financial and monetary conditions

    Global and euro area bond yields have increased significantly since our last meeting. Amongst other factors, the spillover impact of the rise in US and global longer-term rates has contributed to the steepening of the euro area yield curve.

    Our past interest rate cuts are gradually making it less expensive for firms and households to borrow. The cost of borrowing for firms has declined by 92 basis points and mortgage rates have declined by 62 basis points since their peaks in autumn 2023. However, the interest rates on existing corporate and household loan books remain high, especially in real terms, with pre-2022 debt still re-pricing at higher rates as fixation periods expire.

    In overall terms, financing conditions remain tight. While credit is expanding, lending to firms and households remains subdued relative to historical norms. Growth in bank lending to firms rose to 1.5 per cent in December. In part, the pick-up in December reflects firms substituting market-based long-term financing for bank-based borrowing amidst tightening market conditions and increasing upcoming redemptions of long-term corporate bonds. Overall external debt financing of firms increased by 1.9 per cent in December, but remained well below the historical average of 4.9 per cent.[2] Loans to households continued to rise gradually, driven by mortgages, but remained muted overall, with an annual growth rate of 1.1 per cent in December, notably below the long-term average of 4.2 per cent.

    According to the latest bank lending survey, the demand for loans by firms increased slightly in the fourth quarter. At the same time, credit standards for loans to firms have tightened again, after having broadly stabilised over the previous four quarters. The renewed tightening of credit standards for firms was driven by the fact that banks see higher risks to the economic outlook and have lower tolerance for taking on credit risk. This finding is consistent with the results from the SAFE, in which firms reported a small decline in the availability of bank loans and more demanding non-rate lending conditions. In terms of households, the demand for mortgages increased strongly, mostly on the back of more attractive interest rates and better prospects for the property market. Credit standards for housing loans remained unchanged overall.

    Risk assessment

    Risks to economic growth remain tilted to the downside. In addition to trade policy uncertainty, lower confidence could prevent consumption and investment from recovering as fast as expected. This could be amplified by geopolitical risks, such as Russia’s unjustified war against Ukraine and the tragic conflict in the Middle East, which could disrupt energy supplies and further weigh on global trade. Growth could also be lower if the lagged effects of monetary policy tightening last longer than expected. In the other direction, growth could be higher if easier financing conditions and falling inflation allow domestic consumption and investment to rebound faster.

    We take a two-sided approach to assessing inflation risk. Inflation could turn out higher if wages or profits increase by more than expected. Upside risks to inflation also stem from the heightened geopolitical tensions, which could push energy prices and freight costs higher in the near term and disrupt global trade. Moreover, extreme weather events, and the unfolding climate crisis more broadly, could drive up food prices by more than expected. By contrast, inflation may surprise on the downside if low confidence and concerns about geopolitical events prevent consumption and investment from recovering as fast as expected, if monetary policy dampens demand by more than expected, or if the economic environment in the rest of the world worsens unexpectedly. Greater friction in global trade would make the euro area inflation outlook more uncertain.

    A middle path for monetary policy

    Taken together, the incoming data since our previous meeting meant that it was clear that we should take a further step in monetary easing by lowering the deposit facility rate to 2.75 per cent. By excessively dampening demand, the alternative of holding the deposit facility rate at the level of 3.0 per cent would not have been consistent with the set of rate paths that would best ensure that inflation stabilises sustainably at our two per cent medium-term target. At the same time, the new level for the deposit facility rate at 2.75 per cent preserves considerable optionality in responding to shocks. In particular, the rate path can adjust as appropriate in the event of material upside or downside shocks to the inflation outlook and/or to economic momentum.

    While our baseline is that inflation should decline from 2.5 per cent in January to around our target in the coming months, it is still important to take into account that this deceleration might take longer than expected and that new upside risks to inflation could emerge, including due to external developments. These considerations explain why we have taken a step-by-step approach to rate cutting since last June.

    At the same time, an excessive abundance of caution in monetary easing could threaten the recovery in domestic demand that is needed to support the pricing environment compatible with our medium-term two per cent target. Under this too-cautious path, a below-target inflation dynamic could take hold, which would then require a more sizeable policy response to ensure inflation returns to our symmetric two per cent medium-term target.

    Balancing these considerations suggest a middle path is appropriate, which neither over-weighs upside risk nor over-weighs downside risk. That is, a robust monetary policy approach should balance the risks of moving too slowly against the risks of moving too quickly. Accordingly, it is prudent to maintain agility in adjusting the stance as appropriate on a data-dependent and meeting-by-meeting basis and to not pre-commit to any particular rate path.

    In closing, let me comment on two much-discussed concepts: restrictiveness and neutrality.

    When inflation is materially above target and requires a monetary response to ensure that it returns to target in a timely manner and that inflation expectations remain anchored, the monetary stance must be clearly restrictive. As inflation returns close to target, policymakers need to shift their focus to adjusting monetary policy in line with the incoming economic and financial data and the evolving risk assessment to deliver the two per cent target over the medium term. In other words, policymakers should deliver the monetary stance that is appropriate to the situation.

    In exiting a restrictive phase, much energy could be diverted towards creating a summary “restrictiveness” index. Any such index would have to incorporate at least nine factors: (i) the still-important rolling off of super-cheap debt that was taken out in the “low for long” era that is now being re-financed at higher rates; (ii) in the other direction, the transmission of the easing since the peak of the hiking cycle; (iii) the impact of the anticipation of future rate cuts on current financing conditions; (iv) the evolving contribution of quasi-exogenous influences on financing conditions (such as global upward pressure on term premia); (v) the dynamics of bond and equity risk premia; (vi) the evolution of credit standards in bank lending; (vii) the different timelines for market-based and bank-based transmission; (viii) the responsiveness of consumption and investment to shifting monetary conditions; and (ix) the responsiveness of price setting to shifting monetary conditions.

    All of these factors enter our calibration of monetary policy (our assessment of the strength of monetary policy transmission has been highlighted as central to our reaction function) and cannot be summarised by a single indicator such as comparing the prevailing policy rate to a highly-uncertain estimate of the so-called neutral rate.[3]

    In terms of policy making, uncertainty about the level of the neutral rate and, more generally, about the strength of monetary transmission inescapably sits alongside uncertainty about the inflation outlook and uncertainty about the economic outlook.

    This is why our 2021 monetary policy strategy statement highlights that our decisions are based on an integrated assessment of all relevant factors. Over the last two years, we have emphasised in particular the importance of underlying inflation and the strength of monetary transmission as particularly relevant in complementing our analysis of the inflation outlook. More generally, it is essential that all relevant risks are incorporated in monetary policy decisions.

    MIL OSI Economics –

  • MIL-OSI NGOs: Israel/OPT: Trump’s claim that US will take over Gaza and forcibly deport Palestinians ‘outrageous and shameful’

    Source: Amnesty International –

    In response to President Trump’s comments that the USA will “take over the Gaza Strip”, advocating again for the forcible transfer of around two million Palestinians from Gaza to neighbouring countries, Agnès Callamard, Amnesty International’s Secretary General, said:

    “President Trump’s remarks calling for the forcible transfer of Palestinians from the occupied Gaza Strip must be unequivocally and widely condemned. His language is inflammatory, outrageous and shameful, and his proposal amounts to a flagrant violation of international law. 

    “Any plan to forcibly deport Palestinians outside the occupied territory against their will is a war crime, and when committed as part of a widespread or systematic attack on the civilian population, it would constitute a crime against humanity.

    “President Trump’s comments dangerously dehumanises Palestinians, who for the last 16-months have been victims of Israel’s genocide in Gaza, and for decades have been living under illegal occupation and apartheid. Most of Gaza’s Palestinians are descendants and survivors of the 1948 Nakba, they have already been repeatedly uprooted and dispossessed by Israel and denied their right of return yet have continued to struggle to remain on their lands and defend their human rights.

    “Israel’s genocide in Gaza, including through unlawful killings, injuries and the deliberate infliction of conditions of life that are calculated to bring about their physical destruction, has been accompanied by an alarming rise in unlawful killings in the occupied West Bank, state-backed settler violence, mass land confiscation and arbitrary arrests, enforced disappearances, torture and other ill-treatment of Palestinians across the Occupied Palestinian Territory and Israel.

    “President Trump repeatedly referenced the destruction, killing and unlivable conditions in Gaza calling it a ‘demolition site’ while seated next to Israeli Prime Minister Netanyahu, yet he completely failed to mention the Israeli government’s responsibility for causing this devastation. Nor did he acknowledge the US government’s role in providing arms that have repeatedly been used to carry out deadly, unlawful attacks in Gaza.

    “In the face of President Trump’s dangerous threats, it’s more important than ever for the rest of the international community to categorically reject these proposals and expedite diplomatic efforts, in line with international law, to end Israel’s unlawful occupation, dismantle apartheid and uphold human rights for Palestinians and Israelis. History has abundantly demonstrated that sidelining international law for political expediency is a recipe for the perpetuation of violations.

    “Amnesty International also warns against the misuse of desperately needed humanitarian aid and reconstruction as a bargaining chip or as a means to coerce Palestinians in Gaza into leaving. No state is entitled to treat a protected population living under occupation as pawns in a geopolitical chess game.”

    MIL OSI NGO –

  • MIL-OSI NGOs: Israel/ OPT: President Trump’s claim that US will take over Gaza and forcibly deport Palestinians appalling and unlawful

    Source: Amnesty International –

    Reacting to President Donald Trump’s comments that the USA will “take over the Gaza Strip”, advocating again for the forcible transfer of around 2 million Palestinians from Gaza to neighbouring countries, Amnesty International’s Secretary General Agnès Callamard said:

    “President Trump’s remarks calling for the forcible transfer of Palestinians from the occupied Gaza Strip must be unequivocally and widely condemned. His language is inflammatory, outrageous and shameful, and his proposal amounts to a flagrant violation of international law. 

    “Any plan to forcibly deport Palestinians outside the occupied territory against their will is a war crime, and when committed as part of a widespread or systematic attack on the civilian population, it would constitute a crime against humanity.

    “Any plan to forcibly deport Palestinians outside the occupied territory against their will is a war crime, and when committed as part of a widespread or systematic attack on the civilian population, it would constitute a crime against humanity” – Amnesty International’s Secretary General Agnès Callamard

    “President Trump’s comments dangerously dehumanizes Palestinians, who for the last 16-months have been victims of Israel’s genocide in Gaza, and for decades have been living under illegal occupation and apartheid. Most of Gaza’s Palestinians are descendants and survivors of the 1948 Nakba, they have already been repeatedly uprooted and dispossessed by Israel and denied their right of return yet have continued to struggle to remain on their lands and defend their human rights.

    “Israel’s genocide in Gaza, including through unlawful killings, injuries and the deliberate infliction of conditions of life that are calculated to bring about their physical destruction, has been accompanied by an alarming rise in unlawful killings in the occupied West Bank, state-backed settler violence, mass land confiscation and arbitrary arrests, enforced disappearances, torture and other ill-treatment of Palestinians across the Occupied Palestinian Territory and Israel.

    “President Trump’s comments dangerously dehumanizes Palestinians, who for the last 16-months have been victims of Israel’s genocide in Gaza, and for decades have been living under illegal occupation and apartheid” – Agnès Callamard

    “President Trump repeatedly referenced the destruction, killing and unlivable conditions in Gaza calling it a ‘demolition site’ while seated next to Israeli Prime Minister Netanyahu, yet he completely failed to mention the Israeli government’s responsibility for causing this devastation. Nor did he acknowledge the US government’s role in providing arms that have repeatedly been used to carry out deadly, unlawful attacks in Gaza.

    “In the face of President Trump’s dangerous threats, it’s more important than ever for the rest of the international community to categorically reject these proposals and expedite diplomatic efforts, in line with international law, to end Israel’s unlawful occupation, dismantle apartheid and uphold human rights for Palestinians and Israelis. History has abundantly demonstrated that sidelining international law for political expediency is a recipe for the perpetuation of violations.

    “Amnesty International also warns against the misuse of desperately needed humanitarian aid and reconstruction as a bargaining chip or as a means to coerce Palestinians in Gaza into leaving. No state is entitled to treat a protected population living under occupation as pawns in a geopolitical chess game.”

    MIL OSI NGO –

  • MIL-OSI Video: Palestinians, Occupied Palestinian Territory, Gaza & other topics – Daily Press Briefing

    Source: United Nations (Video News)

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

    – Palestinians
    – Occupied Palestinian Territory
    – Gaza
    – Democratic Republic of the Congo
    – Sudan
    – South Sudan
    – Sweden
    – Aga Khan
    – Iraq
    – Senior Appointment
    – Financial Contribution
    – Guest

    PALESTINIANS
    This afternoon, the Secretary-General has a scheduled appearance at the Committee on the Exercise of the Inalienable Rights of the Palestinian People. In his remarks, he will tell the committee, following the agreement that has been in effect, that we must keep pushing for a permanent ceasefire and the release of all hostages without delay. We cannot go back to more death and destruction.
    In speaking to the broader situation, the Secretary-General will say that in the search for solutions we must not make the problems worse. It is vital to stay true to the bedrock of international law. It is essential to avoid any form of ethnic cleansing and, of course, he will reaffirm the two-state solution. And you can follow those remarks on UN WebTV starting at 3 p.m.

    OCCUPIED PALESTINIAN TERRITORY
    Our Under-Secretary-General for Humanitarian Affairs, Tom Fletcher, is continuing his visit to Israel and the Occupied Palestinian Territory. On the political level, Mr. Fletcher held discussions over the past two days with Israeli authorities, including President Isaac Herzog, as well as officials from the Coordinator of Government Activities in the Territories (COGAT) and the Ministry of Foreign Affairs.
    Mr. Fletcher described these engagements as practical, emphasizing the need to build on the progress since the ceasefire and sustain the large-scale delivery of UN aid into Gaza. On the ground, Mr. Fletcher visited today different areas of the West Bank.
    In East Jerusalem, he visited Silwan neighbourhood where he met with residents facing home demolitions and the threat of forcible eviction by Israeli authorities.
    Mr. Fletcher also toured what is known as Area C of the Ramallah governorate, where he heard and saw the humanitarian impact of access restrictions on the livelihoods of Palestinian and their daily lives. These restrictions include Israeli checkpoints and of course the 712-kilometre-long barrier.
    And just a short while ago in Ramallah, Mr. Fletcher held discussions with national Palestinian NGOs, who are at the heart of humanitarian response efforts across the Occupied Palestinian Territory.

    GAZA
    In Gaza, our humanitarian colleagues report that our aid operations – together with our partners – continue to scale up across the Gaza Strip. We are also carrying out assessments to determine the needs of impacted and displaced families, particularly the most vulnerable.
    Across Gaza, 22 bakeries supported by the World Food Programme are now operational. And our health partners continue to provide health services as well. We and our partners estimate that more than half a million displaced Palestinians have now returned to the governorates of both Gaza and North Gaza, where there is an urgent need for tents and shelter materials. Our partners say they’ve transported 22 truckloads of tents from southern to northern Gaza yesterday to address these needs but we need to get more tents in.
    For its part, UNICEF continues to distribute nutrition support for infants. Across Gaza, the World Food Programme has provided lipid-based nutrient supplements to more than 80,000 children and pregnant or breastfeeding women since the ceasefire took effect. Humanitarian partners have screened more than 30,000 children under the age of five for malnutrition since the ceasefire took effect. Of those children under five screened, over 1,000 cases of acute malnutrition have been identified, including 230 cases of severe acute malnutrition.
    And to sustain learning activities across the Gaza Strip, education partners established three new temporary learning spaces yesterday in Gaza, Rafah, and Khan Younis governorates, benefiting some 200 children.

    Full Highlights: https://www.un.org/sg/en/content/noon-briefing-highlight?date%5Bvalue%5D%5Bdate%5D=05%20February%202025

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

    MIL OSI Video –

  • MIL-OSI USA: Bowman, Bank Regulation in 2025 and Beyond

    Source: US State of New York Federal Reserve

    Thank you for the invitation to speak to you today.1 It is a pleasure to be with you. I always enjoy the opportunity to meet bankers from across the country to learn about the issues that are important to you. Recently, I have observed a shift in tone when I talk to bankers about the bank regulatory environment. Bankers are cautiously optimistic that we will see meaningful reform that right-sizes regulation and supervisory approach, reforms that—if executed appropriately—should help the banking system promote economic growth in a safe and sound manner. Today, I will share my views on a number of issues related to banking regulation and supervision, including the importance of tailoring, having a problem-focused approach to bank regulation and supervision, and the imperative of innovation in the banking system.
    One of the unique characteristics of the U.S. banking system is the broad scope of institutions it includes and the wide range of customers and communities it serves. Given this wide variety of institutions, regulators must strive to foster a financial system that enables each and every bank, no matter its size, to thrive, supporting a vibrant economy and financial system. We must also be sensitive to emerging issues and trends that require attention, whether that be unintended consequences from capital requirements, the incentives created by our approach to regulatory applications, and to ensure legal compliance.
    TailoringThe approach to regulation and supervision should promote a healthy and vibrant banking system. One key element of a regulatory approach that does so, and one that I often highlight, is the use of “tailoring” in the regulatory framework. For those familiar with my philosophy on bank regulation and supervision, my interest and focus on tailoring will come as no surprise.2 In its most basic form, it is difficult to disagree with the virtue of regulatory and supervisory tailoring—calibrating the requirements and expectations imposed on a firm based on its size, business model, risk profile, and complexity—as a reasonable, appropriate, and responsible approach for bank regulation and supervision. In fact, tailoring is embedded in the statutory fabric of the Federal Reserve’s bank regulatory responsibilities.3
    The bank regulatory framework inherently includes significant costs—both the cost of operating the banking agencies and the cost to the banking industry of complying with regulations, the examination process, and supplying information to regulators both through formal information collections and through one-off requests. In the aggregate, these costs can ultimately affect the price and availability of credit, geographic access to banking services, and the broader economy. The cost of this framework—both to regulators and to the industry—reflects layers of policy decisions over many years. But this framework could be more effective in balancing the mandate to promote safety and soundness with the need to have a banking system that promotes economic growth.
    Let’s consider costs. As regulatory and supervisory demands grow, there is often parallel growth in the staff and budgets of the banking agencies. We should not only be cognizant of these costs, but we should act in a way that requires efficiency while ensuring safety and soundness. Some degree of elasticity in regulator capacity is necessary to respond to evolving economic and banking conditions, as well as emerging risks, but there must be reasonable constraints on banking agency growth. Expansion of the regulatory framework is not a cost-free endeavor. These costs are shouldered by taxpayers, banks, and, ultimately, bank customers.
    The bank regulatory framework has great potential to provide significant benefits, including supporting an innovative banking system that enhances trust and confidence in our institutions and promotes safety and soundness. When we consider the benefits and the costs, we can institute greater efficiencies in both banking regulation and in the banking industry itself. The framework is complex, and the various elements of this framework are intended to work in a complementary way. As banks evolve—by growing larger or by engaging in new activities—tailoring can help us to quickly recalibrate requirements in light of the new risks posed by the firm.
    But the regulatory framework, especially how supervisors prioritize its application to the banking industry, can pose a serious threat to a bank’s viability. For example, imposing the same regulatory requirements on banks with assets of $2 billion to $2 trillion under the new rules implementing the Community Reinvestment Act demonstrated a missed opportunity to promote greater effectiveness and efficiency.4 I question the wisdom of applying the same evaluation standards to banks within such a broad range.
    Likewise, supervisory guidance can provide fertile ground to differentiate supervisory expectations under a more tailored approach. While supervisory guidance is not binding on banks as a legal matter, it can signal how regulators think about particular risks and activities, and often drives community banks to reallocate resources in a way that may not be necessary or appropriate. The Fed’s guidance on third-party risk management is an example of this. Originally, this guidance was published in a way that applied to all banks, including community banks. Yet it was acknowledged even at the time of publication that it had known shortcomings, particularly in terms of its administration and lack of clarity for community banks.5
    Tailoring is important for all banks, but it is particularly important for community banks. There are real costs not only to banks, but to communities, when the framework is insufficiently tailored, as community banks faced with excessive regulatory burdens may be forced to raise prices or seek to merge or be acquired. These banks often reach unbanked or underbanked corners of the U.S. economy, not only in terms of the customers they serve but also in terms of their geographic footprint. We are all familiar with banking deserts and the challenges many legitimate and law-abiding businesses and consumers have in accessing basic banking services and credit. It is difficult to imagine that a system with far fewer banks would as effectively serve U.S. banking and credit needs and sufficiently support economic growth.
    It is imperative that we keep the benefits of tailoring in focus as the bank regulatory framework evolves. A tailored regulatory and supervisory approach can help inform our policies on a wide range of industry issues that are likely to emerge in the coming years.
    Problem-Based SolutionsOne of the most difficult challenges on the regulatory front is prioritization, both for banks managing their businesses and for regulators deciding how to fulfill their responsibilities. At a basic level, the role of regulators is dictated by statute. Congress granted the Federal Reserve and other banking agencies broad statutory powers but has constrained how those powers may be directed through the use of statutory mandates, including to promote a safe and sound banking system, and broader U.S. financial stability. In the execution of these responsibilities, the Federal Reserve must also balance the need to act in a way that enables the banking system to serve the U.S. economy and promote economic growth. While these objectives are not incompatible, they do require us to consider tradeoffs when establishing policy.
    How can regulators best meet these responsibilities? As many of you may already know, I strongly believe in a pragmatic approach to policymaking.6 This requires us to identify the problem we are trying to solve, determine whether we are the appropriate regulator to address the problem based on our statutory mandates and authorities, and explore options for addressing the identified issue.
    This approach of pragmatic problem-solving also applies to supervision, where process improvements could improve functioning. The Federal Reserve exercises its supervisory responsibilities by supervisory portfolio, with each portfolio relying on a combination of Board and Reserve Bank staff.7 It is important that responsibility for supervisory decisions be paired with accountability for such decisions, which can be complicated depending on the different roles played by Board and Reserve Bank staffs, and as institutions change supervisory portfolios. The misalignment of responsibility and accountability detracts from effective supervision.
    Our supervisory program should require strong examiner training, rely on examiner expertise in the conduct of examinations, and work in partnership with state bank supervisors. Doing so will allow us to leverage the practical experience and judgment of examination staff—characteristics that are necessary for effective supervision—while preserving the role of the Board to delegate and provide Reserve Bank oversight. Examinations cannot be just a box-checking exercise. We must rely on well-trained and experienced examiners empowered to exercise independent judgment and ask questions, which leads to stronger and more effective supervision.
    As we look at the banking system, including the regulatory framework, we must focus on those issues that are most important to advancing statutory priorities. There is always the risk of misidentification and mis-prioritization, and that we fail to take appropriately robust action on key issues or focus on issues that are less material to a bank’s safety and soundness. Our goal should be to develop a better filter to promote appropriate and effective prioritization.
    Treasury market functioningWhere regulation may create or exacerbate financial stability risks, we need to take a close look at whether those risks are justified by the safety and soundness benefits of the regulation. The erosion of liquidity in U.S. Treasury markets provides a good example of unintended consequences and the need to evaluate tradeoffs in regulation. This issue is a byproduct of several important dynamics: (1) the role of large banks in the intermediation of U.S. Treasury markets, (2) the growth of “safe” assets in the banking system, and (3) the increase in leverage-based capital requirements becoming the binding capital constraint on some large banks. While regulators may not have tools to address all of these dynamics, clearly the adverse impact of leverage-based capital requirements falls within the banking regulators’ scope of responsibility.
    Issues with Treasury market functioning have been known for quite some time. We have seen a persistent trend of low liquidity in U.S. Treasury markets for several years, which has been noted in the Board’s semiannual Financial Stability Report.8 Low liquidity can create more volatility in prices, exacerbate the effects of market shocks, and can threaten market functioning. Treasury market functioning and liquidity will likely be affected by the Securities and Exchange Commission’s central clearing requirement for U.S. Treasuries, which may improve market functioning. In addition, the Federal Reserve’s Standing Repo Facility may also help to promote smooth functioning in the Treasury market. But there is uncertainty regarding how the volume of Treasury securities issued and outstanding, and changes to the Fed’s balance sheet over time, may affect this.
    We have seen Treasury markets experience stress events as recently as the September 2019 repo market stress, and the so-called “dash for cash” in March of 2020. Both of these events raised concerns about the resiliency of U.S. Treasury markets. Therefore, we should continue to actively monitor indicators of market function, particularly whether Treasury market functioning improves over time, thereby enabling it to withstand future shocks.
    The banking regulators are uniquely positioned to not only analyze but also remediate components of the bank regulatory framework that may exacerbate Treasury market illiquidity. Large bank-affiliated primary dealers play an important role in the intermediation of U.S. Treasury markets. These dealers are not immune or insulated from the effect of banking regulation. While many factors can affect market liquidity, including interest rate volatility and Treasury market saturation, we must consider whether some of the pressure is a byproduct of bank regulation.
    The Federal Reserve has previously intervened to address market stress and support Treasury market functioning, for example, by temporarily excluding Fed reserves and Treasuries from the denominator of the supplemental leverage ratio (SLR).9 Treasury markets play a critical role in the U.S. and global financial systems, and we should take action to address the unintended consequences of bank regulation, while ensuring the framework continues to promote safety, soundness, and financial stability.10
    Leverage ratios do not differentiate between the risk of certain asset classes or exposures, and therefore appropriately operate as a backstop to risk-based capital requirements. However, in periods of banks’ balance sheet expansion—as during COVID-19 when we saw significant deposit inflows—leverage ratios can become the binding constraint on banks and their affiliates, increasing the amount of required capital based on increased balance sheet size regardless of risk. When constrained in this way, bank-affiliated primary dealers may pull back on market intermediation activities.
    Where we can take proactive regulatory measures to ensure that primary dealers have adequate balance sheet capacity to intermediate Treasury markets, we should do so. This could include amending the leverage ratio and G-SIB surcharge regulations for the largest U.S. banks. Adopting regulatory changes to mitigate these concerns may not be sufficient to ensure market liquidity, but it would be an important step toward building resiliency in advance of future stress events. In my view, it would be better to fix the roof now, while the sun is shining, by addressing over-calibrated leverage ratio requirements, and considering the unintended consequences of any future capital reforms.
    Stress testingI will now turn to another area that the Board has already identified as a priority for review—stress testing. Stress testing can be an important supervisory tool, but its implementation, outcomes and process have raised significant questions and concerns about whether it is useful in identifying systemic weaknesses. In its current structure, it is an opaque test hidden from public scrutiny that is used to establish variable binding capital requirements on large banks. Our review should consider whether it is transparent and fair, and whether there are technical improvements that could enhance the reliability and credibility of the test and its results.11
    In its current form, stress testing is likely deficient on each of these fronts. Transparency promotes fairness, as regulated entities and the public can better understand why and how our actions further our goals. When we identify areas that suffer from a lack of transparency, we should act promptly to address those concerns. On December 23 of last year, the Fed announced that it would soon seek public comment on “significant changes” to the stress testing process designed to improve transparency of the tests and reduce volatility of the resulting stress capital buffers that apply to large financial institutions.12 Given my longstanding support for revisiting the stress testing framework to promote transparency and reduce volatility, I am pleased with this development.13
    FraudFinally, I would like to address the problem of fraud, particularly check fraud, which has grown in frequency and impact over the past several years. Fraud continues to harm banks, damaging the perceived safety of the banking system, and importantly hurting consumers who are the victims of fraudulent activity. Sometimes fraudsters target vulnerable populations, like the elderly, who are particularly susceptible to certain forms of fraud.
    As I have noted in the past, efforts by regulators have been frustratingly slow to advance, and seem to have done little to address the underlying root causes of this increase in fraud. Why has this important issue failed to garner greater attention from all of the appropriate regulatory and law enforcement bodies? Different governmental agencies may share an important role in addressing this problem, but the need for a joint and coordinated solution does not excuse collective inaction.
    Fraud is perhaps the most consistent issue raised when I speak with bankers. Often the concerns note frustrations with the tools available to fight fraud and frictions dealing with counterparties in investigating and addressing fraud. The costs of prevention, detection, and remediation can also be substantial, but so can the costs of navigating these issues dealing with affected bank customers. We are overdue for more assertive action to protect bank customers and the financial system.
    The Innovation ImperativeInnovation has always been a priority for banks of all sizes and business models. Banks in the U.S. have a long history of developing and implementing new technologies, and innovation has the potential to make the banking and payment systems faster and more efficient, to bring new products and services to customers, and even to enhance safety and soundness.
    Regulators must be open to innovation in the banking system. Our goal should be to build and support a clear and sensible regulatory framework that anticipates ongoing and evolving innovation—one that allows the private sector to innovate while also maintaining appropriate safeguards. We must promote innovation through transparency and open communication, including demonstrating a willingness to engage during the development process. Financial institutions should know what activities are permitted, and the supervisory and regulatory expectations that will accompany their activities. By providing clarity and consistency, we can encourage long-term business investment, while also continuing to support today’s products and services. A clear regulatory framework would also empower supervisors to focus on safety and soundness, ensuring a safe and efficient banking and payment system.
    Absent clearer rules of the road, we run the risk of reducing the availability of banking services. Bank regulatory policy should address the needs of the unbanked and expand the availability of banking services. It should not be used to limit or exclude access to banking services for legitimate customers and businesses in a way that is meant to further unrelated policy goals, sometimes referred to as “de-banking” or bank “de-risking.” Credit decisions should not be dictated by banking regulations or supervisory messages. Ultimately, bankers are and should be responsible for their own credit allocation decisions.
    Regulators must change approaches that have resulted in credit allocation decisions, research how banks are making decisions related to which customers they serve, and promote an environment that allows legitimate bank customers to obtain banking services.
    New technologies and services often require novel regulatory and supervisory approaches, and we recognize that past approaches will likely not be effective. Often regulators take a “more is better” approach to regulation and guidance. Over the past several years, the banking industry has faced an onslaught of proposed and final regulations and guidance, materials that require a significant time commitment to review, to comment on, and to implement. Many times, these require changes to policies and procedures or risk-management practices.
    Fundamentally though, this “more is better” approach fails to address the core criticisms, including both an overall lack of transparency, and the perception (and perhaps reality?) that regulators have been overly hostile to innovation, including banks’ involvement in any capacity with digital assets, the use of artificial intelligence, and the availability of new technologies and providers to access the payment system.
    As a banker, state bank commissioner, and as a Board member, I have made the case for a more open-minded approach to innovation, including by co-hosting an informational event for bankers together with three other bank commissioners on distributed ledger technology and banking innovation just prior to joining the Board.14 We must prioritize understanding the risks and benefits of new technologies before developing a supervisory posture, especially when applying rules and using the “soft” power of supervision to discourage its use. Instead, we must create a supervisory and regulatory environment that facilitates reasonable and supportive approaches. The natural posture of a regulator may be to emphasize safety and soundness above all other objectives, but doing so will ultimately stifle innovation and threaten the long-term health and utility of the banking system.
    Closing ThoughtsThank you for the opportunity to speak with you today. The financial system is constantly evolving, and our regulatory approach must anticipate this evolution. We must return to a regulatory approach that emphasizes appropriate tailoring of regulatory requirements and supervisory expectations and take a pragmatic approach in identifying and remediating the most pressing issues. And we must encourage ongoing innovation in the banking and financial systems.

    1. The views expressed here are my own and are not necessarily those of my colleagues on the Federal Reserve Board or the Federal Open Market Committee. Return to text
    2. See, e.g., Michelle W. Bowman, “Tailoring, Fidelity to the Rule of Law, and Unintended Consequences (PDF)” (speech at the Harvard Law School Faculty Club, Cambridge, MA, March 5, 2024). Return to text
    3. See, Economic Growth, Regulatory Relief, and Consumer Protection Act, Pub. L. No. 115-174, § 401(a)(1) (amending 12 U.S.C. § 5365), 132 Stat. 1296 (2018). Return to text
    4. See dissenting statement, “Statement on the Community Reinvestment Act Final Rule by Governor Michelle W. Bowman,” news release, October 24, 2023. Return to text
    5. See “Statement on Third Party Risk Management Guidance by Governor Michelle W. Bowman,” news release, June 6, 2023. Return to text
    6. Michelle W. Bowman, “Approaching Policymaking Pragmatically (PDF)” (remarks to the Forum Club of the Palm Beaches, West Palm Beach, FL, November 20, 2024). Return to text
    7. Board of Governors of the Federal Reserve System, “Understanding Federal Reserve Supervision” (“What is the difference between what examiners do at Reserve Banks and staff do at the Board? Supervision is a function of the Board, with Reserve Banks conducting supervision under the Board’s delegated authority. The Board and Reserve Bank staff both play a critical role in carrying out the function of supervision, but the role varies by the supervisory group in which a bank is designated. LISCC supervision is run by the Board, with examiners employed by the Board and the Reserve Banks. For all other programs, examinations are conducted by Reserve Bank staff, with involvement of Board staff on horizontal exercises and key decisions. For banks in supervisory groups other than LISCC, Board staff set expectations for how Reserve Bank staff conduct examinations and, in turn, conduct oversight of Reserve Bank supervision to determine how well supervision is executed.”). Return to text
    8. See Board of Governors of the Federal Reserve System, Financial Stability Report (PDF) (Washington, DC, November 2024), 10-11. Return to text
    9. See, e.g., Temporary Exclusion of U.S. Treasury Securities and Deposits at Federal Reserve Banks from the Supplementary Leverage Ratio (PDF), 85 Fed. Reg. 20,578, 20,579 (April 14, 2020). Return to text
    10. See Financial Stability Report, 10–11. Board of Governors of the Federal Reserve System, “Federal Reserve Board Announces that the Temporary Change to Its Supplementary Leverage Ratio (SLR) for Bank Holding Companies Will Expire as Scheduled on March 31,” news release, March 19, 2021, (noting that the Board would seek comment on changes to the SLR). Return to text
    11. Michelle W. Bowman, “The Future of Stress Testing and the Stress Capital Buffer Framework (PDF)” (speech at the Executive Council of the Banking Law Section of the Federal Bar Association, Washington, DC, September 10, 2024). Return to text
    12. Board of Governors of the Federal Reserve System, “Due to Evolving Legal Landscape & Changes in the Framework of Administrative Law, Federal Reserve Board Will Soon Seek Public Comment on Significant Changes to Improve Transparency of Bank Stress Tests & Reduce Volatility of Resulting Capital Requirements,” news release, December 23, 2024. Return to text
    13. Bowman, “The Future of Stress Testing.” Return to text
    14. See, e.g., Michelle W. Bowman, “Innovation and the Evolving Financial Landscape (PDF)” (remarks at the Digital Chamber DC Blockchain Summit 2024, Washington, DC, May 15, 2024). Return to text

    MIL OSI USA News –

  • MIL-OSI USA: Ahead of Hearing, Warren Pushes Trump Trade Representative on Tariff Policy

    US Senate News:

    Source: United States Senator for Massachusetts – Elizabeth Warren

    February 05, 2025

    Warren Questions Greer on Trade Agenda, Tariff Exemptions for Trump’s Allies and Special Interests

    “Tariffs are an important strategic economic tool, but Donald Trump’s desire to start and stop random trade wars will not protect jobs, keep Americans safe, or bring down costs for families.”

    Text of Letter (PDF)

    Washington, D.C. – U.S. Senator Elizabeth Warren (D-Mass.), Ranking Member of the Senate Committee on Banking, Housing, and Urban Affairs (BHUA) and member of the Senate Finance Committee, wrote to Jamieson Greer, nominee to be U.S. Trade Representative (USTR), ahead of his February 6, 2025 confirmation hearing, probing his views on trade. Senator Warren asked Mr. Greer to address her concerns with the administration’s tariff strategy, corporate influence over trade agreements, corporations offshoring of jobs, and other trade-related concerns. 

    The USTR is responsible for developing and promoting the U.S. trade agenda and leading trade negotiations on behalf of the U.S., playing a critical role in the economy. This week, the Trump administration announced new tariffs on Canada, Mexico, and China. During the last Trump administration, corporations and their lobbyists abused tariff exclusion loopholes to receive secretive exemptions from President Trump and his trade team. The Commerce Department’s Inspector General found that the process for receiving an exemption was “neither transparent nor objective.”

    “(T)he President does not appear to have a strategic plan in place to ensure that his proposed tariffs are implemented in a way that secures wins for hardworking Americans and precludes carveouts for special interests,” wrote Senator Warren. “Instead, he has threatened, and withdrawn tariff threats in a chaotic and haphazard manner that has only resulted in uncertainty for American consumers, workers, and manufacturers, as well as our allies.”

    Large multinational companies have also gained outsized influence in trade negotiations and trade disputes. For decades, membership of the trade advisory committee has leaned heavily in favor of billionaire corporations and their industry associations, and Investor-State Dispute Settlement (ISDS) provisions have allowed corporations to sue governments—including the United States—for pursuing public policies they may disagree with. Senator Warren encouraged Mr. Greer to pursue the removal of ISDS provisions from trade agreements with U.S. allies. 

    Senator Warren also wrote that she believes large corporations have too many incentives to move jobs and manufacturing abroad. “In order to reverse the negative effects offshoring has had on the American economy, the Administration must invest in domestic industry and eliminate incentives for corporations to hide their profits abroad,” the senator wrote. 

    Senator Warren also expressed support for the Trade Adjustment Assistance (TAA) program to help American workers whose jobs are displaced by trade. “Renewing TAA is a no-brainer, and I hope you will support it to make sure that workers at home get a fair deal,” said Senator Warren.

    In order to better understand Mr. Greer’s approach to trade, Senator Warren asked him to prepare to answer questions on his vision for the Trump administration’s trade agenda on February 6, 2025, the date of his confirmation hearing. 

    MIL OSI USA News –

  • MIL-OSI: Northeast Bank Announces Dates for Fiscal 2025 Second Quarter Earnings Results and Conference Call

    Source: GlobeNewswire (MIL-OSI)

    PORTLAND, Maine, Feb. 05, 2025 (GLOBE NEWSWIRE) — Northeast Bank (the “Bank”) (NASDAQ: NBN), a Maine-based full-service bank, announced today it will release its fiscal 2025 second quarter earnings results on Thursday, February 6, 2025. Following the release, the Bank will host a conference call with a simultaneous webcast at 10:00 a.m. ET on Friday, February 7, 2025. The conference call will be hosted by Rick Wayne, President and Chief Executive Officer, Richard Cohen, Chief Financial Officer, and Pat Dignan, Chief Operating Officer.

    To access the conference call by phone, please go to this link (Phone Registration), and you will be provided with dial in details. The call will be available via a live webcast, which can be viewed by accessing the Bank’s website at www.northeastbank.com and clicking on the Investor Relations section. To listen to the webcast, attendees are encouraged to visit the website at least 15 minutes prior to the start of the call to register, download and install any necessary audio software. Please note there is a slide presentation that will accompany the webcast. For those who cannot listen to the live broadcast, a replay will be available online for one year at www.northeastbank.com.

    About Northeast Bank

    Northeast Bank (NASDAQ: NBN) is a full-service bank headquartered in Portland, Maine. We offer personal and business banking services to the Maine market via seven branches. Our National Lending Division purchases and originates commercial loans on a nationwide basis. ableBanking, a division of Northeast Bank, offers online savings products to consumers nationwide. Information regarding Northeast Bank can be found at www.northeastbank.com.

    NBN-F

    For More Information:
    Richard Cohen, Chief Financial Officer
    Northeast Bank
    27 Pearl Street, Portland, ME 04101
    207.786.3245 ext. 3249
    www.northeastbank.com

    The MIL Network –

  • MIL-OSI Russia: Financial news: Capital adequacy ratio for professional participants: new calculation rules

    Translartion. Region: Russians Fedetion –

    Source: Central Bank of Russia –

    Bank of Russia updated the calculation procedure capital adequacy ratio (CAD) for professional participants in the securities market in order to minimize risks to their financial stability.

    The new version specifies the procedure for calculating the broker’s credit risk in relation to clients for whom the risk coverage standard has been violated when making margin transactions. It is prohibited to accept securities issued by the debtor itself and assets of companies affiliated with it as collateral. It is also permitted to use the broker’s ratings to reduce the credit risk rates in relation to the debt of companies associated with the broker, but on the condition that the debtor’s assessment of its own (independent) creditworthiness indicates its financial stability.

    In addition, the document provides for the calculation of the risk on digital rights acquired and issued by a professional participant. An alternative calculation of the amount of market risk on option agreements has appeared (similar to the regulation of credit institutions). Measures are being introduced to discourage large open currency positions among professional participants. The rules for determining the values of credit risk rates in relation to counterparties and clients are also simplified.

    The regulation comes into force on October 1, 2025.

    Preview photo: Jsnow my wolrd / Shutterstock / Fotodom

    Please note: This information is raw content directly from the source of the information. It is exactly what the source states and does not reflect the position of MIL-OSI or its clients.

    Please Note; This Information is Raw Content Directly from the Information Source. It is account to What the Source Is Stating and Does Not Reflect the Position of Mil-Sosi or Its Clients.

    HTTPS: //VVV.KBR.ru/Press/Event/? ID = 23346

    MIL OSI Russia News –

  • MIL-OSI: Citizens Business Bank Recognized on Forbes List of Best Banks in America

    Source: GlobeNewswire (MIL-OSI)

    ONTARIO, Calif., Feb. 05, 2025 (GLOBE NEWSWIRE) — CVB Financial Corp. (NASDAQ: CVBF), the holding company for Citizens Business Bank (the “Bank”), has been recognized by Forbes in their 16thannual America’s Best Banks list. This recognition marks the ninth time in the past decade that the Bank has earned a place on Forbes’ prestigious list of the best banks in the nation.

    “We are honored to receive recognition once again for our strong financial performance,” said David Brager, President and Chief Executive Officer of CVB Financial Corp. and Citizens Business Bank. “This achievement is a testament to the dedication and talent of our associates, as well as the enduring relationships we have developed with our customers.”

    As one of the top performing financial services companies in the nation, CVBF and the Bank regularly receive industry accolades for their financial strength and community outreach efforts. In 2024, CVBF was ranked by S&P Global Market Intelligence as one of the Top 50 Public Banks, and also named as one of America’s Greatest Workplaces for Women by Newsweek. The Bank maintained its Five-Star Superior rating from BauerFinancial, its designation as a “Super Premier” Performing Bank by The Findley Reports and CVBF’s BBB+ rating from Fitch Ratings. The Bank previously received top honors from Forbes as the overall number one “Best Bank in America” for four of the past ten years, namely, in 2023, 2021, 2020 and 2016.

    In establishing its rankings, Forbes looked at ten metrics related to credit quality, growth, and profitability for all 100 of the largest publicly traded banks and thrifts in asset size in the nation.

    Corporate Overview

    CVB Financial Corp. (“CVBF”) is the holding company for Citizens Business Bank. CVBF is one of the 10 largest bank holding companies headquartered in California with greater than $15 billion in total assets. Citizens Business Bank is consistently recognized as one of the top performing banks in the nation and offers a wide array of banking, lending and investing services with more than 60 banking centers and three trust office locations serving California.

    Shares of CVB Financial Corp. common stock are listed on the NASDAQ under the ticker symbol “CVBF”. For investor information on CVB Financial Corp., visit our Citizens Business Bank website at www.cbbank.com and click on the “Investors” tab.

    Contact: 
    David A. Brager
    President and Chief
    Executive Officer
    (909) 980-4030

    The MIL Network –

  • MIL-OSI: Truxton Continues to Add Talent and Depth to the Team

    Source: GlobeNewswire (MIL-OSI)

    NASHVILLE, Tenn., Feb. 05, 2025 (GLOBE NEWSWIRE) — Truxton is pleased to announce the addition of several new colleagues over the last two months. Truxton continues to attract some of the nation’s top talent in the finance industry.

    “Truxton is always looking for talented professionals who can enhance the way we serve our clients,” said Tom Stumb, CEO and Chairman. “Over the past twenty years, we have been fortunate to build a team of dedicated individuals who are committed to doing the right thing for our clients. We truly believe we have the finest team in the industry.”

    Steve Pelmore Jr., CPA joins the Wealth team as Vice President, Tax Strategist and Wealth Advisor. Mr. Pelmore has nearly 20 years of experience in public accounting. Prior to Truxton, he served as a Senior Tax Manager for Blankenship CPA Group and has held various roles with the Internal Revenue Service. Steve is a graduate of the University of Illinois Urbana with a MS in Taxation, a graduate of Tennessee State University with a BBA in Economics and Finance and is a Certified Public Accountant (CPA) and an Enrolled Agent (EA). Prior to his career as a CPA, Steve served as a Captain in the US Army & US Army Reserve, participated in various overseas tours of duty and earned numerous service awards.

    “Steve is an accomplished tax professional that brings considerable capabilities to Truxton which will meaningfully benefit our clients,” said Drew Mallory, Senior Managing Director and Chief Fiduciary Officer. “His strong command of income and transfer taxation immediately strengthens our team’s ability to provide strategic tax advice to Ultra High Net Worth families and business owners.”

    “We are thrilled that Steve has joined our team.  His decades of experience and knowledge and commitment to excellence will serve our clients, colleagues and shareholders well,” remarks Peter Deming, CPA, Senior Wealth and Tax Strategist.

    The Truxton Banking team adds Carson Walter as a Credit Analyst. Mr. Walter is a graduate of The Citadel with Master’s of Business Administration and a graduate of Birmingham-Southern College, earning his BS in Business Administration.

    Nathan Johnson joins the Finance team as an Accountant after five years working as a finance associate for the Middle Tennessee School of Anesthesia. He earned his Master’s of Business Administration from Regis University and his BBA in Accounting from Southern Adventist University.

    Also, Truxton adds Keegan Fornoff as an Office Coordinator. Prior to Truxton, Ms. Fornoff worked in communications and served as an assistant volleyball coach. She is a graduate of Southeast Missouri State University, earning her BS in Psychology, and was a 4-year member of the Division I Women’s Volleyball Team, and later earning her Master’s of Science in Exercise and Sport Psychology at Southern Illinois University Edwardsville.

    “We are excited to welcome this exceptional group of professionals,” said Derrick Jones, President of Truxton. “They bring a wealth of talent, experience, and energy, as well as an unwavering dedication to serving sophisticated clients at the highest level. We look forward to the impact they will have on improving client outcomes and driving our business forward.”

    About Truxton
    Truxton is a premier provider of wealth, banking, and family office services for wealthy individuals, their families, and their business interests. Serving clients across the world, Truxton’s vastly experienced team of professionals provides customized solutions to its clients’ complex financial needs. Founded in 2004 in Nashville, Tennessee, Truxton upholds its original guiding principle: do the right thing. Truxton Trust Company is a subsidiary of financial holding company, Truxton Corporation (OTCPK: TRUX). For more information, visit truxtontrust.com.

    The MIL Network –

  • MIL-OSI Security: Counterfeiting cash group disrupted: 12 arrests

    Source: Eurojust

    During an action day on 2 February, actions took place simultaneously in North Macedonia and Serbia. Authorities searched multiple locations and found machines used to make moulds and stamps for counterfeit money, hot rollers, presses, a counterfeit banknote detector and holograms. Over 180 000 counterfeit euro banknotes were seized during searches in Serbia, and over 500 000 in North Macedonia.

    Authorities also seized cash in different currencies, phones and laptops. Evidence collected during the searches will be further analysed to serve the ongoing investigations. Twelve members of the forgers group were arrested in North Macedonia and Serbia.

    The JIT between North Macedonian and Serbian authorities is supported by Eurojust through the Western Balkans Criminal Justice Project. This project strengthens cooperation within the Western Balkans and between the region and the European Union, using modern tools and methods to combat organised crime and terrorism. The JIT allowed the authorities to work together efficiently and effective, exchanging information in real time. The Western Balkans Criminal Justice Project purchased equipment for the North Macedonian and Serbian authorities, which was instrumental in executing the operation.

    Europol played a key role in the operation, supporting law enforcement with expertise on counterfeit banknotes, analytical and financial assistance, and coordination of operational activities. Europol’s analysis identified the country where the counterfeit banknotes were distributed. On the action day, Europol deployed staff to North Macedonia and Serbia to provide technical support and cross-check operational data against Europol’s databases and the European Central Bank’s systems.

    The following authorities carried out the operations:

    North Macedonia: Basic Public Prosecution Office for Prosecuting Organized Crime and Corruption; Investigative Centre from the Prosecution Office and Ministry of Interior

    Serbia: Public Prosecutor’s Office for organized crime, Service for combating organized Crime, Department for combating counterfeiting of money

    MIL Security OSI –

  • MIL-OSI USA: Cramer Reintroduces Fair Access to Banking Act to Protect Legal Industries from Debanking

    US Senate News:

    Source: United States Senator Kevin Cramer (R-ND)

    ***Click here for audio.***

    WASHINGTON, D.C. – In recent years, prominent American banks have engaged in a discriminatory practice, referred to as debanking. Banks and financial institutions use their economic standing to categorically exclude law-abiding, legal industries by refusing to lend or provide services to them. This includes industries such as firearms, ammunition, crypto, federal prison contractors, as well as energy producers. 

    U.S. Senator Kevin Cramer (R-ND), a member of the Senate Banking, Housing, and Urban Affairs Committee, reintroduced his Fair Access to Banking Act, which protects fair access to financial services and ensures banks operate in a safe and sound manner. The legislation requires that lending and services decisions must be based on impartial, risk-based analysis, not political or reputational favoritism. U.S. Representative Andy Barr (R-KY-6) introduced similar legislation in the House of Representatives. 

    “When progressives failed at banning these entire industries, what they did instead is they turned to weaponizing banks as sort of a backdoor to carry out their activist goals,” said Cramer. “Financial institutions are backed by taxpayers, for crying out loud! They should be obligated to provide services in an unbiased, risk-based manner. The Fair Access to Banking Act ensures that banks provide fair access to services and enacts strict penalties for categorically discriminating against legal industries and individuals.”

    Specifically, this legislation penalizes banks and credit unions with over $10 billion in total consolidated assets, or their subsidiaries, if they refuse to do business with any legally compliant, credit-worthy person. It also prevents payment card networks from discriminating against any qualified person because of political or reputational considerations. The bill requires qualified banks to provide written justification for why they are denying a person financial services. Further, the Fair Access to Banking Act would penalize providers who fail to comply with the law by disqualifying institutions from using discount window lending programs, terminating status as an insured depository institution or credit union, or imposing a civil penalty of up to $10,000 per violation. 

    The bill is based on President Trump’s Fair Access Rule, which was introduced during his first administration and required financial institutions to make individual risk assessments rather than broad decisions regarding entire industries or categories of customers. Cramer helped craft the rule, and his legislation codifies these protections. The Biden administration paused the rule’s implementation in early 2021.

    Cramer’s legislation is a response to United States banks and financial institutions increasingly using their economic standing to categorically discriminate against legal industries and conservatives. For example, Citigroup instituted a policy in 2018 to withhold project-related financing for coal plants, and in 2020, five of the country’s largest banks announced they would not provide loans or credit to support oil and gas drilling in the Arctic National Wildlife Refuge, despite explicit congressional authorization. Such exclusionary practices also extend to industries protected by the Second Amendment, with Capital One, among other banks, previously including “ammunitions, firearms, or firearm parts” in the prohibited payments section of its corporate policy manual, and payment services like Apple Pay and PayPal denying their services for transactions involving firearms or ammunition. First Lady Melania Trump and technology companies alike allege banks have debanked them or refused to do business. During his address to the World Economic Forum in January, President Trump highlighted big banks and their discriminatory practices of targeting conservatives.  

    In the years since Cramer first introduced the Fair Access to Banking Act, support has grown every Congress. At the state level, Florida and Tennessee passed Fair Access laws and similar legislation was introduced in Arizona, Georgia, Idaho, Indiana, Iowa, Kentucky, Louisiana, and South Dakota. Banks have dropped membership in discriminatory groups which were aimed at starving specific industries.

    The Fair Access to Banking Act is endorsed by several organizations, including the National Shooting Sports Foundation, National Rifle Association, North Dakota Petroleum Council, National Cattlemen’s Beef Association, The Digital Chamber, Blockchain Association, Independent Petroleum Association of America, Online Lenders Alliance, Day 1 Alliance, GEO Group, Lignite Energy Council, National Association of Wholesaler-Distributors, and National Mining Association.

    The bill is cosponsored by U.S. Senators Jim Banks (R-IN), John Barrasso (R-WY), Marsha Blackburn (R-TN), John Boozman (R-AR), Katie Britt (R-AL), Ted Budd (R-NC), Shelley Moore Capito (R-WV), Bill Cassidy (R-LA), John Cornyn (R-TX), Tom Cotton (R-AR), Mike Crapo (R-ID), Ted Cruz (R-TX), John Curtis (R-UT), Steve Daines (R-MT), Joni Ernst (R-IA), Deb Fischer (R-NE), Lindsey Graham (R-SC), Bill Hagerty (R-TN), John Hoeven (R-ND), Cindy Hyde-Smith (R-MS), Ron Johnson (R-WI), Jim Justice (R-WV), John Kennedy (R-LA), James Lankford (R-OK), Cynthia Lummis (R-WY), Roger Marshall (R-KS), Dave McCormick (R-PA), Jerry Moran (R-KS), Bernie Moreno (R-OH), Markwayne Mullin (R-OK), Pete Ricketts (R-NE), Jim Risch (R-ID), Eric Schmitt (R-MO), Rick Scott (R-FL), Tim Scott (R-SC), Tim Sheehy (R-MT), Dan Sullivan (R-AK), Thom Tillis (R-NC), Tommy Tuberville (R-AL), and Roger Wicker (R-MS).

    Click here for bill text. 

    MIL OSI USA News –

  • MIL-OSI USA: RELEASE: Mullin, Cramer, Colleagues Reintroduce Fair Access to Banking Act to Protect Legal Industries from Debanking

    US Senate News:

    Source: United States Senator MarkWayne Mullin (R-Oklahoma)

    RELEASE: Mullin, Cramer, Colleagues Reintroduce Fair Access to Banking Act to Protect Legal Industries from Debanking

    Washington, D.C. – In recent years, prominent American banks have engaged in a discriminatory practice, referred to as debanking. Banks and financial institutions use their economic standing to categorically exclude law-abiding, legal industries by refusing to lend or provide services to them. This includes industries such as firearms, ammunition, crypto, federal prison contractors, as well as energy producers. 

    U.S. Senators Markwayne Mullin (R-OK), Kevin Cramer (R-ND), a member of the Senate Banking, Housing, and Urban Affairs Committee, and 39 of their Senate GOP colleagues reintroduced the Fair Access to Banking Act, which protects fair access to financial services and ensures banks operate in a safe and sound manner. The legislation requires that lending and services decisions must be based on impartial, risk-based analysis, not political or reputational favoritism. U.S. Representative Andy Barr (R-KY-6) introduced similar legislation in the House of Representatives. 

    Specifically, this legislation penalizes banks and credit unions with over $10 billion in total consolidated assets, or their subsidiaries, if they refuse to do business with any legally compliant, credit-worthy person. It also prevents payment card networks from discriminating against any qualified person because of political or reputational considerations. The bill requires qualified banks to provide written justification for why they are denying a person financial services. Further, the Fair Access to Banking Act would penalize providers who fail to comply with the law by disqualifying institutions from using discount window lending programs, terminating status as an insured depository institution or credit union, or imposing a civil penalty of up to $10,000 per violation. 

    The bill is based on President Trump’s Fair Access Rule, which was introduced during his first administration and required financial institutions to make individual risk assessments rather than broad decisions regarding entire industries or categories of customers. The Biden administration paused the rule’s implementation in early 2021.

    The senators’ legislation is a response to United States banks and financial institutions increasingly using their economic standing to categorically discriminate against legal industries and conservatives. For example, Citigroup instituted a policy in 2018 to withhold project-related financing for coal plants, and in 2020, five of the country’s largest banks announced they would not provide loans or credit to support oil and gas drilling in the Arctic National Wildlife Refuge, despite explicit congressional authorization. Such exclusionary practices also extend to industries protected by the Second Amendment, with Capital One, among other banks, previously including “ammunitions, firearms, or firearm parts” in the prohibited payments section of its corporate policy manual, and payment services like Apple Pay and PayPal denying their services for transactions involving firearms or ammunition. First Lady Melania Trump and technology companies alike allege banks have debanked them or refused to do business. During his address to the World Economic Forum in January, President Trump highlighted big banks and their discriminatory practices of targeting conservatives.  

    In the years since the first introduction of the Fair Access to Banking Act, support has grown every Congress. At the state level, Florida and Tennessee passed Fair Access laws and similar legislation was introduced in Arizona, Georgia, Idaho, Indiana, Iowa, Kentucky, Louisiana, and South Dakota. Banks have dropped membership in discriminatory groups which were aimed at starving specific industries.

    The Fair Access to Banking Act is endorsed by several organizations, including the National Shooting Sports Foundation, National Rifle Association, North Dakota Petroleum Council, National Cattlemen’s Beef Association, The Digital Chamber, Blockchain Association, Independent Petroleum Association of America, Online Lenders Alliance, Day 1 Alliance, GEO Group, the Lignite Energy Council, and National Association of Wholesaler-Distributors.

    Joining Sens. Mullin and Cramer on this legislation are Senators Jim Banks (R-IN), John Barrasso (R-WY), Marsha Blackburn (R-TN), John Boozman (R-AR), Katie Britt (R-AL), Ted Budd (R-NC), Shelley Moore Capito (R-WV), Bill Cassidy (R-LA), John Cornyn (R-TX), Tom Cotton (R-AR), Mike Crapo (R-ID), Ted Cruz (R-TX), John Curtis (R-UT), Steve Daines (R-MT), Joni Ernst (R-IA), Deb Fischer (R-NE), Lindsey Graham (R-SC), Bill Hagerty (R-TN), John Hoeven (R-ND), Cindy Hyde-Smith (R-MS), Ron Johnson (R-WI), Jim Justice (R-WV), John Kennedy (R-LA), James Lankford (R-OK), Cynthia Lummis (R-WY), Roger Marshall (R-KS), Dave McCormick (R-PA), Jerry Moran (R-KS), Bernie Moreno (R-OH), Pete Ricketts (R-NE), Jim Risch (R-ID), Eric Schmitt (R-MO), Rick Scott (R-FL), Tim Scott (R-SC), Tim Sheehy (R-MT), Dan Sullivan (R-AK), Thom Tillis (R-NC), Tommy Tuberville (R-AL), and Roger Wicker (R-MS).

    Read exclusively about the Fair Access to Banking Act in the Daily Wire.

    Click here for bill text. 

    MIL OSI USA News –

  • MIL-OSI USA: Ricketts Votes to Confirm Scott Turner as U.S. Secretary of Housing and Urban Development

    US Senate News:

    Source: United States Senator Pete Ricketts (Nebraska)

    February 5, 2025

    February 5, 2025

    WASHINGTON, D.C. – Today, U.S. Senator Pete Ricketts (R-NE), a member of the Senate Committee on Banking, Housing, and Urban Affairs, issued the following statement after voting to confirm Scott Turner as the U.S. Secretary of Housing and Urban Development (HUD). 

    “Scott Turner led the White House initiative on Opportunity Zones which expanded economic opportunity for people across the country. He understands how targeted reforms can make housing more affordable and available for Americans. He’s committed to cutting red tape and delivering the solutions we need to address homelessness and restore the American dream.”

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    MIL OSI USA News –

  • MIL-OSI: Bpce: Appointments of Mohamed Kallala and Philippe Setbon to the Executive Management Committee of BPCE

    Source: GlobeNewswire (MIL-OSI)

    Appointments of Mohamed Kallala and Philippe Setbon to the Executive Management Committee of BPCE

    Paris, February 5, 2025

    Mohamed Kallala, Chief Executive Officer of Natixis, in charge of Corporate & Investment Banking, and Philippe Setbon, Deputy Chief Executive Officer of Natixis, in charge of Asset & Wealth Management, are joining the Executive Management Committee of BPCE, following their direct reporting to Nicolas Namias, CEO of BPCE, since January 1, 2025. The Executive Management Committee of BPCE now has a total of twelve members.

    Biography of Mohamed Kallala

    Mohamed Kallala started his career in 1993 as an ALM trader for BNP Paribas before being appointed Head of Mergers & Acquisitions at Crédit Agricole Indosuez in 1995. In 2000, he founded Global Equities Corporate Finance. In 2005, he joined Natixis and became Head of Real Estate Specialist Advisory. In 2010, Mohamed was appointed Head of Real Estate Finance before becoming Global Head of Investment Banking in 2016. In early 2020, Mohamed Kallala became Global Head of Natixis Corporate & Investment Banking’s Global Markets activity, before becoming its Global Co-Head later the same year. In 2023, he was appointed Global Head of Natixis Corporate & Investment Banking businesses. In January 2025, he was appointed Chief Executive Officer of Natixis, in charge of Corporate & Investment Banking.

    Biography of Philippe Setbon

    Philippe Setbon began his career in 1990 as a financial analyst with Barclays Bank in Paris, before working for Groupe Azur-GMF for 10 years as Head of Asset Management. He then joined Generali Group in 2004 where he held a succession of senior roles including CEO of Generali Investments France, CEO of Generali Investments Europe Sgr and Chief Investment Officer for the whole Generali Group. He joined Groupama in 2013 as CEO of Groupama Asset Management. In 2019, he became CEO of Ostrum Asset Management, then CEO of Natixis Investment Managers in 2023. Philippe Setbon has been President of the French Asset Management Association (AFG) since June 2022. In January 2025, Philippe Setbon was appointed Deputy Chief Executive Officer of Natixis, in charge of Asset & Wealth Management.

    For Nicolas Namias, CEO of BPCE: “I would like to welcome Mohamed Kallala and Philippe Setbon to the Executive Management Committee, recognizing their professionalism and the excellent results they have achieved for the two global businesses of Groupe BPCE. This also demonstrates our commitment to the continued development of Natixis CIB and Natixis IM in service of their direct clients, as well as those of the Banques Populaires and Caisses d’Epargne. This move further enriches our Executive Management Committee by providing a balanced representation of each of the Group’s businesses, including retail banking and insurance as well as those with a global dimension, and our major functions. Now comprising 12 members, the Executive Management Committee illustrates the richness of career paths within the group, blending expertise and experience, and our ability to attract and nurture talent.”

    © Photo Credits :
    Mohamed Kallala : Fabrice Vallon
    Phlippe Setbon : Noura Felfel

    About Groupe BPCE

    Groupe BPCE is the second-largest banking group in France and the fourth in Europe. Through its 100,000 staff, the group serves 35 million customers – individuals, professionals, companies, investors and local government bodies – around the world. It operates in the retail banking and insurance fields in France via its two major networks, Banque Populaire and Caisse d’Epargne, along with Banque Palatine and Oney. It also pursues its activities worldwide with the asset & wealth management services provided by Natixis Investment Managers and the wholesale banking expertise of Natixis Corporate & Investment Banking. The Group’s financial strength is recognized by four credit rating agencies with the following senior preferred LT ratings: Moody’s (A1, stable outlook), Standard & Poor’s (A+, stable outlook), Fitch (A+, stable outlook) and R&I (A+, stable outlook).

    Attachment

    The MIL Network –

  • MIL-OSI: Bpce: Groupe BPCE Results Q4-24 & 2024

    Source: GlobeNewswire (MIL-OSI)

    Paris, February 5, 2025

    STRONG PERFORMANCES IN 2024

    • Excellent performance in Q4-24 •
    • Net income (Group share) of €3.5bn in 2024, strong growth of +26% •
    • VISION 2030: dynamic implementation of the strategic project •

    Q4-24: net banking income at €6bn, up +11% YoY; very good performance achieved by retail banking and the global businesses; net income of €913m, +140% YoY
    2024: net banking income of €23.3bn, 5% growth YoY driven by all the business lines; gross operating income up by a strong 18% notably thanks to good cost control; reported net income2of €3.5bn, up by 26% YoY

    Very high levels of solvency and liquidity with a CET1 ratio of 15.6%3 and a LCR of 142%4 at end-2024

    RETAIL BANKING & INSURANCE    Sharp 14% growth in revenues in Q4-24 and 4% in 2024 driven in particular by the confirmed rebound in net interest margins and commissions. The Banque Populaire and Caisse d’Epargne retail banking networks enjoyed sustained growth in their customer bases with the addition of 846,000 new clients6in 2024

    • Local & regional financing: €84bn of funding for our clients of individual, professional, corporate, and institutional clients; 1% year-on-year growth in loan outstandings, rising to a total of €724bn at end-December 2024
    • Deposits & savings7up by €5bn year-on-year, reaching a total of €681bn at end-December 2024
    • Insurance: gross inflows8 of €14.9bn in life insurance in 2024. Premiums up 15% in 2024 YoY. The equipment rate9for P&C and Personal Protection insurance stood at ~35% at end-December 2024
    • Financial Solutions & Expertise: net banking income remained stable in Q4-24 and rose by 2% in full-year 2024 vs. a high basis of comparison in 2023. Good performance reported by the Leasing and Consumer Credit activities
    • Digital & Payments: +5% growth in the number of card transactions at end-December 2024 YoY. Oney net banking income up 8% in full-year 2024

    GLOBAL FINANCIAL SERVICES Strong revenue growth, +8% in Q4-24 and full-year 2024; very dynamic business development in Corporate & Investment Banking, net banking income up 5% in Q4-24 year-on-year; very good performance achieved by Asset Management with net banking income up 11% in Q4-24 year-on-year

    • Corporate & Investment Banking: net banking income of €1.1bn in Q4-24; +19% growth in revenues in Q4-24 YoY for Global Markets, driven by the Fixed-income and Equity segments; net banking income up 2% for Global Finance, driven in particular by Trade Finance activities, and up by 6% for Investment Banking activities in Q4-24
    • Asset & Wealth Management: Natixis IM’s assets under management up 13% YtD, reaching an all-time high of €1,317bn at end-December 2024; very high net fund inflows of €40bn in full-year 2024, particularly from Fixed-Income expertise; net banking income of €968m in Q4-24, reflecting strong growth of 11% YoY.

    Expenses remained stable year-on-year in 2024 and good improvement in the cost/income by 3.5pp

    Prudent provisioning policy: cost of risk of €2.1bn in 2024, i.e. 24bps, standing below the announced guidance level; €596 million in Q4-24, down 20% year-on-year

    Financial strength: CET1 ratio of 15.6%3at end-December 2024; liquidity reserves of €302bn

    VISION 2030 strategic project: fast-paced and dynamic implementation  

    • April 2024: announcement of the project to acquire SGEF, making Groupe BPCE the European leader in equipment leasing; completion of the transaction scheduled for Q1-25.
    • June 2024: plan to create France’s No. 1 payment processor in partnership with BNP Paribas with a view to becoming one of the top 3 players in Europe.
    • June 2024: commercial partnerships with two leaders in their respective markets: Leroy Merlin and Verisure
    • January 2025: announcement of plan to create Europe’s leading asset manager in a joint venture with Generali.
    • Plans to create a shared technology platform for retail banking activities

    1 See the notes on methodology annexed to this press release 2Group share 3 Ratio estimated at end-December 2024 integrating pro forma the coming impact of SGEF and Nagelmackers acquisitions 4Average end-of month LCRs in Q4-24 5 Estimated at end-December 2024 6 196,100 new active clients over the year 7 On-balance sheet savings & deposits within the scope of the Retail Banking & Insurance business unit 8 Excluding reinsurance treaty with CNP Assurance 9 Scope of the individual clients in the BP and CE retail banking networks

    Nicolas Namias, Chairman of the Management Board of BPCE, said: “2024 marked the return of strong performance across all our business lines. Groupe BPCE saw its earnings grow by 26% over the year as a whole and by a total of 140% in the fourth quarter of 2024.

    Banques Populaires and Caisses d’Epargne benefited from the confirmed rebound in their net interest margin along with an extremely buoyant level of commercial activity, illustrated by the arrival of 846,000 new clients in 2024. All the business lines serving the retail banking networks – Insurance, Payments, Financial Solutions & Expertise – generated growth both in full-year 2024 and in the 4thquarter of the year. It also proved to be a remarkable quarter and full-year period for the global business lines managed by Natixis CIB and Natixis IM with, in particular, 19% revenue growth in our capital markets activities in the fourth quarter, and a record-breaking 40 billion euros in net inflows for our asset management activities in the course of the year.

    These results testify to the dynamic implementation of our VISION 2030 strategic project. In the space of a year, we announced the planned acquisition of SGEF, making the Group the front-ranking European equipment leasing specialist, an initiative due to be completed early this year; the creation, with BNP Paribas, of the French leader in payment processing, with a view to becoming one of the top 3 players in Europe; plans to create a champion in asset management with Generali that would be No.1 in Europe in terms of revenues and one of the top 10 asset management specialists worldwide. Today, we announce our ambition to create a common technological platform for the Banques Populaires and Caisses d’Epargne by setting up a joint information system. Designed to further enhance the Group’s performance, this project sets out to optimize the service offered to our 35 million clients and to improve the day-to-day lives of our employees and, in the process, support the development of retail banking in France. These projects give concrete expression to our determination to pursue well-balanced development across our three priority growth areas: France, Europe, and the rest of the world.

    These extremely exciting prospects for the months ahead will be driven by our staff of employees, who this year demonstrated their tremendous mobilization and enthusiasm during the Olympic & Paralympic Games Paris 2024. We gave expression to our promise to share the Games with as many people as possible in every territorial region of France. This event enabled us to strengthen our ties with our clients both in regional France and around the world, and we will continue to foster these relationships by contributing to the sustainable development of the economies in which we do business, in line with our cooperative values.”

    The quarterly financial statements of Groupe BPCE for the period ended December 31, 2024, approved by the Management Board on February 3, 2025, were verified and reviewed by the Supervisory Board, at a meeting chaired by Eric Fougère on February 5, 2025.

    In this document, 2023 figures have been restated on a pro-forma basis (see annex for the reconciliation of reported data to pro-forma data).

    Groupe BPCE

    €m1 Q4-24 Q4-23 % Change 2024 2023 % Change
    Net banking income 6,046 5,462 11% 23,317 22,198 5%
    Operating expenses (4,184) (4,129) 1% (16,384) (16,328) 0%
    Gross operating income 1,862 1,332 40% 6,933 5,870 18%
    Cost of risk (596) (744) (20)% (2,061) (1,731) 19%
    Income before tax 1,262 537 135% 4,956 4,182 19%
    Income tax (326) (159) 106% (1,357) (1,340) 1%
    Net income – Group share 913 381 140% 3,520 2,804 26%
    Exceptional items (64) (100) (35)% (155) (122) 28%
    Underlying2net income – Group share  977 481 103% 3,675 2,925 26%
    Underlying cost to income ratio3 67.8% 74.6% (6.8)pp 69.4% 72.9% (3.5)pp

    1 Reported figures as far as “Net income (Group share)” 2 “Underlying” means exclusive of exceptional items 3 The underlying cost/income ratio of Groupe BPCE is calculated on the basis of net banking income and operating expenses excluding exceptional items. The calculations are detailed in the annex on pages 18 and 24.  

    1.     Groupe BPCE

    Unless specified to the contrary, the financial data and related comments refer to the reported results of the Group and
    business lines; changes express differences between Q4-24 and Q4-23 and between full-year 2024 and full-year 2023.

    Groupe BPCE’s net banking income rose by 11% to reach 6,046 million euros in Q4-24 thanks to strong commercial activity in all business lines. At the end of December 2024, it stood at 23,317 million euros, up 5%.

    Revenues from the Retail Banking & Insurance business unit (RB&I) rose 14% in Q4-24 to 4,064 million euros and stood at 15,397 million euros in full-year 2024, representing growth of 4%. Banques Populaires and Caisses d’Epargne put up a strong commercial performance, attracting more than 846,000 new clients1 across all markets since the beginning of the year.

    Revenues in the Financial Solutions & Expertise business unit, stable in Q4-24 and up 2% in full-year 2024, were driven in particular by the leasing and consumer credit businesses. The Insurance business unit benefited from strong business momentum in life insurance with gross new inflows2 of 14.9 billion euros. Business was buoyant for the Digital & Payments business unit with renewed momentum for Oney.

    Revenues from the Global Financial Services (GFS) business unit were up 8% in Q4-24 and full-year 2024, reaching a total of 2,055 million euros and 7,947 million euros respectively. Corporate & Investment Banking revenues, buoyed up by strong commercial performance across all its business lines, came to 1,087 million euros in Q4-24, up 5%, and to 4,440 million euros in full-year 2024, up 7%. The net banking income generated by Asset & Wealth Management stood at 968 million euros in Q4-24, up 11%, and reached a total of 3,507 million euros in full-year 2024, up 10%. Assets under management, which rose to their highest level ever thanks to record-breaking fund inflows and positive market and currency effects, rose by 13% in the course of the year to reach 1,317 billion euros.

    The net interest margin stood at 7.6 billion euros, up 4% year-on-year, while commission income, which reached 11 billion euros in full-year 2024, was up 7% year-on-year.

    In full-year 2024, operating expenses remained stable at 16,384 million euros, rising 1% to 4,184 million euros in Q4-24, benefitting from positive jaws effects over the 2 periods.

    The underlying cost/income ratio3 improved by 6.8pp in Q4-24 to 67.8%, and by 3.5pp in full-year 2024 to 69.4%

    Gross operating income rose by 40% to 1,862 million euros in Q4-24, and by 18% to 6,933 million euros in full-year 2024.

    Groupe BPCE’s cost of risk, which came to -2,061 million euros in 2024, increased by a total of 19% vs. a low basis of comparison in 2023. In Q4-24, it stood at -596 million euros, down 20%.

    Performing loans are deemed to be rated ‘Stage 1’ or ‘Stage 2,’ while loans with proven risk are rated ‘Stage 3.’

    1    196,100 new active clients in full-year 2024 ² Excluding the reinsurance treaty with CNP Assurances3 The underlying cost/income ratio of Groupe BPCE is calculated on the basis of net banking income and operating expenses excluding exceptional items. The calculations are detailed in the annex on page 24

    For Groupe BPCE, the amount of provisions for performing loans rated ‘Stage 1’ or ‘Stage 2’ corresponds:

    • For the quarter, to a reversal of 31 million euros in Q4-24 vs. an allocation of 34 million euros in Q3-24 and vs. an allocation of 145 million euros in Q4-23,
    • For the 12-month period, a reversal of 177 million euros in 2024 vs. a reversal of 112 million euros in 2023.

    Provisions for loan outstandings with proven risk, rated ‘Stage 3,’ correspond:

    • For the quarter, to an allocation of 627 million euros in Q4-24 vs. an allocation of 488 million euros in Q3-24 and vs. an allocation of 598 million euros in Q4-23,
    • For the 12-month period, an allocation of 2,238 million euros in 2024 vs. an allocation of 1,843 million euros in 2023.

    In Q4-24, the cost of risk for Groupe BPCE stood at 28bps in terms of gross customer outstandings, down 7bps. This figure includes a reversal of 1bp on performing loans (vs. an allocation of 7bps in Q4-23) and an allocation on loan outstandings with proven risk of 29bps vs. an allocation of 28bps in Q4-23.
    In Q4-24, the cost of risk remained stable for the Retail Banking & Insurance business unit at 30bps, including a 1bp provision for performing loans (vs. a 5bps allocation to provisions in Q4-23) and a 30bps allocation on loan outstandings with proven risk, as in Q4-23.
    The cost of risk for the Corporate & Investment Banking business unit came to 55bps (vs. 37bps in Q4-23), including a 13bps reversal on performing loans (vs. a 16bps provision in Q4-23) and a 67bps provision on loans with proven risk (vs. a 21bps provision in Q4-23).

    In 2024, Groupe BPCE’s cost of risk stood at 24bps of gross customer loan outstandings. This figure includes a 2bps reversal of provisions on performing loans (vs. a 1bp reversal in 2023) and a 26bps provision on loans with proven risk (vs. a 22bps provision in 2023).
    The cost of risk was 24bps for the Retail Banking & Insurance business unit (21bps in 2023), including a 2bps reversal on performing loans (as in 2023) and a 26bps provision on loans with proven risk (vs. a 23bps provision in 2023).
    The cost of risk for the Corporate & Investment Banking business unit came to 40bps (24bps in 2023), including a 6bps reversal on performing loans (vs. a 4bps reversal in 2023) and a 46bps provision on loans with proven risk (vs. a 28bps provision in 2023).

    The ratio of non-performing loans to gross loan outstandings stood at 2.5% at December 31, 2024, up 0.1pp compared with end-December 2023.

    Reported net income (Group share) came to 913 million euros in Q4-24, up 140%. In full-year 2024, it stood at 3,520 million euros, up 26%.

    The impact of exceptional items on net income (Group share) was -64 million euros in Q4-24 vs. -100 million euros in Q4-23 and -155 million euros in full-year 2024 vs. -122 million euros in full-year 2023.

    Underlying net income (Group share)1 rose by 103% to stand at 977 million euros in Q4-24, and grew by 26% to 3,675 million euros in full-year 2024.

    1 “Underlying” means exclusive of exceptional items

    2.   A Group mobilized to decarbonize the economy and committed to making impact accessible to all

    Strong commitments in 2024

    • Climate commitments:

    The Group has published new decarbonization ambitions for the 111 most highly emissive industrial sectors: Aluminum, Aviation, Commercial real estate, Residential real estate, Agriculture, Automotive, Steel and Cement, and has strengthened its ambitions in the Power Generation and Oil & Gas sectors.

    • Environmental commitments:

    Groupe BPCE has strengthened its commitment by joining act4nature international.

    • Social commitments by providing financing for players in the social & solidarity-based economy, in social housing and the Public Sector.

    Innovative and concrete actions for our clients

    • The Banques Populaires and Caisses d’Epargne retail banking networks have launched innovations to facilitate home ownership and offer all individual customers energy-efficient renovation solutions to preserve the value of their real-estate assets: for example, by the end of November 2024, over 640 million euros in financing had been granted for energy-efficient home renovation, and the Advice and Sustainable Solutions digital module had received over 5 million unique visitors.
    • The Group serves the SME and ISE clients of the Banques Populaires and Caisses d’Epargne, as well as local communities by providing locally-based advice and by financing the transition of their business models. It has also strengthened its partnership with the European Investment Bank (EIB) for the innovation and energy transition with over one billion euros in transition and decarbonization financing.
    • Green revenues in the CIB rose by +14% in 2024 YoY, driven by sustainable finance and renewable energy & new energy activities including tailored-made solutions and dedicated expertise provided by the Green Hub.

    Groupe BPCE, a pioneer in sustainable finance, launched 5 green and social bond issues in the course of 2024 for an aggregate value of more than 3.6 billion euros, including the 1st Social Bond with a profit-sharing coupon for the benefit of the Institut Robert-Debré du Cerveau de l’Enfant (Children’s Brain Development Institute), supported by APHP (Paris Public Hospitals).

    1 Given the insignificant amount of Natixis CIB’s financing dedicated to freight and passenger ships, Groupe BPCE has not published its action plan for this industrial sector

    3.   Capital, loss-absorbing capacity, liquidity, and funding

    3.1        CET11ratio

    Groupe BPCE’s CET1 ratio at end-December 2024 stood at an estimated 16.2%, unchanged from the previous quarter. It includes the following impacts:

    • Retained earnings: +21bps,
    • Net issuance of cooperative shares: +3bps,
    • Change in risk-weighted assets: – 33bps,
    • Other changes, including variations in the prudential backstop provision, items included under Other Comprehensive Income, and other adjustments: +4bps.

    The Group’s CET1 ratio – presented on a pro-forma basis to reflect the inclusion of the future impacts of the SGEF and Nagelmackers acquisitions (-54bps) – stands at 15.6%,

    At end-December 2024, Groupe BPCE held an equity buffer estimated at 18.6 billion euros above the threshold for triggering the maximum distributable amount (MDA) for equity capital, taking account of the prudential requirements laid down by the ECB applicable on January 2, 2025.

    3.2         TLAC ratio1

    The Total Loss-Absorbing Capacity (TLAC) stood at an estimated 122.1 billion euros at the end of December 2024. The TLAC ratio, expressed as a percentage of risk-weighted assets, stood at an estimated 26.7%2 at the end of December 2024 (without taking account of preferred senior debt for the calculation of this ratio), well above the standard requirements of the Financial Stability Board that were equal to 22.4% at January 2, 2025.

    3.3        MREL ratio1

    Expressed as a percentage of risk-weighted assets at December 31, 2024, Groupe BPCE’s subordinated MREL ratio (without taking account of preferred senior debt for the calculation of this ratio) and the total MREL ratio stood at 26.7%2 and 34.6%, well above the minimum requirements laid down by the SRB at January 2, 2025 of 22.4%3 and 27.3%3 respectively.

    3.4        Leverage ratio1

    At December 31, 2024, the estimated leverage ratio stood at 5.1%, well above the requirement.

    3.5        Liquidity reserves at a high level

    The LCR (Liquidity Coverage Ratio) for Groupe BPCE is well above the regulatory requirement of 100%, at an average of 142% of month-end LCRs for the 4th quarter 2024.
    Liquidity reserves stood at 302 billion euros at December 2024, representing a coverage ratio of 177% of short-term financial debt (including short-term maturities of medium- to long-term financial debt).

    3.6        MLT funding plan: 32% of the 2025 objectives completed as at January 31, 2025

    The size of the MLT funding plan, excluding structured private placements and Asset Backed Securities (ABS), has been set at 23 billion euros for 2025. The breakdown per type of debt is as follows:

    • 10 billion euros in TLAC funding: 2.0 billion euros in Tier 2 funding and 8 billion euros in senior non-preferred debt,
    • 3 billion euros senior preferred debt,
    • 10 billion euros in covered bonds.

    The target for ABS is 8 billion euros.

    At January 31, 2025, Groupe BPCE had raised 7.3 billion euros, excluding structured private placements and ABS (32% of the 23 billion euro funding plan):

    • 5.6 billion euros in TLAC funding: 1.7 billion euros in Tier 2 funding (87% of requirements) and 3.9 billion euros in senior non-preferred debt (49% of requirements),
    • 1.7 billion euros in covered bonds (17% of requirements).

    At January 31, 2025, the amount of ABS raised came to a total of 0.7 billion euros, i.e. 8% of the target.

    Capital adequacy, Total loss-absorbing capacity – see the note on methodology
    1 Estimated at December 31, 2024 2 Groupe BPCE has chosen to waive the possibility provided by Article 72 Ter (3) of the Capital Requirements Regulation (CRR) to use senior preferred debt to ensure compliance with its TLAC/subordinated MREL requirements. 3 Following reception of MREL’s annual letter for 2024

    4.   Results of the business lines

    Unless specified to the contrary, the financial data and related comments refer to the reported results of the Group and
    business lines; changes express differences between Q4-24 and Q4-23 and between full-year 2024 and full-year 2023.

    4.1        Retail Banking & Insurance

    €m1 Q4-24 % Change 2024 % Change
    Net banking income 4,064 14% 15,397 4%
    Operating expenses (2,497) (0)% (9,902) 1%
    Gross operating income 1,567 45% 5,495 10%
    Cost of risk (556) (13)% (1,751) 16%
    Income before tax 998 142% 3,807 8%
    Exceptional items (45) (60)% (115) 3%
    Underlying2income before tax 1,044 98% 3,922 8%
    Underlying cost/income ratio3 60.4% (8.5)pp 63.6% (2.2)pp

    At end-December 2024, loan outstandings rose by 1% to 724 billion euros. Outstanding home loans remained stables at 400 billion euros, while equipment loans rose by 3% during the year to 199 billion euros.

    At end-December 2024, on-balance sheet customer deposits & savings totaled 681 billion euros, representing an increase of 5 billion euros year-on-year, with a 5% rise in term accounts and a 3% year-on-year increase in both regulated and unregulated passbook savings accounts.

    Net banking income for the Retail Banking & Insurance business unit rose by 14% in Q4-24 to 4,064 million euros, and by 4% in full-year 2024 to 15,397 million euros. In Q4-24, these changes reflect the good level of business activities: in the networks, revenues rose by 17% for the Banque Populaire retail banking network and by 14% for the Caisse d’Épargne network. Net banking income for both networks also recorded growth in full-year 2024, by 4% for the Banque Populaire network and by 3% for the Caisse d’Épargne network.

    The Financial Solutions & Expertise business lines continued to benefit from strong sales momentum, particularly in the leasing segment. Revenues remained stable in Q4-24 but saw 2% growth in full-year 2024. In Insurance, premiums4 rose by 15% in 2024, driven by both Non-Life Insurance and Life & Personal Protection Insurance. The Digital & Payments business unit reported a 14% increase in revenues in Q4-24 and 7% growth in full-year 2024, driven by card transactions and instant payment operations.

    Operating expenses remained tightly managed, stable in Q4-24 at 2,497 million euros, and up by just 1% in full-year 2024 to 9,902 million euros.

    The underlying cost/income ratio3 improved by 8.5pp in Q4-24 to 60.4%, and by 2.2pp in full-year 2024 to 63.6%.

    The business unit’s gross operating income benefited from a strong positive jaws effect, rising by 45% in Q4-24 to
    1,567 million euros and by 10% in full-year 2024 to 5,495 million euros.

    The cost of risk amounted to -556 million euros in Q4-24, down 13%, and stood at -1,751 million euros in 2024, up 16%.

    For the business unit as a whole, income before tax amounted to 998 million euros in Q4-24, up 142%, and stood at 3,807 million in full-year 2024, up 8%.

    Underlying income before tax2 amounted to 1,044 million euros in Q4-24, up 98%, and came to 3,922 million euros in full-year 2024, up 8%.

    1 Reported figures until “Income before tax” 2 “Underlying” means exclusive of exceptional items 3 The business line cost/income ratios have been calculated on the basis of net banking income and underlying operating expenses 4Excluding reinsurance treaty with CNP Assurance

    4.1.1         Banque Populaire network
    The Banque Populaire retail banking network is comprised of 14 cooperative banks (12 regional Banques Populaires along
    with CASDEN Banque Populaire and Crédit Coopératif) and their subsidiaries, Crédit Maritime Mutuel, and the Mutual
    Guarantee Companies.

    €m1 Q4-24 % Change 2024 % Change
    Net banking income 1,614 17% 6,098 4%
    Operating expenses (980) 1% (4,047) 2%
    Gross operating income 634 56% 2,051 8%
    Cost of risk (266) (6)% (814) 25%
    Income before tax 352 137% 1,285 (2)%
    Exceptional items (17) 77% (51) ns
    Underlying2income before tax 369 133% 1,336 2%
    Underlying cost/income ratio3 59.7% (10.2)pp 65.5% (1.9)pp

    Loan outstandings remained stable year-on-year, standing at 301 billion euros at the end of December 2024.
    On-balance sheet customer deposits & savings decreased by 2 billion euros year-on-year at the end of December 2024, with term accounts remaining stable during the 12-month period, while both regulated and unregulated passbook savings accounts saw 2% year-on-year growth.

    Net banking income came to 6,098 million euros in full-year 2024, up 4% year-on-year. This included 3.2 billion euros in net interest margin4,5 up 5% year-on-year, and 2.9 billion euros in commissions5 (up 3% year-on-year).
    In Q4-24, net banking income came to a total of 1,614 million euros, up 17% year-on-year.

    Operating expenses rose by a limited 1% in Q4-24 to 980 million euros, and increased by 2% in full-year 2024, to 4,047 million euros.
    The underlying cost/income ratio3 consequently saw a 10.2pp improvement in Q4-24, to 59.7%, and a 1.9pp improvement in full-year 2024, to 65.5%.

    Gross operating income benefited from positive jaws effects, rising by 56% to 634 million euros in Q4-24 and by 8% to 2,051 million euros in full-year 2024.

    The cost of risk stood at -266 million euros in Q4-24, down 6%, and -814 million euros in 2024, up 25%.

    Income before tax came to 352 million euros in Q4-24 (+137%) and 1,285 million euros in 2024 (-2%).

    Underlying income before tax2 amounted to 369 million euros in Q4-24 (+133%) and 1,336 million euros in full-year 2024
    (+2%).

    1 Reported figures until “Income before tax” 2 “Underlying” means exclusive of exceptional items 3 The business line cost/income ratios have been calculated on the basis of net banking income and underlying operating expenses 4 Excluding provisions for home-purchase savings schemes 5 Income on regulated savings has been restated to account for the net interest margin and included under commissions

    4.1.2        Caisse d’Epargne network
    The Caisse d’Epargne retail banking network comprises 15 individual Caisses d’Epargne along with their subsidiaries

    €m1 Q4-24 % Change 2024 % Change
    Net banking income 1,616 14% 6,054 3%
    Operating expenses (1,084) 0% (4,216) 1%
    Gross operating income 531 55% 1,838 10%
    Cost of risk (205) (6)% (640) 16%
    Income before tax 328 161% 1,200 7%
    Exceptional items (27) 171% (60) ns
    Underlying2income before tax 355 162% 1,260 13%
    Underlying cost/income ratio3 65.4% (9.8)pp 68.7% (2.7)pp

    Loan outstandings rose by 1% year-on-year to 376 billion euros at the end of December 2024.
    On-balance sheet customer deposits & savings increased by 5 billion euros year-on-year, with growth in term accounts (+12%) and an increase in regulated and unregulated passbook savings accounts (+3%).

    Net banking income rose by 3% to reach 6,054 million euros in full-year 2024, including:

    • 2.6 billion euros in net interest margin4,5, down 3% year-on-year,
    • 3.4 billion euros in commissions5 up 7% year-on-year.

    Net banking income came to a total of 1,616 million euros, up 14% year-on-year, in Q4-24 and stood at 6,054 million euros, up 3% year-on-year in full-year 2024.

    Operating expenses remained stable at 1,084 million euros in Q4-24, and rose by 1% in full-year 2024 to 4,216 million euros.

    The underlying cost/income ratio3 improved by 9.8pp to 65.4% in Q4-24 and by 2.7pp to 68.7% in full-year 2024.

    Gross operating income benefited from positive jaws effects in Q4-24 (+55%), rising to 531 million euros, and enjoyed 10% growth in full-year 2024, rising to 1,838 million euros.

    The cost of risk came to -205 million euros in Q4-24, down 6%, and to -640 million euros in 2024, up 16%.

    Income before tax rose by 161% to 328 million euros in Q4-24, and came to 1,200 million euros in 2024.
    (+7%).

    Underlying income before tax2 amounted to 355 million euros in Q4-24 (+162%) and 1,260 million euros in full-year 2024
    (+13%).

    1 Reported figures until “Income before tax” 2 “Underlying” means exclusive of exceptional items 3 The business line cost/income ratios have been calculated on the basis of net banking income and underlying operating expenses 4 Excluding provisions for home-purchase savings schemes 5 Income on regulated savings has been restated to account for the net interest margin and included under commissions

    4.1.3        Financial Solutions & Expertise

    €m1 Q4-24 %

    Change

    		 2024 %

    Change
    Net banking income 334 (0)% 1,303 2%
    Operating expenses (169) 1% (636) 1%
    Gross operating income 165 (2)% 667 3%
    Cost of risk (38) (30)% (108) 11%
    Income before tax 125 11% 555 2%
    Exceptional items 0 ns 0 ns
    Underlying2income before tax 125 11% 555 1%
    Underlying cost/income ratio3 50.7% 1.0pp 48.8% (0.3)pp

    Sales momentum remained strong in services designed for individual customers, particularly in consumer credit, with average loan outstandings (personal loans and revolving credit) up 7% year-on-year, consolidating the Group’s position as France’s leading bank for consumer credit.

    The Leasing activity continued to provide robust support to companies with growth in average outstandings (+10% year-on-year) chiefly driven by equipment leasing (+17%). Energéco, a player committed to the renewable energies sector, had an exceptional year with production exceeding, for the first time, one billion transactions arranged.

    Despite the unfavorable business environment, the business lines working in the housing and real estate sector demonstrated their resilience with confirmation in Q4-2024 of the positive upturn of activity in personal loan guarantees, leading to an increase in gross written premiums (+2% in Q4-24 year-on-year vs. -40% in the first 9 months of 2024).

    Net banking income for the Financial Solutions & Expertise business unit remained stable at 334 million euros in Q4-24, but rose 2% to 1,303 million euros in full-year 2024.

    Operating expenses, which stood at 169 million euros in Q4-24 and 636 million euros in full-year 2024, remained tightly managed.

    The underlying cost/income ratio3 increased by 1.0pp in Q4-24 to 50.7% and improved by 0.3pp in full-year 2024 to 48.8%.

    Gross operating income, which came to 165 million euros in Q4-24, was down 2%; it stood at 667 million euros in full-year 2024, up 3%.

    The cost of risk stood at -38 million euros in Q4-24, down 30%, and at -108 million euros in full-year 2024 (+11%).

    Income before tax rose by 11% to 125 million euros in Q4-24 and increased by 2% to 555 million euros in full-year 2024.

    Underlying income before tax2 rose by 11% in Q4-24 and by 1% in full-year 2024, to 125 million euros and 555 million euros respectively.

    1 Reported figures until “Income before tax” 2 “Underlying” means exclusive of exceptional items 3 The business line cost/income ratios have been calculated on the basis of net banking income and underlying operating expenses

    4.1.4        Insurance1
    The results presented below concern the Insurance business unit held directly by BPCE since March 1, 2022.

    €m2 Q4-24 % Change 2024 % Change
    Net banking income 171 17% 694 10%
    Operating expenses3 (36) (10)%4 (143) (12)%4
    Gross operating income 135 28% 550 17%
    Income before tax 141 32% 566 19%
    Exceptional items 0 ns 0 ns
    Underlying5income before tax 141 30% 566 17%
    Underlying cost/income ratio6 21.3% (5.3)pp 20.7% (4.1)pp

    In Q4-24, premiums7 reached 4.8 billion euros, up 12% thanks to the considerable dynamism demonstrated by Life Insurance and Life & Personal Protection insurance. In full-year 2024, premiums7 rose by 15% to 18.6 billion euros, with a 16% increase for Life & Personal Protection insurance and a 9% increase for Property & Casualty insurance.

    Life insurance assets under management7 reached 103 billion euros at the end of December 2024 thanks to record-breaking net inflows in both euro funds and unit-linked products. Since the end of December 2023, life insurance assets have risen by 12%, driven by significant positive inflows in both euro funds and unit-linked products. Gross inflows7 in life insurance stood at 14.9 billion euros in 2024. Unit-linked products accounted for 53% of inflows7 at the end of December 2024.

    In the Property & Casualty segment, the client equipment rate for both networks was approximately 35%8 at the end of December 2024, up 0.5pp since the end of December 2023.

    Net banking income rose by 17% in Q4-24 to 171 million euros, and rose by 10% to 694 million euros in full-year 2024.

    Operating expenses3 fell by 10%4 year-on-year in Q4-24 to 36 million euros, and by 12%4 in full-year 2024 to 143 million euros.

    The underlying cost/income ratio6 improved by 5.3pp to stand at 21.3% in Q4-24, and improved by 4.1pp to reach 20.7% in full-year 2024.

    Thanks to positive jaws effects in Q4-24 and full-year 2024, EBITDA rose by 28% and 17% respectively.

    Income before tax also improved, rising by 32% to 141 million euros in Q4-24 and by 19% to 566 million euros in full-year 2024.

    Underlying5income before tax came to 141 million euros in Q4-24 (+30%) and to 566 million euros in full-year 2024 (+17%).

    1 BPCE Assurances 2 Reported figures until “Income before tax” 3 “Operating expenses” corresponds to “non-attributable expenses” under IFRS 17, i.e. all costs that are not directly attributable to insurance contracts 4 At constant method: +7% in Q4-24 YoY and +4% in 2024 YoY 5 “Underlying” means exclusive of exceptional items 6 The business line cost/income ratios have been calculated on the basis of net banking income and underlying operating expenses 7 Excluding reinsurance treaty with CNP Assurance
    8 Scope: combined individual clients of the BP and CE networks

    4.1.5         Digital & Payments

    €m1 Q4-24 % Change 2024 % Change
    Net banking income 227 14% 873 7%
    o/w Payments 128 10% 491 6%
    o/w Oney 99 19% 382 8%
    Operating expenses (173) 1% (646) (1)%
    o/w Payments (108) 9% (394) 3%
    o/w Oney (65) (10)% (252) (7)%
    Gross operating income 54 96% 227 39%
    Cost of risk (33) (52)% (126) (26)%
    Income before tax 20 ns 97 ns
    Exceptional items (1) (99)% (5) (96)%
    Underlying2income before tax 21 ns 102 125%
    Underlying cost/income ratio3 76.2% (3.5)pp 73.9% (2.1)pp

    Digital & AI

    At the end of December 2024, 11.8 million customers were active on Banques Populaires and Caisses d’Epargne mobile applications (up 3% vs. end-December 2023).

    The “AI for all” in-house generative AI solution was being used by over 26,000 employees at the end of December 2024 (i.e. 25% of all Group employees.)

    Thanks to transformative AI, 10 million documents had been verified automatically (+71%) by end-December 2024.

    Payments

    Net banking income enjoyed 10% growth in Q4-24 and 6% growth in full-year 2024, while operating expenses rose 9% in Q4-24 and 3% in full-year 2024.

    The widespread use of Wero (European Payments Initiative) enables all customers to send and receive money via instant account-to-account payments in less than 10 seconds. Wero handles 2 million transactions per month and serves over 2 million active customers.

    In the Payment Solutions business, the number of card transactions rose by 5% year-on-year, with continued growth in mobile and instant payments (+54% and +49% year-on-year respectively) and the ongoing rollout of Android POS terminals (multiplied by a factor of 2). The launch of Google Pay has strengthened our range of mobile products.

    Oney Bank

    Net banking income rose by 8% in 2024 thanks to improved margin rates and the asset repricing effect. Oney maintained its leadership position in the BNPL4 segment in France while business was robust in Europe outside France (+19% in volumes year-on-year).

    Management expenses remained well under control, falling by 7% in full-year 2024.

    The sharp drop in the cost of risk in 2024 (-26% YoY) confirms the positive impact of our action plans.
    Net banking income for the Digital & Payments business unit rose by 14% in Q4-24 and by 7% in full-year 2024, to reach 227 million euros and 873 million euros respectively.

    The business unit’s operating expenses were up 1% in Q4-24 and down 1% in full-year 2024, to reach 173 million euros and 646 million euros respectively.

    This led to a 3.5pp improvement in the underlying cost/income ratio3 to 76.2% in Q4-24 and a 2.1pp improvement to 73.9% in full-year 2024.

    Gross operating income, which benefitted from positive jaws effects, rose by 96% in Q4-24 to 54 million euros, and by 39% to 227 million euros in full-year 2024.

    The cost of risk fell by 52% in Q4-24 to -33 million euros, and by 26% in full-year 2024 to -126 million euros.

    Income before tax amounted to 20 million euros in Q4-24 and 97 million euros full-year 2024.

    Underlying2income before tax came to 21 million euros in Q4-24 and 102 million euros in full-year 2024, equal to a sharp rise of 125%.

    1 Reported figures until “Income before tax” 2 “Underlying” means exclusive of exceptional items 3 The business line cost/income ratios have been calculated on the basis of net banking income and underlying operating expenses 4 Buy Now Pay Later

    4.2 Global Financial Services
    The GFS business unit includes the Asset & Wealth Management activities and the Corporate & Investment Banking activities of
    Natixis.

    €m1   Q4-24 % Change Constant Fx % change 2024 % Change Constant Fx % change
    Net banking income   2,055 8% 7% 7,947 8% 8%
    o/w CIB   1,087 5% 5% 4,440 7% 7%
    o/w AWM   968 11% 10% 3,507 10% 10%
    Operating expenses   (1,501) 8% 7% (5,651) 7% 7%
    o/w CIB   (738) 5% 5% (2,889) 8% 8%
    o/w AWM   (763) 11% 10% (2,763) 6% 6%
    Gross operating income   553 8% 7% 2,296 10% 10%
    Cost of risk   (86) 18%   (268) 73%  
    Income before tax   479 14%   2,051 4%  
    Exceptional items   0 ns   0 ns  
    Underlying2income before tax   479 10%   2,051 3%  
    Underlying cost/income ratio3   73.1% 0.7pp   71.1% (0.1)pp  

    GFS revenues rose by 8% in both Q4-24 and full-year 2024 to respectively 2,055 million euros (+7% at constant exchange rates) and 7,947 million euros (+8% at constant exchange rates). These trends are the result of the robust performance of our global business lines.

    In Q4-24, revenues generated by the Corporate & Investment Banking business rose by 5% to 1,087 million euros thanks, in particular, to the strong performance achieved by the Global Markets (+19%) and Global Finance (+2%) activities in full-year 2024. Net banking income for the CIB business in full-year 2024 rose by 7% to 4,440 million euros.

    In Q4-24, Asset & Wealth Management revenues rose 10% at constant exchange rates to 968 million euros, chiefly thanks to higher management fees year-on-year. Assets under management rose by 13% since the begging of the year to reach a historic high of 1,317 billion euros, with record inflows and a strong positive market and change effects.

    GFS operating expenses increased by 8% in Q4-24 and by 7% in 2024, to respectively 1,501 million euros (+7% at constant exchange rates) and 5,651 million euros (+7% at constant exchange rates). This rise in expenses is in line with revenue growth, leading to positive jaws effects in full-year 2024.

    In Q4-24, Corporate & Investment Banking operating expenses rose by 5% in line with revenue growth. Asset & Wealth Management expenses rose by 10% at constant exchange rates in Q4-24.

    The underlying cost/income ratio3 was 73.1% in Q4-24 and 71.1% in full-year 2024, up 0.7pp and down 0.1pp respectively.

    Gross operating income rose 8% in Q4-24 to 553 million euros (+7% at constant exchange rates); it rose 10% in full-year 2024 to 2,296 million euros (+10% at constant exchange rates).

    The cost of risk increased by 18% in Q4-24 and by 73% in full-year 2024, to -86 million euros and -268 million euros respectively.

    Income before tax rose by 14% in Q4-24 to 479 million euros, and by 4% in full-year 2024 to 2,051 million euros.

    Underlying2income before tax for Q4-24 was 479 million euros, up 10%, and stood at 2,051 million euros in full-year 2024, up 3%.

    1 Reported figures until “Income before tax” 2 “Underlying” means exclusive of exceptional items 3 The business line cost/income ratios have been calculated on the basis of net banking income and underlying operating expenses

    4.2.1        Corporate & Investment Banking
    The Corporate & Investment Banking (CIB) business unit includes the Global markets, Global finance, Investment banking and
    M&A activities of Natixis.

    €m1 Q4-24 % Change 2024 % Change
    Net banking income 1,087 5% 4,440 7%
    Operating expenses (738) 5% (2,889) 8%
    Gross operating income 349 5% 1,551 3%
    Cost of risk (98) 60% (282) 78%
    Income before tax 262 3% 1,293 (3)%
    Exceptional items 0 ns 0 ns
    Underlying2income before tax 262 1% 1,293 (4)%
    Underlying cost/income ratio3 67.9% 0.2pp 65.1% 1.2pp

    Global Markets revenues rose by 19% to 452 million euros in full-year 2024. Revenues generated by the Equity business rose 53% to 96 million euros in Q4-24, driven by a strong performance in the Global Securities Financing activity. FIC-T revenues rose by 14% to 354 million euros in Q4-24, driven by a strong performance in the Credit and Foreign Exchange segments.

    Global Finance revenues were up 2%, rising to 466 million euros in Q4-24 thanks to the sustained momentum of Trade Finance activities.

    Investment Banking revenues were up 6% to 50 million euros in Q4-24, driven by the Acquisition & Strategic Finance and SECM business lines.
    The M&A business lines recorded revenues of 361 million euros in full-year 2024, up 11% year-on-year.
    Natixis Partners has acquired a stake in Financière de Courcelles in order to strengthen its position in the French M&A market within the small, mid, and upper mid-cap segments.

    Net banking income generated by the Corporate & Investment Banking business unit rose by 5% in Q4-24 and by 7% in full-year 2024, to 1,087 million euros and 4,440 million euros respectively.

    Operating expenses, which stood at 738 million euros in Q4-24, reflect 5% growth; expenses rose 8% in full-year 2024 to 2,889 million euros, in line with revenue growth.

    The underlying cost/income ratio3 increased by 0.2pp to 67.9% in Q4-24, and by 1.2pp to 65.1% in full-year 2024.

    Gross operating income rose by 5% in Q4-24 to 349 million euros, and by 3% in full-year 2024 to 1,551 million euros.

    The cost of risk stood at -98 million euros, up 60%, in Q4-24, and at -282 million euros, up 78%, in full-year 2024.

    Income before tax was up 3% to 262 million euros in Q4-24, and down 3% to 1,293 million euros in full-year 2024.

    Underlying2income before tax was up 1% to 262 million euros in Q4-24, and down 4% to 1,293 million euros in full-year 2024.

    1 Reported figures until “Income before tax” 2 “Underlying” means exclusive of exceptional items 3 The business line cost/income ratios have been calculated on the basis of net banking income and underlying operating expenses

    4.2.2        Asset & Wealth Management
    The business unit includes the Asset & Wealth Management activities of Natixis.

    €m1 Q4-24 % Change 2024 % Change
    Net banking income 968 11% 3,507 10%
    Operating expenses (763) 11% (2,763) 6%
    Gross operating income 205 12% 744 27%
    Income before tax 217 32% 759 21%
    Exceptional items 0 ns 0 ns
    Underlying2income before tax 217 24% 759 16%
    Underlying cost/income ratio3 78.8% 1.0pp 78.8% (2.0)pp

    In Asset Management, assets under management4 reached an all-time high of 1,317 billion euros at the end of December 2024, up 13% since the beginning of the year, with record net inflows and strong positive market and currency effects.

    Net inflows into Asset Management4 reached 40 billion euros in full-year 2024, chiefly thanks to fixed-income products from Loomis Sayles and DNCA, and to life insurance products. Private asset inflows remained positive on an annual basis.

    ESG assets accounted for 40.3% of assets under management at the end of December 2024.

    Asset management revenues grew at constant exchange rates by 10% in full-year 2024 but also in Q4-2024, driven by a higher level of average assets under management (+10% in Q4-2024).

    In Asset Management4 in full-year 2024, the total fee rate (excluding performance fees) stood at 25.2bps (stable) and at 36.8bps excluding insurance asset management (-1.1bp).

    Net banking income for the Asset & Wealth Management business unit rose by 11% in Q4-24 to 968 million euros, and by 10% in full-year 2024 to 3,507 million euros.

    Operating expenses came to 763 million euros, up 11% in Q4-24, and to 2,763 million euros, up 6% in full-year 2024.

    The underlying cost/income ratio3increased by 1.0pp in Q4-24 to 78.8%, and improved by 2.0pp in full-year 2024 to 78.8%.

    Gross operating income rose by 12% to 205 million euros in Q4-24, and by 27% to 744 million euros in full-year 2024.

    Income before tax came to 217 million euros in Q4-24 (+32%), and to 759 million euros in full-year 2024 (+21%).

    Underlying2income before tax rose by 24% to 217 million euros in Q4-24, and by 16% to 759 million euros in full-year 2024.
            

    1 Reported figures until “Income before tax” 2 “Underlying” means exclusive of exceptional items 3 The business line cost/income ratios have been calculated on the basis of net banking income and underlying operating expenses 4 Asset management: Europe includes Dynamic Solutions and Vega IM; North America includes WCM IM; excluding Wealth Management

    ANNEXES

    Notes on methodology

    Presentation on the pro-forma quarterly results

    The 2023 quarterly series are presented pro forma with changes in standards and organization:
    The sectoral reallocation of the results of the private equity activities of the entities BP Développement & CE Développement from Corporate center to RB&I and GFS divisions.
    The new management standards adopted by Natixis (including the normative allocation of capital to the business lines) within the GFS division.
    The main evolutions impact RB&I, GFS and the Corporate center.
    The data for 2023 has been recalculated to obtain a like-for-like basis of comparison.
    The quarterly series of Groupe BPCE remain unchanged.
    The tables showing the transition from reported 2023 to pro-forma 2023 are presented on annexes.

    Exceptional items

    Exceptional items and the reconciliation of the reported income statement to the underlying income statement of Groupe BPCE are detailed in the annexes.

    Net banking income

    Customer net interest income, excluding regulated home savings schemes, is computed on the basis of interest earned from transactions with customers, excluding net interest on centralized savings products (Livret A, Livret Développement Durable, Livret Épargne Logement passbook savings accounts) in addition to changes in provisions for regulated home purchase savings schemes. Net interest on centralized savings is assimilated to commissions.

    Operating expenses

    Operating expenses correspond to the aggregate total of the “Operating Expenses” (as presented in the second amendment of Group’s universal registration document, note 4.7 appended to the consolidated financial statements of Groupe BPCE) and “Depreciation, amortization and impairment for property, plant and equipment and intangible assets.”

    Cost/income ratio

    Groupe BPCE’s cost/income ratio is calculated on the basis of net banking income and operating expenses excluding exceptional items. The calculations are detailed in the annexes.
    Business line cost/income ratios are calculated on the basis of underlying net banking income and operating expenses.

    Cost of risk

    The cost of risk is expressed in basis points and measures the level of risk per business line as a percentage of the volume of loan outstandings; it is calculated by comparing net provisions booked with respect to credit risks of the period to gross customer loan outstandings at the beginning of the period.

    Loan oustandings and deposits & savings

    Restatements regarding transitions from book outstandings to outstandings under management are as follows:
    Loan outstandings: the scope of outstandings under management does not include securities classified as customer loans and receivables and other securities classified as financial operations,
    Deposits & savings: the scope of outstandings under management does not include debt securities (certificates of deposit and savings bonds).

    Capital Adequacy

    Common Equity Tier 1 is determined in accordance with the applicable CRR II/CRD IV rules, after deductions.
    Additional Tier-1 capital takes account of subordinated debt issues that have become non-eligible and subject to ceilings at the phase-out rate in force.
    The leverage ratio is calculated in accordance with the applicable CRR II/CRD V rules. Centralized outstandings of regulated savings are excluded from the leverage exposures as are Central Bank exposures for a limited period of time (pursuant to ECB decision 2021/27 of June 18, 2021).

    Total loss-absorbing capacity

    The amount of liabilities eligible for inclusion in the numerator used to calculate the Total Loss-Absorbing Capacity (TLAC) ratio is determined by article 92a of CRR. Please note that a quantum of Senior Preferred securities has not been included in our calculation of TLAC.
    This amount is consequently comprised of the 4 following items:

    • Common Equity Tier 1 in accordance with the applicable CRR II/CRD IV rules,
    • Additional Tier-1 capital in accordance with the applicable CRR II/CRD IV rules,
    • Tier-2 capital in accordance with the applicable CRR II/CRD IV rules,
    • Subordinated liabilities not recognized in the capital mentioned above and whose residual maturity is greater than 1 year, namely:
      • The share of additional Tier-1 capital instruments not recognized in common equity (i.e. included in the phase-out),
      • The share of the prudential discount on Tier-2 capital instruments whose residual maturity is greater than 1 year,
      • The nominal amount of Senior Non-Preferred securities maturing in more than 1 year.

    Liquidity

    Total liquidity reserves comprise the following:

    • Central bank-eligible assets include: ECB-eligible securities not eligible for the LCR, taken for their ECB valuation (after ECB haircut), securities retained (securitization and covered bonds) that are available and ECB-eligible taken for their ECB valuation (after ECB haircut) and private receivables available and eligible for central bank funding (ECB and the Federal Reserve), net of central bank funding,
    • LCR eligible assets comprising the Group’s LCR reserve taken for their LCR valuation,
    • Liquid assets placed with central banks (ECB and the Federal Reserve), net of US Money Market Funds deposits and to which fiduciary money is added.

    Short-term funding corresponds to funding with an initial maturity of less than, or equal to, 1 year and the short-term maturities of medium-/long-term debt correspond to debt with an initial maturity date of more than 1 year maturing within the next 12 months.
    Customer deposits are subject to the following adjustments:

    • Addition of security issues placed by the Banque Populaire and Caisse d’Epargne retail banking networks with their customers, and certain operations carried out with counterparties comparable to customer deposits
    • Withdrawal of short-term deposits held by certain financial customers collected by Natixis in pursuit of its intermediation activities.

    Business line indicators – BP & CE networks

    Average rate (%) for residential mortgages: the average client rate for residential mortgages corresponds to the weighted average of actuarial rates for committed residential mortgages, excluding ancillary items (application fees, guarantees, creditor insurance). The rates are weighted by the amounts committed (offers made, net of cancellations) over the period under review. The calculation is based on aggregate residential mortgages, excluding zero interest rate loans.

    Average rate (%) for consumer loans: the average client rate for consumer loans corresponds to the weighted average of the actuarial rates for committed consumer loans, excluding ancillary items (application fees, guarantees, creditor insurance). The rates are weighted by the amounts committed (offers made net of cancellations) over the period under review. The calculation is based on the scope of amortizable consumer loans, excluding overdraft and revolving loans.

    Average rate (%) for equipment loans: the average customer rate for equipment loans is the average of the actuarial rates for equipment loans in each volume-weighted market.

    Digital indicators

    The number of active customers using mobile apps corresponds to the number of customers who have made at least one visit via one mobile apps over one month.
    The number of documents checked automatically corresponds to the number of documents transmitted by customers through their digital spaces or in a physical branch and checked automatically: eligibility for the LEP popular passbook savings account and customer intelligence documents (KYC) for consumer loans, mortgages (digital) and new business relationships (digital and physical branches).

    Impact indicators

    Financing for energy-efficient home renovation for individual clients: this indicator calculates the aggregate annual production of loans granted to individual customers (natural persons) to finance energy renovation work, expressed in €m:

    – Rénovation Energétique (Energy Renovation): consumer credit for environmentally-friendly properties,
    – ECO PTZ MPR: consumer credit designed for renovation work eligible for the MaPrimeRenov program (government scheme to support energy-efficient home renovation work) for up to a total of €30,000,
    – ECO PTZ: interest-free regulated home improvement loan for up to a total of €50,000

    Number of unique visitors to the ‘Advice and Sustainable Solutions’ digital module: this indicator calculates the aggregate annual number of unique visitors who consult the ‘Advice and sustainable solutions’ page on BP and CE mobile applications.

    Financing BtoB clients in their transition and decarbonization efforts: this indicator calculates the aggregate annual amount of loans granted to businesses to help finance their transition and decarbonization efforts, expressed in €m. This aggregate total is derived from the sum of BtoB loan amounts (Green loans + Impact loans + Vehicle Leasing + Green Lease with Purchase Option/Long-Term Rental agreements (LOA/LDD Green).

    Within the scope of CIB activities, Green revenues are comprised of:

    • Sustainable Finance (GSH scope)
    • Renewable & new energies franchises
    • Activities with clients/assets rated Dark & Medium Green (Green Weighting Factor).

    (restated for scope reconciliations).

    Reconciliation of 2023 data to pro forma data

    Retail banking and Insurance Q1-23
    €m Net banking income Operating expenses Income before tax Income
    tax    		 Net
    income
    Reported figures 3,891 (2,496) 1,107 (269) 840
    Sectoral reallocation 12 (1) 11 0 11
    Pro forma figures 3,903 (2,497) 1,118 (269) 851
    Global Financial Services Q1-23
    €m Net banking income Operating expenses Income before tax Income
    tax    		 Net
    income
    Reported figures 1,822 (1,303) 590 (146) 432
    Sectoral reallocation 0 0 0 0 0
    New rules 32 (2) 30 (4) 26
    Pro forma figures 1,854 (1,305) 621 (151) 458
    Corporate center Q1-23
    €m Net banking income Operating expenses Income before tax Income
    tax    		 Net
    income
    Reported figures 102 (788) (729) (10) (739)
    Sectoral reallocation (12) 1 (11) 0 (11)
    New rules (32) 2 (30) 4 (26)
    Pro forma figures 57 (785) (771) (5) (776)
    Retail banking and Insurance Q2-23
    €m Net banking income Operating expenses Income before tax Income
    tax    		 Net
    income
    Reported figures 3,655 (2,459) 952 (224) 729
    Sectoral reallocation (15) (1) (15) (0) (15)
    Pro forma figures 3,640 (2,460) 936 (224) 713
    Global Financial Services Q2-23
    €m Net banking income Operating expenses Income before tax Income
    tax    		 Net
    income
    Reported figures 1,798 (1,282) 429 (115) 300
    Sectoral reallocation (0) (0) (0) (0) (0)
    New rules 31 (5) 26 (3) 22
    Pro forma figures 1,829 (1,287) 455 (118) 322
    Corporate center Q2-23
    €m Net banking income Operating expenses Income before tax Income
    tax    		 Net
    income
    Reported figures 13 (58) (44) (14) (56)
    Sectoral reallocation 15 1 16 0 16
    New rules (31) 5 (26) 3 (22)
    Pro forma figures (3) (52) (54) (10) (63)
    Retail banking and Insurance Q3-23
    €m Net banking income Operating expenses Income before tax Income
    tax    		 Net
    income
    Reported figures 3,721 (2,358) 1,072 (268) 799
    Sectoral reallocation (13) (1) (14) 0 (14)
    Pro forma figures 3,709 (2,359) 1,058 (268) 785
    Global Financial Services Q3-23
    €m Net banking income Operating expenses Income before tax Income
    tax    		 Net
    income
    Reported figures 1,736 (1,279) 444 (114) 319
    Sectoral reallocation (0) (0) (0) 0 (0)
    New rules 31 (4) 27 (4) 23
    Pro forma figures 1,767 (1,283) 470 (118) 341
    Corporate center Q3-23
    €m Net banking income Operating expenses Income before tax Income
    tax    		 Net
    income
    Reported figures (3) (175) (176) (23) (200)
    Sectoral reallocation 13 1 14 0 14
    New rules (31) 4 (27) 4 (23)
    Pro forma figures (21) (170) (189) (19) (210)
    Retail banking and Insurance Q4-23      
    €m Net banking income Operating expenses Income before tax Income
    tax    		 Net
    income    		      
    Reported figures 3,557 (2,497) 395 (122) 294      
    Sectoral reallocation 19 (1) 18 (0) 18      
    Pro forma figures 3,576 (2,499) 413 (122) 312      
                 
    Global Financial Services Q4-23
    €m Net banking income Operating expenses Income before tax Income
    tax    		 Net
    income
    Reported figures 1,874 (1,389) 391 (118) 255
    Sectoral reallocation 0 (1) (0) (0) (0)
    New rules 33 (4) 29 (3) 26
    Pro forma figures 1,908 (1,394) 420 (121) 280
    Corporate center Q4-23
    €m Net banking income Operating expenses Income before tax Income
    tax    		 Net
    income
    Reported figures 31 (243) (249) 81 (168)
    Sectoral reallocation (20) 2 (18) 0 (18)
    New rules (33) 4 (29) 3 (26)
    Pro forma figures (22) (237) (296) 84 (211)

    Q4-24 & Q4-23 results : reconcialiation of reported data to alternative performance measures

    €m   Net banking income Operating expenses Cost of
    risk    		 Gains or
    losses on
    other assets    		 Income
    before tax    		 Net income
    – Group share
    Reported Q4-24 results   6,046 (4,184) (596) (35) 1,262 913
    Transformation and reorganization costs Business lines/Corporate center 0 (86)   (1) (87) (64)
    Disposals Corporate center       (1) (1) (1)
    Q4-24 results excluding exceptional items   6,045 (4,098) (596) (34) 1,349 977
    €m   Net banking income Operating expenses Cost of
    risk    		 Gains or
    losses on
    other assets    		 Income
    before tax    		 Net income
    – Group share
    Pro forma reported Q4-23 results   5,462 (4,129) (744) (43) 537 381
    Transformation and reorganization costs Business lines/Corporate center (5) (54) (34)   (93) (57)
    Disposals Corporate center       (43) (43) (43)
    Pro forma Q4-23 results excluding exceptional items   5,467 (4,076) (710) (0) 672 481

    2024 & 2023 results : reconcialiation of reported data to alternative performance measures

    €m   Net banking income Operating expenses Cost of
    risk    		 Gains or
    losses on
    other assets    		 Income
    before tax    		 Net income
    – Group share
    Reported 2024 results   23,317 (16,384) (2,061) 28 4,956 3,520
    Transformation and reorganization costs Business lines/Corporate center 3 (208)   (1) (206) (153)
    Disposals Corporate center 0     (3) (3) (3)
    2024 results excluding exceptional items   23,314 (16,176) (2,061) 32 5,165 3,675
    €m   Net banking income Operating expenses Cost of
    risk    		 Gains or
    losses on
    other assets    		 Income
    before tax    		 Net income
    – Group share
    Pro forma reported 2023 results   22,198 (16,328) (1,731) 8 4,182 2,804
    Transformation and reorganization costs Business lines/Corporate center 2 (213) (32)   (242) (164)
    Disposals  Corporate center       (45) (45) (44)
    Litigations Business lines/Corporate center 87       87 87
    Pro forma 2023 results excluding exceptional items   22,108 (16,115) (1,699) 53 4,381 2,925

    Groupe BPCE : underying cost to income ratio

    €m Net banking income Operating expenses Underlying
    cost income ratio
    Q4-24 reported figures 6,046 (4,184)  
    Impact of exceptional items 0 (86)  
    Q4-24 underlying figures 6,045 (4,098) 67.8%
    €m Net banking income Operating expenses Underlying
    cost income ratio
    Q4-23 Pro forma reported figures 5,462 (4,129)  
    Impact of exceptional items (5) (54)  
    Q4-23 Pro forma underlying figures 5,467 (4,076) 74.6%

    Groupe BPCE : underying cost to income ratio

    €m Net banking income Operating expenses Underlying
    cost income ratio
    2024 reported figures 23,317 (16,384)  
    Impact of exceptional items 3 (208)  
    2024 underlying figures 23,314 (16,176) 69.4%
    €m Net banking income Operating expenses Underlying
    cost income ratio
    2023 Pro forma reported figures 22,198 (16,328)  
    Impact of exceptional items 89 (213)  
    2023 Pro forma underlying figures 22,108 (16,115) 72.9%

    Groupe BPCE : quarterly income statement per business line

      RETAIL BANKING
    & INSURANCE    		 GLOBAL FINANCIAL SERVICES CORPORATE CENTER GROUPE
    BPCE
    €m Q4-24 Q4-23 Q4-24 Q4-23 Q4-24 Q4-23 Q4-24 Q4-23 %
    Net banking income 4,064 3,576 2,055 1,908 (73) (22) 6,046 5,462 11%
    Operating expenses (2,497) (2,499) (1,501) (1,394) (186) (237) (4,184) (4,129) 1%
    Gross operating income 1,567 1,077 553 514 (259) (259) 1,862 1,332 40%
    Cost of risk (556) (643) (86) (73) 46 (28) (596) (744) (20)%
    Income before tax 998 413 479 420 (215) (296) 1,262 537 x 2
    Income tax (222) (122) (124) (121) 19 84 (326) (159) x 2
    Non-controlling interests (5) 21 (18) (19) 0 1 (23) 3 ns
    Net income – Group share 772 312 337 280 (196) (211) 913 381 x 2

    Groupe BPCE : 2024 income statement per business line

      RETAIL BANKING
    & INSURANCE    		 GLOBAL FINANCIAL SERVICES CORPORATE CENTER GROUPE
    BPCE
    €m 2024 2023 2024 2023 2024 2023 2024 2023 %
    Net banking income 15,397 14,828 7,947 7,358 (27) 12 23,317 22,198 5%
    Operating expenses (9,902) (9,815) (5,651) (5,269) (831) (1,244) (16,384) (16,328) 0%
    Gross operating income 5,495 5,013 2,296 2,088 (858) (1,232) 6,933 5,870 18%
    Cost of risk (1,751) (1,505) (268) (154) (43) (72) (2,061) (1,731) 19%
    Income before tax 3,807 3,526 2,051 1,966 (902) (1,310) 4,956 4,182 19%
    Income tax (891) (882) (534) (507) 67 49 (1,357) (1,340) 1%
    Non-controlling interests (14) 18 (66) (56) 1 1 (79) (38) x 2
    Net income – Group share 2,902 2,661 1,452 1,402 (834) (1,260) 3,520 2,804 26%

    Groupe BPCE : quarterly series

    GROUPE BPCE
    €m Q1-23 Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 Q3-24 Q4-24
    Net banking income 5,815 5,467 5,455 5,462 5,753 5,626 5,892 6,046
    Operating expenses (4,587) (3,799) (3,812) (4,129) (4,151) (4,008) (4,041) (4,184)
    Gross operating income 1,228 1,667 1,642 1,332 1,602 1,618 1,851 1,862
    Cost of risk (326) (342) (319) (744) (382) (560) (523) (596)
    Income before tax 968 1,337 1,339 537 1,233 1,124 1,336 1,262
    Net income – Group share 533 973 917 381 875 806 925 913

    Groupe BPCE : Consolidated balance sheet

    ASSETS
    €m    		 Dec. 31, 2024 Dec. 31, 2023
    Cash and amounts due from central banks 133,186 152,669
    Financial assets at fair value through profit or loss 230,521 214,582
    Hedging derivatives 7,624 8,855
    Financial assets at fair value through other comprehensive income 57,166 48,073
    Securities at amortized cost 27,021 26,373
    Loans and advances to banks and similar at amortized cost 115,862 108,631
    Loans and receivables due from customers at amortized cost 851,843 839,457
    Revaluation difference on interest rate risk-hedged portfolios (856) (2,626)
    Financial investments of insurance activities 115,631 103,615
    Insurance contracts issued – Assets 1,134 1,124
    Reinsurance contracts held – Assets 9,320 9,564
    Current tax assets 640 829
    Deferred tax assets 4,160 4,575
    Accrued income and other assets 16,444 14,611
    Non-current assets held for sale 438 –
    Investments in accounted for using equity method 2,146 1,616
    Investment property 733 717
    Property, plant and equipment 6,085 6,023
    Intangible assets 1,147 1,110
    Goodwill 4,312 4,224
    TOTAL ASSETS 1,584,558 1,544,022
    LIABILITIES
    €m    		 Dec. 31, 2024 Dec. 31, 2023
    Amounts due to central banks 1 2
    Financial liabilities at fair value through profit or loss 218,963 204,023
    Hedging derivatives 14,260 14,973
    Debt securities 304,957 292,598
    Amounts due to banks and similar 69,953 79,634
    Amounts due to customers 723,090 711,658
    Revaluation difference on interest rate risk-hedged portfolios, liabilities 14 159
    Insurance contracts issued – Liabilities 117,551 106,137
    Reinsurance contracts held – Liabilities 119 149
    Current tax liabilities 2,206 2,026
    Deferred tax liabilities 1,323 1,640
    Accrued expenses and other liabilities 20,892 22,492
    Liabilities associated with non-current assets held for sale 312 –
    Provisions 4,748 4,825
    Subordinated debt 18,401 18,801
    Shareholders’ equity 87,768 84,905
    Equity attributable to equity holders of the parent 87,137 84,351
    Non-controlling interests 630 553
    TOTAL LIABILITIES 1,584,558 1,544,022

    Groupe BPCE : Goodwill

    €m Dec. 31, 2023 Acquisitions IRFS5 reclassifications Translation adjustments Dec. 31, 2024
    Retail Banking & Insurance 822 58     879
    Asset & Wealth Management 3,257 1 (72) 95 3,280
    Corporate & Investment Banking 144     7 151
    Total 4,224 58 (72) 102 4,312

    Groupe BPCE: Statement of changes in shareholders’ equity

    €m Equity attributable to shareholders’ equity
    December 31, 2023 84,407
    Restatements1 (56)
    December 31, 2023 restated 84,351
    Distributions (833)
    Change in capital (cooperative shares) 90
    Impact of acquisitions and disposals on non-controlling interests (minority interests) (48)
    Income 3,520
    Changes in gains & losses directly recognized in equity 144
    Capital gains and losses reclassified as reserves (31)
    Others (56)
    December 31, 2024 87,137

    1 Opening shareholders’ equity has been adjusted for Funding Valuation Adjustments whose non-material impact on income has not given rise to a change in the latter in the 2024 consolidated financial statements

    Retail Banking & Insurance: quarterly income statement

      BANQUE POPULAIRE NETWORK CAISSE D’EPARGNE NETWORK FINANCIAL SOLUTIONS & EXPERTISE INSURANCE DIGITAL & PAYMENTS OTHER NETWORK RETAIL BANKING & INSURANCE
    €m Q4-24 Q4-23 % Q4-24 Q4-23 % Q4-24 Q4-23 % Q4-24 Q4-23 % Q4-24 Q4-23 % Q4-24 Q4-23 % Q4-24 Q4-23 %  
    Net banking income 1,614 1,382 17% 1,616 1,423 14% 334 335 (0)% 171 146 17% 227 199 14% 101 91 12% 4,064 3,576 14%  
    Operating expenses (980) (975) 1% (1,084) (1,081) 0% (169) (167) 1% (36) (41) (10)% (173) (171) 1% (53) (63) (16)% (2,497) (2,499) (0)%  
    Gross operating income 634 407 56% 531 343 55% 165 168 (2)% 135 105 28% 54 27 96% 48 28 75% 1,567 1,077 45%  
    Cost of risk (266) (282) (6)% (205) (218) (6)% (38) (54) (31)%       (33) (69) (52)% (15) (19) (23)% (556) (643) (13)%  
    Income before tax 352 149 x2 328 126 x3 125 112 12% 141 107 32% 20 (89) ns 33 9 x4 998 413 x2  
    Income tax (73) (45) 62% (78) (20) x4 (33) (27) 22% (29) (25) 16% 0 (2) ns (8) (2) x4 (222) (122) 82%  
    Non-controlling interests (0) (6) (94)% (1) (3) (66)% 0 (0) ns 0 (1) ns (3) 30 ns       (5) 21 ns  
    Net income – Group share 278 98 x3 248 103 x2 92 85 8% 112 81 39% 16 (61) ns 25 7 x4 772 312 x2  
      BANQUE POPULAIRE NETWORK CAISSE D’EPARGNE NETWORK FINANCIAL SOLUTIONS & EXPERTISE INSURANCE DIGITAL & PAYMENTS OTHER NETWORK RETAIL BANKING & INSURANCE
    €m 2024 2023 % 2024 2023 % 2024 2023 % 2024 2023 % 2024 2023 % 2024 2023 % 2024 2023 %  
    Net banking income 6,098 5,862 4% 6,054 5,858 3% 1,303 1,274 2% 694 633 10% 873 816 7% 375 384 (2)% 15,397 14,828 4,%  
    Operating expenses (4,047) (3,970) 2% (4,216) (4,181) 1% (636) (630) 1% (143) (163) (12)% (646) (652) (1)% (213) (218) (2)% (9,902) (9,815) 1%  
    Gross operating income 2,051 1,892 8% 1,838 1,677 10% 667 644 3% 550 470 17% 227 164 39% 162 166 (2)% 5,495 5,013 10%  
    Cost of risk (814) (651) 25% (640) (553) 16% (108) (98) 11%       (126) (171) (26)% (62) (33) 89% (1,751) (1,505) 16%  
    Income before tax 1,285 1,308 (2)% 1,200 1,125 7% 555 545 2% 566 475 19% 97 (68) ns 103 140 (26)% 3,807 3,526 8%  
    Income tax (307) (329) (7)% (264) (254) 4% (146) (140) 4% (123) (99) 24% (27) (25) 9% (24) (35) (30)% (891) (882) 1%  
    Non-controlling interests (9) (24) (64)% (5) (7) (24)% 0 (0) ns 0 (0) ns (0) 49 ns       (14) 18 ns  
    Net income – Group share 970 954 2% 931 864 8% 409 405 1% 443 376 18% 70 (43) ns 79 106 (25)% 2,902 2,661 9%  

    Retail Banking & Insurance: 2024 income statement

    Retail banking & insurance: quarterly series

    RETAIL BANKING & INSURANCE
    €m Q1-23 Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 Q3-24 Q4-24
    Net banking income 3,903 3,640 3,709 3,576 3,763 3,701 3,869 4,064
    Operating expenses (2,497) (2,460) (2,359) (2,499) (2,547) (2,456) (2,403) (2,497)
    Gross operating income 1,406 1,180 1,350 1,077 1,217 1,245 1,467 1,567
    Cost of risk (308) (252) (302) (643) (296) (475) (423) (556)
    Income before tax 1,118 936 1,058 413 934 831 1,044 998
    Net income – Group share 851 713 785 312 709 637 785 772

    Retail Banking & Insurance: Banque Populaire and Caisse d’Epargne networks quarterly series

    BANQUE POPULAIRE NETWORK
    €m Q1-23 Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 Q3-24 Q4-24
    Net banking income 1,569 1,442 1,469 1,382 1,489 1,489 1,506 1,614
    Operating expenses (1,018) (1,015) (961) (975) (1,043) (1,025) (999) (980)
    Gross operating income 551 427 508 407 445 464 508 634
    Cost of risk (132) (110) (127) (282) (125) (228) (195) (266)
    Income before tax 434 328 398 149 329 290 315 352
    Net income – Group share 332 240 284 98 252 210 230 278
                     
    CAISSE D’EPARGNE NETWORK
    €m Q1-23 Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 Q3-24 Q4-24
    Net banking income 1,537 1,465 1,432 1,423 1,454 1,467 1,517 1,616
    Operating expenses (1,066) (1,041) (993) (1,081) (1,085) (1,038) (1,008) (1,084)
    Gross operating income 470 424 440 343 368 429 509 531
    Cost of risk (136) (84) (115) (218) (100) (176) (159) (205)
    Income before tax 334 340 325 126 270 252 350 328
    Net income – Group share 253 256 253 103 208 194 281 248

    Retail Banking & Insurance: FSE quarterly series

    FINANCIAL SOLUTIONS & EXPERTISE
    €m Q1-23 Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 Q3-24 Q4-24
    Net banking income 315 306 318 335 327 320 322 334
    Operating expenses (157) (151) (154) (167) (162) (154) (151) (169)
    Gross operating income 158 155 164 168 166 166 171 165
    Cost of risk (6) (19) (18) (54) (24) (22) (24) (38)
    Income before tax 151 136 146 112 141 143 146 125
    Net income – Group share 112 102 107 85 104 106 108 92

    Retail Banking & Insurance: Insurance quarterly series

    INSURANCE
    €m Q1-23 Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 Q3-24 Q4-24
    Net banking income 180 126 181 146 188 118 217 171
    Operating expenses (43) (37) (42) (41) (42) (25) (40) (36)
    Gross operating income 137 89 139 105 146 93 177 135
    Income before tax 139 93 137 107 149 99 177 141
    Net income – Group share 109 83 103 81 113 92 126 112

    Retail Banking & Insurance: Digital & Payments quarterly series

    DIGITAL & PAYMENTS
    €m Q1-23 Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 Q3-24 Q4-24
    Net banking income 205 203 209 199 215 214 218 227
    Operating expenses (161) (163) (157) (171) (160) (159) (154) (173)
    Gross operating income 44 40 52 27 55 55 64 54
    Cost of risk (32) (41) (29) (69) (31) (32) (30) (33)
    Income before tax 8 (6) 19 (89) 24 22 32 20
    Net income – Group share 7 (3) 13 (61) 17 16 21 16

    Retail Banking & Insurance: Other network quarterly series

    OTHER NETWORK
    €m Q1-23 Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 Q3-24 Q4-24
    Net banking income 97 97 99 91 91 93 90 101
    Operating expenses (51) (52) (52) (63) (55) (55) (51) (53)
    Gross operating income 46 45 47 28 37 38 39 48
    Cost of risk (2) 2 (14) (19) (16) (17) (14) (15)
    Income before tax 52 47 33 9 20 25 25 33
    Net income – Group share 39 36 25 7 16 19 20 25

    Global Financial Services: quarterly income statement per business line

      ASSET AND WEALTH MANAGEMENT CORPORATE & INVESTMENT
    BANKING    		 GLOBAL FINANCIAL
    SERVICES
    €m Q4-24 Q4-23 Q4-24 Q4-23 Q4-24 Q4-23 %
    Net banking income 968 874 1,087 1,034 2,055 1,908 8%
    Operating expenses (763) (691) (738) (703) (1,501) (1,394) 8%
    Gross operating income 205 183 349 331 553 514 8%
    Cost of risk 12 (12) (98) (62) (86) (73) 18%
    Share in net income of associates 0 0 12 4 12 4 x3
    Gains or losses on other assets 0 (7) 0 (17) 0 (24) ns
    Income before tax 217 165 262 255 479 420 14%
    Net income – Group share 143 105 194 176 337 280 20%

    Global Financial Services: 2024 income statement per business line

      ASSET AND WEALTH MANAGEMENT CORPORATE & INVESTMENT
    BANKING    		 GLOBAL FINANCIAL
    SERVICES
    €m 2024 2023 2024 2023 2024 2023 %
    Net banking income 3,507 3,192 4,440 4,166 7,947 7,358 8%
    Operating expenses (2,763) (2,604) (2,889) (2,666) (5,651) (5,269) 7%
    Gross operating income 744 588 1,551 1,500 2,296 2,088 10%
    Cost of risk 14 4 (282) (158) (268) (154) 73%
    Share in net income of associates 0 0 23 13 23 14 67%
    Gains or losses on other assets 0 35 0 (17) 0 18 ns
    Income before tax 759 627 1,293 1,338 2,051 1,966 4%
    Net income – Group share 500 425 952 977 1,452 1,402 4%

    Global Financial Services: quarterly series

    GLOBAL FINANCIAL SERVICES
    €m Q1-23 Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 Q3-24 Q4-24  
    Net banking income 1,854 1,829 1,767 1,908 1,933 1,983 1,976 2,055  
    Operating expenses (1,305) (1,287) (1,283) (1,394) (1,368) (1,366) (1,415) (1,501)  
    Gross operating income 549 542 483 514 564 617 561 553  
    Cost of risk 27 (91) (17) (73) (58) (82) (41) (86)  
    Income before tax 621 455 470 420 510 539 525 479  
    Net income – Group share 458 322 341 280 364 384 366 337  

    Corporate & Investment Banking: quarterly series

    CORPORATE & INVESTMENT BANKING
    €m Q1-23 Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 Q3-24 Q4-24  
    Net banking income 1,074 1,056 1,002 1,034 1,102 1,133 1,118 1,087  
    Operating expenses (661) (651) (650) (703) (706) (694) (751) (738)  
    Gross operating income 412 405 352 331 396 439 367 349  
    Cost of risk 21 (90) (28) (62) (54) (91) (39) (98)  
    Income before tax 437 318 328 255 346 352 333 262  
    Net income – Group share 321 233 247 176 255 261 242 194  

    Asset & Wealth Management: quarterly series

    ASSET & WEALTH MANAGEMENT
    €m Q1-23 Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 Q3-24 Q4-24  
    Net banking income 781 773 764 874 830 850 858 968  
    Operating expenses (644) (636) (633) (691) (662) (673) (664) (763)  
    Gross operating income 137 137 131 183 168 178 194 205  
    Cost of risk 6 (1) 11 (12) (5) 9 (2) 12  
    Income before tax 184 136 143 165 163 187 192 217  
    Net income – Group share 137 89 94 105 109 123 124 143  

    Corporate center: quarterly series

    CORPORATE CENTER
    €m Q1-23 Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 Q3-24 Q4-24
    Net banking income 57 (3) (21) (22) 57 (58) 46 (73)
    Operating expenses (785) (52) (170) (237) (236) (186) (223) (186)
    Gross operating income (728) (55) (191) (259) (179) (244) (176) (259)
    Cost of risk (46) 1 0 (28) (28) (2) (59) 46
    Share in income of associates 2 0 1 (9) 3 0 1 5
    Gains or losses on other assets (0) 0 (0) (0) (6) 1 3 (8)
    Income before tax (771) (54) (189) (296) (210) (245) (232) (215)
    Net income – Group share (776) (63) (210) (211) (198) (215) (226) (196)

    DISCLAIMER

    This document may contain forward-looking statements and comments relating to the objectives and strategy of Groupe BPCE. By their very nature, these forward-looking statements inherently depend on assumptions, project considerations, objectives and expectations linked to future events, transactions, products and services as well as on suppositions regarding future performance and synergies.

    No guarantee can be given that such objectives will be realized; they are subject to inherent risks and uncertainties and are based on assumptions relating to the Group, its subsidiaries and associates and the business development thereof; trends in the sector; future acquisitions and investments; macroeconomic conditions and conditions in the Group’s principal local markets; competition and regulation. Occurrence of such events is not certain, and outcomes may prove different from current expectations, significantly affecting expected results. Actual results may differ significantly from those anticipated or implied by the forward-looking statements. Groupe BPCE shall in no event have any obligation to publish modifications or updates of such objectives.

    Information in this presentation relating to parties other than Groupe BPCE or taken from external sources has not been subject to independent verification; the Group makes no statement or commitment with respect to this third-party information and makes no warranty as to the accuracy, fairness, precision or completeness of the information or opinions contained in this press release. Neither Groupe BPCE nor its representatives shall be held liable for any errors or omissions or for any harm that may result from the use of this presentation or of its contents or any related material, or of any document or information referred to in this presentation.

    The financial information presented in this document relating to the fiscal period ended December 31, 2024 has been drawn up in compliance with IFRS standards, as adopted in the European Union.
    This financial information is not the equivalent of summary financial statements for an interim period as defined by IAS 34 “Interim Financial Reporting”.

    Preparation of the financial information requires Management to make estimates and assumptions in certain areas regarding uncertain future events.

    These estimates are based on the judgment of the individuals preparing this financial information and the information available at the date of the balance sheet. Actual future results may differ from these estimates. For further information, see chapter 5, part 5.1, note 2.3 “Use of estimates and judgments” of the Universal Registration Document 2023 filed with the Autorité des Marchés Financiers, the French financial markets authority.
    With respect to the financial information of Groupe BPCE for the quarter ended December 31, 2024, and in view of the context mentioned above, attention should be drawn to the fact that the estimated increase in credit risk and the calculation of expected credit losses (IFRS 9 provisions) are largely based on assumptions that depend on the macroeconomic context.

    Significant factors liable to cause actual results to differ from those anticipated in the projections are related to the banking and financial environment in which Groupe BPCE operates, which exposes it to a multitude of risks. These potential risks liable to affect Groupe BPCE’s financial results are detailed in the “Risk factors & risk management” chapter of the latest amendment to the 2023 Universal Registration Document filed with the Autorité des Marchés Financiers.

    Investors are advised to consider the uncertainties and risk factors liable to affect the Group’s operations when examining the information contained in the projection elements.

    The financial results contained in this presentation have not been reviewed by the statutory auditors. The quarterly financial information of Groupe BPCE for the period ended December 31, 2024, approved by the Management Board at a meeting convened on February 3, 2025, were verified and reviewed by the Supervisory Board at a meeting convened on February 5, 2025.

    The sum of the values shown in the tables and analyses may differ slightly from the total reported owing to rounding effects.

    About Groupe BPCE
    Groupe BPCE is the second-largest banking group in France. Through its 100,000 staff, the group serves 35 million customers – individuals, professionals, companies, investors and local government bodies – around the world. It operates in the retail banking and insurance fields in France via its two major networks, Banque Populaire and Caisse d’Epargne, along with Banque Palatine and Oney. It also pursues its activities worldwide with the wholesale banking expertise of Natixis Corporate & Investment Banking and with the asset & wealth management services provided by Natixis Investment Managers.
    The Group’s financial strength is recognized by four financial rating agencies: Moody’s (A1, stable outlook), Standard & Poor’s (A+, stable outlook), Fitch (A+, stable outlook) and R&I (A+, stable outlook).

             groupebpce.com

    Attachment

    The MIL Network –

  • MIL-OSI Economics: coincapitals.net and easyinvestingpro.com: BaFin warns against websites

    Source: Bundesanstalt für Finanzdienstleistungsaufsicht – In English

    The operators of the websites appear under the names CoinCapitals and EasyInvestingPro, without using a legal form. They do not provide any information about their place of business.

    Recently, a large number of websites with almost identical content have already come to light, and BaFin has also issued warnings about these. In the vast majority of, cases the presentation on the websites begins with the following sentence: “Step into the trading arena with confidence & [name of website]”. However, this introductory sentence has been changed in some cases, as on the website easyinvestingpro.com, to: “Step into the world of trading with [name of website]” or “Step confidently into the world of trading with [name of website]”. However, the rest of the content on the websites has remained essentially the same.

    Anyone offering financial or investment services or crypto-asset services in Germany requires a license from BaFin. However, some companies offer such services without the required license. Information on whether a particular company is authorized by BaFin can be found in the company database.

    The information provided by BaFin is based on Section 37 (4) of the German Banking Act (KWG) and Section 10 (7) of the German Crypto Markets Supervision Act (KMAG).

    Please be aware:

    BaFin, the German Federal Criminal Police Office (Bundeskriminalamt – BKA) and the German state criminal police offices (Landeskriminalämter) recommend that consumers seeking to invest money online should exercise the utmost caution and do the necessary research beforehand in order to identify fraud attempts at an early stage.

    MIL OSI Economics –

  • MIL-OSI Economics: Global Trade Verein: BaFin warns against website gtv-holdings.com

    Source: Bundesanstalt für Finanzdienstleistungsaufsicht – In English

    The German Federal Financial Supervisory Authority (BaFin) warns against offers on the website gtv-holdings.com. According to its findings, the Global Trade Verein, Zurich, Switzerland, offers financial and investment services there without a license.

    Der Betreiber tritt auf seiner Website unter der Bezeichnung Global Trade Verein auf, ohne Nennung einer Rechtsform. Unter diesem Namen lässt sich kein Eintrag im Schweizer Handelsregister finden.

    The operator appears on its website under the name Global Trade Verein, without mentioning a legal form. No entry can be found under this name in the Swiss commercial register.

    Anyone offering financial or investment services or crypto-asset services in Germany requires a license from BaFin. However, some companies offer such services without the required license. Information on whether a particular company is authorized by BaFin can be found in the company database.

    The information provided by BaFin is based on Section 37 (4) of the German Banking Act (KWG) and Section 10 (7) of the German Crypto Markets Supervision Act (KMAG).

    Please be aware:

    BaFin, the German Federal Criminal Police Office (Bundeskriminalamt – BKA) and the German state criminal police offices (Landeskriminalämter) recommend that consumers seeking to invest money online should exercise the utmost caution and do the necessary research beforehand in order to identify fraud attempts at an early stage.

    MIL OSI Economics –

  • MIL-OSI Economics: Resolution planning: a competitive advantage for Europe

    Source: Bundesanstalt für Finanzdienstleistungsaufsicht – In English

    SRM Vision 2028, our strategy that we are currently implementing, is designed to further strengthen our resolution framework and to make our work more inclusive, transparent, focused and ultimately efficient for the SRB, the national resolution authorities and the banks.

    Streamlining practices or reporting requirements should not be confused with deregulation. Resolution needs to remain a credible option for ensuring financial stability. Resolution is credible if banks have the right capabilities in place. An adequate buffer of loss-absorbing liabilities and robust management information systems capable of producing, at short notice, the information and data required for a bail-in or a valuation are, for instance, key ingredients to a successful resolution. Without capabilities such as these ones, resolution loses its teeth, jeopardising financial stability.

    A strong crisis management framework is a crucial pillar of a resilient and competitive banking sector. It ensures that, like any other business, a bank can fail without destabilising the wider economy or burdening taxpayers with debt. This requires correctly aligned incentives for shareholders and bondholders, and effective mechanisms for managing the fallout when failures occur. This is the core purpose of resolution: to prevent bail-outs and to safeguard financial stability. This is particularly vital given the limited fiscal capacity of some EU Member States.

    The proposed reform of the European crisis management and deposit insurance framework (CMDI) would be a step toward more financial stability. Unfortunately, CMDI has been facing important headwinds while some of its features would enrich the current toolkit, benefitting both depositors, taxpayers and financial stability at large – at a negligible cost for the industry.

    Banks benefit too from a good crisis management toolkit and preparedness. Financial stability is the bedrock of a healthy and competitive economy. The recent strong performance of European banks, while partly attributable to a favourable macroeconomic environment, also reflects the resilience built into the system by the Banking Union over the past decade.

    This resilience, fostered by resolution planning, protects depositors, taxpayers and – ultimately – the banks’ own long-term interests, especially during times of crisis. A complete crisis management toolkit provides a key competitive advantage for Europe and the Banking Union. Resolution planning allows banks to grow, innovate and even fail without jeopardising past economic gains.

    Looking ahead, the SRB’s work will double down on its efforts to further strengthening the Banking Union’s resilience. It is important that policymakers are aware that providing us with the necessary tools to deal with the next crisis will be essential for achieving their own long-term growth objectives.

    MIL OSI Economics –

  • MIL-OSI: FirstBank Reports Strong Q4 Results and a Record-Setting Colorado Gives Day

    Source: GlobeNewswire (MIL-OSI)

    LAKEWOOD, Colo., Feb. 05, 2025 (GLOBE NEWSWIRE) — FirstBank, one of the nation’s largest privately held banks with a focus on “banking for good,” announced its 2024 fourth-quarter summary of the company’s holdings and activities. The bank reported the following year-end and quarter-over-quarter results:

    • Net income for 2024 was $226.1 million
    • Total deposits increased by 0.4% in the fourth quarter to $24 billion
    • Net loan balance remained unchanged during Q4 at $16.1 billion
    • Total assets decreased by 0.7% to $27.2 billion from Sept. 30, 2024 to Dec. 31, 2024

    In addition to growing both customer relationships and deposits in the fourth quarter, the bank reported over $3 billion in loan originations throughout the 2024 calendar year and recently expanded its instant payment offerings to include the FedNow Service. FirstBank now offers multiple instant payment options that are transmitted instantaneously and are available 24 hours a day, 365 days a year.

    The bank and Colorado Gives Foundation also helped raise a record-setting $54.6 million for Colorado Gives Day this past December, benefiting more than 4,200 area nonprofits. To promote the online giving movement, FirstBank surprised several deserving individuals, who were encouraged to “Give It Forward” to their favorite Colorado Gives Day nonprofits.

    “We’re committed to long-term, sustainable success, and sound financial management,” says Kevin Classen, CEO of FirstBank. “Our focus on smart, strategic growth not only ensures a stronger financial foundation, it allows us to reinvest in the well-being of our customers, communities, and employees, so everyone can thrive.”

    As part of FirstBank’s commitment to increased affordable housing, the bank financed $23.8 million in Q4 to support Habitat for Humanity of Roaring Fork Valley’s efforts to make homeownership more accessible. The loan will help bring nearly 100 deed-restricted, for-sale units to Glenwood Springs.

    FirstBank closed out 2024 as Colorado’s second-largest bank by deposits, capturing over 12% of the state’s deposit market share. It was also ranked among Forbes’ “World’s Best Banks” and “Best-in-State-Banks.”

    About FirstBank

    FirstBank began providing banking services in 1963. Today, it’s known as an industry leader in digital banking. It has grown to be one of the top-performing and largest privately held banks in the United States. FirstBank offers a variety of consumer deposit accounts, home equity loans, mortgages, rental property loans, and a full range of commercial banking services, including business financing, commercial real estate loans, treasury management, and more. Since 2000, FirstBank has been recognized as a top corporate philanthropist, contributing more than $90 million and thousands of volunteer hours to charitable organizations. The company is also unique in that a large portion of its stock is owned by management and employees, giving employees a financial stake in the bank’s success through its Employee Stock Ownership Program. For more information, visit www.efirstbank.com. Member FDIC.

    Media Contact
    Chandra Brin
    303.235.1402
    Chandra.Brin@efirstbank.com

    The MIL Network –

  • MIL-OSI Russia: IMF Executive Board Concludes 2024 Article IV Consultation with Chile

    Source: IMF – News in Russian

    February 5, 2025

    Washington, DC: The Executive Board of the International Monetary Fund (IMF) concluded the Article IV consultation[1] with Chile on February 3, 2025 and endorsed the staff appraisal without a meeting on a lapse-of-time basis.[2]

    The economy’s imbalances have been largely resolved. Real GDP is expected to expand by 2.2 percent in 2024, close to its potential pace, driven by the strong mining and service exports, and 2-2.5 percent in 2025, related to an expected recovery in domestic demand. However, the recovery has been uneven across industries, with the construction sector lagging and the unemployment rate remaining high. Inflation is set to return to the 3-percent target in early 2026, after the impact of the significant increase in electricity tariffs between June 2024 and early 2025 subsides. The current account deficit has continued to narrow and is projected to reach around 2½ percent of GDP in 2024 and 2025.

    External risks and uncertainty remain elevated. The commodity price volatility linked to the economic outlook of Chile’s main trading partners and the pace of the global green transition is a key external risk. Moreover, the uncertainty surrounding monetary and fiscal policies in advanced economies could lead to tight financial conditions for longer periods of time and higher financial volatility. Domestically, concerns about crime, migration, and inequality persist; and political polarization is hindering the structural reform progress.

    Policies have supported macroeconomic stability. The Central Bank of Chile lowered the monetary policy rate by 325 basis points since January 2024 to 5 percent in December 2024. The headline fiscal deficit is projected to reach 2.7 percent of GDP in 2024 due to a notable revenue underperformance and despite significant spending restraint compared to the budget. The 2025 budget envisions a notable deficit reduction within a medium-term fiscal plan toward a broadly balanced fiscal position by 2027. By setting the neutral level of the countercyclical capital buffer at 1 percent of risk-weighted assets with a gradual and state-contingent implementation path from the current level of 0.5 percent, the Central Bank of Chile has provided banks with planning certainty for strengthening financial resilience.

    Executive Board Assessment

    The economy is broadly balanced but external risks are elevated. Chile’s macroeconomic position is sound due to its very strong fundamentals, policies, and policy frameworks. Real GDP is growing around its potential and inflation is expected to reach the 3-percent target in early 2026. The current account deficit has continued to narrow, and the 2024 external position is assessed as moderately weaker than implied by medium-term fundamentals. Public debt is still relatively low and sustainable with high probability. However, the external environment is unstable and uncertain, which calls for policies that further strengthen economic buffers to provide additional policy space for future shocks.

    Lifting Chile’s growth potential is a must to raise living standards and tackle social and fiscal pressures. Taking a consultative approach, the government is advancing several growth initiatives, including: (i) expediting investment permit applications and environmental evaluations to encourage investment, (ii) fostering the development of emerging industries, particularly those related to renewable energy to maximize the benefits from the global green transition, and (iii) facilitating R&D. Swift and consistent implementation of these initiatives is crucial, especially in rationalizing the regulatory burden and improving essential infrastructure. Additionally, better integrating women into the labor market could partially offset the unfavorable demographic trends. The proposed new development bank requires a targeted mandate, sound risk management practices, and robust corporate governance.

    The goal of a broadly balanced fiscal position by 2027 remains appropriate but has become more challenging. The authorities’ commitment to fiscal restraint by adjusting spending plans in 2024 and 2025 is welcome. To achieve a balanced fiscal position over the next three years, a gap of at least 1 percent of GDP needs to be filled. This could be achieved largely from the important tax compliance law if its implementation yields the planned additional revenue and is not used for new spending initiatives. It is therefore crucial to carefully monitor developments in tax compliance and remain flexible to adjust current spending in case revenue mobilization falls short of plans, while aiming to preserve public investment outlays in support of medium-term growth. Ensuring that any structural spending increases align with higher structural revenues is vital for fiscal sustainability, while unifying fragmented social programs could enhance access and effectiveness for the most vulnerable.

    Continuous enhancements to Chile’s already very strong fiscal framework would foster fiscal policy formulation and transparency. For instance, providing more details on debt-creating flows outside the fiscal deficit (“below-the-line” items) would strengthen the monitoring of fiscal pressures. Updating fiscal forecasting methods, in line with the government’s plans, could improve revenue projections in the context of economic and policy shifts. Adopting a medium-term strategy to rebuild the size of the Economic and Social Stabilization Fund (ESSF) would help provide resources to respond to future shocks. Finally, simplifying the presentation of the fiscal targets and budget execution in the Public Finance Report could deepen the understanding of the fiscal balance rule framework.

    A pension reform is essential to ensure adequate pensions and address the fiscal costs of population aging. Raising contribution rates and the number of contribution periods is vital for sustainably self-financing old-age pensions. The minimum guaranteed pension (PGU) has strengthened the system’s solidarity, increased replacement ratios, and reduced old-age poverty, but it also incurs high fiscal costs. With the ratio of pensioners to the working-age population set to nearly double in two decades, it is crucial to manage public spending pressures while maintaining a solid safety net. Targeting the PGU to the most vulnerable elderly, linking the retirement age to life expectancy, and implementing the proposed unemployment insurance for pension contributions could further strengthen the system.

    A cautious data dependent approach to the pace of monetary policy easing is warranted. The BCCh’s monetary policy adjustments have been in line with its inflation-targeting framework. The real monetary policy rate is close to its estimated neutral range. With near-term inflation risks tilted to the upside, future cuts to the policy rate should remain contingent on evidence that inflation is heading decisively back to its target.

    Rebuilding international reserve buffers is important for enhancing resilience. While the flexible exchange rate plays a critical role as a shock absorber, the Central Bank of Chile’s access to international liquidity can provide an additional shield against potential external shocks. This underscores the importance of incorporating a comprehensive international liquidity framework into the central bank’s longer-term financial stability strategy. The strategy and operational design should continue to follow high transparency standards, be persistent and robust to changes in external risks, and minimize distortions in the foreign exchange market.

    The financial system remains resilient despite rising vulnerabilities related to the real estate sector and lower financial market depth. The real estate sector is expected to recover modestly as long-term interest rates gradually decline, and there are several mitigants to credit risk associated with lending to this sector. Nevertheless, supervisors need to carefully monitor banks and insurers’ portfolio quality and buffers, including by closing commercial real estate data gaps and enhancing stress test models. Rebuilding the depth of local financial markets by increasing pension contributions, which would increase the pool of investable savings, is important to help reduce market volatility and sensitivity to shocks.

    Financial sector policies need to continue reinforcing resilience. The recent adoption of a positive neutral level of the counter-cyclical capital buffer with a gradual and state-contingent implementation provides banks with planning certainty. The ongoing implementation of Basel III capital and liquidity requirements needs to be completed. Prompt implementation of the Financial Market Resilience Law would enhance the BCCh’s ability to respond to financial distress situations. Other priorities continue to include adopting an industry-funded deposit insurance and a bank resolution framework, providing budget independence to the CMF, further enhancing bank corporate governance, and implementing the Consolidated Debt Registry.

    Table 1. Chile: Selected Economic Indicators, 2023-27

    GDP (2023), in trillions of pesos

    282

    Quota

    GDP (2023), in billions of U.S. dollars

    336

    		  

    in millions of SDRs

    1,744

    Per capita (2023), U.S. dollars

    16,815

    		  

    in % of total

    		  

    0.37

    Population (2023), in millions

    19.96

    		        

    Main products and exports

    Copper

    		        

    Key export markets

    China, U.S., Euro area
     

    Proj.

    2023

    2024

    2025

    2026

    2027
             

    Output

    (Annual percentage change, unless otherwise specified)

    Real GDP

    0.2

    2.2

    2.2

    2.3

    2.3

      Total domestic demand

    -4.2

    1.0

    2.4

    2.3

    2.3

    Consumption

    -3.9

    1.6

    1.9

    2.2

    2.1

    Fixed capital formation

    -1.1

    -1.0

    4.3

    3.4

    3.7

         Exports of goods and services

    -0.3

    5.5

    4.3

    4.7

    3.9

         Imports of goods and services

    -12.0

    1.2

    4.4

    4.3

    3.2

    Output gap (in percent)

    0.0

    -0.1

    -0.1

    0.0

    0.0

    Employment

    Unemployment rate (in percent, annual average)

    8.7

    8.5

    8.2

    8.0

    7.8

    Prices

    GDP deflator

    6.6

    6.0

    4.1

    2.9

    2.7

    Change of CPI (end of period)

    3.9

    4.5

    3.5

    3.0

    3.0

    Change of CPI (period average)

    7.6

    3.9

    4.2

    3.1

    3.0

    Public Sector Finances

    (In percent of GDP, unless otherwise specified)

    Central government revenue

    22.9

    22.1

    23.0

    23.8

    23.9

    Central government expenditure

    25.3

    24.8

    24.8

    24.7

    24.3

    Central government fiscal balance

    -2.4

    -2.7

    -1.8

    -0.8

    -0.4

    Central government structural fiscal balance 1/

    -3.4

    -3.1

    -2.1

    -1.2

    -0.5

    Central government gross debt

    39.4

    42.7

    43.7

    44.1

    43.5

    Public sector gross debt 2/

    70.2

    73.5

    74.5

    74.9

    74.4

    Balance of Payments

    Current account balance (% of GDP) 3/

    -3.5

    -2.3

    -2.5

    -2.5

    -2.7

    Foreign direct investment net flows (% of GDP) 3/

    -4.6

    -4.0

    -2.6

    -2.9

    -2.9

    Gross external debt (% of GDP) 4/

    71.1

    77.5

    76.5

    76.6

    75.7

    Sources: Central Bank of Chile, Ministry of Finance, Haver Analytics, and IMF staff calculations and projections.

    1/ The structural fiscal balance includes adjustments for output, copper prices, and lithium revenues based on IMF calculations. The lithium adjustment starts in 2022.

    2/ Includes liabilities of the central government, the Central Bank of Chile and public enterprises. Excludes Recognition Bonds.

    3/ Calculated as a share of US$ GDP.

    4/ Data from Dipres for the government and from BCCh for all other sectors. Calculated as a share of US$ GDP.

    [1] Under Article IV of the IMF’s Articles of Agreement, the IMF holds bilateral discussions with members, usually every year. A staff team visits the country, collects economic and financial information, and discusses with officials the country’s economic developments and policies. On return to headquarters, the staff prepares a report, which forms the basis for discussion by the Executive Board.

    [2] The Executive Board takes decisions under its lapse-of-time procedure when the Board agrees that a proposal can be considered without convening formal discussions.

    IMF Communications Department
    MEDIA RELATIONS

    PRESS OFFICER: Jose Luis De Haro

    Phone: +1 202 623-7100Email: MEDIA@IMF.org

    https://www.imf.org/en/News/Articles/2025/02/04/pr25027-chile-imf-executive-board-concludes-2024-article-iv-consultation

    MIL OSI

    MIL OSI Russia News –

  • MIL-OSI Economics: IMF Executive Board Concludes 2024 Article IV Consultation with Chile

    Source: International Monetary Fund

    February 5, 2025

    Washington, DC: The Executive Board of the International Monetary Fund (IMF) concluded the Article IV consultation[1] with Chile on February 3, 2025 and endorsed the staff appraisal without a meeting on a lapse-of-time basis.[2]

    The economy’s imbalances have been largely resolved. Real GDP is expected to expand by 2.2 percent in 2024, close to its potential pace, driven by the strong mining and service exports, and 2-2.5 percent in 2025, related to an expected recovery in domestic demand. However, the recovery has been uneven across industries, with the construction sector lagging and the unemployment rate remaining high. Inflation is set to return to the 3-percent target in early 2026, after the impact of the significant increase in electricity tariffs between June 2024 and early 2025 subsides. The current account deficit has continued to narrow and is projected to reach around 2½ percent of GDP in 2024 and 2025.

    External risks and uncertainty remain elevated. The commodity price volatility linked to the economic outlook of Chile’s main trading partners and the pace of the global green transition is a key external risk. Moreover, the uncertainty surrounding monetary and fiscal policies in advanced economies could lead to tight financial conditions for longer periods of time and higher financial volatility. Domestically, concerns about crime, migration, and inequality persist; and political polarization is hindering the structural reform progress.

    Policies have supported macroeconomic stability. The Central Bank of Chile lowered the monetary policy rate by 325 basis points since January 2024 to 5 percent in December 2024. The headline fiscal deficit is projected to reach 2.7 percent of GDP in 2024 due to a notable revenue underperformance and despite significant spending restraint compared to the budget. The 2025 budget envisions a notable deficit reduction within a medium-term fiscal plan toward a broadly balanced fiscal position by 2027. By setting the neutral level of the countercyclical capital buffer at 1 percent of risk-weighted assets with a gradual and state-contingent implementation path from the current level of 0.5 percent, the Central Bank of Chile has provided banks with planning certainty for strengthening financial resilience.

    Executive Board Assessment

    The economy is broadly balanced but external risks are elevated. Chile’s macroeconomic position is sound due to its very strong fundamentals, policies, and policy frameworks. Real GDP is growing around its potential and inflation is expected to reach the 3-percent target in early 2026. The current account deficit has continued to narrow, and the 2024 external position is assessed as moderately weaker than implied by medium-term fundamentals. Public debt is still relatively low and sustainable with high probability. However, the external environment is unstable and uncertain, which calls for policies that further strengthen economic buffers to provide additional policy space for future shocks.

    Lifting Chile’s growth potential is a must to raise living standards and tackle social and fiscal pressures. Taking a consultative approach, the government is advancing several growth initiatives, including: (i) expediting investment permit applications and environmental evaluations to encourage investment, (ii) fostering the development of emerging industries, particularly those related to renewable energy to maximize the benefits from the global green transition, and (iii) facilitating R&D. Swift and consistent implementation of these initiatives is crucial, especially in rationalizing the regulatory burden and improving essential infrastructure. Additionally, better integrating women into the labor market could partially offset the unfavorable demographic trends. The proposed new development bank requires a targeted mandate, sound risk management practices, and robust corporate governance.

    The goal of a broadly balanced fiscal position by 2027 remains appropriate but has become more challenging. The authorities’ commitment to fiscal restraint by adjusting spending plans in 2024 and 2025 is welcome. To achieve a balanced fiscal position over the next three years, a gap of at least 1 percent of GDP needs to be filled. This could be achieved largely from the important tax compliance law if its implementation yields the planned additional revenue and is not used for new spending initiatives. It is therefore crucial to carefully monitor developments in tax compliance and remain flexible to adjust current spending in case revenue mobilization falls short of plans, while aiming to preserve public investment outlays in support of medium-term growth. Ensuring that any structural spending increases align with higher structural revenues is vital for fiscal sustainability, while unifying fragmented social programs could enhance access and effectiveness for the most vulnerable.

    Continuous enhancements to Chile’s already very strong fiscal framework would foster fiscal policy formulation and transparency. For instance, providing more details on debt-creating flows outside the fiscal deficit (“below-the-line” items) would strengthen the monitoring of fiscal pressures. Updating fiscal forecasting methods, in line with the government’s plans, could improve revenue projections in the context of economic and policy shifts. Adopting a medium-term strategy to rebuild the size of the Economic and Social Stabilization Fund (ESSF) would help provide resources to respond to future shocks. Finally, simplifying the presentation of the fiscal targets and budget execution in the Public Finance Report could deepen the understanding of the fiscal balance rule framework.

    A pension reform is essential to ensure adequate pensions and address the fiscal costs of population aging. Raising contribution rates and the number of contribution periods is vital for sustainably self-financing old-age pensions. The minimum guaranteed pension (PGU) has strengthened the system’s solidarity, increased replacement ratios, and reduced old-age poverty, but it also incurs high fiscal costs. With the ratio of pensioners to the working-age population set to nearly double in two decades, it is crucial to manage public spending pressures while maintaining a solid safety net. Targeting the PGU to the most vulnerable elderly, linking the retirement age to life expectancy, and implementing the proposed unemployment insurance for pension contributions could further strengthen the system.

    A cautious data dependent approach to the pace of monetary policy easing is warranted. The BCCh’s monetary policy adjustments have been in line with its inflation-targeting framework. The real monetary policy rate is close to its estimated neutral range. With near-term inflation risks tilted to the upside, future cuts to the policy rate should remain contingent on evidence that inflation is heading decisively back to its target.

    Rebuilding international reserve buffers is important for enhancing resilience. While the flexible exchange rate plays a critical role as a shock absorber, the Central Bank of Chile’s access to international liquidity can provide an additional shield against potential external shocks. This underscores the importance of incorporating a comprehensive international liquidity framework into the central bank’s longer-term financial stability strategy. The strategy and operational design should continue to follow high transparency standards, be persistent and robust to changes in external risks, and minimize distortions in the foreign exchange market.

    The financial system remains resilient despite rising vulnerabilities related to the real estate sector and lower financial market depth. The real estate sector is expected to recover modestly as long-term interest rates gradually decline, and there are several mitigants to credit risk associated with lending to this sector. Nevertheless, supervisors need to carefully monitor banks and insurers’ portfolio quality and buffers, including by closing commercial real estate data gaps and enhancing stress test models. Rebuilding the depth of local financial markets by increasing pension contributions, which would increase the pool of investable savings, is important to help reduce market volatility and sensitivity to shocks.

    Financial sector policies need to continue reinforcing resilience. The recent adoption of a positive neutral level of the counter-cyclical capital buffer with a gradual and state-contingent implementation provides banks with planning certainty. The ongoing implementation of Basel III capital and liquidity requirements needs to be completed. Prompt implementation of the Financial Market Resilience Law would enhance the BCCh’s ability to respond to financial distress situations. Other priorities continue to include adopting an industry-funded deposit insurance and a bank resolution framework, providing budget independence to the CMF, further enhancing bank corporate governance, and implementing the Consolidated Debt Registry.

    Table 1. Chile: Selected Economic Indicators, 2023-27

    GDP (2023), in trillions of pesos

    282

    Quota

    GDP (2023), in billions of U.S. dollars

    336

    		  

    in millions of SDRs

    1,744

    Per capita (2023), U.S. dollars

    16,815

    		  

    in % of total

    		  

    0.37

    Population (2023), in millions

    19.96

    		        

    Main products and exports

    Copper

    		        

    Key export markets

    China, U.S., Euro area
     

    Proj.

    2023

    2024

    2025

    2026

    2027
             

    Output

    (Annual percentage change, unless otherwise specified)

    Real GDP

    0.2

    2.2

    2.2

    2.3

    2.3

      Total domestic demand

    -4.2

    1.0

    2.4

    2.3

    2.3

    Consumption

    -3.9

    1.6

    1.9

    2.2

    2.1

    Fixed capital formation

    -1.1

    -1.0

    4.3

    3.4

    3.7

         Exports of goods and services

    -0.3

    5.5

    4.3

    4.7

    3.9

         Imports of goods and services

    -12.0

    1.2

    4.4

    4.3

    3.2

    Output gap (in percent)

    0.0

    -0.1

    -0.1

    0.0

    0.0

    Employment

    Unemployment rate (in percent, annual average)

    8.7

    8.5

    8.2

    8.0

    7.8

    Prices

    GDP deflator

    6.6

    6.0

    4.1

    2.9

    2.7

    Change of CPI (end of period)

    3.9

    4.5

    3.5

    3.0

    3.0

    Change of CPI (period average)

    7.6

    3.9

    4.2

    3.1

    3.0

    Public Sector Finances

    (In percent of GDP, unless otherwise specified)

    Central government revenue

    22.9

    22.1

    23.0

    23.8

    23.9

    Central government expenditure

    25.3

    24.8

    24.8

    24.7

    24.3

    Central government fiscal balance

    -2.4

    -2.7

    -1.8

    -0.8

    -0.4

    Central government structural fiscal balance 1/

    -3.4

    -3.1

    -2.1

    -1.2

    -0.5

    Central government gross debt

    39.4

    42.7

    43.7

    44.1

    43.5

    Public sector gross debt 2/

    70.2

    73.5

    74.5

    74.9

    74.4

    Balance of Payments

    Current account balance (% of GDP) 3/

    -3.5

    -2.3

    -2.5

    -2.5

    -2.7

    Foreign direct investment net flows (% of GDP) 3/

    -4.6

    -4.0

    -2.6

    -2.9

    -2.9

    Gross external debt (% of GDP) 4/

    71.1

    77.5

    76.5

    76.6

    75.7

    Sources: Central Bank of Chile, Ministry of Finance, Haver Analytics, and IMF staff calculations and projections.

    1/ The structural fiscal balance includes adjustments for output, copper prices, and lithium revenues based on IMF calculations. The lithium adjustment starts in 2022.

    2/ Includes liabilities of the central government, the Central Bank of Chile and public enterprises. Excludes Recognition Bonds.

    3/ Calculated as a share of US$ GDP.

    4/ Data from Dipres for the government and from BCCh for all other sectors. Calculated as a share of US$ GDP.

    [1] Under Article IV of the IMF’s Articles of Agreement, the IMF holds bilateral discussions with members, usually every year. A staff team visits the country, collects economic and financial information, and discusses with officials the country’s economic developments and policies. On return to headquarters, the staff prepares a report, which forms the basis for discussion by the Executive Board.

    [2] The Executive Board takes decisions under its lapse-of-time procedure when the Board agrees that a proposal can be considered without convening formal discussions.

    IMF Communications Department
    MEDIA RELATIONS

    PRESS OFFICER: Jose Luis De Haro

    Phone: +1 202 623-7100Email: MEDIA@IMF.org

    MIL OSI Economics –

  • MIL-OSI Security: Assistant Attorney General Bill Baer Delivers Remarks Before the National Asian American Coalition and National Diversity Coalition

    Source: United States Attorneys General 13

    Thank you Faith for those kind words and for your outstanding leadership of the National Asian American Coalition (NAAC).  The NAAC and its partners in the National Diversity Coalition have become important voices and strong advocates for communities – in particular, minority and poor communities – that far too often go unheard in our society.  Day in and day out, you provide hope and a helping hand to many hardworking Americans struggling to attain the American dream.  In my three years in this job, one highlight is meeting regularly with your coalition.  You are always informed and effective advocates on behalf of your communities.

    But I appreciate that advocating on behalf of consumers when you visit D.C. is only a small part of what the NAAC and the National Diversity Coalition do.  You provide training to the laid-off father searching for a job that will put food on the table and a roof over his family’s head.  You provide financial advice and resources to the mother hoping to start her own business.  You help families purchase their first home or refinance their mortgage so they can hold onto the home they purchased with their life savings.  You inspire countless young people to dream big and to strive for excellence by providing them with mentoring, after-school programs and scholarships.  I spoke with some of these students this morning.  I believe, as President Obama has noted, that “[t]here is no stronger weapon against inequality and no better path to opportunity than an education that can unlock a child’s God-given potential.”

    The mission of the Antitrust Division also involves ensuring economic opportunity for all consumers.  Our antitrust laws seek to promote fairness in our marketplaces, safeguard the economic freedom of our citizens and strengthen our economy through vigorous competition.  Our first antitrust law – the Sherman Act – was passed 125 years ago.  That law seeks to protect American consumers and businesses from the harm to competition that results when too much economic power is held by only a few corporations and individuals.  The Sherman Act became a vital tool under President Theodore Roosevelt – a progressive reformer often referred to as the “trust buster” – as he spearheaded the movement to bring fairness to the marketplace and to ensure that consumers benefit from healthy competition for their hard earned dollars.  Some years later, his distant cousin – President Franklin D. Roosevelt – established the Antitrust Division at the Justice Department to help continue the fight to protect hardworking Americans from the higher prices and reduced innovation that can result from the consolidation of economic power in a few hands.

    Here are a couple of examples of the Antitrust Division’s work.  Earlier this year, I stood with Attorney General Loretta Lynch when she announced the criminal guilty pleas of five of the world’s largest and most influential financial institutions – Citicorp, JPMorgan Chase, Barclays, UBS and The Royal Bank of Scotland – for manipulating the massive foreign currency exchange market.  As part of their guilty pleas, these institutions were required to pay almost $3 billion in criminal fines, including the largest antitrust fines ever obtained in the Justice Department’s 145-year history.

    A few years ago, we uncovered international conspiracies to fix the prices for all kinds of automobile parts, including seatbelts, airbags and antilock brake systems.  This illegal conduct made it more costly for companies like General Motors, Ford and Toyota to manufacture cars.  At the end of the day, we all know who paid the price for these cartels – the American consumer.  As of today, we have charged 58 corporate executives and 37 companies and obtained more than $2.6 billion in criminal fines.  And we are not done yet.

    Sometimes antitrust crimes are local.  Here in Northern California, our San Francisco office has spent the last several years prosecuting individuals who rigged the bids on foreclosed homes being sold at public auctions.  As you know, many Californians lost their homes during the Great Recession because they could not afford to pay their mortgages.  Some real estate investors saw the misfortune of these homeowners as an opportunity to line their pockets by agreeing not to bid against each other when these homes were auctioned.  They took turns winning these auctions at suppressed prices and deprived the banks and homeowners of the benefits of a competitive auction.  Thus far, we have charged more than 110 individuals who engaged in this type of bid rigging here in Northern California and other parts of the country.  Our San Francisco office also successfully prosecuted a conspiracy to fix the prices of liquid display panels sold worldwide.  LCDs are used in all kinds of electronic products, including flat screen televisions, computer monitors and tablets.  This conspiracy made it more expensive for companies to manufacture electronics, which, in turn, caused millions of Americans to pay higher prices.

    These cases showcase the Antitrust Division’s strong record of criminal antitrust enforcement during the Obama Administration.  Since President Obama took office, we have charged over 400 individuals and 140 corporations with criminal misconduct.  We obtained over $8.5 billion in criminal fines and penalties.  These large criminal fines and penalties serve an important deterrent effect because they directly affect something that corporate executives and investors care deeply about: a company’s bottom line.  But another thing to note: the criminal fines obtained by the Antitrust Division provide funding for the Justice Department’s Crime Victim’s Fund, which helps victims of all types of crime obtain the medical, legal and financial services that they need to move forward with their lives.  In California, this fund has helped victims of child abuse, domestic violence and sexual assault.

    We challenge other misconduct that raises – or threatens to raise – the prices that you as a consumer pay.  Here are some recent examples.

    Think about e-books, a popular alternative to hard copies.  Because they cost less to produce, they should be cheaper.  And until early 2010 they were.  Suddenly, prices shot up.  Why?  Because certain book publishers and Apple entered into an illegal agreement to raise prices.  We sued Apple and the publishers to put an end to their unlawful coordination.

    What happened to e-book prices when the publishers and Apple were forced to compete?  Prices for e-books fell.  In 2010, when the price fixing conspiracy was in place, you often had to pay $12.99 or $14.99 for a best-seller.  After we obtained judgments against Apple and the publishers, prices for best-sellers fell significantly, with many available for $9.99 or less.  Thus, competition, once restored, worked to benefit you and other consumers.

    But what about those who were victims of higher prices during the e-books conspiracy?  Based on the facts we developed, state attorneys general and private plaintiffs have thus far secured over $160 million in refunds for the victims of this conspiracy.  These refunds were directly credited to the consumers’ accounts with Amazon, Barnes & Noble and Apple.

    At the Antitrust Division we also worry about mergers between competitors that put the American public at risk of higher prices and lower quality products.  That was our concern a few years ago when AT&T wanted to buy its rival, T-Mobile.  AT&T claimed that by eliminating T-Mobile as a competitor, you, as a consumer, would be better off.  Our job at the Antitrust Division is to kick the tires on those claims and make sure they are accurate.  Here, the facts we uncovered told us that the elimination of T-Mobile as a competitor risked having you pay higher prices and receiving worse contract terms for mobile service.  We challenged the deal and AT&T ended up abandoning it.

    And guess what happened next?  Just like e-books, when the antitrust laws are enforced, competition flourishes.  T-Mobile went back to competing to win your business.  It spent billions of dollars improving the products it offers; it fought to woo customers by offering lower prices and better services; and it gave customers freedom of choice by offering to pay the early termination fees for those who switched to T-Mobile.

    And T-Mobile’s competitors were compelled to respond.  Sprint began offering lower prices and better plans.  AT&T targeted T-Mobile customers with a $200 credit, plus money for smartphone trade-ins, if they switched to AT&T.  T-Mobile responded by offering plans that allow customers to upgrade their phones twice a year.  AT&T, Verizon and Sprint all felt compelled to match these plans.

    A couple of months ago, in one of his final speeches as the lawyer for the American people, former Attorney General Holder summed up the role and purpose of antitrust enforcement.  He said: “In the appropriate enforcement of the antitrust laws we make real the promise of our democracy and our founding documents.  Vigorous competition in all spheres is what makes this nation exceptional.  It makes progress more likely and promotes the general welfare.”

    The hardworking men and women of the Antitrust Division remain true to this mission.  We should be proud of them and grateful to them.  They make the economy work for all of us.

    Similarly, we are grateful for the work that the NAAC and the National Diversity Coalition do on a daily basis to help some of our most vulnerable citizens and communities.  Together we can help to promote marketplaces where companies compete on price and quality for the hard earned dollars of American consumers.

    Thank you for your time today and congratulations on organizing another great conference.

    AAG Baer Remarks to NAAC 10-23-15 (53.39 KB)

    MIL Security OSI –