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  • MIL-OSI Europe: Exploring the Future of Cash in Germany — A Foresight Study | Guest contribution in Central Bank Payments News

    Source: Deutsche Bundesbank in English

    Safeguarding the role of cash …
    Many continue to experience the payment landscape in Germany as being shaped by cash. But in Germany, too, the use of cash has been declining for some years now. The coronavirus pandemic has significantly accelerated change processes in payment behaviour. While cash payments accounted for 82.5% of total transactions in 2008, their share fell to 51% in 2023. At the same time, we see an increase in the use of debit cards (27% in 2023) and mobile payments (6% in 2023).
    Nevertheless, cash remains an important part of economic life in Germany. Consumers expect to be able to pay with cash and want to maintain the freedom of choice between cash and cashless means of payment. On top of consumers’ preferences in favour of cash, the Bundesbank considers resilience, crisis preparedness, and inclusivity for all groups in society as further reasons why cash should be firmly anchored in the payment landscape. A functioning cash infrastructure with good access to cash and high acceptance rates of cash is crucial for this.
    The Bundesbank has a statutory mandate to facilitate the smooth functioning of cash and cashless payments. Together with the other Eurosystem central banks, the Bundesbank works to ensure that euro cash remains generally available and accepted as a means of payment and store of value. That said, some developments such as the declining use of cash for payments and the thinning out of ATM networks suggest that a future with cash cannot be taken for granted.
    … calls for future-oriented research
    With this in mind, the Bundesbank has turned its attention to exploring what sort of long-term future cash might have in Germany. In order to be able to proactively shape the evolution of cash in light of the trends we are currently seeing, we need an idea of the environment in which cash will be embedded in future. What developments and trends will influence the payment landscape and the cash cycle over the next 15 to 20 years?
    To take due account of the intricacies of the way in which cash is embedded in social and economic structures, a future-oriented study design is called for. One option is to take the strategic foresight route. The Bundesbank has therefore commissioned a study looking at the cash of the future, which uses this kind of method.
    Future scenarios for Germany’s payment landscape
    A commonly used approach in strategic foresight involves the development of future scenarios. These scenarios are hypothetical visions of the future on a set topic. The scenarios presented in the study describe potential futures for cash and the cash cycle in Germany from the perspective of the year 2037. They show alternative development paths and the influencing factors behind them.
    The scenarios are based on empirical evidence and were developed by strategic foresight experts working with established academic methods. It is important to appreciate that scenarios are not forecasts and, as such, do not represent precise predictions of a future that will definitely come to pass. What scenarios actually provide us with is a way to orient ourselves. What developments are possible, what are the dependencies between different developments and what are the consequences? The scenarios can thus play a role in decision-making and strategy-building and aid communication with stakeholders and the general public.
    A total of three scenarios were developed. In all three scenarios, cash use continues, albeit to different degrees. In all scenarios, cash is the only means of payment available as a fallback option in the event of technical outages.
    The hyperdigital payment world — artificially intelligent, convenient, and vulnerable
    This scenario is characterised by economic and social transformation aimed at safeguarding peace and prosperity. Geopolitical shifts and far-reaching digitalisation are the driving forces of this transformation. All areas of life are highly digitalised, and that includes making payments. The digital euro has already been introduced as legal tender. The majority of the public has a high degree of confidence in digital solutions, in the government, and in the providers of cashless means of payment. In this scenario, cash serves, at most, as a store of value.
    Cash has all but disappeared from everyday payment situations. Only 15% of all transactions are settled using cash in 2037. Payments between individuals are almost exclusively made via payment apps.
    Conventional online commerce, in which cash plays virtually no role, continues to grow strongly. When it comes to bricks-and mortar retail, hardly any checkouts are staffed anymore. Only a scarce few self-checkouts still accept cash payments. With a small number of exceptions, local governments, authorities, and public enterprises do not provide facilities for paying in cash either.
    Banks have massively thinned out their ATM network. With the disappearance of staffed checkouts in the retail sector and the cutback in cash payment options for customers, in-store cash withdrawal services — which are currently still commonplace — vanish as well. Cost pressures on the cash cycle increase considerably up to the end of the decade. Only a small number of effective measures to cut costs in the cash cycle are implemented.
    In accordance with an EU regulation, the Federal Government responds to the massive decline in the use of cash, adopting statutory standards to secure a basic level of cash provision for retailers and the general public. The aim of this move is to maintain the cash infrastructure in case there is a crisis.
    In summary, this scenario shows us a highly digitalised world in which cash plays only a minor role. It is barely able to perform its function as a crisis preparedness measure.
    The cash renaissance payment world — smart, self-determined, and resilient
    The world of this scenario has been shaped by the coronavirus pandemic, climate change, advances in general-purpose artificial intelligence (AI) and the war in Ukraine. On the back of recent experiences, the public has become more aware of the need to prepare for disasters and crises.
    Moreover, many people fear heteronomy and the notion of being controlled by self-learning AI systems trained on mass data. Ambitious individuals tending towards alternative lifestyles are advocating for the right to an analogue life, drawing attention to the dangers of AI and calling for data minimisation and digital sovereignty.
    The benefits of cash are being rediscovered. Cash is associated with values such as sovereignty, independence, and constructive rebellion. This heightened awareness of the benefits of cash gradually spreads into society’s centre ground. Despite the stabilising effects on cash use, cash made up less than 50% of transactions at the end of the 2020s.
    Policymakers were aware of the public’s desire for freedom of choice, as well as of the significance of cash for certain groups in society. Considerations around resilience and autonomy in payments prompted the Federal Government to take regulatory steps to strengthen cash as a means of payment. At the beginning of the 2030s, the Federal Government recommended that retailers should, as a basic principle, accept cash. All of the major supermarket chains offer both staffed checkouts and self-checkouts with cash payment modules.
    Due to an EU regulation on access to cash, the trend towards branch closures and the thinning out of the ATM network started to slow again from the mid-2020s. Clear regulation for maintaining cash infrastructures gives cash cycle stakeholders greater certainty for investing in innovation and cost-saving measures.
    All in all, in this scenario, we see parts of society circling back to cash and its benefits, meaning that cash use is declining only slowly and stabilises in the 2030s.
    The vanishing hybrid payment world — pluralistic, segregated, and indifferent
    In the 2020s, there was significantly greater individualisation and pluralisation in people’s living standards, lifestyles, and personal environments compared with the 2010s. Members of more progressive milieus, in particular, are regarded as early adopters when it comes to innovations in cashless payment instruments. But still, even those who mainly opt for cashless payments often carry an “emergency stash” of a few notes in their smartphone case or in their bag or pocket.
    At the end of the 2030s, cash is still being used by a large part of the population to pay street vendors, when tipping, as a gift to friends or family and when paying smaller amounts. The decline in cash use is gradual (31% of all transactions in 2037).
    The remaining bricks-and-mortar retailers are aware of the diverse preferences of their customer base. This means there is huge variation in terms of cashier system facilities and cash acceptance. However, bricks-and-mortar retailers encourage customers to use cashless payment methods. Public authorities are also coming to favour cashless means of payment.
    Banks continued to significantly reduce the number of their branches and ATMs throughout the country up to the end of the 2020s. As the share of cash is shrinking, less and less cash is coming into shop tills, meaning that in-store cash withdrawal services
    deteriorate. Overall, it becomes harder to access cash.
    A major crisis or disaster that could draw society’s attention to cash as a resilient means of payment fails to materialise. A pro-cash movement among the general public cannot be orchestrated in an increasingly segregated society. This means there is no political pressure to act and no resistance against the gradual decline of cash.
    A downward spiral is created: the use of cash continues to decline as access to and acceptance of cash become restricted. The fixed costs for the supply and removal of cash appear disproportionately high as cash volumes fall. Options for accessing cash and situations where it is accepted are therefore limited further. A hybrid payment landscape — something desired by large parts of society — slowly but surely disappears as it becomes more and more difficult to actually use cash.
    Current developments
    Once scenarios have been developed, they should be checked against current developments from time to time. It is important to bear in mind that certain trends already visible today might appear in one scenario or another but this does not necessarily mean that a particular scenario will occur. Nor do these trends make it more likely that one of the scenarios will prevail. This is because the developments described in the scenarios should not be looked at in isolation; it is only through their interplay that they mesh to form a holistic projection of the payment landscape in 2037.
    Cashless payments more convenient
    Recently published research by the Bundesbank shows that cash currently accounts for 51% of all transactions in Germany. Contactless cards and mobile payment methods are being used more and more frequently. Cashless means of payment are increasingly perceived as more convenient, faster, and easier than cash. These are characteristics regarded as key reasons in deciding for or against a means of payment in the “hyperdigital payment world” and “hybrid payment world” scenarios. On top of this, acceptance of cashless means of payment has risen sharply, including in former cash strongholds such as restaurants and cafés and the services industry. Against this background, the general trend of declining cash usage in the scenarios appears highly plausible.
    Cash availability and acceptance declining
    Acceptance of cash in Germany remains high, although it is slightly declining. Cash payments are almost universally accepted at retail outlets for day-to-day purchases. At retail outlets for durable goods and in the food services sector, acceptance has somewhat deteriorated. In public administration, meanwhile, cash acceptance is low and falling.
    As anticipated in all three scenarios, the number of ATMs and bank offices is declining sharply. The number of ATMs fell by 12% between 2019 and 2023. A weakening of this decline in the mid-2020s does not seem to be on the cards so far. As things currently stand, legal framework conditions creating guaranteed access to cash are lacking. Although more and more people are making use of the option to withdraw cash in shops, Germany’s Retail Federation (Handelsverband) is warning of service constraints if the declining propensity to pay in cash results in there not being enough cash in registers. These developments make a downward spiral of declining cash usage, acceptance of cash, and cash availability highly likely.
    Cash should not be taken for granted
    Cash use does not increase again in any of the scenarios. While the share of cash payments does slowly stabilise in the “cash renaissance” scenario, it steadily contracts in the other two. That said, neither of those two scenarios anticipate a complete disappearance of cash. But two of three scenarios — as well as the developments that we are currently seeing — suggest that its stabilising function and freedom of choice between cash and digital payments are not fully given anymore.
    The Bundesbank considers cash to be its core physical product and takes active measures to safeguard its continued existence and future use alongside its complement, the digital euro. However, the Bundesbank, too, has to adapt to the changing payment landscape. Under its new branch strategy the Bundesbank is aiming to create a more efficient branch network. Branch closures will go hand in hand with extensive investment into new and modern branches. Increased automation and simpler access routes for CIT companies will ensure a secure and efficient supply of cash in the long term.
    Society and policymakers called to action
    The scenarios also show that the responsibility does not lie solely with the Bundesbank. The Bundesbank’s measures will not be adequate unless they are accompanied by action from policymakers and society. That is why it is initiating further collaborative activities. The National Cash Forum brings the relevant stakeholders to the table to lay the groundwork for enhancing and stabilising the cash cycle. A joint dialogue with various interest groups from society culminated in position papers expressing a clear commitment to cash. We at the Bundesbank are committed to contributing to a future with cash.

    MIL OSI

    MIL OSI Europe News –

  • MIL-OSI: Bank of Åland Plc: Managers’ Transactions (Holmström)

    Source: GlobeNewswire (MIL-OSI)

    Bank of Åland Plc
    Managers’ Transactions
    October 28, 2024,16.45 EET


    Managers’ Transactions (Holmström)
     __

    Person subject to the notification requirement
    Name: Sofie Holmström
    Position: Other senior manager
    Issuer: Ålandsbanken Abp
    LEI: 7437006WYM821IJ3MN73
    Notification type: INITIAL NOTIFICATION
    Reference number: 82672/5/4
    __

    Transaction date: 2024-10-24
    Outside a trading venue
    Instrument type: SHARE
    ISIN: FI0009001127

    Nature of transaction: SUBSCRIPTION

    Transaction details
    (1): Volume: 95 Unit price: 30.77 EUR

    Aggregated transactions (1):
    Volume: 95 Volume weighted average price: 30.77 EUR

    For further information, please contact:

    Peter Wiklöf, Managing Director and Chief Executive, tel +358 40 512 7505

    The MIL Network –

  • MIL-OSI Russia: Financial news: The deposit auction of the Moscow Small Business Lending Assistance Fund will take place on 10/28/2024

    Translation. Region: Russian Federation –

    Source: Moscow Exchange – Moscow Exchange –

    Parameters;

    The date of the deposit auction is 28.10.2024. The placement currency is RUB. The maximum amount of funds placed (in the placement currency) is 103,000,000.00. The placement period, days is 16. The date of depositing funds is 28.10.2024. The date of return of funds is 13.11.2024. The minimum placement interest rate, % per annum is 20.00. The terms of the conclusion are urgent or special (Urgent). The minimum amount of funds placed for one application (in the placement currency) is 103,000,000.00. The maximum number of applications from one Participant, pcs. 1. Auction form is open or closed (Open). The basis of the Agreement is the General Agreement. Schedule (Moscow time). Applications in preliminary mode from 11:30 to 11:40. Applications in competition mode from 11:40 to 11:45. Setting the cut-off percentage or declaring the auction invalid before 11:55.

    Additional conditions Placement of funds with the possibility of early withdrawal of the entire deposit amount and payment of interest accrued on the deposit amount at the rate established by the deposit transaction, in the event of non-compliance of the Bank with the requirements established by paragraph 2.1. of the Regulation “On the procedure for selecting banks for placing funds of the Moscow Small Business Lending Assistance Fund in deposits (deposits) under the GDS” (as amended on the date of the deposit transaction), early withdrawal at the “on demand” rate, payment of interest at the end of the term, without replenishment.

    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 accurate to what the source is stating and does not reflect the position of MIL-OSI or its clients.

    https://www.moex.com/n74330

    MIL OSI Russia News –

  • MIL-OSI Economics: Almost there – navigating the last mile of disinflation in Latin America

    Source: Bank for International Settlements

    The Covid-19 pandemic required unprecedented policy actions from central bankers. After a faster-than-expected economic recovery, inflation surged to decades-high levels. Central banks raised policy rates and inflation fell substantially. Strong monetary policy frameworks helped Latin American central banks in keeping long-term inflation expectations anchored and avoiding financial crises.

    However, the final stage of reducing inflation to target levels, “the last mile,” remains challenging. While inflation is much lower, it is still not yet at target. Some countries even experienced a rebound. The final stage of disinflation will be different from the first phase. Base effects from the waning of the transitory factors that pushed up inflation play a much smaller role now. High and persistent growth in services prices will be a challenge, especially as wages continue to rise. Expansionary fiscal policies are counteracting restrictive monetary policies, complicating the path to achieving inflation targets. In addition, inflation is increasingly driven by domestic factors, reflecting greater economic and labour market disparities among countries.

    Central banks will have to proceed cautiously in the period ahead.

    MIL OSI Economics –

  • MIL-OSI Economics: Denis Beau: Perspectives on increasing prominence of digital money

    Source: Bank for International Settlements

    Good afternoon, Ladies and Gentlemen,

    I am glad to join you virtually today for the Hong Kong FinTech Week, to share our perspective at the Banque de France on the development of digital payments and its implication for the fulfilment of our mandate to ensure the proper functioning of payment systems.

    Although wholesale and retail payments are being transformed by distinct trends, they present similar challenges from a safety and efficiency perspective. To meet these challenges, we have been at the Banque de France simultaneously acting on three key levers. First, the provision of central bank money services. Second, the support to industry initiatives in line with our policy goals. Third, the promotion of adjustments to the regulatory and supervisory framework. 

    In that context, I would like to explain in my introductory remarks how we consider using our first lever, the provision of central bank money services.

    1. Wholesale digital payments

    In the wholesale space, the security and efficiency of financial transactions between financial intermediaries importantly hinges on the nature of the settlement asset chosen. 

    Lessons learned from past financial crises have underlined the critical importance of using secure settlement assets. In response, members of the Bank for International Settlements have committed to promoting the use of central bank money in the wholesale payments space and mitigate both liquidity and counterparty risks. This commitment is reflected in Principle 9 of the CPMI-IOSCO’s Principles for financial market infrastructures (PFMIs), designed to strengthen and preserve financial stability. And they have been successful in the implementation of this policy as central bank money is actually the very dominant settlement asset in the wholesale space.

    However, as tokenisation of assets gains momentum, private settlement assets, particularly stablecoins, are being used and are likely to be settlement assets of choice, to settle transactions in tokenised assets, absent the availability of central bank money on Distributed Ledger Technology (DLT). In addition, the proliferation of uncoordinated settlement solutions resulting from the lack of public sector response to the tokenisation of finance could lead to increased liquidity fragmentation.

    This is why we consider that we need to adapt the provision of central bank money to the demands of an increasingly digital financial system, particularly as transactions involving tokenised assets gain prominence, to prevent regression in the safety and efficiency of wholesale transactions. 

    Accordingly, the Banque de France was one of the first central banks to launch an ambitious experimental program focused on the use of wholesale central bank digital currency (CBDC) in various settlement processes for varied assets. 

    In addition, in an evolving landscape, where traditional infrastructures are likely to coexist with new DLT systems, interoperability will be crucial in preventing market fragmentation and central bank money can help ensure it. The Payment-vs-Payment (PvP) experiment in CBDC we recently conducted with the Hong Kong Monetary Authority is an illustration of this, with an interoperability mechanism supported by SWIFT to ensure synchronised settlement of both legs of the transaction.

    Since May 2024, the Eurosystem has also been testing various interoperable solutions for settling tokenised financial assets via central bank money and we are actively contributing to it. Looking further ahead, the BIS has put forward the vision of a global unified ledger-a long-term vision that could begin with the establishment of regional unified ledgers, such as a European Unified Ledger. Project Agorá is likely to be an important building block in an exploratory approach to make this vision concrete and test it, and we are also taking part in it.

    2. Retail digital payments

    In the retail space, contrary to the wholesale one, we observe the coexistence and complementarity of central bank money – in the form of cash – and private money. While their respective role has evolved over time with users’ habits, in Europe it has undergone very rapid and significant changes in the past few decades, in relation with the development of the digital economy. The use of cash has steadily declined: in 2022, cash was used in 50% of in-store payments in France, compared with 68% in 2016. Meanwhile, cashless payment solutions have rapidly developed, boosted by the growth of e-commerce and innovative solutions such as contactless and mobile payments.

    These changes bring many benefits for consumers, with payments becoming increasingly convenient, faster and innovative. The Banque de France therefore strongly supports and encourages innovation by payments stakeholders and the private sector. 

    However, digitalisation also comes with challenges for central banks. 

    • First, regulatory and supervisory frameworks need to be adopted to foster innovation in a trusted environment. This is what we have done in the case of private digital assets in Europe where the MiCA regulation has provided a clear, harmonised regulatory framework for crypto-asset service providers (CASPs) and stablecoins issuers, with the support of the Banque de France.
    • Second, the development of digital payments comes with increased dependence on a few dominant non-EU players – international card schemes and global technology providers (BigTechs). Those stakeholders exploit large network effects and own many proprietary standards used in retail payments. In Europe, that trend raises issues in terms of operational resilience, market competition and innovation, and ultimately, challenges the strategic autonomy of European players.

    The Banque de France has helped to address those dependency issues with first a clear support, along with the Eurosystem, to the emergence of pan-European solutions for retail payments such as the European Payments Initiative. Their digital wallet called Wero has just been launched in France, after Germany and Belgium, for person-to-person payments in the first stage. It will gradually expand coverage, to other countries and use cases (e-commerce and in-store payments) in the next years.

    We have also intensively contributed to the preparation underway of a retail CBDC, namely the digital euro. This new form of public money would be comparable to a “digital banknote”. Its legal tender would make it usable everywhere in the euro area, in all contexts – therefore supporting European integration. It would offer cash-like privacy – notably thanks to the offline functionality that would also strengthen our resilience. The underlying standards and infrastructures would be governed by European players – also supporting our strategic autonomy.

    The digital euro is also intended to perpetuate the “public-private partnership” that lies at the heart of our monetary system. It would be distributed by banks and other private intermediaries, with a viable and attractive business model, therefore preserving financial intermediation. It could also facilitate the development of private pan-European projects that could benefit from its open and harmonised standards to extend their scope and benefit from large network effects.

    Conclusion

    As payments become increasingly digital, central banks face the issue of revisiting the way they provide central bank money services to their economy. At the Banque de France, we consider that the Eurosystem should stand ready to adapt its provision of central bank money both in the wholesale and retail spaces. We see this as necessary to maintain the ‘singleness of money’ in our economy and the robustness of our monetary system, both from a stability and sovereignty perspective. On the wholesale side, a CBDC would appropriately accompany and secure a trend towards the tokenisation of financial assets. It could also be a first step towards the provision of a new and decentralised form of infrastructure, a European Unified Ledger. In the retail sphere, we see the deployment of a digital euro as a natural evolution of, and complement to cash, whose success should be built on a strong public-private partnership.

     

    MIL OSI Economics –

  • MIL-OSI Economics: Eddie Yue: Keynote address – Hong Kong FinTech Week 2024

    Source: Bank for International Settlements

    Good morning everyone. Welcome to the 9th Hong Kong FinTech Week, an annual event where vision, inspiration and innovation come together to shape the future of fintech.  It’s wonderful to welcome so many old and new friends today to discuss this exciting topic.

    This year’s theme is “Illuminating New Pathways in Fintech”. It captures where we are right now – at a critical juncture on our fintech journey.  We are seeing an unprecedented acceleration in financial development, fuelled by cutting-edge technologies.

    Having arrived at this point after marking a number of significant milestones along the way, it’s perhaps time to take stock and ask ourselves “What’s on the horizon for Fintech?”

    What we have learned from innovation and fintech

    Before I delve into that question, let’s revisit our overarching vision, which is to nurture a vibrant fintech ecosystem. Like instruments in an orchestra, so do individual players in the fintech ecosystem, whether they are agile start-ups or established institutions, each have their own parts to play. 

    But let’s be honest, a vibrant fintech ecosystem cannot be built overnight. Technology is continuously disrupting everything, including our financial markets.  For many of us, embracing change isn’t always easy, and sometimes the process of driving innovation may even feel uncomfortable and disorienting.  But change is often also a good opportunity to reflect on how we can innovate to better serve the greater good.

    Our Fintech 2025 strategy is a powerful testament to our commitment to innovation. Over the last few years, we have driven some positive transformations in our fintech ecosystem, and I would like to take the next few minutes to share three lessons we have learned along the way.

    First, innovation is not an end in itself, but a means to solve real-world problems. Whether it’s faster payments or better banking access for SMEs, technology is a means to help transform everyday experience and bring benefits to the real economy.  One area we’ve been focusing on is enhancing cross-border payments.  The link between our Faster Payment System (FPS) and Thailand’s PromptPay is one example, providing consumers with a seamless cross-border payment experience and bringing us closer to a world of truly borderless transactions.  Another example is the cross-boundary e-CNY pilot, which allows Hong Kong people to set up e-CNY wallets locally, with linkage to the FPS for cross-boundary payments.  Whether you are buying coffee in Bangkok or settling a bill in a Shenzhen restaurant, payment is as simple as if you were in Hong Kong.

    Another example is the use of technology to address long-standing pain points in the data ecosystem. By linking up isolated data islands and combining sources from the public and private sectors, we are expanding and diversifying our data network.  The linkage between HKMA’s Commercial Data Interchange and the Government’s data gateway is now fully operational, helping to address the industry’s need for government data which can be used to support the credit needs of SMEs.  

    The second thing we have learned is the need to be bold in driving innovation. We need to have an “explorer” mindset to try out innovative ideas even if they are only at a formative stage.  One good example is tokenisation, which is just taking shape as we pioneer different use cases and solutions with Project Ensemble to explore and define the tokenisation landscape.  Working with the industry, we hope to showcase how innovation and regulation can work together to create new opportunities for our financial markets. 

    But a major trend like this inevitably comes with a need for clear guidance and market confidence, and we value your feedback and views as we navigate this evolving landscape. That is why we have been engaging with market players through the Ensemble and stablecoin sandboxes to help us formulate regulatory requirements that are risk-based and fit-for-purpose.

    Our third lesson is the importance of collaboration. Innovation thrives when we come together – cross-sector and cross-border partnerships let us tap into network effects and our collective knowledge, while playing to our individual strengths.

    Numerous collaborations are underway between the HKMA, various jurisdictions, and fintech players from both local and global markets. These partnerships, big and small, have proved to be essential building blocks that support further progress.

    I’ve talked about the three lessons we’ve learned so far: focus on real-world problems, be bold and be collaborative. These lessons are steering us into the next phase of our fintech journey.

    “What’s on the horizon for fintech?”

    So what’s this next phase? While we have yet to chart out our Fintech 2030 Strategy, I can think of two areas that the HKMA should focus on in the next few years. 

    Our first area of focus is tokenisation, including the novel idea of “Finternet” coined by the Bank for International Settlements (BIS). Let me first make clear that tokenisation is not the same as crypto-assets.  There has been some confusion because they both ride on blockchain technology, but don’t mix them up.  Crypto-assets are mostly speculative and our stance is to let the market grow and develop while putting guardrails around it to protect investors.  Tokenisation, on the other hand, is an innovative way to record the value and ownership of money and assets in digital form on a programmable ledger.  This will make it much easier for individuals, corporates, and financial institutions to access and trade these assets, thereby creating a more inclusive ecosystem that benefits everyone, whoever and wherever they are.

    We believe that tokenisation has the potential to create hyper-connectivity among users, data, and services that is essential to drive economic progress. This calls for a visionary shift to align with the constant advances in technology.

    The BIS has also recently introduced the “Finternet” concept. This envisions an internet-like network of interoperable financial ecosystems that places individuals and businesses at the heart of financial interactions.    

    Many of the ideas and concepts from the “Finternet” resonate closely with the HKMA’s tokenisation project. We envision a future where tokenisation integrates seamlessly with financial and real-world assets, enabling operations and transactions otherwise impossible with today’s technology.  Now you might be wondering, how can something as virtual as tokenisation connect with tangible assets?

    Let’s look at trade finance. Imagine you’re an SME importing goods from overseas.  Traditionally, you’d face a mountain of paper documents, like bills of lading and invoices.  With tokenised electronic bills of lading, you can now transfer these digital assets to a financial institution in exchange for funding. 

    Unlike a mere PDF copy of a bill of lading, this approach allows you to track real-time shipment status on the blockchain, eliminates paper, reduces the need for verification, and lowers fraud risks. We are actively exploring this through the Ensemble Sandbox to resolve frictions in trade finance.

    Tokenisation also ties in with green and sustainable finance, as it may open up new business models and opportunities for businesses and investors. For example, tokenised carbon credits traded on blockchain offer better transparency and credibility in carbon data, helping us tackle the issue of double counting that bedevils carbon trading today. 

    Another example can be found in the infrastructure for the electric vehicle (EV) industry. By leveraging real-time data from EV charging stations, we can turn the energy generated into a tokenised revenue stream for institutional investors.  We are looking closely at this model, as it has the potential to be replicated in various settings, mobilising funds to support the transition to a low-carbon economy.

    Our second area of focus is Artificial Intelligence (A.I.) and data, which will help build a smarter and data-driven financial future for everyone. I would like to expand on those two keywords “Smarter” and “Data-driven”.  When I say “Smarter”, I’m talking about the need to promote digitalisation in the banking industry, while ensuring we have the right safeguards in place. 

    In recent years, the banking industry has been leveraging A.I. to promote efficiency, analyse data, and enhance customer experience. The HKMA stance is clear: we are committed to encouraging responsible A.I. adoption.  Back in 2019, we already outlined the high-level principles on the use of A.I. by banks, and this policy guidance remains relevant today.

    Then we see the explosive uptake of Generative A.I. (GenA.I.) in the past two years. GenA.I. has the potential to transform how financial institutions operate, innovate, and engage with their customers.  As we stand at the dawn of this revolution, the HKMA recognises the opportunity to provide more targeted support to accelerate GenA.I. development, by collaborating with the best minds from various sectors.  To achieve this, we have launched various cross-sectoral initiatives, including the FiNETech series, research projects, and training sessions, all aimed at expediting digital transformation.

    Financial institutions are actively exploring the vast potential of GenA.I., from risk assessment to anti-fraud measures and customer interactions. In August this year, we launched the GenA.I.  Sandbox in collaboration with Cyberport to unlock the full potential of tailored GenA.I.  applications catering to the unique needs of Hong Kong’s financial market.  This innovative platform allows banks to pilot GenA.I.  use cases in a risk-managed environment, complete with technical support and targeted supervisory feedback.

    As we move forward, the HKMA will take an interactive and iterative approach, carefully evaluating the results of the Sandbox trials and sharing best practices. We will also provide additional supervisory guidance as necessary to ensure that the adoption of GenA.I. promotes responsible innovation, while maintaining the integrity of the banking sector.

    So, what about “Data-driven”? The aim here is to harness the power of data to reinforce Hong Kong’s leading position as a smart digital economy, both locally and globally.  To do that, open data flow is key.  Domestically, our two initiatives – Commercial Data Interchange and Interbank Account Data Sharing – will continue to integrate data networks which used to run in isolated silos.  This will help simplify KYC and credit risk assessments, thereby helping SMEs secure bank financing more easily, faster, and hopefully more cheaply.

    Meanwhile, we are working closely with the Mainland to facilitate cross-boundary data sharing, first by expediting the pilot for cross-boundary credit referencing with Mainland credit reference platforms.  This will allow SMEs with cross-boundary operations to use this full set of credit data to enhance their access to bank financing.  Internationally, we are collaborating with the BIS Innovation Hub on Project Aperta, which aims to connect domestic open finance infrastructures across jurisdictions, to enable secure and consumer-consented sharing of financial data.   Seamless cross-border data portability will allow consumers to open overseas accounts much faster, and speed up international trade at reduced cost.

    Closing

    What the future may hold for us is uncertain, but we are committed to charting the next phase of financial innovation with continuing efforts in the two areas I just talked about: tokenisation and AI.

    Ultimately, we envision a borderless fintech ecosystem where innovation will drive business development.  To realise this vision, we must dream big and push the boundaries of what is possible.   Let’s all embrace the spirit of innovation and collaboration as we move forward together. 

    If we liken our Fintech journey to an orchestra playing a symphony, we are about to begin the next movement of our fintech symphony.  We don’t know whether it will be “allegro”, or “adagio”.  What we know is that the stage is already set, the instruments are tuned, and the world is waiting.  Hong Kong’s commitment to shaping a vibrant and dynamic financial future has never been stronger.

    Thank you and I hope you gain inspiration from the coming week.

    MIL OSI Economics –

  • MIL-OSI Economics: Klaas Knot: Partly cloudy skies in the euro area, with a silver lining

    Source: Bank for International Settlements

    Good morning everyone,

    It is my pleasure to present the euro area perspective in this panel session on the Global Economic Outlook. The latest PMI releases point to steady global growth.  Weakness in manufacturing is compensated by strong growth in the service sector.

    However, as you can see in the left hand chart, the economic situation in the euro area is less favorable than the global average. The current mood is a bit like October weather in Amsterdam. Not as bad as some people would have you believe, but definitely not great either.

    Economic growth in the euro area has been sluggish for two years now. As shown in the right hand chart, especially domestic demand has been weak. Initially, this could be explained by falling real wages. Over the past two years, however, wages have largely been catching up with prices. The short-term outlook is pointing to slow growth while economic sentiment remains subdued and the household savings rate is still higher than before the pandemic. Looking further ahead though, we do expect the economy to strengthen. Rising real incomes will allow households to consume more and the gradually fading effects of restrictive monetary policy will support consumption and investment.

    Zooming in on the various member states, confidence is not low everywhere. Economic sentiment is significantly above the long-term average in for instance Spain, Portugal and Greece. The mood is especially good in the service sector, benefiting from the reallocation of consumption from goods to services after the pandemic. This growth boost is particularly visible in tourism and hospitality. But also other sectors of the economy perform relatively well in these countries.

    MIL OSI Economics –

  • MIL-OSI Economics: Klaas Knot: Want a strong financial system? Implement Basel III

    Source: Bank for International Settlements

    Thank you Ralph, and thank you for the invitation to speak here before this distinguished audience.

    You are all leaders of big organisations. So you are familiar with the question of strategic change: how do you navigate your bank through the waves of financial market sentiment, changing consumer preferences and technological innovation? A sound strategy starts with a lot of thinking, for sure. Strategic thinking. Board room discussions. A couple of consultants perhaps.

    Finally there is a strategy. A Strategy with a capital S. You know where you want to go and how. But now you enter a crucial phase: implementation. How do you get all corners of your bank from A to B? Because all the strategic thinking in the world will come to nothing if your bank does not follow suit. Implementation is key.

    So how would you feel if, after 13 years, your plans are still stuck in the implementation phase? I ask because that’s the situation we are in with Basel III. When I became governor back in 2011, we were discussing the implementation of Basel III. And now, towards the end of my second term, we are still discussing the implementation of Basel III.

    By now, some of you might think: ‘ok, so this morning we got war for breakfast, and now for lunch we get a central banker who wants to talk about the rules. What’s next? We’ve heard this scratchy old broken record dozens of times before!’ But, as you know, these are often the best records.

    So let me take a step back here. Where are we coming from? In 2010, the Basel Committee on Banking Supervision introduced the first set of Basel III standards. A set of international rules designed to fortify the global banking system after the worst financial crisis since the Great Depression. These reforms were not just a patch-up job. They were a complete overhaul of banking regulation to improve bank resilience, transparency, and risk management. Basel III focused on increasing capital adequacy, introducing the leverage ratio, and creating more stringent liquidity requirements. With the memory of the crisis still fresh, national implementation of this first part of Basel III went relatively quickly.

    This first set of standards was then complemented in 2017 by the final Basel III standards. They focused on enhancing the risk-weighting framework, introducing more robust capital floors, and limiting the variation in banks’ internal risk models. These standards, by now famously known as the Basel endgame, have not yet been implemented by jurisdictions around the world. The EU, in its implementation, deviated on important points, making banking regulation weaker than agreed in the new standards. In the US and the UK, initial legislation proposals have also been weakened, with some elements not fully aligned with the Basel III agreement. Legislators also point at each other when making these adjustments. US banks spent tens of millions of dollars on a lobbying campaign that included ads in the middle of American football games. I don’t think it’s ethical to interrupt football games for any kind of message, let alone on Basel III.

    But on a serious note: our failure to implement fully what had already been agreed upon back in 2017 should be worrying. Not only to me, as a regulator, but also to you, as bankers. To explain why, let me give you my version of a pro-Basel lobbying commercial.

    Implementation of Basel III will increase the credibility of capital ratios and strengthen the banking sector. Think of it as a safety net, your safety net. It will ensure that when the next economic shock comes-and it will come-you will be better prepared to withstand it. The capital buffers required by Basel III are not a burden; they are a shield, allowing you to absorb losses while maintaining operations, protecting your customers and preserving your reputation in times of stress.

    Many in the banking sector view regulation as a constraint, something that limits profitability and imposes undue costs. But it’s just the other way around. Basel III is not an obstacle to growth, it is an enabler of sustainable, long-term growth. Banks with strong capital positions and sound liquidity management are better positioned to extend and rollover credit, invest in new technologies and fund large-scale projects. They are better able to maintain lending during an economic downturn. And stronger banks can secure more favourable funding conditions, attract long-term customers and build partnerships that increase shareholder value.

    Basel III works best when it works everywhere. When Basel III is implemented unevenly across jurisdictions, it creates a patchwork of regulations that opens the door to regulatory arbitrage. Banks may be tempted to shift operations to regions with looser standards. Consistency across borders is not just in regulators’ interests-it’s in yours as well. An uneven playing field undermines confidence in the global banking system, disrupts competition, and ultimately increases systemic risk. It puts banks at risk of operating in jurisdictions where regulatory frameworks are not equipped to deal with crises, leaving you exposed when things go wrong.

    By contrast, global implementation of Basel III creates a level playing field, ensuring that all banks-no matter where they operate-adhere to the same high standards. This uniformity strengthens global financial stability and, in turn, enhances the confidence of your shareholders, customers, and counterparties.

    The opposition to Basel III reflects a kind of short-term thinking, that, frankly, I find hard to understand. Weakening of Basel III may give you a few basis points in capital relief, but it exposes you to long-term vulnerabilities. As the memory of the global financial crisis fades, we risk entering a race to the bottom. A race that would be very dangerous for financial stability. Or, as Daniel Davis said in his much-quoted Financial Times article, ‘while the road to hell is paved with good intentions, the road to the next banking crisis is paved with good exemptions.’

    So in short, it is essential to implement the Basel III standards in all jurisdictions. Not least because, as you know, financial markets are not waiting for us to learn the lessons of 13 years ago. New risks are always emerging, as the events in March last year showed. The demise of Silicon Valley Bank and Credit Suisse not only brought lessons for banks and supervisors. They also highlighted that we may need some targeted changes in banking regulation beyond Basel III. I want to mention three areas here: liquidity, interest risk and AT1 instruments.

    First on liquidity. Partly as a result of social media and digitalisation, the outflow of deposits at SVB was much faster than in previous cases, and much faster than LCR calculations take into account. This raises the question of whether the LCR should be calibrated differently for certain types of deposits. The aim would be to increase banks’ resilience and provide incentives to attract longer and more diversified funding.

    Another avenue which should be explored in the light of the SVB case is whether unrealised losses should be better reflected in the capitalisation of banks. Here I’m referring to the difference between market and book value for bonds which are held to maturity. And we should look at how to address the issue that, in times of stress, banks may be hesitant to use instruments in the liquidity buffer that are not marked to market daily for accounting purposes.

    The turmoil last year also showed how important it is that banks are operationally prepared for liquidity stress. Banks need credible and tested contingency funding plans and they must be operationally ready to access central bank liquidity facilities in times of stress. While this may be more of an issue in the US, we should also look at how this can be improved in the EU. 

    Then interest rate risk. When banks fail to cover this risk sufficiently, changes in market interest rates can lead to substantial losses and, in extreme cases, even to bank failure. The recent developments at regional banks in the US offer a vivid illustration of this.

    The events last year underline the importance of regulation for interest rate risk management and the need for prudent assumptions about customer behaviour. Capital is also necessary to absorb the uncertainty of customer behaviour. In order to promote global harmonisation, we should explore the inclusion of interest rate risk in the Pillar 1 requirements. 

    And last but not least, we need to think about AT1. Rather than acting to stabilise a bank as a going concern in stress, international experience has shown that AT1 absorbs losses only at a very late stage of a bank failure. We saw this in the case of Credit Suisse in 2023, with the Swiss National Bank noting that ‘the AT1 features designed for early loss absorption in a going concern were not effective’. In this instance, AT1 only absorbed losses when the point of non-viability was imminent and failed to stabilise the entity at an earlier stage of stress. This should encourage regulators to reflect on the role and functioning of AT1 instruments in determining the capital position of banks.

    These are all important things that we have to look into. But first and foremost we have to implement Basel III. And while I know this is primarily a message to regulators and lawmakers, it is also a message to you. Because what a strong signal it would be if you as a group would say: don’t water down Basel III. Don’t give us weak rules, give us strong rules. Strong rules that apply to all banks wherever they are and whatever their size. It would not only be a strong signal to us, regulators and lawmakers, it would also be the rational thing to do. Because strong rules are in your interest. Because a strong financial system based on a level playing field is in your interest. Because regulation is not a constraint on the financial industry, it is a license to operate.

    MIL OSI Economics –

  • MIL-OSI Economics: Fabio Panetta: Statement – meeting of the Development Committee

    Source: Bank for International Settlements

    This year marks the 80th anniversary of the Bretton Woods institutions. In this turbulent time, their mission is more important than ever. Together they must foster growth, create jobs, increase stability, build resilience, fight poverty, and reduce inequalities, all while facing massive global challenges – climate change, fragility, mass migration, pandemics, and the risks stemming from new technologies and demographic trends.

    We believe that the World Bank Group (WBG), the International Monetary Fund (IMF), and the wider system of multilateral development banks (MDBs) should pursue this complex mission cooperatively, leveraging their respective comparative advantages. In this regard, we greatly appreciate the Development Committee Paper, “A Future-Ready World Bank Group,” for its comprehensive report on what has been accomplished under the WBG Evolution, launched in October 2022.

    We commend the WBG for progress made in improving its operational and financial model to better serve all its clients, with particular attention to the poorest and the most vulnerable. It demonstrates an impressive amount of work that is reshaping and revamping the organization with an eye to strengthening partnership and collaboration within the WBG and with other MDBs.

    Our constituency continues to advocate for improved monitoring and reporting of the impact of WBG operations, by incorporating better data, impact evaluation, and lessons learned from past experiences. We will continue to ensure that impact and accountability anchor any reforms to operational efficiency and effectiveness. Improved measurement standards in the 22 indicators of the new WBG Scorecard are particularly welcome, and we look forward to further improvements.

    One of the most important tools the WBG can provide is knowledge. It benefits all countries and is necessary to raise the impact of financial flows on development. To this end, we strongly support the newly envisioned Knowledge Compact and the new Knowledge Hubs, designed to favor the flow of expertise and lessons learned around the globe.

    We commend management for further achievement in implementing the G20 Capital Adequacy Framework (CAF) Review, launched under the Italian G20 Presidency, which has increased the IBRD’s financing capacity by up to $150 billion over the next decade. We congratulate the Bank for the newly adopted IBRD Framework of Restoration Measures, while calling for rapid approval of remaining reforms to ensure its full functionality and alignment with major regional MDBs.

    We also applaud the work that the MDBs are jointly making to better recognize the value of existing callable capital. While continuing the dialogue with credit rating agencies, we urge management to integrate a part of callable capital into the WB’s capital adequacy metrics. We also appreciate the newly established enhanced callable capital, and we call for the most inclusive approach in recognizing the financial leverage of shareholders’ voluntary contributions in a way that is consistent with the credit rating agencies’ practice.

    We should be very cautious in designing any reform of IBRD pricing which may have negative impacts on IBRD and IDA financial capacity, which we have been striving to expand. Moreover, we should be aware of any conflicting effects on the newly established Framework for Financial Incentives. We also call for greater analysis of spillovers of price changes for the broader MDBs system, as well as on their implications for the Bank budget anchor and the incentives for country graduation and private sector financing.

    We urge MDBs to develop effective partnerships with climate and environmental vertical funds so as to maximize scarce concessional resources. MDBs can greatly help improve access to these funds at scale and speed. Thanks to their financial leverage, MDBs can also augment the resources available in vertical funds, by associating programmatic approaches with their parallel subscription of WBG hybrid capital and portfolio guarantees, to strengthen predictability of resources for beneficiary countries. We look forward to continuing work with the WBG to implement the conclusions of the forthcoming G20 Independent High-Level Expert Group Review on the Vertical Climate and Environmental Funds.

    We appreciate the WBG’s new approach to private capital mobilization. Enhanced country diagnostics, stronger country dialogue, and closer collaboration among the WBG institutions are needed to increase the supply of effective projects. The WBG guarantees platform, the publication of GEMs data, the introduction of new products to mitigate foreign exchange risks, and the promotion of policy reforms specifically designed to improve the business environment will all help lower the actual and perceived risks of private investment in developing countries. Project standardization and securitization will contribute to attracting investors and accelerating the WBG’s portfolio turnover, thus making capital more efficient.

    The poorest countries are facing the greatest hardships, and 700 million people worldwide are still trapped in extreme poverty. It is our duty to help them overcome challenges and build a more equitable future. As the largest international development fund in the world, IDA has a major responsibility to help low-income countries return to the path of recovery and sustainable growth, as well as transition out of conflicts, poverty, and deprivation.

    This year, IDA21 negotiations are creating a new architecture in order to better integrate IDA into a One WBG and strengthen its alignment with the Evolution agenda. IDA must continue to be centered on concessional financing, meaningful policy commitments, and result-oriented targets.

    At this crucial juncture, we are committed to ensuring that IDA remains the largest and most impactful partnership between borrowers – at different income levels – and donors. Highly concessional resources are a vital source of financing for low-income IDA countries, especially those lacking significant access to capital markets. At a time of heightened debt vulnerabilities, higher interest rates, and lower FDIs, this is even more important. We should collectively deploy all efforts to mobilize adequate concessional finance for IDA21.

    In this collective effort, the rule-based formula to increase IBRD transfers under better financial conditions and higher incomes – agreed upon in 2018 – is playing a crucial countercyclical role, and it should make shareholders proud of the IBRD’s increased role among the key contributors to IDA. The 2018 agreement remains a sign of solidarity and mutual responsibility for a poverty-free world.

    We also commend the further efforts of IDA itself to stretch its own balance sheet with new CAF measures. These measures allow for more efficient deployment of resources belonging to IDA beneficiaries. We support their full engagements in this decision to best calibrate the appropriate balance between the degree concessionality and volumes, should a trade-off emerge.

    Our ultimate goal is to spur long-term development through an effective IDA21. The IDA model is well tested in delivering complex and transformative projects in key sectors, based on country ownership. Mission 300, in partnership with the African Development Bank, is an excellent model for using IDA resources through regional multiphase approaches, building partnerships and – together with IFC and MIGA – mobilizing private capital. IDA is also uniquely positioned to deliver infrastructures for regional integration, along with projects and policy reforms to strengthen industrial development and the local private sector. This is especially important in fighting food insecurity, increasing access to healthcare and job opportunities, building sustainable local value chains for critical minerals, and preparing for pandemics.

    Rising active conflicts and regional instability call on the WBG to renew its approach in addressing the root causes of fragility and maintaining effective engagement in conflict situations. This requires reducing geographical inequalities, promoting broad-based growth, supporting public service delivery in situations of active conflict, and strengthening institutions – including effective and decentralized justice systems and community dispute-resolution mechanisms to mitigate and prevent social conflicts.

    As part of this effort, the Italian G7 Presidency is working with its partners to ensure a successful replenishment of IDA21, building a solid package that addresses all of these critical issues. IDA must remain relevant to the needs of its clients, particularly Africa and fragile countries. A collective endeavour will be paramount in striking the right balance among donor contributions, internal efficiency, and borrower effort, while broadening the donor base.

    Africa is a top priority for this constituency, an agenda further advanced during the G7 Italian Presidency. The Mattei Plan, launched by the Italian Government at the Italy-Africa Summit last January, aims to build a renewed relationship with African countries based on equal cooperation, shared interests, and mutual benefits to foster economic growth and social development at the local level.

    MIL OSI Economics –

  • MIL-OSI: Old National, Axletree Solutions Collaborate for New Level of Secure Transaction Messaging Leveraging Swift

    Source: GlobeNewswire (MIL-OSI)

    EVANSVILLE, Ind., Oct. 28, 2024 (GLOBE NEWSWIRE) — Old National Bancorp (“Old National”) and Axletree Solutions today announced an innovative collaboration whereby Axletree will host Old National Bank’s Swift architecture, providing a new level of highly-secure transaction messaging. This will ensure end-to-end control and complete transparency of banking transactions via Swift (Society for Worldwide Interbank Financial Telecommunication).

    Axletree Solutions, a “Software as a Service” provider specializing in connectivity and integration, is Old National’s Swift Service Bureau, providing the bank with access to Swift without the internal burden and costs of managing the requisite Swift technology and infrastructure. Axletree also provides value-added services to Old National that include creating, enriching and transporting various Swift message types from legacy back-office systems with routing rules to achieve internal efficiencies and enhance revenue. Through Axletree, Old National also has access to track international payments in real time leveraging Swift APIs, for the benefit of its customers through an end-to-end secure environment.

    “Our partnership with Axletree allows Old National to meet the technology needs of many of our financial institution and corporate customers,” said Joe Wicklander, President of Treasury Management, Merchant Services and Financial Institutions for Old National Bank. “Our clients continue to invest in automation to leverage their ERP systems, treasury workstations, and accounting platforms, and we thank Axletree for their commitment to providing innovative solutions that allow our clients to be even more successful.”

    Swift provides a single secure channel rather than requiring multiple proprietary connections. Swift is a member-owned cooperative providing safe and secure financial transactions for funds and funds administrators, brokers and dealers, clearing firms and financial market infrastructures, payment processors, and asset and wealth managers.

    Swift messaging supported by Old National will include Single Customer Credit Transfer, General Financial Institution Transfer, Bank to Bank Free Format Message, Confirmation of Debit, Confirmation of Credit, Customer Summary Statement Message, and Customer Detailed Statement Message. Swift connects multiple domestic and global institutions through a single, secure channel. Messaging capabilities include:

    • Wire transfer payments and confirmations
    • ACH payments and confirmations
    • Prior-day and current-day information reporting in BAI2 format
    • Integrated payable files in ISO 20022, CSV and EDI formats

    “We are thrilled to partner with Old National Bank to improve its secure financial messaging experience via Swift,” said Jeff Ferguson, Director of Business Development for Axletree Solutions. “Through the use of our solution Symmetree by Axletree®, Axletree was able to help Old National Bank’s legacy systems create, translate and transport Swift-ready messages to facilitate its secure financial messaging needs. Axletree’s connection with Swift will also allow Old National customers to trace their cross-border Swift transactions in real-time. We thank Old National Bank for allowing us to show how Axletree provides its customers with ‘peace of mind.’”

    ABOUT OLD NATIONAL
    Old National Bancorp (NASDAQ: ONB) is the holding company of Old National Bank. As the sixth largest commercial bank headquartered in the Midwest, Old National proudly serves clients primarily in the Midwest and Southeast. With approximately $53 billion of assets and $30 billion of assets under management, Old National ranks among the top 30 banking companies headquartered in the United States. Tracing our roots to 1834, Old National focuses on building long-term, highly valued partnerships with clients while also strengthening and supporting the communities we serve. In addition to providing extensive services in consumer and commercial banking, Old National offers comprehensive wealth management and capital markets services. For more information and financial data, please visit Investor Relations at oldnational.com. In 2024, Points of Light named Old National one of “The Civic 50” – an honor reserved for the 50 most community-minded companies in the United States.

    ABOUT AXLETREE
    Axletree Solutions, a premier financial technology provider since 2002, empowers businesses with seamless bank connectivity and enterprise integration. As North America’s first SWIFT Service Bureau for Banks and Corporates, Axletree has evolved into a global leader in financial transaction and payments solutions. Processing over $100 billion USD daily, Axletree transmits transactions from any system, across any network, anywhere in the world. The company’s innovative technology and client-centric approach have established it as a trusted partner for secure, mission-critical services, reinforcing Axletree’s role as the central communication pathway for its clients’ financial operations. With a comprehensive solution suite covering the entire payment lifecycle, Axletree enables organizations to realize efficiencies and reduce costs by replacing complex manual processes with automation. As the company expands its global presence through the Americas, Europe, Middle East, and Asia-Pacific, Axletree continues to drive efficiency and integration for the world’s largest organizations, guaranteeing seamless connectivity and peace of mind.

    ABOUT SWIFT
    Swift is a global member-owned cooperative and the world’s leading provider of secure financial messaging services. They provide communities with a platform for messaging and standards for communicating and offer products and services to facilitate access and integration, identification, analysis and regulatory compliance. Their messaging platform, products and services connect more than 11,500 banking and securities organizations, market infrastructures and corporate customers in more than 200 countries and territories. While Swift does not hold funds or manage accounts on behalf of customers, they enable a global community of users to communicate securely, exchanging standardized financial messages in a reliable way, thereby supporting global and local financial flows, as well as trade and commerce all around the world. Headquartered in Belgium, Swift’s international governance and oversight reinforces the globally inclusive character of its cooperative structure. Swift’s global office network ensures an active presence in all the major financial centers.

    Investor Relations:
    Lynell Durchholz
    (812) 464-1366
    lynell.durchholz@oldnational.com

    Media Relations:
    Rick Vach
    (904) 535-9489
    rick.vach@oldnational.com

    The MIL Network –

  • MIL-OSI Banking: Apple Intelligence is available today on iPhone, iPad, and Mac

    Source: Apple

    Headline: Apple Intelligence is available today on iPhone, iPad, and Mac

    October 28, 2024

    PRESS RELEASE

    Apple Intelligence is available today on iPhone, iPad, and Mac

    Users can now tap into Apple Intelligence to refine their writing; summarize notifications, mail, and messages; experience a more natural and capable Siri; remove distracting objects from images with Clean Up; and more

    CUPERTINO, CALIFORNIA Apple today announced the first set of Apple Intelligence features for iPhone, iPad, and Mac users is now available through a free software update with the release of iOS 18.1, iPadOS 18.1, and macOS Sequoia 15.1. Apple Intelligence is the personal intelligence system that harnesses the power of Apple silicon to understand and create language and images, take action across apps, and draw from personal context to simplify and accelerate everyday tasks while taking an extraordinary step forward for privacy in AI. Today marks the availability of the first set of features, with many more rolling out in the coming months.

    “Apple Intelligence introduces a new era for iPhone, iPad, and Mac, delivering brand-new experiences and tools that will transform what our users can accomplish,” said Tim Cook, Apple’s CEO. “Apple Intelligence builds on years of innovation in AI and machine learning to put Apple’s generative models at the core of our devices, giving our users a personal intelligence system that is easy to use — all while protecting their privacy. Apple Intelligence is generative AI in a way that only Apple can deliver, and we’re incredibly excited about its ability to enrich our users’ lives.”

    “Apple Intelligence unlocks exciting new capabilities that make your iPhone, iPad, and Mac even more helpful and useful, from Writing Tools to help refine your writing, to summarized notifications that surface what’s most important, to the ability to search for almost anything in your photos and videos by simply describing it,” said Craig Federighi, Apple’s senior vice president of Software Engineering. “And it’s all built on a foundation of privacy with on-device processing and Private Cloud Compute, a groundbreaking new approach that extends the privacy and security of iPhone into the cloud to protect users’ information. We are thrilled to bring the first set of Apple Intelligence features to users today, and this is just the beginning.”

    Systemwide Writing Tools

    Deeply integrated across iOS, iPadOS, and macOS, Writing Tools allow users to refine their language by rewriting, proofreading, and summarizing text virtually everywhere they write, including Mail, Messages, Notes, Pages, and third-party apps.

    With Rewrite, Apple Intelligence allows users to choose from different versions of what they have written, and adjust the tone — professional, concise, or friendly — to suit the audience and task at hand. Proofread checks grammar, word choice, and sentence structure while also suggesting edits — along with explanations of the edits — that users can review or quickly accept. Users can also select text and have it summarized in the form of a digestible paragraph, bulleted key points, a table, or a list.

    More Natural and Conversational Siri

    Siri becomes more natural, flexible, and deeply integrated into the system experience. It has a brand-new design with an elegant glowing light that wraps around the edge of the screen when active on iPhone, iPad, or CarPlay. On Mac, users can place Siri anywhere on their desktop to access it easily as they work. Users can type to Siri at any time on iPhone, iPad, and Mac, and can switch fluidly between text and voice as they use Siri to accelerate everyday tasks. With richer language-understanding capabilities, Siri can follow along when users stumble over their words and maintain context from one request to the next. In addition, with extensive product knowledge, Siri can now answer thousands of questions about the features and settings of Apple products. Users can learn everything from how to take a screen recording to how to easily share a Wi-Fi password.

    More Intelligent Photos App

    The Photos app is even more intelligent with many new capabilities. Natural language search gives users the ability to search for just about anything by simply describing what they are looking for, like “Maya skateboarding in a tie-dye shirt.” This works across videos, too, so users can search for something that happened in a specific segment of the video and go right to it. Search also offers smart completion suggestions to help users quickly complete a search.

    For those times when an unwanted object or person ends up in the frame of a photo, the Clean Up tool gives users a way to remove distracting elements while staying true to the moment as they intended to capture it.

    The Memories feature now gives users the ability to create the movies they want to see by simply typing a description.1 Using language and image understanding, Apple Intelligence will pick out the best photos and videos based on a user’s description, craft a storyline with chapters based on themes identified from the photos, and arrange them into a movie with its own narrative arc.

    New Ways to Prioritize and Stay Focused

    Staying on top of emails has never been easier. Priority Messages, a new section at the top of the inbox in Mail, shows the most urgent emails, like a same-day invitation to lunch or a boarding pass. Across their inbox, users can see summaries without needing to open a message, and for long threads, they can tap or click Summarize to view pertinent details. Additionally, Smart Reply provides suggestions for a quick response and will identify questions in an email to ensure everything is answered.

    Apple Intelligence helps users prioritize and stay in the moment with notification summaries that allow users to scan long or stacked notifications with key details right on the Lock Screen, such as when a group chat is particularly active. A new Focus, Reduce Interruptions, surfaces only the notifications that might need immediate attention.

    In the Notes and Phone apps, users can now record, transcribe, and summarize audio. When a recording is initiated while on a call in the Phone app, participants are automatically notified, and once the call ends, Apple Intelligence generates a summary to help recall key points.

    Many More Features to Come

    New Apple Intelligence features will be available in December, with additional capabilities rolling out in the coming months.

    Apple Intelligence will add new ways for users to express themselves visually. Emoji will be taken to an entirely new level with the ability to create original Genmoji by simply typing a description, and can also be personalized using a photo of a friend or family member. Image Playground will allow users to create playful images in moments. Image Wand will make notes more visually engaging by turning rough sketches into delightful images. When a user circles an empty space, Image Wand will create an image using context from the surrounding area.

    In December, Writing Tools will get even more powerful with the ability for users to describe a specific change they want to apply to their text, like making a dinner party invite read like a poem, or adding more dynamic action words to a résumé. And users will have the option to access ChatGPT’s broad world knowledge within Writing Tools and Siri, allowing them to benefit from its image- and document-understanding capabilities without needing to jump between tools.

    Also coming in December, a new visual intelligence experience will build on Apple Intelligence and help users learn about objects and places instantly, thanks to the new Camera Control on the iPhone 16 lineup.2 Users will be able to pull up details about a restaurant in front of them and interact with information — for example, translating text from one language to another.3 Camera Control will also serve as a gateway to third-party tools with specific domain expertise, like when users want to search Google for where they can buy an item, or benefit from ChatGPT’s problem-solving skills. Users are in control of when third-party tools are used and what information is shared.

    In the months to come, Priority Notifications will surface what’s most important, and Siri will become even more capable, with the ability to draw on a user’s personal context to deliver intelligence that’s tailored to them. Siri will also gain onscreen awareness, as well as be able to take hundreds of new actions in and across Apple and third-party apps.

    Breakthrough Privacy Protections

    Designed to protect users’ privacy at every step, Apple Intelligence uses on-device processing, meaning that many of the models that power it run entirely on device. For requests that require more processing power, Private Cloud Compute extends the privacy and security of Apple devices into the cloud to unlock even more intelligence. When using Private Cloud Compute, users’ data is never stored or shared with Apple; it is used only to fulfill their request. In a first for the industry, independent experts can inspect the code that runs on Apple silicon servers to continuously verify this privacy promise — an extraordinary step forward for privacy in AI.

    Users can choose whether or not to enable the ChatGPT integration, which is available as part of using Siri, Writing Tools, or visual intelligence with Camera Control. Users can access ChatGPT for free without creating an account, and privacy protections are built in — their IP addresses are obscured and OpenAI won’t store requests. For those who choose to connect their account, OpenAI’s data-use policies apply.

    Availability

    • The first set of Apple Intelligence features is available now as a free software update with iOS 18.1, iPadOS 18.1, and macOS Sequoia 15.1, and can be accessed in most regions around the world when the device and Siri language are set to U.S. English.
    • Apple Intelligence is quickly adding support for more languages. In December, Apple Intelligence will be available for localized English in Australia, Canada, Ireland, New Zealand, South Africa, and the U.K., and in April, a software update will deliver expanded language support, with more coming throughout the year. Chinese, English (India), English (Singapore), French, German, Italian, Japanese, Korean, Portuguese, Spanish, Vietnamese, and other languages will be supported.
    • Apple Intelligence is available on iPhone 16, iPhone 16 Plus, iPhone 16 Pro, iPhone 16 Pro Max, iPhone 15 Pro, iPhone 15 Pro Max, iPad with A17 Pro or M1 and later, and Mac with M1 and later.

    About Apple Apple revolutionized personal technology with the introduction of the Macintosh in 1984. Today, Apple leads the world in innovation with iPhone, iPad, Mac, AirPods, Apple Watch, and Apple Vision Pro. Apple’s six software platforms — iOS, iPadOS, macOS, watchOS, visionOS, and tvOS — provide seamless experiences across all Apple devices and empower people with breakthrough services including the App Store, Apple Music, Apple Pay, iCloud, and Apple TV+. Apple’s more than 150,000 employees are dedicated to making the best products on earth and to leaving the world better than we found it.

    1. Create a Memory Movie is available on iPhone and iPad, and will be available on Mac in the coming months.
    2. Camera Control is available on iPhone 16, iPhone 16 Plus, iPhone 16 Pro, and iPhone 16 Pro Max.
    3. Information about places of interest will be available in the U.S. to start, with support for additional regions in the months to come.

    Press Contacts

    Nadine Haija

    Apple

    nhaija@apple.com

    Jacqueline Roy

    Apple

    jacqueline_roy@apple.com

    Apple Media Helpline

    media.help@apple.com

    MIL OSI Global Banks –

  • MIL-OSI Banking: Apple introduces new iMac supercharged by M4 and Apple Intelligence

    Source: Apple

    Headline: Apple introduces new iMac supercharged by M4 and Apple Intelligence

    October 28, 2024

    PRESS RELEASE

    Apple unveils the new iMac with M4, supercharged by Apple Intelligence and available in fresh colors

    The world’s best all-in-one desktop features even more performance, a nano-texture display option, a 12MP Center Stage camera, and Thunderbolt 4 connectivity — all in a strikingly thin design

    CUPERTINO, CALIFORNIA Apple today announced the new iMac, featuring the powerful M4 chip and Apple Intelligence, in its stunning, ultra-thin design. With M4, iMac is up to 1.7x faster for daily productivity, and up to 2.1x faster for demanding workflows like photo editing and gaming, compared to iMac with M1.1 With the Neural Engine in M4, iMac is the world’s best all-in-one for AI and is built for Apple Intelligence, the personal intelligence system that transforms how users work, communicate, and express themselves, while protecting their privacy. The new iMac is available in an array of beautiful new colors, and the 24-inch 4.5K Retina display offers a new nano-texture glass option.2 iMac features a new 12MP Center Stage camera with Desk View, up to four Thunderbolt 4 ports,3 and color-matched accessories that include USB-C. Starting at just $1,299, now with 16GB of unified memory, the new iMac is available to pre-order today, with availability beginning Friday, November 8.

    “iMac is beloved by millions of users, from families at home to entrepreneurs hard at work. With the incredible features of Apple Intelligence and the powerful performance of Apple silicon, the new iMac changes the game once again,” said John Ternus, Apple’s senior vice president of Hardware Engineering. “With M4 and Apple Intelligence, gorgeous new colors that pop in any space, an advanced 12MP Center Stage camera, and a new nano-texture glass display option, it’s a whole new era for iMac.”

    Supercharged by M4

    The M4 chip brings a boost in performance to iMac. Featuring a more capable CPU with the world’s fastest CPU core,4 the new iMac is up to 1.7x faster than iMac with M1. Users will feel this performance across everyday activities like multitasking between their favorite apps and browsing webpages in Safari. And with an immensely powerful GPU featuring Apple’s most advanced graphics architecture, iMac with M4 handles more intense workloads like photo editing and gaming up to 2.1x faster than iMac with M1. This also enables a smoother gameplay experience in titles like the upcoming Civilization VII. The new iMac comes standard with 16GB of faster unified memory — configurable up to 32GB. The Neural Engine in M4 is now over 3x faster than on iMac with M1, making it the world’s best all-in-one for AI, and accelerating the pace at which users can get things done.

    M4 takes iMac performance even further:

    • Families, small businesses, and entrepreneurs can fly through daily productivity tasks with up to 1.7x faster performance1 in apps like Microsoft Excel, and up to 1.5x faster browsing performance5 in Safari compared to iMac with M1.
    • Gamers can enjoy incredibly smooth gameplay, with up to 2x higher frame rates5 than on iMac with M1.
    • Content creators can edit like never before, with up to 2.1x faster photo and video editing performance when applying complex filters and effects in apps like Adobe Photoshop1 and Adobe Premiere Pro5 compared to iMac with M1.
    • Compared to the most popular 24-inch all-in-one PC with the latest Intel Core 7 processor, the new iMac is up to 4.5x faster.1
    • Compared to the most popular Intel-based iMac model, the new iMac is up to 6x faster.1

    A New Era with Apple Intelligence on the Mac

    Apple Intelligence ushers in a new era for the Mac, bringing personal intelligence to the personal computer. Combining powerful generative models with industry-first privacy protections, Apple Intelligence harnesses the power of Apple silicon and the Neural Engine to unlock new ways for users to work, communicate, and express themselves on Mac. It is available in U.S. English with macOS Sequoia 15.1. With systemwide Writing Tools, users can refine their words by rewriting, proofreading, and summarizing text nearly everywhere they write. With the newly redesigned Siri, users can move fluidly between spoken and typed requests to accelerate tasks throughout their day, and Siri can answer thousands of questions about Mac and other Apple products. New Apple Intelligence features will be available in December, with additional capabilities rolling out in the coming months. Image Playground gives users a new way to create fun original images, and Genmoji allows them to create custom emoji in seconds. Siri will become even more capable, with the ability to take actions across the system and draw on a user’s personal context to deliver intelligence that is tailored to them. In December, ChatGPT will be integrated into Siri and Writing Tools, allowing users to access its expertise without needing to jump between tools.

    Apple Intelligence does all this while protecting users’ privacy at every step. At its core is on-device processing, and for more complex tasks, Private Cloud Compute gives users access to Apple’s even larger, server-based models and offers groundbreaking protections for personal information. In addition, users can access ChatGPT for free without creating an account, and privacy protections are built in — their IP addresses are obscured and OpenAI won’t store requests. For those who choose to connect their account, OpenAI’s data-use policies apply.

    Array of Gorgeous New Colors

    The new iMac comes in seven vibrant colors, bringing fresh shades of green, yellow, orange, pink, purple, and blue, alongside silver. The back of iMac features bold colors designed to stand out, while the front expresses subtle shades of the new palette so users can focus on doing their best work. Every iMac comes with a color-matched Magic Keyboard and Magic Mouse or optional Magic Trackpad, all of which now feature a USB-C port, so users can charge their favorite devices with a single cable.

    New Nano-Texture Display Option

    The expansive 24-inch 4.5K Retina display on iMac is its highest-rated feature, and for the first time, it’s available with a nano-texture glass option that drastically reduces reflections and glare, while maintaining outstanding image quality.2 With nano-texture glass, users can place iMac in even more spaces, such as a sun-drenched living room or bright storefront.

    Enhanced Video Calls with 12MP Center Stage Camera

    A new 12MP Center Stage camera with support for Desk View makes video calls even more engaging. Center Stage keeps everyone perfectly centered on a video call — great for families gathered on FaceTime. Desk View makes use of the wide-angle lens to simultaneously show the user and a top-down view of their desk, which is useful for educators presenting a lesson to students, or creators showing off their latest DIY project. Rounding out the unrivaled audio and video experience is the beloved studio-quality three-microphone array with beamforming and an immersive six-speaker sound system.

    Advanced Connectivity

    On the new iMac, all four USB-C ports support Thunderbolt 4 for superfast data transfers, so users can connect even more accessories like external storage, docks, and up to two 6K external displays, creating a massive canvas with more than 50M pixels for users to spread out their work.3 iMac also supports both Wi-Fi 6E and Bluetooth 5.3. And with the advanced security of Touch ID, users can easily and securely unlock their computer, make online purchases with Apple Pay, and download apps.6 Additionally, Touch ID works with Fast User Switching, so customers can switch between different user profiles with just the press of a finger.

    An Unrivaled Experience with macOS Sequoia

    macOS Sequoia completes the new iMac experience with a host of exciting features, including iPhone Mirroring, allowing users to wirelessly interact with their iPhone, its apps, and its notifications directly from their Mac.7 Safari, the world’s fastest browser,8 now offers Highlights, which quickly pulls up relevant information from a site; a smarter, redesigned Reader with a table of contents and high-level summary; and a new Video Viewer to watch videos without distractions. With Distraction Control, users can hide items on a webpage that they may find disruptive to their browsing. Gaming gets even more immersive with features like Personalized Spatial Audio and improvements to Game Mode, along with a breadth of exciting titles, including the upcoming Assassin’s Creed Shadows. Easier window tiling means users can stay organized with a windows layout that works best for them. The all-new Passwords app gives convenient access to passwords, passkeys, and other credentials, all stored in one place. And users can apply beautiful new built-in backgrounds for video calls, including a variety of color gradients and system wallpapers, or upload their own photos.

    Better for the Environment

    The new iMac with M4 is designed with the environment in mind, with 100 percent recycled aluminum in the stand, and 100 percent recycled gold plating, tin soldering, and copper in multiple printed circuit boards. iMac meets Apple’s high standards for energy efficiency, and is free of mercury, brominated flame retardants, and PVC. New this year, the packaging of iMac is entirely fiber-based, bringing Apple closer to its goal to remove plastic from its packaging by 2025.

    Today, Apple is carbon neutral for global corporate operations and, as part of its ambitious Apple 2030 goal, plans to be carbon neutral across its entire carbon footprint by the end of this decade.

    Pricing and Availability

    • Customers can pre-order the new iMac with M4 starting today, October 28, on apple.com/store and in the Apple Store app in 28 countries and regions, including the U.S. It will begin arriving to customers, and will be in Apple Store locations and Apple Authorized Resellers, beginning Friday, November 8.
    • iMac starts at $1,299 (U.S.) and $1,249 (U.S.) for education, and is available in green, yellow, orange, pink, purple, blue, and silver. It features an 8-core CPU, an 8-core GPU, 16GB of unified memory configurable up to 24GB, 256GB SSD configurable up to 1TB, two Thunderbolt/USB 4 ports, Magic Keyboard, and Magic Mouse or Magic Trackpad.
    • iMac with a 10-core CPU and 10-core GPU starts at $1,499 (U.S.) and $1,399 (U.S.) for education, and is available in green, yellow, orange, pink, purple, blue, and silver. It features 16GB of unified memory configurable up to 32GB, 256GB SSD configurable up to 2TB, four Thunderbolt 4 ports, Magic Keyboard with Touch ID, and Magic Mouse or Magic Trackpad.
    • Additional technical specifications — including the nano-texture display option, configure-to-order options, and accessories — are available at apple.com/mac.
    • With Apple Trade In, customers can trade in their current computer and get credit toward a new Mac. Customers can visit apple.com/shop/trade-in to see what their device is worth.
    • Apple Intelligence is available now as a free software update for Mac with M1 and later, and can be accessed in most regions around the world when the device and Siri language are set to U.S. English. The first set of features is in beta and available with macOS Sequoia 15.1, with more features rolling out in the months to come.
    • Apple Intelligence is quickly adding support for more languages. In December, Apple Intelligence will add support for localized English in Australia, Canada, Ireland, New Zealand, South Africa, and the U.K., and in April, a software update will deliver expanded language support, with more coming throughout the year. Chinese, English (India), English (Singapore), French, German, Italian, Japanese, Korean, Portuguese, Spanish, Vietnamese, and other languages will be supported.
    • AppleCare+ for Mac provides unparalleled service and support. This includes unlimited incidents of accidental damage, battery service coverage, and 24/7 support from the people who know Mac best.
    • Every customer who buys directly from Apple Retail gets access to Personal Setup. In these guided online sessions, a Specialist can walk them through setup, or focus on features that help them make the most of their new device. Customers can also learn more about getting started with their new device with a Today at Apple session at their nearest Apple Store.

    About Apple Apple revolutionized personal technology with the introduction of the Macintosh in 1984. Today, Apple leads the world in innovation with iPhone, iPad, Mac, AirPods, Apple Watch, and Apple Vision Pro. Apple’s six software platforms — iOS, iPadOS, macOS, watchOS, visionOS, and tvOS — provide seamless experiences across all Apple devices and empower people with breakthrough services including the App Store, Apple Music, Apple Pay, iCloud, and Apple TV+. Apple’s more than 150,000 employees are dedicated to making the best products on earth and to leaving the world better than we found it.

    1. Testing was conducted by Apple in September and October 2024. See apple.com/imac for more information.
    2. Actual diagonal screen measurement is 23.5 inches. Nano-texture display is an option on models with 10-core CPU and 10-core GPU.
    3. All four USB-C ports support Thunderbolt 4 on models with 10-core CPU and 10-core GPU.
    4. Testing was conducted by Apple in October 2024 using shipping competitive systems and select industry-standard benchmarks.
    5. Results are compared to previous-generation 24-inch iMac systems with Apple M1, 8-core CPU, 8-core GPU, 16GB of RAM, and 2TB SSD.
    6. iMac with 8-core CPU and 8-core GPU can configure to Magic Keyboard with Touch ID and Numeric Keypad, and iMac with 10-core CPU and 10-core GPU comes standard with Touch ID.
    7. Available on Mac computers with Apple silicon and Intel-based Mac computers with a T2 Security Chip. Requires that the user’s iPhone and Mac are signed in with the same Apple Account using two-factor authentication, their iPhone and Mac are near each other and have Bluetooth and Wi-Fi turned on, and their Mac is not using AirPlay or Sidecar. Some iPhone features (e.g., camera and microphone) are not compatible with iPhone Mirroring.
    8. Testing was conducted by Apple in August 2024. See apple.com/safari for more information.

    Press Contacts

    Michelle Del Rio

    Apple

    mr_delrio@apple.com

    Starlayne Meza

    Apple

    starlayne_meza@apple.com

    Apple Media Helpline

    media.help@apple.com

    MIL OSI Global Banks –

  • MIL-OSI Security: Career Offender Sentenced to 20 Years in Prison for Bank Robbery

    Source: Federal Bureau of Investigation (FBI) State Crime Alerts (b)

    MIAMI – Today, Terry Meach, 43, was sentenced to 240 months in federal prison following a guilty to plea to two counts of bank robbery and one count of attempted bank robbery earlier this year.

    As part of his guilty plea, Meach admitted that on Feb. 23, 2024, he entered a Truist Bank in Hollywood, Fla., demanded money and claimed that he had a gun. The teller complied with his demands, and Meach made off with $2,419.

    Four days later, on Feb. 27, 2024, Meach entered a Fifth Third Bank in Fort Lauderdale, Fla., and approached the teller with his hand in his pocket. Meach said words to the effect of “give me the money, I have a bomb.” The teller backed away and Meach fled the bank empty handed. Undeterred, Meach continued down the street about 100 yards to a Truist Bank, which he entered and approached the teller saying words to the effect of “give me the money, I have a gun.” The teller complied, and this time Meach made off with $2,379.

    Prior to robbing the banks in February 2024, Meach had been convicted of robbing or attempting to rob four other banks charged in two separate federal cases. In April 2012, Meach robbed a TD Bank in Fort Lauderdale, and two days later attempted to rob a Suntrust Bank in Miami. Meach pled guilty to both charges and was sentenced to 54 months in federal prison in October 2012 (Case No. 12-cr-20302). Meach was released from prison on March 14, 2016.

    Eight days after his release, on March 22, 2016, Meach robbed a Suntrust Bank in Fort Lauderdale. Two days after that, Meach robbed a Chase Bank in Doral. Meach pled guilty to both robberies in November 2016, and was sentenced to 99 months in federal prison (Case No. 16-cr-60087). Meach was released from prison on Feb. 9, 2024.

    Fourteen days later, Meach committed the first of the robberies for which he was sentenced in this case.

    U.S. Attorney Markenzy Lapointe for the Southern District of Florida and Special Agent in Charge Jeffrey B. Veltri of the FBI, Miami Field Office, made the announcement.

    FBI Miami investigated the case. Assistant U.S. Attorney Corey O’Neal prosecuted the case.

    You may find a copy of this press release (and any updates) on the website of the United States Attorney’s Office for the Southern District of Florida at www.justice.gov/usao-sdfl.

    Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 24-cr-60100.

    ###

    MIL Security OSI –

  • MIL-OSI: Thomasville Bancshares, Inc. Announces Third Quarter 2024 Results

    Source: GlobeNewswire (MIL-OSI)

    THOMASVILLE, Ga., Oct. 28, 2024 (GLOBE NEWSWIRE) — Thomasville Bancshares, Inc. (OTC PINK: THVB), the parent company of Thomasville National Bank and TNB Financial Services, today announced financial results for the quarter ended September 30, 2024.

    Third Quarter 2024 Highlights

    • Net Income for the quarter of $9,386,870 compared to $8,467,575 for the same period last year, an increase of 11%.
    • YTD Net Income of $28,950,864 compared to $26,162,967 for the same period in 2023, an increase of 11%.
    • Earnings per share for the first nine months were $4.53 (basic) and $4.36 (diluted).
    • YTD Return on Average Assets of 2.21% and Return on Average Tangible Equity of 24.28%.
    • Total Assets of $1.816 billion, an increase of $241 million over the same period in 2023.
    • Loans grew to $1.514 billion, an increase of $150 million or 11% year-over-year.
    • Deposits grew to $1.573 billion, an increase of $220 million or 16% year-over-year.
    • Regulatory Capital was $167 million or 9.26% of assets. During the third quarter the company paid a $6.9 million cash dividend ($1.05 per share).
    • TNB Financial, provider of trust and investment services, now has client assets over $4.7 billion.

    Stephen H. Cheney, Chairman and CEO, said “We are pleased to report our strong financial performance for the third quarter ended September 30, 2024. We believe that our Bank is well positioned to continue this strong performance through the remainder of 2024 and beyond.”

    About Thomasville Bancshares, Inc., and Thomasville National Bank

    Thomasville Bancshares, Inc. was founded in 1995 as the holding company for Thomasville National Bank. Today the Bank has total assets of over $1.8 billion. TNB was the #1 ranked bank in Georgia in overall performance (2023 GBA Bank Performance Report) and was recently recognized by American Banker magazine as one of the Top 200 Community Banks in the country, ranked 7th in the nation based upon three years average return on shareholders’ equity. The Bank’s trust and investment division, TNB Financial Services, has client assets over $4.7 billion under advisement and provides financial planning, investments, trust, brokerage, and other related financial services. TNBFS has offices located in Georgia, Florida, South Carolina, Illinois, and Ohio. The Company is headquartered in Thomasville, Georgia and has over 800 local shareholders. Thomasville National Bank is Member FDIC and an Equal Housing Lender. For more information, visit online at www.tnbank.com. 

    The MIL Network –

  • MIL-OSI Africa: Saudi Export-Import Bank (Saudi EXIM) Bank and Africa Finance Corporation Sign Memorandum of Understanding (MoU) to Enhance Export Activities in the Middle East and Africa

    Source: Africa Press Organisation – English (2) – Report:

    WASHINGTON D.C., United States of America, October 28, 2024/APO Group/ —

    The Saudi Export-Import Bank (Saudi EXIM) and Africa Finance Corporation(AFC) (www.Africafc.org), Africa’s leading infrastructure solutions provider, have signed a Memorandum of Understanding (MOU) to collaborate on initiatives to boost exports in both the Kingdom of Saudi Arabia and AFC’s member countries This MoU, signed on the sidelines of the ongoing 2024 IMF/World Bank Annual Meetings, will also promote exchange of information, technical expertise and knowledge sharing between both institutions.  

    His Excellency Eng. Saad Al-Khalb commented: “The MoU with the Africa Finance Corporation comes as part of the bank’s commitment to enhancing international economic and trade relations. The agreement will cover several areas of cooperation, including exploring opportunities to support joint projects between companies in the Kingdom and the member countries of Africa Finance Corporation (AFC), by providing credit solutions that support companies and institutions of all sizes and activities. It will also pave the way for local investors to benefit from promising investment opportunities in Africa, thereby enhancing the flow of non-oil Saudi exports to expand into various African markets, in line with empowering the non-oil national economy and creating a diverse and inclusive economy in line with Saudi Vision 2030.” 

    Samaila Zubairu, President & CEO of AFC, commented on the partnership: “Strategic partnerships are vital for economic transformation, and in today’s world, no nation can tackle sustainable development alone. As such, AFC is pleased to partner with the Saudi Exim Bank, marking a major milestone in strengthening ties between Africa and Saudi Arabia. Leveraging our collective expertise and resources, we aim to contribute significantly to driving industrialization, facilitating trade and creating jobs for a dynamic economic ecosystem that benefits both regions.”  

    It is worth noting that the Saudi Export-Import Bank is a development bank affiliated with the National Development Fund, working to contribute to diversifying the economic base of the Kingdom by enhancing the efficiency of the export system for non-oil national products and services, addressing financing gaps, and reducing export risks. This supports the growth of the non-oil national economy in line with Saudi Vision 2030. 

    At the heart of AFC’s mission is a commitment to delivering impactful solutions for Africa, across its core sectors of power, natural resources, transport and logistics, heavy industry, and technology. The Corporation has an unwavering commitment to realising transformative projects across Africa including infrastructure projects such as the Red Sea Power Wind Farm in Djibouti, the Arise IIP industrial zones and the Lobito transport corridor that are reshaping the landscape, fostering sustainable development for local communities, and altering the economic trajectory of countries. 

    MIL OSI Africa –

  • MIL-OSI USA: Brown Announces Major New University of Cincinnati Initiative to Save Taxpayer Funds on Infrastructure Construction

    US Senate News:

    Source: United States Senator for Ohio Sherrod Brown
    WASHINGTON, D.C. – Today, U.S. Senator Sherrod Brown (D-OH) announced a new $5.1 million investment for the University of Cincinnati to improve and accelerate transit construction projects in Ohio, improving efficiency and saving taxpayers money. The University of Cincinnati will help Cincinnati Metro and other Ohio transit agencies deploy and test digital systems that will manage the entire construction process of transit infrastructure projects – which will speed up completion and improve projects while reducing costs. The award was made possible by the Bipartisan Infrastructure Law, which Brown helped to write and pass. 
    “This investment from the Bipartisan Infrastructure Law will save taxpayers money and speed up transit projects,” said Brown. “Ohioans at the University of Cincinnati will do innovative work helping ensure that infrastructure projects are delivered on time and on budget.”
    The University of Cincinnati will partner with Cincinnati Metro (Southwest Ohio Regional Transit Authority), the Butler County Regional Transit Authority, and Akron Metro to deploy and demonstrate advanced digital systems to improve the construction delivery process. New digital systems for construction management enable engineers and construction workers at all stages of an infrastructure project to accomplish tasks faster, safer, and more accurately. 
    The Department of Transportation’s Federal Transit Administration is awarding the investment through the Accelerating Advanced Digital Construction Management Systems Program. Brown – who serves as the chairman of the U.S. Senate Banking, Housing, and Urban Affairs Committee, which oversees DOT’s Federal Transit Administration – has championed federal investment to support Ohio’s local transit authorities.
    ##

    MIL OSI USA News –

  • MIL-OSI Russia: Financial news: Conference “Ethics and AI: on the edge of technology and human values” was held with the support of the Moscow Exchange

    Translation. Region: Russian Federation –

    Source: Moscow Exchange – Moscow Exchange –

    On October 24–25, 2024, the annual conference “Ethics and AI: on the Edge of Technology and Human Values” was held, organized by the Institute of Compliance and Business Ethics of the Higher School of Law at the National Research University Higher School of Economics with the support of the Moscow Exchange.

    The conference was attended by experts in the field of compliance, including representatives of regulators and major domestic companies, as well as scientific and professional communities.

    The conference discussed global trends in compliance and the use of artificial intelligence technologies to automate it. An exchange of practical developments and innovative solutions in the field of compliance took place, and changes in the regulatory environment were analyzed.

    Irina Grekova, Managing Director for Compliance and Business Ethics at Moscow Exchange:

    “The Russian compliance community continues to actively develop, adapting to modern realities and implementing best practices. Strengthening interaction between business, government agencies and expert organizations remains an important area. The conference once again confirmed that compliance today has become a full-fledged interdisciplinary science that requires the involvement of specialists of different levels: lawyers, economists, IT specialists and ethics specialists. All of them are developing their field, and by combining efforts, they provide a synergy effect in protecting and developing business. Moscow Exchange Group pays special attention to issues of increasing the transparency and efficiency of internal control procedures, as well as training employees and raising their awareness of compliance with regulatory requirements. In addition, we are expanding the use of digital tools to optimize compliance processes, which allows us to promptly identify potential threats and prevent violations of the law.”

    The conference included an award ceremony for the winners of the Compliance 2024 award. The award’s expert council awarded:

    Alfa-Bank – for the best EdTech solution in business education on compliance topics for entrepreneurs; MTS – for the use of modern technologies in creating the methodology and tools for managing SCM; B1 Group of Companies – for creating its own best compliance practices in the changing conditions in the field of professional audit services; KSK LLC – for its original approach to implementing a compliance culture taking into account limitations and opportunities; Anton Kuznetsov, Deputy Director of the Anti-Corruption Policy and Corporate Ethics Department at NOVATEK – for a proactive response to modern challenges and threats; Oksana Kaminskaya, Chairperson of the AML/CFT Committee at the Association of Belarusian Banks – for the effective implementation of compliance practices in the financial sector in the Republic of Belarus; Daria Afanasyeva, leading specialist of the Competence and Corruption Prevention Center of ANO Moscow Directorate of Transport Services – for an inspiring start in compliance.

    The Moscow Exchange Group operates the only multifunctional exchange platform in Russia for trading shares, bonds, derivatives, currencies, money market instruments and commodities. The Group includes a central depository and a clearing center that acts as a central counterparty in the markets, which allows Moscow Exchange to provide its clients with a full cycle of trading and post-trading services.

    Contact information for media 7 (495) 363-3232PR@moex.com

    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 accurate to what the source is stating and does not reflect the position of MIL-OSI or its clients.

    https://www.moex.com/n74360

    MIL OSI Russia News –

  • MIL-OSI: NorthEast Community Bancorp, Inc. Reports Results for the Three and Nine Months Ended September 30, 2024

    Source: GlobeNewswire (MIL-OSI)

    WHITE PLAINS, N.Y., Oct. 28, 2024 (GLOBE NEWSWIRE) — NorthEast Community Bancorp, Inc. (Nasdaq: NECB) (the “Company”), the parent holding company of NorthEast Community Bank (the “Bank”), generated net income of $12.7 million, or $0.97 per basic share and $0.95 per diluted share, for the three months ended September 30, 2024 compared to net income of $11.8 million, or $0.80 per basic and diluted share, for the three months ended September 30, 2023. In addition, the Company generated net income of $36.9 million, or $2.81 per basic share and $2.78 per diluted share, for the nine months ended September 30, 2024 compared to net income of $34.2 million, or $2.42 per basic share and $2.41 per diluted share, for the nine months ended September 30, 2023.

    Kenneth A. Martinek, Chairman of the Board and Chief Executive Officer, stated, “We are pleased to report another quarter of strong earnings due to the strong performance of our loan portfolio.   Despite the challenging high interest rate environment during 2023 that continued into most of 2024, offset by a reduction in interest rates towards the end of the third quarter of 2024, loan demand remained strong with originations and outstanding commitments remaining robust. As has been in the past, construction lending in high demand-high absorption areas continues to be our focus.”

    Highlights for the three months and nine months ended September 30, 2024 are as follows:

    • Performance metrics continue to be strong with a return on average total assets ratio of 2.62%, a return on average shareholders’ equity ratio of 16.48%, and an efficiency ratio of 36.04% for the three months ended September 30, 2024. For the nine months ended September 30, 2024, the Company generated a return on average total assets ratio of 2.61%, a return on average shareholders’ equity ratio of 16.55%, and an efficiency ratio of 36.37%.
    • Net interest income increased by $1.2 million and $5.5 million, or 4.6% and 7.7%, respectively, for the three months and nine months ended September 30, 2024 compared to the same periods in 2023.
    • Our commitments, loans-in-process, and standby letters of credit outstanding totaled $659.0 million at September 30, 2024 compared to $719.6 million at December 31, 2023.

    Balance Sheet Summary

    Total assets increased $203.8 million, or 11.6%, to $2.0 billion at September 30, 2024, from $1.8 billion at December 31, 2023. The increase in assets was primarily due to an increase in net loans of $173.6 million and an increase in cash and cash equivalents of $29.1 million.

    Cash and cash equivalents increased $29.1 million, or 42.4%, to $97.8 million at September 30, 2024 from $68.7 million at December 31, 2023. The increase in cash and cash equivalents was a result of an increase in deposits of $228.0 million, partially offset by a decrease in borrowings of $57.0 million, an increase of $173.6 million in net loans, and stock repurchases of $2.4 million.

    Equity securities increased $2.4 million, or 13.5%, to $20.5 million at September 30, 2024 from $18.1 million at December 31, 2023. The increase in equity securities was attributable to the purchase of $2.0 million in equity securities during the third quarter of 2024 and market appreciation of $445,000 due to market interest rate volatility during the nine months ended September 30, 2024.

    Securities held-to-maturity decreased $799,000, or 5.0%, to $15.1 million at September 30, 2024 from $15.9 million at December 31, 2023 due to $810,000 in maturities and pay-downs of various investment securities, partially offset by a decrease of $10,000 in the allowance for credit losses for held-to-maturity securities.

    Loans, net of the allowance for credit losses, increased $173.6 million, or 11.0%, to $1.8 billion at September 30, 2024 from $1.6 billion at December 31, 2023. The increase in loans, net of the allowance for credit losses, was primarily due to loan originations of $569.2 million during the nine months ended September 30, 2024, consisting primarily of $499.7 million in construction loans with respect to which approximately 34.1% of the funds were disbursed at loan closings, with the remaining funds to be disbursed over the terms of the construction loans. In addition, during the nine months ended September 30, 2024, we originated $44.7 million in commercial and industrial loans, $14.0 million in non-residential loans, $4.2 million in multi-family loans, and $600,000 in mixed-use loans.

    Loan originations during the nine months ended September 30, 2024 resulted in a net increase of $148.8 million in construction loans, $14.4 million in commercial and industrial loans, $9.2 million in non-residential loans, $3.6 million in multi-family loans, and $788,000 in consumer loans. The increase in our loan portfolio was partially offset by decreases of $1.7 million in residential loans and $1.2 million in mixed-use loans, coupled with normal pay-downs and principal reductions.

    The allowance for credit losses related to loans decreased to $4.8 million as of September 30, 2024 from $5.1 million as of December 31, 2023. The decrease in the allowance for credit losses related to loans was due to a credit to the provision for credit losses totaling $145,000 and charge-offs of $115,000.  

    Premises and equipment decreased $507,000, or 2.0%, to $24.9 million at September 30, 2024 from $25.5 million at December 31, 2023 primarily due to the depreciation of fixed assets.

    Investments in Federal Home Loan Bank stock decreased $217,000, or 23.4%, to $712,000 at September 30, 2024 from $929,000 at December 31, 2023. The decrease was due primarily to the mandatory redemption of Federal Home Loan Bank stock totaling $315,000 in connection with the maturity of $7.0 million in advances in 2024, offset by purchases of Federal Home Loan Bank stock totaling $98,000 due to the growth of our mortgage loan portfolio.

    Bank owned life insurance (“BOLI”) increased $486,000, or 1.9%, to $25.6 million at September 30, 2024 from $25.1 million at December 31, 2023 due to increases in the BOLI cash value.

    Accrued interest receivable increased $1.2 million, or 9.4%, to $13.5 million at September 30, 2024 from $12.3 million at December 31, 2023 due to an increase in the loan portfolio.

    Real estate owned decreased $478,000, or 32.8%, to $978,000 at September 30, 2024 from $1.5 million at December 31, 2023 due to a charge-off of $478,000 resulting from a decrease in the estimated fair value of the foreclosed property.

    Right of use assets — operating decreased $422,000, or 9.2%, to $4.1 million at September 30, 2024 from $4.6 million at December 31, 2023, primarily due to amortization.

    Other assets decreased $548,000, or 6.8%, to $7.5 million at September 30, 2024 from $8.0 million at December 31, 2023 due to decreases in tax assets of $671,000, prepaid expenses of $56,000, miscellaneous assets of $4,000, and securities receivables of $1,000, partially offset by increase in suspense accounts of $184,000.

    Total deposits increased $228.0 million, or 16.3%, to $1.6 billion at September 30, 2024 from $1.4 billion at December 31, 2023. The increase in deposits was primarily due to the Bank offering competitive interest rates to attract deposits. This resulted in a shift in deposits whereby certificates of deposit increased $230.5 million, or 30.3%, and NOW/money market accounts increased $83.5 million, or 57.4%, partially offset by decreases in savings account balances of $53.4 million, or 27.7%, and non-interest bearing demand deposits of $32.6 million, or 10.9%.

    Federal Home Loan Bank advances decreased $7.0 million, or 50.0%, to $7.0 million at September 30, 2024 from $14.0 million at December 31, 2023 due to the maturity of borrowings in 2024. Federal Reserve Bank borrowings of $50.0 million at December 31, 2023 were paid-off during the nine months ended September 30, 2024.

    Advance payments by borrowers for taxes and insurance increased $442,000, or 21.9%, to $2.5 million at September 30, 2024 from $2.0 million at December 31, 2023 due primarily to accumulation of real estate tax payments by borrowers.

    Lease liability – operating decreased $384,000, or 8.3%, to $4.2 million at September 30, 2024 from $4.6 million at December 31, 2023, primarily due to amortization.

    Accounts payable and accrued expenses increased $2.4 million, or 17.8%, to $16.0 million at September 30, 2024 from $13.6 million at December 31, 2023 due primarily to increases in dividends payable of $3.2 million and deferred compensation of $395,000, partially offset by a decrease in accrued expense of $810,000. The allowance for credit losses for off-balance sheet commitments decreased $130,000, or 12.5%, to $908,000 at September 30, 2024 from $1.0 million at December 31, 2023.

    Stockholders’ equity increased $30.3 million, or 10.8% to $309.6 million at September 30, 2024, from $279.3 million at December 31, 2023. The increase in stockholders’ equity was due to net income of $36.9 million for the nine months ended September 30, 2024, the amortization expense of $1.4 million relating to restricted stock and stock options granted under the Company’s 2022 Equity Incentive Plan, a reduction of $652,000 in unearned employee stock ownership plan shares coupled with an increase of $532,000 in earned employee stock ownership plan shares, an exercise of stock options totaling $14,000, and $10,000 in other comprehensive income, partially offset by stock repurchases totaling $2.5 million and dividends paid and declared of $6.7 million.

    Results of Operations for the Three Months Ended September 30, 2024 and 2023

    Net Interest Income

    Net interest income was $26.3 million for the three months ended September 30, 2024, as compared to $25.1 million for the three months ended September 30, 2023. The increase in net interest income of $1.2 million, or 4.6%, was primarily due to an increase in interest income that exceeded an increase in interest expense.

    The increase in interest income is attributable to increases in the average balances of loans, interest-bearing deposits, and investment securities, partially offset by a decrease in the average balances of FHLB stock. The increase in interest income is also attributable to the Federal Reserve’s interest rate increases in 2023 that continued until September 2024.

    The increase in market interest rates in 2023 that continued until September 2024 also caused an increase in our interest expense. As a result, the increase in interest expense for the three months ended September 30, 2024 was due to an increase in the cost of funds on our deposits and borrowed money. The increase in interest expense was also due to an increase in the average balances on our certificates of deposits, our interest-bearing demand deposits, and our borrowed money, offset by a decrease in the average balances on our savings and club deposits.

    Total interest and dividend income increased $6.0 million, or 17.2%, to $41.2 million for the three months ended September 30, 2024 from $35.1 million for the three months ended September 30, 2023. The increase in interest and dividend income was due to an increase in the average balance of interest earning assets of $282.6 million, or 18.0%, to $1.9 billion for the three months ended September 30, 2024 from $1.6 billion for the three months ended September 30, 2023, partially offset by a decrease in the yield on interest earning assets by 6 basis points from 8.95% for the three months ended September 30, 2023 to 8.89% for the three months ended September 30, 2024.

    Interest expense increased $4.9 million, or 48.9%, to $14.9 million for the three months ended September 30, 2024 from $10.0 million for the three months ended September 30, 2023. The increase in interest expense was due to an increase in the cost of interest bearing liabilities by 59 basis points from 3.86% for the three months ended September 30, 2023 to 4.45% for the three months ended September 30, 2024 and an increase in average interest bearing liabilities of  $301.8 million, or 29.1%, to $1.3 billion for the three months ended September 30, 2024 from $1.0 billion for the three months ended September 30, 2023.

    Our net interest margin decreased 72 basis points, or 11.3%, to 5.68% for the three months ended September 30, 2024 compared to 6.40% for the three months ended September 30, 2023. The decrease in the net interest margin was due to the increase in the cost of interest-bearing liabilities outpacing the increase in the yield on interest-earning assets.

    Credit Loss Expense

    The Company recorded a provision for credit loss of $105,000 for the three months ended September 30, 2024 compared to a provision for credit loss of $156,000 for the three months ended September 30, 2023. The credit loss expense of $105,000 for the three months ended September 30, 2024 was comprised of a credit loss expense for off-balance sheet commitments of $105,000 primarily attributable to an increase in the weighted average remaining maturity for the aggregate unfunded off-balance sheet commitments. The credit loss expense of $156,000 for the three months ended September 30, 2023 was comprised of credit loss for loans of $438,000, partially offset by credit loss expense reduction for off-balance sheet commitments of $278,000 and credit loss expense reduction for held-to-maturity securities of $4,000.

    With respect to the allowance for credit losses for loans, we charged-off $82,000 during the three months ended September 30, 2024 as compared to charge-offs of $71,000 during the three months ended September 30, 2023. These charge-offs during the three months ended September 30, 2024 and 2023 were against various unpaid overdrafts in our demand deposit accounts.

    We recorded no recoveries from previously charged-off loans during the three months ended September 30, 2024 and 2023.

    Non-Interest Income

    Non-interest income for the three months ended September 30, 2024 was $1.3 million compared to non-interest income of $221,000 for the three months ended September 30, 2023. The increase of $1.1 million, or 510.4%, in total non-interest income was primarily due to increases of $977,000 in unrealized gain on equity securities, $225,000 in other loan fees and service charges, $26,000 in miscellaneous other non-interest income, and $14,000 in BOLI income, partially offset by a decrease of $114,000 in investment advisory fees.

    The increase in unrealized gain (loss) on equity securities was due to an unrealized gain of $547,000 on equity securities during the three months ended September 30, 2024 compared to an unrealized loss of $430,000 on equity securities during the three months ended September 30, 2023. The unrealized gain of $547,000 on equity securities during the three months ended September 30, 2024 was due to market interest rate volatility during the quarter ended September 30, 2024.

    The increase of $225,000 in other loan fees and service charges was due to an increase of $210,000 in other loan fees and loan servicing fees and an increase of $15,000 in ATM/debit card/ACH fees.

    The decrease in investment advisory fees was due to the disposition in January 2024 of the Bank’s assets relating to the Harbor West Wealth Management Group. As a result of the transaction, the Bank no longer generates investment advisory fees.

    Non-Interest Expense

    Non-interest expense increased $1.0 million, or 11.7%, to $10.0 million for the three months ended September 30, 2024 from $8.9 million for the three months ended September 30, 2023. The increase resulted primarily from increases of $477,000 in real estate owned expense, $435,000 in salaries and employee benefits, $119,000 in occupancy expense, and $112,000 in outside data processing expense, partially offset by decreases of $53,000 in equipment expense, $39,000 in other operating expense, and $5,000 in advertising expense.

    Income Taxes

    We recorded income tax expense of $4.9 million and $4.4 million for the three months ended September 30, 2024 and 2023, respectively. For the three months ended September 30, 2024, we had approximately $203,000 in tax exempt income, compared to approximately $187,000 in tax exempt income for the three months ended September 30, 2023. Our effective income tax rates were 27.8% and 27.3% for the three months ended September 30, 2024 and 2023, respectively.

    Results of Operations for the Nine Months Ended September 30, 2024 and 2023

    Net Interest Income

    Net interest income was $77.5 million for the nine months ended September 30, 2024 as compared to $72.0 million for the nine months ended September 30, 2023. The increase in net interest income of $5.5 million, or 7.7%, was primarily due to an increase in interest income that exceeded an increase in interest expense.

    The increase in interest income is attributable to increases in loans and interest-bearing deposits, partially offset by decreases in investment securities and FHLB stock. The increase in interest income is also attributable to the Federal Reserve’s interest rate increases during 2023 that continued until September 2024.

    The increase in market interest rates in 2023 that continued until September 2024 also caused an increase in our interest expense. As a result, the increase in interest expense for the nine months ended September 30, 2024 was due to an increase in the cost of funds on our deposits and borrowed money. The increase in interest expense was also due to increases in the balances on our certificates of deposits, our interest-bearing demand deposits, and our borrowed money, offset by a decrease in the balances of our savings and club deposits.

    Total interest and dividend income increased $24.2 million, or 25.4%, to $119.5 million for the nine months ended September 30, 2024 from $95.4 million for the nine months ended September 30, 2023. The increase in interest and dividend income was due to an increase in the average balance of interest earning assets of $332.7 million, or 22.7%, to $1.8 billion for the nine months ended September 30, 2024 from $1.5 billion for the nine months ended September 30, 2023 and an increase in the yield on interest earning assets by 19 basis points from 8.66% for the nine months ended September 30, 2023 to 8.85% for the nine months ended September 30, 2024.

    Interest expense increased $18.7 million, or 79.9%, to $42.0 million for the nine months ended September 30, 2024 from $23.4 million for the nine months ended September 30, 2023. The increase in interest expense was due to an increase in the cost of interest bearing liabilities by 101 basis points from 3.35% for the nine months ended September 30, 2023 to 4.36% for the nine months ended September 30, 2024, and an increase in average interest bearing liabilities of $355.6 million, or 38.2%, to $1.3 billion for the nine months ended September 30, 2024 from $931.5 million for the nine months ended September 30, 2023.

    Net interest margin decreased 80 basis points, or 12.2%, for the nine months ended September 30, 2024 to 5.74% compared to 6.54% for the nine months ended September 30, 2023.

    Credit Loss Expense

    The Company recorded a credit loss expense reduction totaling $286,000 for the nine months ended September 30, 2024 compared to a credit loss expense totaling $767,000 for the nine months ended September 30, 2023. The credit loss expense reduction of $286,000 for the nine months ended September 30, 2024 was comprised of a credit loss expense reduction for loans of $145,000, a credit loss expense reduction for off-balance sheet commitments of $130,000, and a credit loss expense reduction for held-to-maturity investment securities of $11,000. The credit loss expense reduction for loans of $145,000 for the nine months ended September 30, 2024 was primarily attributed to favorable trends in the economy.   The credit loss expense reduction for off-balance sheet commitments of $130,000 for the nine months ended September 30, 2024 was primarily attributed to a reduction of $69.1 million in the level of off-balance sheet commitments, partially offset by an increase in the weighted average remaining maturity for the aggregate unfunded off-balance sheet commitments during the quarter ended September 30, 2024.

    The credit loss expense of $767,000 for the nine months ended September 30, 2023 was comprised of credit loss expense for loans of $1.2 million, partially offset by a credit loss expense reduction for off-balance sheet commitments of $395,000 and credit loss expense reduction for held-to-maturity investment securities of $1,000.

    We charged-off $115,000 during the nine months ended September 30, 2024 as compared to charge-offs of $285,000 during the nine months ended September 30, 2023. The charge-offs of $115,000 during the nine months ended September 30, 2024 were against various unpaid overdrafts in our demand deposit accounts. The charge-offs of $285,000 during the nine months ended September 30, 2023 were comprised of a charge-off of $159,000 related to three performing construction loans on the same project whereby we sold the loans to a third-party subsequent to June 30, 2023 at a loss of $159,000. The remaining charge-offs of $126,000 for the 2023 period were against various unpaid overdrafts in our demand deposit accounts.

    We recorded no recoveries from previously charged-off loans during the nine months ended September 30, 2024 and 2023.

    Non-Interest Income

    Non-interest income for the nine months ended September 30, 2024 was $2.6 million compared to non-interest income of $2.4 million for the nine months ended September 30, 2023. The increase of $277,000, or 11.8%, in total non-interest income was primarily due to increases of $772,000 in unrealized gains on equity securities, $196,000 in other loan fees and service charges, and $23,000 in miscellaneous other non-interest income, offset by decreases of $371,000 in BOLI income and $343,000 in investment advisory fees.

    The increase in unrealized gain (loss) on equity securities was due to an unrealized gain of $445,000 on equity securities during the nine months ended September 30, 2024 compared to an unrealized loss of $327,000 on equity securities during the nine months ended September 30, 2023. The unrealized gain of $445,000 on equity securities during the 2024 period was due to market interest rate volatility during the nine months ended September 30, 2024.

    The increase of $196,000 in other loan fees and service charges was due to increases of $164,000 in other loan fees and loan servicing fees, $27,000 in ATM/debit card/ACH fees, and $5,000 in savings account fees.

    The decrease in BOLI income was primarily due to two death claims totaling $1.8 million on BOLI policies that resulted in additional BOLI income of $404,000 in the nine months ended September 30, 2023. The decrease in investment advisory fees was due to the disposition in January 2024 of the Bank’s assets relating to the Harbor West Wealth Management Group. As a result of the transaction, the Bank no longer generates investment advisory fees.

    Non-Interest Expense

    Non-interest expense increased $3.2 million, or 12.1%, to $29.1 million for the nine months ended September 30, 2024 from $26.0 million for the nine months ended September 30, 2023. The increase resulted primarily from increases of $1.7 million in salaries and employee benefits, $800,000 in other operating expense, $475,000 in real estate owned expense, $286,000 in outside data processing expense, and $226,000 in occupancy expense, partially offset by decreases of $183,000 in equipment expense and $110,000 in advertising expense.

    Income Taxes

    We recorded income tax expense of $14.4 million and $13.4 million for the nine months ended September 30, 2024 and 2023, respectively. For the nine months ended September 30, 2024, we had approximately $597,000 in tax exempt income, compared to approximately $956,000 in tax exempt income for the nine months ended September 30, 2023. The decrease in tax exempt income was due to two death claims totaling $1.8 million on BOLI policies during the nine months ended September 30, 2023. Our effective income tax rates were 28.1% and 28.2% for the nine months ended September 30, 2024 and 2023, respectively.

    Asset Quality

    Non-performing assets were $5.4 million at September 30, 2024 compared to $5.8 million at December 31, 2023. At September 30, 2024 and December 31, 2023, we had two non-performing construction loans totaling $4.4 million secured by the same project located in the Bronx, New York. We successfully foreclosed on these two loans on October 21, 2024 and the balances were transferred to foreclosed real estate. The other non-performing assets consisted of one foreclosed property at September 30, 2024 and December 31, 2023. Our ratio of non-performing assets to total assets remained low at 0.27% at September 30, 2024 as compared to 0.33% at December 31, 2023.

    The Company’s allowance for credit losses related to loans was $4.8 million, or 0.27% of total loans as of September 30, 2024, compared to $5.1 million, or 0.32% of total loans, as of December 31, 2023. Based on a review of the loans that were in the loan portfolio at September 30, 2024, management believes that the allowance for credit losses related to loans is maintained at a level that represents its best estimate of inherent losses in the loan portfolio that were both probable and reasonably estimable.

    In addition, at September 30, 2024, the Company’s allowance for credit losses related to off-balance sheet commitments totaled $908,000 and the allowance for credit losses related to held-to-maturity debt securities totaled $126,000.

    Capital

    The Company’s total stockholders’ equity to assets ratio was 15.73% as of September 30, 2024.   At September 30, 2024, the Company had the ability to borrow $832.1 million from the Federal Reserve Bank of New York, $14.8 million from the Federal Home Loan Bank of New York and $8.0 million from Atlantic Community Bankers Bank.

    The Bank’s capital position remains strong relative to current regulatory requirements and the Bank is considered a well-capitalized institution under the Prompt Corrective Action framework. As of September 30, 2024, the Bank had a tier 1 leverage capital ratio of 14.76% and a total risk-based capital ratio of 14.04%.

    The Company completed its first stock repurchase program on April 14, 2023 whereby the Company repurchased 1,637,794 shares, or 10%, of the Company’s issued and outstanding common stock. The cost of the stock repurchase program totaled $23.0 million, including commission costs and Federal excise taxes.   Of the total shares repurchased under this program, 957,275 of such shares were repurchased during 2023 at a total cost of $13.7 million, including commission costs and Federal excise taxes.

    The Company commenced its second stock repurchase program on May 30, 2023 whereby the Company will repurchase 1,509,218, or 10%, of the Company’s issued and outstanding common stock. As of September 30, 2024, the Company had repurchased 1,091,174 shares of common stock under its second repurchase program, at a cost of $17.2 million, including commission costs and Federal excise taxes.

    About NorthEast Community Bancorp

    NorthEast Community Bancorp, headquartered at 325 Hamilton Avenue, White Plains, New York 10601, is the holding company for NorthEast Community Bank, which conducts business through its eleven branch offices located in Bronx, New York, Orange, Rockland, and Sullivan Counties in New York and Essex, Middlesex, and Norfolk Counties in Massachusetts and three loan production offices located in New City, New York, White Plains, New York, and Danvers, Massachusetts. For more information about NorthEast Community Bancorp and NorthEast Community Bank, please visit www.necb.com.

    Forward Looking Statement

    This press release contains certain forward-looking statements. Forward-looking statements include statements regarding anticipated future events and can be identified by the fact that they do not relate strictly to historical or current facts. They often include words such as “believe,” “expect,” “anticipate,” “estimate,” and “intend” or future or conditional verbs such as “will,” “would,” “should,” “could,” or “may.” These statements are based upon the current beliefs and expectations of the Company’s management and are subject to significant risks and uncertainties. Actual results may differ materially from those set forth in the forward-looking statements as a result of numerous factors. Factors that could cause actual results to differ materially from expected results include, but are not limited to, changes in market interest rates, regional and national economic conditions (including higher inflation and its impact on regional and national economic conditions), legislative and regulatory changes, monetary and fiscal policies of the United States government, including policies of the United States Treasury and the Federal Reserve Board, the quality and composition of the loan or investment portfolios, demand for loan products, decreases in deposit levels necessitating increased borrowing to fund loans and securities, competition, demand for financial services in NorthEast Community Bank’s market area, changes in the real estate market values in NorthEast Community Bank’s market area, the impact of failures or disruptions in or breaches of the Company’s operational or security systems, data or infrastructure, or those of third parties, including as a result of cyberattacks or campaigns, and changes in relevant accounting principles and guidelines. Additionally, other risks and uncertainties may be described in our annual and quarterly reports filed with the U.S. Securities and Exchange Commission (the “SEC”), which are available through the SEC’s website located at www.sec.gov. These risks and uncertainties should be considered in evaluating any forward-looking statements and undue reliance should not be placed on such statements. Except as required by applicable law or regulation, the Company does not undertake, and specifically disclaims any obligation, to release publicly the result of any revisions that may be made to any forward-looking statements to reflect events or circumstances after the date of the statements or to reflect the occurrence of anticipated or unanticipated events.

    CONTACT: Kenneth A. Martinek
      Chairman and Chief Executive Officer
       
    PHONE: (914) 684-2500
       
    NORTHEAST COMMUNITY BANCORP, INC.
    CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
    (Unaudited)
     
      September 30,   December 31,
      2024   2023
      (In thousands, except share
      and per share amounts)
    ASSETS          
    Cash and amounts due from depository institutions $ 16,023     $ 13,394  
    Interest-bearing deposits   81,766       55,277  
    Total cash and cash equivalents   97,789       68,671  
    Certificates of deposit   100       100  
    Equity securities   20,547       18,102  
    Securities held-to-maturity (net of allowance for credit losses of $126 and $136, respectively)   15,061       15,860  
    Loans receivable   1,760,504       1,586,721  
    Deferred loan (fees) costs, net   (245 )     176  
    Allowance for credit losses   (4,833 )     (5,093 )
    Net loans   1,755,426       1,581,804  
    Premises and equipment, net   24,945       25,452  
    Investments in restricted stock, at cost   712       929  
    Bank owned life insurance   25,568       25,082  
    Accrued interest receivable   13,463       12,311  
    Real estate owned   978       1,456  
    Property held for investment   1,380       1,407  
    Right of Use Assets – Operating   4,144       4,566  
    Right of Use Assets – Financing   348       351  
    Other assets   7,496       8,044  
    Total assets $ 1,967,957     $ 1,764,135  
    LIABILITIES AND STOCKHOLDERS’ EQUITY          
    Liabilities:          
    Deposits:          
    Non-interest bearing $ 267,592     $ 300,184  
    Interest bearing   1,360,475       1,099,852  
    Total deposits   1,628,067       1,400,036  
    Advance payments by borrowers for taxes and insurance   2,462       2,020  
    Borrowings   7,000       64,000  
    Lease Liability – Operating   4,241       4,625  
    Lease Liability – Financing   599       571  
    Accounts payable and accrued expenses   15,965       13,558  
    Total liabilities   1,658,334       1,484,810  
               
    Stockholders’ equity:          
    Preferred stock, $0.01 par value; 25,000,000 shares authorized; none issued or outstanding $ —     $ —  
    Common stock, $0.01 par value; 75,000,000 shares authorized; 14,020,602 shares and 14,144,856 shares outstanding, respectively   140       142  
    Additional paid-in capital   109,368       109,924  
    Unearned Employee Stock Ownership Plan (“ESOP”) shares   (5,911 )     (6,563 )
    Retained earnings   205,699       175,505  
    Accumulated other comprehensive income   327       317  
    Total stockholders’ equity   309,623       279,325  
    Total liabilities and stockholders’ equity $ 1,967,957     $ 1,764,135  
               
    NORTHEAST COMMUNITY BANCORP, INC.
    CONSOLIDATED STATEMENTS OF INCOME
    (Unaudited)
     
      Three Months Ended September 30,   Nine Months Ended September 30,
      2024   2023   2024   2023
                  (In thousands, except per share amounts)
    INTEREST INCOME:                      
    Loans $ 39,484   $ 33,757     $ 114,821     $ 91,826  
    Interest-earning deposits   1,472     1,181       4,058       2,886  
    Securities   227     199       662       650  
    Total Interest Income   41,183     35,137       119,541       95,362  
    INTEREST EXPENSE:                      
    Deposits   14,630     9,889       40,459       23,050  
    Borrowings   257     109       1,559       299  
    Financing lease   10     10       29       28  
    Total Interest Expense   14,897     10,008       42,047       23,377  
    Net Interest Income   26,286     25,129       77,494       71,985  
    Provision for (reversal of) credit loss   105     156       (286 )     767  
    Net Interest Income after Provision for (Reversal of) Credit Loss   26,181     24,973       77,780       71,218  
    NON-INTEREST INCOME:                      
    Other loan fees and service charges   589     364       1,613       1,417  
    Earnings on bank owned life insurance   167     153       486       857  
    Investment advisory fees   –     114       –       343  
    Unrealized gain (loss) on equity securities   547     (430 )     445       (327 )
    Other   46     20       90       67  
    Total Non-Interest Income   1,349     221       2,634       2,357  
    NON-INTEREST EXPENSES:                      
    Salaries and employee benefits   5,135     4,700       15,738       14,079  
    Occupancy expense   735     616       2,116       1,890  
    Equipment   187     240       661       844  
    Outside data processing   681     569       1,924       1,638  
    Advertising   128     133       310       420  
    Real estate owned expense   488     11       527       52  
    Other   2,607     2,646       7,864       7,064  
    Total Non-Interest Expenses   9,961     8,915       29,140       25,987  
    INCOME BEFORE PROVISION FOR INCOME TAXES   17,569     16,279       51,274       47,588  
    PROVISION FOR INCOME TAXES   4,883     4,436       14,416       13,413  
    NET INCOME $ 12,686   $ 11,843     $ 36,858     $ 34,175  
                           
    NORTHEAST COMMUNITY BANCORP, INC.
    SELECTED CONSOLIDATED FINANCIAL DATA
    (Unaudited)
     
      Three Months Ended September 30,   Nine Months Ended September 30,
      2024   2023   2024   2023
      (In thousands, except per share amounts)   (In thousands, except per share amounts)
    Per share data:                      
    Earnings per share – basic $ 0.97     $ 0.80     $ 2.81     $ 2.42  
    Earnings per share – diluted   0.95       0.80       2.78       2.41  
    Weighted average shares outstanding – basic   13,075       14,743       13,108       14,143  
    Weighted average shares outstanding – diluted   13,417       14,822       13,279       14,192  
    Performance ratios/data:                      
    Return on average total assets   2.62 %     2.87 %     2.61 %     2.95 %
    Return on average shareholders’ equity   16.48 %     17.26 %     16.55 %     16.95 %
    Net interest income $ 26,286     $ 25,129     $ 77,494     $ 71,985  
    Net interest margin   5.68 %     6.40 %     5.74 %     6.54 %
    Efficiency ratio   36.04 %     35.17 %     36.37 %     34.96 %
    Net charge-off ratio   0.02 %     0.02 %     0.01 %     0.03 %
                           
    Loan portfolio composition:               September 30, 2024     December 31, 2023
    One-to-four family             $ 3,507     $ 5,252  
    Multi-family               202,516       198,927  
    Mixed-use               28,399       29,643  
    Total residential real estate               234,422       233,822  
    Non-residential real estate               30,312       21,130  
    Construction               1,368,222       1,219,413  
    Commercial and industrial               125,520       111,116  
    Consumer               2,028       1,240  
    Gross loans               1,760,504       1,586,721  
    Deferred loan (fees) costs, net               (245 )     176  
    Total loans             $ 1,760,259     $ 1,586,897  
    Asset quality data:                      
    Loans past due over 90 days and still accruing             $ –     $ –  
    Non-accrual loans               4,413       4,385  
    OREO property               978       1,456  
    Total non-performing assets             $ 5,391     $ 5,841  
                           
    Allowance for credit losses to total loans               0.27 %     0.32 %
    Allowance for credit losses to non-performing loans               109.52 %     116.15 %
    Non-performing loans to total loans               0.25 %     0.28 %
    Non-performing assets to total assets               0.27 %     0.33 %
                           
    Bank’s Regulatory Capital ratios:                      
    Total capital to risk-weighted assets               14.04 %     14.11 %
    Common equity tier 1 capital to risk-weighted assets               13.76 %     13.78 %
    Tier 1 capital to risk-weighted assets               13.76 %     13.78 %
    Tier 1 leverage ratio               14.76 %     16.21 %
                               
    NORTHEAST COMMUNITY BANCORP, INC.
    NET INTEREST MARGIN ANALYSIS
    (Unaudited)
     
      Three Months Ended September 30, 2024   Three Months Ended September 30, 2023
      Average   Interest   Average   Average   Interest   Average
      Balance   and dividend   Yield   Balance   and dividend   Yield
      (In thousands, except yield/cost information)   (In thousands, except yield/cost information)
    Loan receivable gross $ 1,717,875     $ 39,484     9.19 %   $ 1,446,946     $ 33,757     9.33 %
    Securities   34,920       212     2.43 %     33,754       181     2.14 %
    Federal Home Loan Bank stock   712       15     8.43 %     929       18     7.75 %
    Other interest-earning assets   98,903       1,472     5.95 %     88,156       1,181     5.36 %
    Total interest-earning assets   1,852,410       41,183     8.89 %     1,569,785       35,137     8.95 %
    Allowance for credit losses   (4,914 )                 (4,404 )            
    Non-interest-earning assets   90,313                   85,133              
    Total assets $ 1,937,809                 $ 1,650,514              
                                       
    Interest-bearing demand deposit $ 228,975     $ 2,423     4.23 %   $ 78,768     $ 522     2.65 %
    Savings and club accounts   140,047       848     2.42 %     235,613       1,624     2.76 %
    Certificates of deposit   946,290       11,359     4.80 %     707,142       7,743     4.38 %
    Total interest-bearing deposits   1,315,312       14,630     4.45 %     1,021,523       9,889     3.87 %
    Borrowed money   23,603       267     4.52 %     15,631       119     3.05 %
    Total interest-bearing liabilities   1,338,915       14,897     4.45 %     1,037,154       10,008     3.86 %
    Non-interest-bearing demand deposit   271,207                   322,213              
    Other non-interest-bearing liabilities   19,758                   16,694              
    Total liabilities   1,629,880                   1,376,061              
    Equity   307,929                   274,453              
    Total liabilities and equity $ 1,937,809                 $ 1,650,514              
                                       
    Net interest income / interest spread       $ 26,286     4.44 %         $ 25,129     5.09 %
    Net interest rate margin               5.68 %                 6.40 %
    Net interest earning assets $ 513,495                 $ 532,631              
    Average interest-earning assets                                  
    to interest-bearing liabilities   138.35 %                 151.36 %            
                                           
    NORTHEAST COMMUNITY BANCORP, INC.
    NET INTEREST MARGIN ANALYSIS
    (Unaudited)
     
      Nine Months Ended September 30, 2024   Nine Months Ended September 30, 2023
      Average   Interest   Average   Average   Interest   Average
      Balance   and dividend   Yield   Balance   and dividend   Yield
      (In thousands, except yield/cost information)   (In thousands, except yield/cost information)
    Loan receivable gross $ 1,672,582     $ 114,821     9.15 %   $ 1,353,446     $ 91,826     9.05 %
    Securities   34,071       607     2.38 %     39,375       589     1.99 %
    Federal Home Loan Bank stock   752       55     9.75 %     1,002       61     8.12 %
    Other interest-earning assets   93,417       4,058     5.79 %     74,308       2,886     5.18 %
    Total interest-earning assets   1,800,822       119,541     8.85 %     1,468,131       95,362     8.66 %
    Allowance for credit losses   (4,977 )                 (4,640 )            
    Non-interest-earning assets   90,087                   83,200              
    Total assets $ 1,885,932                 $ 1,546,691              
                                       
    Interest-bearing demand deposit $ 202,097     $ 6,300     4.16 %   $ 84,920     $ 1,433     2.25 %
    Savings and club accounts   160,296       3,032     2.52 %     262,977       5,373     2.72 %
    Certificates of deposit   880,741       31,127     4.71 %     567,378       16,244     3.82 %
    Total interest-bearing deposits   1,243,134       40,459     4.34 %     915,275       23,050     3.36 %
    Borrowed money   43,916       1,588     4.82 %     16,216       327     2.69 %
    Total interest-bearing liabilities   1,287,050       42,047     4.36 %     931,491       23,377     3.35 %
    Non-interest-bearing demand deposit   282,786                   329,993              
    Other non-interest-bearing liabilities   19,163                   16,373              
    Total liabilities   1,588,999                   1,277,857              
    Equity   296,933                   268,834              
    Total liabilities and equity $ 1,885,932                 $ 1,546,691              
                                       
    Net interest income / interest spread       $ 77,494     4.49 %         $ 71,985     5.31 %
    Net interest rate margin               5.74 %                 6.54 %
    Net interest earning assets $ 513,772                 $ 536,640              
    Average interest-earning assets                                  
    to interest-bearing liabilities   139.92 %                 157.61 %            

    The MIL Network –

  • MIL-OSI Africa: East Africa: The Ethiopia-Kenya Electricity Highway is Shaping Regional Connectivity with the Support of the African Development Bank

    Source: Africa Press Organisation – English (2) – Report:

    ABIDJAN, Ivory Coast, October 28, 2024/APO Group/ —

    The electricity highway between Ethiopia and Kenya, officially opened in 2023 after more than 10 years of planning and construction, is redefining energy connectivity in East Africa. It is more than a piece of infrastructure, it is an economic and environmental entity, connecting not just power grids but nations and populations. 

    This vision of a shared energy future runs for 1,045 km between Wolayta-Sodo in Ethiopia and Suswa in Kenya. It enables both countries to pool resources, hydroelectricity from Ethiopia, and geothermal and wind power from Kenya. 

    Regional Connectivity lies at the heart of the project. As John Mativo, Managing Director of the Kenya Electricity Transmission Company (Ketraco) explains, this project is all about collaboration:  

    “Around 2010, countries in East Africa, as an energy pool, decided that it was essential to have an interconnected hub so that everyone could use and exploit energy and support each other.” 

    One of the project’s critical aspects is the use of HVDC (High Voltage Direct Current) technology, which makes it much easier to transport electricity with long distance transmission lines as Tewoderos Ayalew, the site manager at Ethiopian Electric Power explains: 

    “The reason we are using HVDC technology is to minimize energy wastage and reduce power losses in the transmission line energy wastage and reduce the costs of constructing transmission lines; it is also easy to operate and improve grid stability in operating the interconnection from the power grids of different countries.”  

    Hydroelectric dams in Ethiopia produce energy in the form of alternating current, which is transported via the Ethiopian grid to the converter station in Sodo. There, it is converted to Direct Current (DC) and leaves Ethiopia for Kenya, via 1,045 km of overhead transmission line. Once it arrives at the Suswa converter station, it will be converted back to alternating current to be integrated into the Kenyan power grid. 

    This high voltage DC infrastructure is the only one of its kind in the region and is the foundation of East Africa’s ambition to be interconnected in terms of power exchange and allow cross-border trade in energy. 

    The total cost of USD 1.26 billion was funded partly by USD 338 million from the African Development Bank. The World Bank, the Agence française de développement (AFD) and the governments of the two countries concerned also contributed. 

    Significant economic benefits 

    The project has brought significant economic benefits. For Kenya, where 95 percent of electricity comes from renewable sources, the connection is increasing its competitiveness. Kipkemoi Kibias, General Manager at Ketraco, endorses the project: 

    “Using clean, renewable energy brings numerousadvantages not just to Kenyans, but to the whole world… it allows us to attract investors, especially in light and heavy industries, who are looking for green energy.” 

    The project also creates jobs. The development of business zones close to energy infrastructure, like the one near Suswa, creates thousands of jobs and boosts local economic activity. Moreover, the project includes a significant social dimension, notably involving local communities. Out of the 100 employees at the Suswa power station, 70 come from the region, offering opportunities for local development. 

    For Sylvia Kinaiya, an engineer from the region, the project is also a source of personal pride: 

    “I am Masai, so for me, it’s a way of giving back to my community,” she says. She also emphasizes that this project proves that it is possible to be both a mother and an engineer, helping to break down gender barriers in technical occupations. 

    Apart from its economic and social impacts, the project is a model of sustainability, allowing better integration of intermittent renewable energy sources, such as wind power and Solar, into regional networks. According to John Mativo, this infrastructure ensures that “Kenya has enough green energy to support our industrial development while maintaining a small carbon footprint.” 

    Kenya is already on the way to self-sufficiency in clean energy, with the aim of moving to 100 percent renewable energy by 2030. By connecting its grid to Ethiopia, Kenya can not only stabilize its energy supply but also attract more investment into green energies. This vision is also shared by investors, who see this infrastructure as a guarantee of energy and environmental security. 

    The Ethiopia-Kenya electricity highway is therefore much more than a simple infrastructure project; it embodies a vision of the future in which green energy becomes the driver of stronger regional cooperation and sustainable development. Thanks to this connection, East African countries can share their energy resources efficiently, while responding to the growing needs of their populations and industries. 

    The future is bright according to Tweoderos Ayalew: 

    “We have the potential not only to meet our own needs, but also to supply energy to our neighbours and beyond.”  

    This pioneering project is thus paving the way to shared prosperity, while putting the region on the path to a sustainable energy transition.

    MIL OSI Africa –

  • MIL-OSI Canada: Remarks by the Deputy Prime Minister announcing healthy meals for kids in Manitoba

    Source: Government of Canada News

    We’ve been through a tough time. When COVID first hit, our country suffered the deepest recession since the Great Depression. Our economy shrank by 17 per cent and it’s been tough getting out of that. In recent weeks, we’ve had some good news. What we’ve been seeing is light at the end of the tunnel. We are approaching a soft landing for the Canadian economy after the turbulence of the COVID recession and what followed.

    October 18, 2024 – Winnipeg, Manitoba

    Check against delivery

    I would like to begin by acknowledging that we are in Treaty 1 territory and that the land on which we gather today is the traditional territory of the Anishinaabeg, Cree, Ojibway, Oji-Cree, Dakota, and Dene Peoples, and the homeland of the Red River Métis.

    I want to start by saying a couple of things about the Canadian economy.

    We’ve been through a tough time. When COVID first hit, our country suffered the deepest recession since the Great Depression.  Our economy shrank by 17 per cent and it’s been tough getting out of that.  In recent weeks, we’ve had some good news.  What we’ve been seeing is light at the end of the tunnel.  We are approaching a soft landing for the Canadian economy after the turbulence of the COVID recession and what followed.

    What kind of good news am I talking about?  First of all, inflation in September was at 1.6 per cent.  That is in the lower end of the Bank of Canada’s target range, below the central target of two per cent.  For the past nine months, inflation has been within the Bank of Canada’s target range.  I know that is a relief for people here.

    What that means is that interest rates are coming down, too.  Canada was the first G7 country to lower interest rates for the first time, the first G7 country to lower interest rates for the second time and the first G7 country to lower interest rates for the third time.  That is a relief for a lot of Canadians, a lot of Manitobans as well.

    Wages and employment are going up.  We had strong jobs numbers in September.  The Canadian economy added 47,000 new jobs and unemployment went down a bit.  For the past 20 months, wages have been outpacing inflation.

    All these things are important for Canadians, for families like the parents of the kids here who want to ensure they can take care of their kids, feed their kids, pay their mortgage, pay their rent.  What that economic progress means is that we as a country are able to make investments in our most precious resources, our kids.

    That is why we announced the National School Food Program in the 2024 Budget, which is, in my opinion, one of our government’s key programs.

    The National School Food Program is one of the most important investments we can make in our kids, in our families.  It’s $1 billion over five years.  It’s going to mean 400,000 kids can get fed at school, 400,000 kids who are hungry in their classroom are going to be able to have a snack or some breakfast or some lunch.  That’s going to make such a difference to them, to their teachers.  A family with two kids will save as much as $800 a year on groceries.

    We can only deliver a program like this when we have provincial partners who share our values, who share our commitment to Canada’s kids.  That’s what we have in Manitoba.  That is why I am deeply thrilled to be able to announce today that we have a deal with the great province of Manitoba to invest in school food for Manitoba’s kids.

    The federal government is investing $17.2 million over three years to expand school food programs in Manitoba.  Manitoba is putting money on the table too.  The result is 19,080 more kids in Manitoba are going to get school meals.

    Manitoba is, as usual, in a leadership position with Premier Kinew.  Manitoba is just the second province to conclude a school food deal.  It’s meaningful for every parent who has a kid and knows their kid is going to get a snack, for every kid who’s not going to be hungry.

    This is part of our government’s absolute commitment to investing in families and in children.  It is a companion program to our national system of early learning and childcare, and Manitoba is also playing a leadership role in the country.  You guys are down to $10 a day.  That is fantastic.  That is saving a family in Manitoba $2,610 per child per year, a real affordability measure.  There is also the Canada Child Benefit, where a family can get up to $7,787 per child per year thanks to that benefit.  When you put those programs together, this is a real investment in the most important people in our country, our kids.

    I would like to thank the Government of Manitoba, especially Premier Kinew, who is an excellent partner for us. Our work is not always easy but, because we share the same values, we are able to work together to get things done.

    We need our economy to grow, but that needs to be growth with a purpose. Our purpose needs to be to invest in Canadians.  There is no better investment and no more important investment that we can make than investing in our beautiful, amazing, precious children.  That’s what we’re here to celebrate today.  Thank you.

    MIL OSI Canada News –

  • MIL-OSI Europe: Written question – Support for SMEs – E-002050/2024

    Source: European Parliament

    14.10.2024

    Question for written answer  E-002050/2024
    to the Commission
    Rule 144
    Georgios Aftias (PPE)

    Based on the data held by the Greek chambers of commerce, EU funding is urgently needed for small to medium-sized enterprises (SMEs). However, access to green financing is not guaranteed because, according to the Piraeus Chamber of Commerce and Industry, reporting criteria are complex since funding is only offered for projects worth over EUR 2 000 000. Thus, this practice automatically excludes SMEs from green financing given that the average loan guarantee offered by the European Investment Bank is EUR 100 000.

    Guaranteed access to funding is essential for SMEs to be able to engage in the green transition. SMEs, which are the backbone of the Greek economy, are driven by sustainability, competitiveness, liquidity, innovation and the skills of their employees.

    In view of this:

    • 1.What will the Commission do for SMEs to obtain flexible financing?
    • 2.Will the reporting process be simplified?
    • 3.When will this process be complete?

    Submitted: 14.10.2024

    Last updated: 28 October 2024

    MIL OSI Europe News –

  • MIL-OSI Europe: Italy: ACEA: €500 million from EIB and CDP covered by SACE guarantee for electricity distribution network investments

    Source: European Investment Bank

    • The agreement aims to strengthen Areti’s electricity infrastructure and supports REPowerEU objectives.
    • The first tranche of €320 million was signed today, with a second tranche of €180 million to be signed in 2025.

    The modernisation, upgrade and expansion of Areti’s electricity infrastructure – a company fully owned by ACEA Grup and responsible for the mains network in Rome and Formello – aims to provide increasingly efficient services to citizens.

    This is the main objective of the €500 million financing granted directly to ACEA by the European Investment Bank (EIB), covered by SACE’s Archimede guarantee, and by Cassa Depositi e Prestiti (CDP) with funding made available by the EIB.

    Today in Rome, agreements were signed for the first tranche of financing, totalling €320 million, of which €200 million provided directly by the EIB, with 70% covered by SACE’s Archimede guarantee, and €120 million from CDP using EIB funding. The second tranche of €180 million is scheduled to be signed in 2025.

    Through this transaction, the EIB, CDP and SACE are co-financing Areti’s investment plan in line with the objectives of REPowerEU, the European Union’s plan to reduce dependence on fossil-fuel and accelerating the transition to green energy. The resources available will serve to implement an intervention plan for digitalisation of the infrastructure. More specifically, the interventions will be focused on the following areas:

    • Upgrading Rome’s low and medium voltage network to increase resilience and capacity, including the installation of new lines;
    • Modernising the medium and low voltage network to enhance safety through advanced diagnostics, remote control, and automation;
    • Expanding and upgrading primary stations;
    • Enhancing grid intelligence to enable dynamic management, control of PODs via 2G smart meters and large-scale demand response through artificial intelligence and IoT platforms.

    This transaction reaffirms the EIB and CDP as primary institutional funders of ACEA’s investment plan, and SACE as a strategic financial insurance partner also for the Group’s future operations. SACE’s Archimede guarantee provides coverage of financing and bonds at market conditions for a maximum term of 25 years as leverage for country system competitiveness.

    Fabrizio Palermo, ACEA’s Chief Executive Officer, commented: “The agreements signed today with EIB, CDP and SACE represent for ACEA a system operation of particular strategic importance and certify the value and quality of the investments that the Group has planned for the coming years in the electricity distribution networks. The investments will contribute to the achievement of increasing infrastructure resilience and flexibility thanks to the use of new technologies, such as artificial intelligence.”

    EIB Vice President Gelsomina Vigliotti stated: “This financing reaffirms the EIB’s commitment to supporting the energy transition and achieving the REPowerEU objectives, which we are backing by making available €45 billion of additional financing by 2027. Modernising electricity infrastructure is essential, not only to make the grid more efficient and resilient, but also to enable greater integration of renewable energy into the system.”

    “Thanks to the synergy effectively promoted in recent years with the European institutions” – Dario Scannapieco, Chief Executive Officer of Cassa Depositi e Prestiti commented – “CDP is today in a position to back high impact financial operations of value for the territory. From this perspective, the financing in favour of ACEA further confirms CDP’s commitment to supporting the development and modernisation of Italian infrastructure. The consolidated partnership with the EIB, on many occasions also accompanied by SACE’s contribution, over the years has allowed us to support investments totalling around €13 billion destined for the economic growth of the territories”.

    Alessandra Ricci, Chief Executive Officer of SACE, stated: “We confirm our commitment to supporting investments for competitiveness in Italy through the Archimede Guarantee, such as the upgrading of ACEA’s electrical infrastructure. This new operation reinforces the strong synergy with institutional investors EIB and CDP in projects capable of generating a tangible impact on Italy’s economic fabric”.

    Background information

    The European Investment Bank (EIB) is the European Union’s long-term lending institution and its shareholders are member states. It finances sound investments capable of contributing to strategic EU objectives. The EIB’s projects enhance competitiveness, foster innovation, promote sustainable development and improve social and territorial cohesion while supporting a fair and rapid transition towards climate neutrality. In the past five years, the EIB Group has provided more than €58 billion in financing for projects in Italy.

    ACEA is one of the most important Italian industrial groups, listed on the Stock Exchange since 1999. The company is concerned with integrated water service management, electricity distribution, public and artistic lighting, the sale of electricity and gas, power generation mainly from renewable sources and waste treatment and valorisation. It is the leading national water sector operator, with around 10 million residents served, one of the most important Italian players in energy distribution and among the top operators in the environment sector in Italy, managing approximately 1.8 million tons of waste annually.

    Cassa Depositi e Prestiti (CDP), the National Promotional Institution, has been supporting the Italian economy since 1850. Through its operations, it is committed to accelerating the country’s industrial and infrastructure development, with the aim of contributing towards its economic and social growth. CDP centres its operations around the territories’ sustainable development, alongside the growth and innovation of Italian companies, also at international level. It partners the Local Authorities, by way of financing and advisory activities for the implementation of infrastructure and the improvement of public utility services. Moreover, it is actively involved in International Cooperation for the realisation of projects in developing countries and emerging economies. Cassa Depositi e Prestiti’s funding comes entirely from private sources, through postal savings bonds and books and issues on the domestic and international financial markets.

    SACE is the Italian insurance and finance group, directly controlled by the Ministry of Economy and Finance, specialised in supporting businesses and the national economic system through a wide range of tools and solutions to support competitiveness in Italy and worldwide. For over forty-five years, the SACE Group has been the reference partner for Italian companies that export and grow on overseas markets. It also supports the banking system, through its financial guarantees, to facilitate companies’ access to credit, with a view to supporting their liquidity and investments for competitiveness and sustainability as part of the Italian Green New Deal, starting from the domestic market. SACE is present all over the world with 14 offices in target countries for Made in Italy, which have the role of building relationships with primary local counterparts and, through dedicated financial instruments, facilitating business with Italian companies. With a portfolio of insured operations and guaranteed investments of €260 billion, the group serves approximately 50 thousand companies, especially SMEs, supporting their growth in Italy and in about 200 countries around the world.

    MIL OSI Europe News –

  • MIL-OSI Europe: Briefing – Looking back at 10 years of parliamentary scrutiny in the Banking Union – 28-10-2024

    Source: European Parliament

    This briefing presents a summary of 3 studies prepared by academic expert panel for the Banking Union on the occasion of 10 years of parliamentary scrutiny over key authorities within the Banking Union, the Single Supervisory Mechanism (SSM) and the Single Resolution Board (SRB). It also presents proposals for enhancing the accountability framework governing these authorities. These studies were requested by the Committee on Economic and Monetary Affairs (ECON) of the European Parliament.

    MIL OSI Europe News –

  • MIL-OSI Europe: Highlights – Debate on next EU long term budget with EIB and EU Court of Auditors – Committee on Budgets

    Source: European Parliament

    budget coin © Image used under the license from Adobe Stock

    BUDG members will exchange with Nadia Calviño, President of the European Investment Bank (EIB) and Tony Murphy, President of the European Court of Auditors (ECA), on the lessons learnt from the current EU long-term budget, on the 6th November.

    The debate will feed into the BUDG own-initiative report “A revamped long-term budget for the Union in a changing world”, in which Parliament will set out its priorities and expectations for the next EU long-term budget (post-2027) before the European Commission proposal in 2025.

    MIL OSI Europe News –

  • MIL-OSI USA: Welch Joins USDA Rural Development and Vermont Bond Bank to Celebrate Vermont’s First Rural Energy Savings Program (RESP) Loan

    US Senate News:

    Source: United States Senator Peter Welch (D-Vermont)
    CHARLOTTE, VT– U.S. Senator Peter Welch (D-Vt.), Chair of the Senate Agriculture Subcommittee on Rural Development and Energy, joined the U.S. Department of Agriculture (USDA) Rural Development, Vermont Bond Bank, and community leaders to celebrate Vermont’s first Rural Energy Savings Program (RESP) loan from the federal government, which will invest $40 million to benefit rural communities and school districts with low-interest, long-term financing for clean energy projects. Senator Welch introduced a bipartisan bill to reauthorize RESP and improve the program to help rural utilities maximize the program’s benefits. The bill was included as part of the Senate’s Farm Bill proposal, the Rural Prosperity and Food Security Act.  
    “I’m thrilled to celebrate the closing of USDA’s first RESP loan to a Vermont institution. This RESP loan to the Vermont Bond Bank will save energy costs, reduce carbon emissions, support good jobs in Vermont, and keep investments local. It’s a win for all of us,” said Senator Welch. “I will continue to work towards ensuring my bipartisan Rural Energy Savings Act will pass as part of the Farm Bill to help more folks access low-interest loans for energy projects.” 
    Senator Welch was joined by Michael Gaughan, Executive Director, Vermont Bond Bank; Sarah Waring, USDA RD State Director for Vermont and New Hampshire; Ted Brady, Vermont League of Cities and Towns; Jim Faulkner, Chair of the Charlotte Select Board and Representatives from the Offices of Senator Bernie Sanders (I-Vt.) and Representative Becca Balint (D-Vt.). 
    “Reducing costs for our municipal and education partners also reduces cost for taxpayers in the long term, so this is a terrific use of federal funds,” said Sarah Waring, USDA RD State Director for Vermont and New Hampshire. “Our agency has been pro-active in implementing the mandates of the Biden-Harris Administration to invest in rural communities to save money and build more efficient infrastructure. We’re proud to work with partners like the Vermont Bond Bank, one of the very first financial institutions in the country to close an RD RESP loan, because we share our mission to support economic opportunity and quality-of-life improvements for our communities.” 
    “The Bond Bank’s RESP loan will be a game changer in reducing energy costs for Vermont’s rural villages, towns, and school districts,” said Bond Bank Executive Director Michael Gaughan. “The resulting flexible and low-cost loans will align incentives for communities to enhance both financial and environmental sustainability while also helping to unlock incentives within the Inflation Reduction Act.” 
    The Rural Energy Savings Program provides no-interest loans to rural utilities, electric cooperatives, and related entities to offer affordable financing for rural households and businesses making energy efficiency, electrification, and renewable energy improvements. Financing is most often used to support air sealing, insulation, new space conditioning systems, and new water heaters.   
    Senator Welch’s bipartisan Rural Energy Savings Act would reauthorize RESP and improve the program by providing limited grant funding to rural utilities to offset administrative and program costs, extending the maximum repayment term for loans to consumers to up to 20 years, and expanding eligibility for all households within a rural utility’s service territory. The bill also codifies the ability of “green banks” to access RESP and codifies manufactured housing as an eligible improvement.  
    Created in 1969 as the nation’s first state bond bank, the Bond Bank helps finance and implement crucial municipal infrastructure at lower costs to communities by providing access to more affordable capital. The Bond Bank does this by overcoming gaps in information, scale, and credit to allow cities, towns, villages, school districts, and other forms of government achieve equitable access to capital. This market specialization also helps with expertise in recognizing emerging needs like flood relief and managing federal requirements for faster and easier access to capital. In addition to facilities and infrastructure lending, the Bond Bank also provides post disaster bridge loans and is the financial administrator of the State of Vermont Clean and Drinking Water State Revolving Loan Funds.  
    USDA Rural Development supports infrastructure improvements; business development; housing; community facilities such as schools, public safety and health care; and high-speed internet access in rural, tribal and high-poverty areas. Visit USDA’s Rural Data Gateway to learn how and where these investments are impacting rural America.  
    View photos from the event below:

    MIL OSI USA News –

  • MIL-OSI Asia-Pac: Indian Cybercrime Coordination Center (I4C), MHA issues alert against illegal payment gateways created using mule bank accounts by Transnational Organized Cybercriminals facilitating money laundering as a service

    Source: Government of India

    Indian Cybercrime Coordination Center (I4C), MHA issues alert against illegal payment gateways created using mule bank accounts by Transnational Organized Cybercriminals facilitating money laundering as a service

    Under the leadership of Prime Minister Shri Narendra Modi and guidance of Union Home Minister Shri Amit Shah, Ministry of Home Affairs (MHA) is taking all steps to create a Cyber Secure Bharat

    Nation-wide raids by Gujarat Police and Andhra Pradesh Police reveal that trans-national criminals have created illegal digital payment gateways using mule / rented accounts

    These illegal infrastructure facilitating money laundering as a service are used for laundering proceeds of multiple nature of cybercrimes

    I4C advices all citizens not to sell/rent their bank accounts/company registration certificate/Udhyam Aadhaar Registration certificate to anyone

    Illicit funds deposited in such bank accounts can lead to legal consequences, including arrest

    Banks may deploy necessary checks to identify misuse of bank accounts that are used for setting up Illegal Payment Gateways

    People must immediately report any cybercrime on helpline number 1930 or www.cybercrime.gov.in and follow “CyberDost” channels / account on social media, to remain informed

    Posted On: 28 OCT 2024 7:49PM by PIB Delhi

    Indian Cybercrime Coordination Center (I4C), MHA has issued an against illegal payment gateways created using mule bank accounts by Transnational Organized Cybercriminals facilitating money laundering as a service. Recent nation-wide raids by Gujarat Police (FIR 0113/2024) and Andhra Pradesh Police (FIR 310/2024) have revealed that trans-national criminals have created illegal digital payment gateways using mule/rented accounts. These illegal infrastructure facilitating money laundering as a service are used for laundering proceeds of multiple nature of cybercrimes.

    Under the leadership of Prime Minister Shri Narendra Modi and guidance of Union Home Minister Shri Amit Shah, Ministry of Home Affairs (MHA), in collaboration with all Law Enforcement Agencies (LWAs), is taking all steps to create a Cyber Secure Bharat.

    As per the information received from State Police Agencies and analysis by Indian Cybercrime Coordination Center, following details were identified:

    1. Current accounts and saving accounts are scouted through social media; majorly from Telegram and Facebook. These accounts belong to shell companies / enterprise or individuals.
    2. These mule accounts are controlled remotely from overseas.
    • III. An illegal payment gateway is then created using these mule accounts are given to criminal syndicates for accepting deposits on illegal platforms like fake investment scam sites, offshore betting and gambling websites, fake stock trading platforms etc.
    • IV. Funds are immediately layered to another account as soon as the crime proceeds are received. Bulk Payout facility provided by banks are misused for the same.

    Some of the payment gateways identified during operation are PeacePay, RTX Pay, PoccoPay, RPPay etc. These gateways are learnt to be providing Money Laundering as a Service and are operated by foreign nationals.

    I4C has advised citizens not to sell/rent their bank accounts/company registration certificate/Udhyam Aadhaar Registration certificate to anyone. Illicit funds deposited in such bank accounts can lead to legal consequences, including arrest. Banks may deploy checks to identify misuse of bank accounts that are used for setting up Illegal Payment Gateways. The citizens must immediately report any cybercrime on helpline number 1930 or www.cybercrime.gov.in and follow “CyberDost” channels / account on social media.

    *****

    RK / VV / RR / PS

    (Release ID: 2069000) Visitor Counter : 23

    Read this release in: Hindi

    MIL OSI Asia Pacific News –

  • MIL-OSI USA: Cortez Masto Announces Over $8.5 Million in Funding to Combat Youth Experiencing Homelessness in Clark County

    US Senate News:

    Source: United States Senator for Nevada Cortez Masto

    Las Vegas, Nev. – U.S. Senator Catherine Cortez Masto (D-Nev.) today announced $8,548,153 in federal funding to support Clark County’s Youth Homelessness Demonstration Program (YHDP). Nevada has the highest rate of youth experiencing homelessness in the nation. These federal funds will support efforts to expand Clark County’s capacity to prevent youth from becoming unhoused, including through innovative programs that help young Nevadans find safe, stable housing and build pathways to financial self-reliance.

    “Every young Nevadan deserves a roof over their head—that’s why I worked to help secure these funds that will give Southern Nevada organizations the tools they need to provide safe housing and essential services for at-risk youth like education and employment assistance,” said Senator Cortez Masto. “I’ll continue fighting to get young people the support they need to succeed.”

    Senator Cortez Masto has delivered critical support to young Nevadans, and she’s worked to keep Nevadans in their homes – especially through her work with the Federal Home Loan Bank of San Francisco (FHLB-SF) system. She’s cosponsored bipartisan legislation to help provide stable housing options for foster care youth transitioning to adulthood, and she this year she secured $9.4 million from the FHLB-SF’s targeted fund she helped create — almost twice as much as Nevada received last year — to build more affordable housing. She also helped secure nearly $12 million in funding for the Communities in Schools (CIS) program, which works with local partner organizations to provide eligible students and their families with essential services, including mental health care and access to high-quality afterschool and leadership programs. Additionally, she has secured $950,000 to help Clark County School District better support students recovering from substance abuse and mental health struggles.

    MIL OSI USA News –

  • MIL-OSI: CORRECTION — North Dallas Bank & Trust Co. Announces Third Quarter Earnings

    Source: GlobeNewswire (MIL-OSI)

    In a release issued earlier today under the same headline by North Dallas Bank & Trust Co., (OTC: NODB) please note that the word “Second” in the headline should instead read “Third”. The release follows:

    DALLAS, Oct. 25, 2024 (GLOBE NEWSWIRE) — NDBT (North Dallas Bank & Trust Co.), an independent community bank established in 1961, today announced net earnings for three months of $502,493 or $0.20 per share, and net earnings for nine months of $2,186,955 or $0.85 per share, for the periods ending September 30, 2024.

    Earnings were prepared internally without review by the company’s independent accountants. Financial results are the results of past performance, events and market conditions, and are not a guarantee for future results. Any forward-looking implications derived from this information may differ materially from actual results.

    Further information about the earning and financial performance is available from Glenn Henry, Chief Financial Officer, by contacting NDBT.

    ABOUT NDBT
    Founded in 1961, NDBT (North Dallas Bank & Trust Co.) is an independent community bank with five banking centers located in Dallas, Addison, Frisco, Las Colinas, and Plano. Headquartered on the corner of Preston Road and LBJ at 12900 Preston Road in Dallas, NDBT is dedicated to helping people make smarter choices in business and life by offering authentic banking solutions, wealth management, and innovative online banking tools. NDBT is Member FDIC and an Equal Housing Lender. For more information, call 972.716.7100, or visit online at www.ndbt.com.

    NORTH DALLAS BANK & TRUST CO.
    12900 PRESTON ROAD
    DALLAS, TEXAS
                   
    FINANCIAL HIGHLIGHTS Three Months Ended   Nine Months Ended
      September 30   September 30
    Income Statement 2024   2023   2024   2023
                   
    Interest Income 19,690,721     16,080,200     57,809,406     45,415,030  
    Interest Expense 11,417,563     8,497,071     32,759,175     19,553,246  
    Net Interest Income 8,273,158     7,583,129     25,050,231     25,861,784  
                   
    Provision for Loan Losses 0     0     (440,000 )   (450,000 )
    Noninterest Income 1,546,280     1,947,351     4,384,215     4,659,259  
    Noninterest Expenses (9,302,724 )   (8,767,533 )   (26,524,077 )   (25,989,503 )
    Income Before Taxes & Extraordinary 516,714     762,947     2,470,369     4,081,540  
                   
    Income Tax (14,221 )   (95,021 )   (258,414 )   (679,355 )
    Income Tax Prior Period (25,000 )   0     (25,000 )   0  
    Net Income 502,493     667,926     2,186,955     3,402,185  
                   
    Earnings per Share 0.20     0.26     0.85     1.32  
                   
              Nine Month Average
      As of September 30   Ended September 30
    Balance Sheet 2024   2023   2024   2023
                   
    Total Assets 1,867,355,555     1,728,752,439     1,819,265,389     1,697,914,626  
    Total Loans 1,211,656,001     1,133,317,827     1,206,729,021     1,057,729,435  
    Deposits 1,543,618,454     1,468,335,323     1,503,472,762     1,472,027,210  
    Stockholders’ Equity 170,479,567     160,495,368     166,294,611     160,534,861  
                   
    (Prepared internally without review by
    our independent accountants)
                   

    Media Contact:
    Brian C. Jensen
    972-716-7124
    brian.jensen@ndbt.com

    The MIL Network –

  • MIL-OSI Economics: Chair’s Statement Fiftieth Meeting of the IMFC – Mr. Mohammed Aljadaan, Minister for Finance of Saudi Arabia

    Source: International Monetary Fund

    October 25, 2024

    In the context of the Fiftieth Meeting of the IMFC that took place in Washington, D.C. on 24th and 25th October, several IMFC members discussed the global macroeconomic and financial impact of current wars and conflicts, including with regard to Russia, Ukraine, Israel, Gaza, Lebanon, and in other places. IMFC members underscored that all states must act in a manner consistent with the Purposes and Principles of the UN Charter in its entirety. They acknowledged, however, that the IMFC is not a forum to resolve geopolitical and security issues which are discussed in other fora.

     

    ****

    IMFC members agreed on the following text:

     

    Securing a soft landing and breaking from the current low growth-high debt path are the policy priorities for the global economy. We welcome the IMF’s efforts to enhance its surveillance, lending toolkit, and capacity development, and become more representative. Looking ahead, we remain committed to multilateral cooperation to promote global prosperity and address shared challenges.

     

    1. The global economy has moved closer to a soft landing. Economic activity has proven resilient, with global growth steady and inflation continuing to moderate. However, this masks important divergences across countries. Uncertainty remains significant and some downside risks have increased. Ongoing wars and conflicts continue to impose a heavy burden on the global economy. Medium-term growth prospects remain weak, and global public debt has reached record highs.
    1. We will work to further secure a soft landing while stepping up our reform efforts to shift away from a low growth-high debt path and address other medium-term challenges. Fiscal policy should pivot toward consolidation, where needed, to ensure debt sustainability and rebuild buffers. Consolidation should be underpinned by credible medium-term plans and institutional frameworks while protecting the vulnerable and supporting growth-enhancing public and private investments. Monetary policy must ensure inflation returns durably to target, consistent with central bank mandates, remain data-dependent, and be well communicated. Financial sector authorities should continue to closely monitor risks in banks and non-banks, including from property markets. We will continue to enhance financial regulation and supervision, including via timely finalization and implementation of internationally agreed reforms, and harness the benefits of financial and technological innovation, while mitigating the risks. We will pursue well-calibrated and sequenced growth-enhancing structural reforms to ease binding constraints to economic activity, boost productivity, increase labor market participation, promote social cohesion, and support the climate and digital transitions.
    1. We remain committed to international cooperation to improve the resilience of the global economy and build prosperity, while ensuring the smooth functioning of the international monetary system. We reiterate our commitments on exchange rates, addressing excessive global imbalances, and our statement on the rules-based multilateral trading system, as made in April 2021, and reaffirm our commitment to avoid protectionist measures.
    1. We will continue to support countries as they undertake reforms and address debt vulnerabilities and liquidity challenges. We welcome the progress made on debt treatments under the G20 Common Framework (CF) and beyond. We remain committed to addressing global debt vulnerabilities in an effective, comprehensive, and systematic manner, including stepping up the CF’s implementation in a predictable, timely, orderly, and coordinated manner, and enhancing debt transparency. We look forward to further work at the Global Sovereign Debt Roundtable on ways to address debt vulnerabilities and restructuring challenges. We encourage the IMF and the World Bank to develop further their proposal to support countries with sustainable debt but experiencing liquidity challenges.
    1. We welcome the policy priorities set out in the Managing Director’s Global Policy Agenda, and welcome the start of Ms. Kristalina Georgieva’s second five-year term as Managing Director.
    1. We support the IMF’s surveillance focus on country-tailored advice to help members assess risks, bolster policy and institutional frameworks, and calibrate macrofinancial and macrostructural policies to enhance resilience, ensure debt sustainability, and boost inclusive and sustainable growth. We look forward to the Comprehensive Surveillance Review that will set future surveillance priorities.
    1. We welcome the recent reforms to the lending toolkit. We welcome the completion of the review of PRGT facilities and financing that aims to bolster the IMF’s capacity to support low-income countries in addressing their balance of payments needs, mindful of their vulnerabilities, while restoring the self-sustainability of the Trust. We welcome the Review of Charges and the Surcharge Policy, which will alleviate the financial cost of Fund lending for borrowing countries, while preserving their intended incentives and safeguarding the Fund’s financial soundness. We welcome the enhanced cooperation with the World Bank on climate action, and with the World Bank and the World Health Organization on pandemic preparedness, which will further enhance the effectiveness of IMF support through the Resilience and Sustainability Trust (RST). We look forward to the Review of the GRA Access Limits, the Review of Program Design and Conditionality, the Review of the Short-term Liquidity Line, and the comprehensive Review of the RST. We continue to invite countries to explore voluntary channeling of SDRs, including through MDBs, where legally possible, while preserving their reserve asset status.
    1. We support the IMF’s efforts to strengthen capacity development and to secure appropriate financing. We welcome the ongoing work with the World Bank on the Domestic Resource Mobilization Initiative.
    1. We reaffirm our commitment to a strong, quota-based, and adequately resourced IMF at the center of the global financial safety net. We have secured, or are working to secure, domestic approvals for our consent to the quota increase under the 16th General Review of Quotas (GRQ) by mid-November this year, as well as relevant adjustments under the New Arrangements to Borrow (NAB). As a safeguard to preserve the Fund’s lending capacity in case of a delay in securing timely consent to the quota increase, creditors for Bilateral Borrowing Agreements are working to secure approvals for transitional arrangements for maintaining IMF access to bilateral borrowing. We acknowledge the urgency and importance of realignment in quota shares to better reflect members’ relative positions in the world economy, while protecting the quota shares of the poorest members. We welcome the Executive Board’s ongoing work to develop by June 2025 possible approaches as a guide for further quota realignment, including through a new quota formula, under the 17th
    1. We welcome the new 25th chair on the Executive Board for Sub-Saharan Africa, strengthening the voice and representation of the region. We also welcome Liechtenstein as a new member. We appreciate staff’s high-quality work and dedication to support the membership. We encourage further efforts to improve staff diversity and inclusion. We reiterate our commitment to strengthen gender diversity at the Executive Board and will continue to work to achieve the voluntary objectives to increase the number of women in Board leadership positions.
    1. We reiterate our strong commitment to the Fund on its 80th anniversary and look forward to further discussing at our next meeting ways to ensure the Fund remains well-equipped to meet future challenges, in line with its mandate, and in collaboration with partners and other IFIs. We ask our Deputies to prepare for this discussion.
    1. Our next meeting is expected to be held in April 2025.
    IMF Communications Department
    MEDIA RELATIONS

    PRESS OFFICER: Randa Elnagar

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

    @IMFSpokesperson

    MIL OSI Economics –

  • MIL-OSI Canada: Media roundtable with Governor Macklem

    Source: Bank of Canada