Category: Banking

  • MIL-OSI: Auburn National Bancorporation, Inc. Reports Third Quarter Net Earnings

    Source: GlobeNewswire (MIL-OSI)

    Third Quarter 2024 Highlights:

    • Return on Assets (annualized) improved to 0.71%, compared to 0.58% in 3Q 2023
    • Net interest margin (tax-equivalent) of 3.05%, compared to 2.73% in 3Q 2023
    • Net interest income (tax-equivalent) was $6.8 million, an increase of 7% compared to 3Q 2023
    • Average loans were $571.7 million, an increase of 8% compared to 3Q 2023
    • Loan to deposit ratio increased to 62.7% at period end from 56.6% at September 30, 2023
    • Tangible common equity (“TCE”) to total assets improved to 8.52%, compared to 5.96% at September 30, 2023

    AUBURN, Ala., Oct. 22, 2024 (GLOBE NEWSWIRE) — Auburn National Bancorporation, Inc. (Nasdaq: AUBN) reported net earnings of $1.7 million, or $0.50 per share, for the third quarter of 2024, compared to $1.7 million, or $0.50 per share, for the second quarter of 2024, and $1.5 million, or $0.43 per share, for the third quarter of 2023. Net earnings were $4.8 million, or $1.38 per share, for the first nine months of 2024, compared to $5.4 million, or $1.54 per share, for the first nine months of 2023.

    “Our third quarter and year to date results benefited from the balance sheet repositioning we completed in the fourth quarter of 2023. This, combined with loan growth during 2024, have improved the Company’s net interest income and margin in the third quarter when compared to the same quarter last year,” said David A. Hedges, President and CEO. “Along with improvements in our balance sheet, we continue to look for opportunities to grow and increase our efficiency. After careful consideration of our customers and the close proximity to our other locations in Auburn, we are closing our Corner Village branch by year end, which should provide additional cost savings beginning in 2025,” continued Mr. Hedges.

    Net interest income (tax-equivalent) was $6.8 million in the third quarter of 2024, compared to $6.7 million in the second quarter of 2024, and $6.4 million in the third quarter of 2023.

    Net interest margin (tax-equivalent) was 3.05% in the third quarter of 2024, compared to 3.06% in the second quarter of 2024, and 2.73% in the third quarter of 2023. The increase compared to the third quarter of 2023 was primarily due to loan growth, a more favorable asset mix, and improvements in our yield on interest-earning assets, which outpaced increases in the cost of our interest-bearing deposits. Average loans for the third quarter of 2024 were $571.7 million, an increase of 8% from the third quarter of 2023.

    Mr. Hedges continued, “Although we experienced solid loan growth compared to the same time last year, we had approximately $14.9 million in loan payoffs during the latest quarter related to one borrowing relationship. The proceeds from the loan payoffs allowed us to repay $15.0 million of high-cost non-core funding.”

    Nonperforming assets were $0.8 million, or 0.08% of total assets, at September 30, 2024 and June 30, 2024, respectively, compared to $1.2 million, or 0.12% of total assets, at September 30, 2023.

    The Company recorded a negative provision for credit losses of $0.1 million in both the third and second quarters of 2024, compared to a provision for credit losses of $0.1 million in the third quarter of 2023. In the most recent quarter, the payoff of one loan relationship contributed to the negative provision.

    At September 30, 2024, the Company’s allowance for credit losses was $6.9 million, or 1.22% of total loans, compared to $7.1 million, or 1.24% of total loans, at June 30, 2024, and $6.8 million, or 1.24% of total loans, at September 30, 2023.

    Noninterest income was $0.8 million for the third quarter of 2024, compared to $0.9 million for the second quarter of 2024, and $0.9 million in the third quarter of 2023.

    Noninterest expense was $5.5 million for each of the third and second quarters of 2024, and $5.4 million the third quarter of 2023. The increase from the third quarter of 2023 was primarily related to an increase in salaries and benefits, partially offset by decreases in net occupancy and equipment expense and other noninterest expense.

    Total assets were $990.1 million at September 30, 2024, compared to $1.0 billion at June 30, 2024 and September 30, 2023, respectively. Loans, net of unearned income were $565.7 million at September 30, 2024, compared to $578.1 million at June 30, 2024 and $545.6 million at September 30, 2023. The decrease in loans, compared to June 30, 2024, was primarily related to the payoff of the $14.9 million relationship in the latest quarter. The increase in loans since September 30, 2023 primarily reflects growth in the commercial real estate and construction and land development loan categories. Total deposits were $901.7 million at September 30, 2024, compared to $946.4 million at June 30, 2024, and $964.6 million at September 30, 2023. The decrease in deposits compared to June 30, 2024 was primarily related to an increase in reciprocal customer deposits sold through Intrafi’s one-way sell program and the repayment of $15.0 million in time deposits held by the State of Alabama. At September 30, 2024 the Company sold $37.8 million of reciprocal deposits, compared to none at June 30, 2024 and September 30, 2023.

    At September 30, 2024, the Company’s consolidated stockholders’ equity (book value) was $84.3 million or $24.14 per share, compared to $75.2 million, or $21.53 per share, at June 30, 2024, and $61.5 million, or $17.59 per share, at September 30, 2023. The increase from June 30, 2024 was primarily driven by other comprehensive income of $8.3 million due to lower market interest rates that led to a decrease in unrealized losses on securities available-for-sale, net of tax, plus net earnings of $1.7 million. These increases in stockholders’ equity were partially offset by cash dividends paid of $0.9 million. Unrealized losses do not affect the Bank’s capital for regulatory capital purposes.

    The Company’s tangible common equity (“TCE”) ratio or total equity to total assets ratio was 8.52% at September 30, 2024, compared to 7.34% at June 30, 2024, and 5.96% at September 30, 2023. The TCE ratio increased compared to June 30, 2024 primarily due to increases in the fair value of the Company’s available-for-sale securities and a smaller balance sheet. All of the Company’s marketable securities are classified as available-for-sale. Therefore, any changes in the fair value of the Company’s securities portfolio are reflected in total equity, net of tax, under generally accepted accounting principles.

    The Company paid cash dividends of $0.27 per share in the third quarter of 2024. At September 30, 2024, the Bank’s regulatory capital ratios were well above the minimum amounts required to be “well capitalized” under current regulatory standards.

    About Auburn National Bancorporation, Inc.

    Auburn National Bancorporation, Inc. (the “Company”) is the parent company of AuburnBank (the “Bank”), with total assets of approximately $990.1 million. The Bank is an Alabama state-chartered bank that is a member of the Federal Reserve System, which has operated continuously since 1907. Both the Company and the Bank are headquartered in Auburn, Alabama. The Bank conducts its business in East Alabama, including Lee County and surrounding areas. The Bank currently operates eight full-service branches in Auburn, Opelika, Valley, and Notasulga, Alabama. The Bank also operates a loan production office in Phenix City, Alabama. Additional information about the Company and the Bank may be found by visiting http://www.auburnbank.com.

    Cautionary Notice Regarding Forward-Looking Statements

    This press release contains “forward-looking statements” within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, including, without limitation, statements about future financial and operating results, costs and revenues, the continuing effects of the COVID-19 pandemic and related government, Federal Reserve monetary and regulatory actions, including the remaining effects of pandemic-related economic stimulus and economic conditions generally and in our markets, loan demand, mortgage lending activity, changes in the mix of our earning assets (including those generating tax exempt income or tax credits) and our mix and cost of deposits and wholesale liabilities, net interest income and margin, yields on earning assets, the market values and performance of securities held, effects of inflation, including Federal Reserve monetary policies which were tightened in response to inflation beginning in 2022 through increases in the target federal funds rate and reductions in the Federal Reserve’s Treasury and mortgage-backed securities holdings, and more recent changes to increase reinvestment of maturing Treasury securities beginning in June 2024 and a mid-September 2024 reduction in the target federal funds rate by 50 basis points to 4.75-5.00%, interest rates (generally and those applicable to our assets and liabilities) and changes in our asset values, especially investment securities, as a result of monetary policies and interest rate changes, noninterest income, loan performance, loan deferrals and modifications, nonperforming assets, other real estate owned, provision for credit losses, including the continuing effects of the application of the new CECL accounting standard adopted on January 1, 2023 and our CECL models, including possible adjustments to the fair values of securities available for sale in lieu of other-than-temporary impairments, charge-offs, collateral values, credit quality, asset sales, insurance claims, and market trends, as well as statements with respect to our objectives, expectations and intentions and other statements that are not historical facts. Actual results may differ from those set forth in the forward-looking statements.

    Forward-looking statements, with respect to our beliefs, plans, objectives, goals, expectations, anticipations, estimates and intentions, involve known and unknown risks, uncertainties and other factors, which may be beyond our control, and which may cause the actual results, performance, achievements, or financial condition of the Company or the Bank to be materially different from future results, performance, achievements, or financial condition expressed or implied by such forward-looking statements. You should not expect us to update any forward-looking statements.

    All written or oral forward-looking statements attributable to us are expressly qualified in their entirety by this cautionary notice, together with those risks and uncertainties described in our annual report on Form 10-K for the year ended December 31, 2023 and otherwise in our other SEC reports and filings.

    Explanation of Certain Unaudited Non-GAAP Financial Measures

    This press release contains financial information determined by methods other than U.S. generally accepted accounting principles (“GAAP”). The attached financial highlights include certain designated net interest income amounts presented on a tax-equivalent basis, a non-GAAP financial measure, and the presentation and calculation of the efficiency ratio, a non-GAAP measure. Management uses these non-GAAP financial measures in its analysis of the Company’s performance and believes the presentation of net interest income on a tax-equivalent basis provides comparability of net interest income from both taxable and tax-exempt sources and facilitates comparability within the industry. Similarly, the efficiency ratio is a common measure that facilitates comparability with other financial institutions. Although the Company believes these non-GAAP financial measures enhance investors’ understanding of its business and performance, these non-GAAP financial measures should not be considered an alternative to GAAP. Along with the attached financial highlights, the Company provides reconciliations between the GAAP financial measures and these non-GAAP financial measures.

    For additional information, contact:
    David A. Hedges
    President and CEO
    (334) 821-9200

    Financial Highlights (unaudited)

                      
         Quarters Ended   Nine months ended
    (Dollars in thousands, except per share amounts)   September 30, 2024   June 30, 2024   September 30, 2023   September 30, 2024   September 30, 2023
    Results of Operations                                  
    Net interest income (a) $ 6,811     $ 6,728     $ 6,380     $ 20,216     $ 20,591  
    Less: tax-equivalent adjustment   21       19       108       60       322  
      Net interest income (GAAP)   6,790       6,709       6,272       20,156       20,269  
    Noninterest income   846       896       865       2,629       2,448  
      Total revenue   7,636       7,605       7,137       22,785       22,717  
    Provision for credit losses   (127 )     (123     105       84       (191 )
    Noninterest expense   5,500       5,519       5,362       16,694       16,791  
    Income tax expense   531       475       182       1,170       737  
    Net earnings $ 1,732     $ 1,734     $ 1,488     $ 4,837     $ 5,380  
                                             
    Per share data:                                  
    Basic and diluted net earnings: $ 0.50     $ 0.50     $ 0.43     $ 1.38     $ 1.54  
    Cash dividends declared $ 0.27     $ 0.27     $ 0.27     $ 0.81     $ 0.81  
    Weighted average shares outstanding:                                  
      Basic and diluted   3,493,699       3,493,699       3,496,411       3,493,687       3,499,518  
    Shares outstanding, at period end   3,493,699       3,493,699       3,493,614       3,493,699       3,493,614  
    Book value $ 24.14     $ 21.53     $ 17.59     $ 24.14     $ 17.59  
    Common stock price:                                  
      High $ 24.35     $ 19.25     $ 22.80     $ 24.35     $ 24.50  
      Low   17.50       16.63       20.85       16.63       18.80  
      Period-end:   22.90       18.29       21.50       22.90       21.50  
        To earnings ratio (c)   91.60  x     101.61 x     7.65 x     91.60 x     7.65  
        To book value   95  %     85 %     122 %     95 %     122  
    Performance ratios:                                  
    Return on average equity (annualized)   9.10  %     9.63 %     8.59 %     8.59 %     10.15  
    Return on average assets (annualized)   0.71  %     0.71 %     0.58 %     0.66 %     0.70  
    Dividend payout ratio   54.00  %     54.00 %     62.79 %     58.70 %     52.60  
    Other financial data:                                  
    Net interest margin (a)   3.05  %     3.06 %     2.73 %     3.05 %     2.97  
    Effective income tax rate   23.46  %     21.50 %     10.90 %     19.48 %     12.05  
    Efficiency ratio (b)   71.83  %     72.39 %     74.01 %     73.08 %     72.88  
    Asset Quality:                                  
    Nonperforming assets:                                  
      Nonperforming (nonaccrual) loans $ 775     $ 794     $ 1,213     $ 775     $ 1,213  
        Total nonperforming assets $ 775     $ 794     $ 1,213     $ 775     $ 1,213  
                                             
    Net charge-offs (recoveries) $ 60     $ 9     $ 14     $ 2     $ (127 )
                                             
    Allowance for credit losses as a % of:                                  
      Loans   1.22  %     1.24 %     1.24 %     1.22 %     1.24  
      Nonperforming loans   887  %     899 %     559 %     887 %     559  
    Nonperforming assets as a % of:                                  
      Loans and other real estate owned   0.14  %     0.14 %     0.22 %     0.14 %     0.22  
      Total assets   0.08  %     0.08 %     0.12 %     0.08 %     0.12  
    Nonperforming loans                                  
      as a % of total loans   0.14  %     0.14 %     0.22 %     0.14 %     0.22  
    Annualized net charge-offs (recoveries)                                  
       as a % of average loans   0.04  %     0.01 %     0.01 %     —  %     (0.03 )
    Selected average balances:                                  
    Securities $ 251,723     $ 258,228     $ 390,772     $ 259,158     $ 398,751  
    Loans, net of unearned income   571,651       573,443       529,382       568,628       514,635  
    Total assets   982,656       978,107       1,020,980       979,243       1,022,257  
    Total deposits   904,860       900,673       942,533       900,876       944,471  
    Total stockholders’ equity $ 76,113     $ 72,059     $ 69,269     $ 75,044     $ 70,659  
    Selected period end balances:                                  
    Securities $ 258,285     $ 254,359     $ 373,286     $ 258,285     $ 373,286  
    Loans, net of unearned income   565,699       578,068       545,610       565,699       545,610  
    Allowance for credit losses   6,876       7,142       6,778       6,876       6,778  
    Total assets   990,143       1,025,054       1,030,724       990,143       1,030,724  
    Total deposits   901,724       946,405       964,602       901,724       964,602  
    Total stockholders’ equity $ 84,336     $ 75,209     $ 61,451     $ 84,336     $ 61,451  
                                             
    (a) Tax equivalent. See “Explanation of Certain Unaudited Non-GAAP Financial Measures” and “Reconciliation of GAAP
      to non-GAAP Measures (unaudited).”
    (b) Efficiency ratio is the result of noninterest expense divided by the sum of noninterest income and tax-equivalent
      net interest income. See “Reconciliation of GAAP to non-GAAP Measures (unaudited)” below.
    (c) Calculated by dividing period end share price by earnings per share for the previous four quarters.
     
     

    Reconciliation of GAAP to non-GAAP Measures (unaudited):

                 
        Quarters Ended   Nine months ended
    (Dollars in thousands, except per share amounts)   September 30, 2024   June 30, 2024   September 30, 2023     September 30, 2024   September 30, 2023  
    Net interest income, as reported (GAAP) $ 6,790   $ 6,709   $ 6,272   $ 20,156   $ 20,269  
    Tax-equivalent adjustment   21     19     108     60     322  
    Net interest income (tax-equivalent) $ 6,811   $ 6,728   $ 6,380   $ 20,216   $ 20,591  

    The MIL Network

  • MIL-OSI: Stifel Receives Final Approval for Private Equity Fund Aimed at Investing in National Security Supply Chain

    Source: GlobeNewswire (MIL-OSI)

    ST. LOUIS, Oct. 22, 2024 (GLOBE NEWSWIRE) — Stifel Financial Corp. (NYSE: SF) today announced final federal approval for its Stifel North Atlantic AM-Forward Fund (the “Fund”), designed to provide capital to small and mid-sized American manufacturers in the aerospace and defense industries, with a specific focus on increasing additive and advanced manufacturing capabilities in the domestic supply chain.

    As part of the final approval process, the Fund has earned a Small Business Investment Company (SBIC) license from the Small Business Administration, in partnership with the Department of Defense under the SBIC Critical Technology (SBICCT) initiative. With this structure, the Fund is eligible for SBA leverage, which can supplement the amount of private capital raised, and expand investment reach. Earlier this year, the Fund became the first applicant to receive initial “green light” approval to actively raise private capital under this historic SBICCT initiative.

    “We are pleased to receive this license from the SBA,” said Victor Nesi, Stifel Co-President. “In collaboration with our strategic partners, we are proud to give America’s emerging small businesses the capital and strategic support they need to advance innovation that supports our supply chain, creates domestic jobs, amplifies manufacturing capacity, and importantly, increases national security.”

    The Fund aims to use a range of financing structures targeted to the specific needs of small businesses. The initial funding for the Fund includes significant capital commitments from industry-leading contractors including Lockheed Martin, GE Aerospace, and ASTM International, among others.

    “Small and medium sized manufacturers are at the core of ASTM International, and we are excited that our global standards and solutions will serve as an innovative tool in connecting the diverse supply chains of our aerospace and defense industries,” commented Andy Kireta, ASTM International President.

    Capital from the Fund will connect manufacturers with lead system integrators to meet the growing industry demand for low-volume high-mix components. Additionally, the Fund’s investments will enable manufacturers to acquire new fixed assets, expand their working capital and traverse rigorous aerospace and defense certification and qualification protocols.

    The Fund was originated to support the White House’s AM Forward initiative, which was created in 2022 with the goal of improving the competitiveness of America’s small and medium-sized manufacturers and enhance domestic supply chain activity.

    The Applied Science and Technology Research Organization of America (“ASTRO America”), a not-for-profit, non-partisan research institute and think tank and leader in the AM Forward initiative, selected Stifel as the financial partner and North Atlantic Capital Management, a Stifel Company, to manage the Fund based on their extensive middle market investment experience and over 30 years’ history of managing SBIC Funds. The Fund’s Technical Advisory Board, a partnership between the Fund and its strategic investors, will be led by Neal Orringer, President of ASTRO America and former Director of Manufacturing at the Department of Defense.

    Stifel Company Information

    Stifel Financial Corp. (NYSE: SF) is a financial services holding company headquartered in St. Louis, Missouri, that conducts its banking, securities, and financial services business through several wholly owned subsidiaries. Stifel’s broker-dealer clients are served in the United States through Stifel, Nicolaus & Company, Incorporated, including its Eaton Partners business division; Keefe, Bruyette & Woods, Inc.; Miller Buckfire & Co., LLC; and Stifel Independent Advisors, LLC. The Company’s broker-dealer affiliates provide securities brokerage, investment banking, trading, investment advisory, and related financial services to individual investors, professional money managers, businesses, and municipalities. Stifel Bank and Stifel Bank & Trust offer a full range of consumer and commercial lending solutions. Stifel Trust Company, N.A. and Stifel Trust Company Delaware, N.A. offer trust and related services. To learn more about Stifel, please visit the Company’s website at http://www.stifel.com. For global disclosures, please visit https://www.stifel.com/investor-relations/press-releases.

    Media Contact:
    Neil Shapiro, +1 (212) 271-3447
    shapiron@stifel.com

    Investor Relations Contact:
    Joel Jeffrey, +1 (212) 271-3610
    investorrelations@stifel.com

    The MIL Network

  • MIL-OSI: Šiaulių Bankas will announce Q3 2024 Financial Results

    Source: GlobeNewswire (MIL-OSI)

    We would like to invite our shareholders, investors, analysts and other stakeholders to join Šiaulių Bankas Investors webinar for Q3 2024 financial results and highlights scheduled on 31 October, 2024 at 8:30 pm (EET). The presentation will be held online in English.

    The webinar will be hosted by Vytautas Sinius, CEO, Tomas Varenbergas, Head of Investment Management Division and Tautvydas Mėdžius, Strategy Partner, who will introduce the Bank’s financial results for the third quarter of 2024 and recent developments, as well participants questions will be answered.

    Please send your questions in advance to tautvydas.medzius@sb.lt  

    How to join the webinar?

    To join the webinar, please register via following link https://sb.zoomtv.lt. After successful registration You will be provided with the webinar link.

    Additional information:
    Tomas Varenbergas
    Head of Investment Management Division
    tomas.varenbergas@sb.lt

    The MIL Network

  • MIL-OSI Economics: Basel III implementation – update and a roadmap for liquidity standards

    Source: Isle of Man

    Background

    Basel III is an internationally agreed set of measures and standards developed and issued by the international standard setting body, the Basel Committee on Banking Supervision (Basel Committee).  It expanded upon and replaced Basel II.  The various Basel III reforms were brought together into one consolidated set of standards, collectively referred to as the Basel Framework. 

    Implementation of the components of the Basel Framework continues to progress internationally, and the Isle of Man Financial Services Authority is committed to meeting international standards where it is appropriate and proportionate to do so. 

    We have to take into account that many of our banks are part of large international banking groups that are subject to consolidated supervision in countries that have, or are moving towards, Basel III implementation.  At the same time, implementation of reforms in the Island needs to be suitable and effective for the profile of the sector.

    We have updated our Basel III webpage to help explain our approach to implementation and to set out the core components of the Basel Framework.

    Updating the liquidity framework

    We have already implemented several elements of the Basel III reforms, including a framework for domestic systemically important banks, requirements for better quality and levels of capital, and reporting of the leverage ratio (a non-risk-based capital ratio). 

    Although further reforms to capital adequacy will need to be considered, implementing the Basel III liquidity reforms is a key priority for the Authority to help maintain an effective regulatory and supervisory framework and to continue to provide adequate protection for consumers.

    We have therefore set out today a roadmap for the implementation of the Basel III liquidity standards in the Isle of Man and look forward to working with the sector to bring these changes into operation.

    Enquiries

     

    Prudential Supervision Division:

    Andrew Kermode

    Head of Division

    T: +44 (0)1624 689320

    E: andrew.kermode@iomfsa.im

    Marc Barlow

    Senior Manager – Banking

    T: +44 (0)1624 689369

    E: marc.barlow@iomfsa.im

    MIL OSI Economics

  • MIL-OSI Africa: Empowering Türkiye’s Energy Sector: The Islamic Corporation for the Development of the Private Sector (ICD) And SAMPA Sign Eur 15 Million Term Sheet

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

    For further details, please contact:Nabil El-Alami
    Communications & Corporate Marketing Division Manager
    nalami@isdb.orgSampa, a leading manufacturer of heavy-duty vehicle parts based in Türkiye, has transformed from a small workshop into a globally recognized industry leader. With a robust global presence across multiple industries, the company is dedicated to innovation, sustainability, and promoting equal opportunities within its workforce. Through strategic expansion, Sampa has established a foothold in key markets across Europe, Asia, and the Americas.The Islamic Corporation for the Development of the Private Sector (ICD) is a multilateral development financial institution and a member of the Islamic Development Bank (IsDB) Group. Established in November 1999, ICD supports the economic development of its member countries through financing private sector projects, promoting competition and entrepreneurship, providing advisory services to governments and private companies, and encouraging cross-border investments. ICD is rated by international credit agencies, including A2 by Moody’s, A+ by Fitch, and A- by S&P.

    ICD aims to complement the activities of IsDB and national financing institutions in member countries by focusing on private sector institutions across various activities and operations in full compliance with the principles of Islamic Shari’ah. The organization focuses its financing on development projects such as infrastructure and private equity funds that aim to create job opportunities and encourage exports. For more information, please visit: http://www.ICD-PS.org.

    MIL OSI Africa

  • MIL-OSI Europe: Dot plots for the Eurosystem? | Speech at Harvard University

    Source: Deutsche Bundesbank in English

    Check against delivery.
    1 Introduction
    Ladies and gentlemen,
    it is a great pleasure to be at Harvard again, to meet long time companions like Hans-Helmut Kotz and to exchange ideas with top scientists such as Benjamin Friedman. When I was in this round two years ago, we were dealing with an unprecedented global inflation spike.[1] Fortunately, the worst is behind us, and inflation in the euro area is heading back to the Eurosystem’s target. We have not brought the inflation ship safely back into the 2% harbour, but the port is in sight. Thus, I can focus on another question today.
    Before I do that, let me share an analogy to set the stage for my discussion. Back in the 1970s and 1980s, the field of economics was split into two seemingly incompatible schools of thought: New Keynesian and New Classical. Their proponents were not too polite in their language, calling assumptions “foolishly restrictive” or comparing an opponent to someone attempting to pass himself off as Napoleon Bonaparte.[2] But, over time, ideas from both camps ultimately merged to form a consensus called the New Neoclassical Synthesis, the very foundation of modern macroeconomics.[3] Gregory Mankiw neatly described this story in his essay “The Macroeconomist as Scientist and Engineer”.[4]
    The takeaway from this analogy is that complex issues are rarely black or white. With this in mind, I want to explore whether the conduct of monetary policy in the euro area could be enhanced by offering more detailed and nuanced information regarding its future outlook. More specifically, today I will address the following question: Should the Eurosystem introduce dot plots?
    To explore this, I will first examine current experience with dot plots and other forms of forward guidance in both the United States and the euro area. I will then evaluate the advantages and disadvantages of incorporating dot plots into the Eurosystem’s communication strategy. In this analysis, I will concentrate on the implications for policymakers’ independence, the effectiveness of monetary policy and the management of uncertainty.
    2 The dot plot and other forms of forward guidance
    Let me begin with some basics. Most central banks in advanced economies have a clear mandate to keep prices stable. They do this mainly by setting the policy rate and communicating their decisions in order to manage the expectations of economic agents, including market participants, households and firms. When central banks provide explicit signals about the future path of the policy rate, we call it forward guidance.
    We can classify forward guidance into two ideal types: “Odyssean” and “Delphic”.[5] Odyssean forward guidance means the central bank makes a firm commitment to a future course of action, like promising to keep interest rates at a certain level for a certain time. Like Odysseus, who famously tied himself to the mast of his ship to resist the call of the sirens, central banks are committing to staying on course – whatever the future brings.
    In contrast, Delphic forward guidance is conditional and involves sharing information about the central bank’s economic outlook and policy intentions without making firm commitments. This term comes from the Oracle of Delphi, famous for its prophecies and predictions, which were so ambiguous and open to interpretation that they always seemed to be borne out in hindsight. A prime example of Delphic forward guidance is the policy rate forecasts published by central banks such as Norges Bank and Sweden’s Riksbank.
    A more subtle way of monetary policy communication is through the central bank’s reaction function. A reaction function indicates how the central bank adjusts its policy rate in response to key macroeconomic variables like the inflation rate or economic growth. When economic agents have a clear understanding of this reaction function, communication about the expected development of these macroeconomic variables can also help shape their expectations regarding the future trajectory of the policy rate.
    2.1 The Fed’s dot plot
    To consider if the Eurosystem should introduce dot plots, let me briefly recall what the Fed dot plots are and how market observers view them. Twelve years ago, the Fed began publishing the federal funds rate projections of the Federal Open Market Committee (FOMC) participants. Its intention was to boost transparency and communication with financial markets and the general public. On the other side of the Atlantic, the Eurosystem has, from its inception, held public press conferences and published monetary policy statements, the minutes of its meetings, and the results of its quarterly macroeconomic projections.
    As you are well aware, before the FOMC meeting, FOMC participants share their individual assessment of the appropriate level of the fed funds rate for the end of the current year, the end of the coming two to three years and over the longer run. The longer run projection refers to “each participant’s assessment of the value to which each variable would be expected to converge, over time, under appropriate monetary policy and in the absence of further shocks to the economy.”[6]
    Due to its visual representation in the Summary of Economic Projections (SEP), the combined projections of all FOMC members are known as the dot plot. These dots complement the FOMC participants’ projections for GDP growth, unemployment and inflation. While each FOMC participant submits their funds rate projection together with corresponding projections for macroeconomic variables, these correspondences are not revealed by the SEP. Accordingly, market observers cannot directly link the interest rate projections to the projections of the other macro variables.
    The dot plot was meant to complement the Fed’s communication, not to replace the forward guidance it provided in the monetary policy statement at that time during the press conference. For example, in January 2012, the FOMC statement provided explicit forward guidance on rates, saying that the Committee “[…] anticipates that economic conditions […] are likely to warrant exceptionally low levels for the federal funds rate at least through late 2014.”[7] During the accompanying press conference, Chairman Ben Bernanke introduced the dot plot, observing that “[…] eleven participants expect that the appropriate federal funds rate at the end of 2014 will be at or below 1 percent, while six participants anticipate higher rates at that time.”[8]
    Although the Federal Reserve did not introduce the dot plots as an explicit tool for forward guidance, many market analysts began to interpret them as such. When the forward guidance in the statement and the dot plot sent mixed signals, FOMC chairs often downplayed the dot plot’s importance.
    In 2014, Janet Yellen famously stated: “[…] one should not look to the dot plot, so to speak, as the primary way in which the Committee wants to or is speaking about policy […].”[9] Similarly, in 2019, Jerome Powell noted that “[…] the dot plot has, on occasion, been a source of confusion. Until now, forward guidance in the statement has been a main tool for communicating committee intentions and minimizing that confusion.”[10]
    And this is also how Fed watchers now see the dot plot, ranking it as the Fed’s fifth most important communication tool.[11] The top communication tools are the press conference, the Summary of Economic Projections (excluding the dots), the FOMC statement, and speeches by the chair.
    Numerous studies show that the Fed has successfully used monetary policy communication to influence long-term interest rates and other asset prices.[12] And some research suggests that the dot plots significantly and independently influence market interest rates. [13] But there is a fundamental issue about these results: it is very challenging to determine how much each communication channel contributes to the overall effect.
    To identify the causal effect of monetary policy, scholars often define a so-called event window around central banks’ monetary policy meetings. Changes in market interest rates during this event window are then attributed to monetary policy.
    But there is a problem: when the dot plot is released, it is published together with the monetary policy statement. That makes it hard to determine which one caused the interest rate changes observed during the event. And because of this, it is unclear whether those channels actually provide complementary information or are just substitutes.
    2.2 Monetary policy communication at the Eurosystem
    So, what does the Eurosystem’s monetary policy communication look like? The Eurosystem began using explicit forward guidance in the introductory statement to its July 2013 meeting. At that time, inflation in the euro area was low, and the Eurosystem expected underlying price pressures to stay subdued in the medium term. Interest rates were already at the effective zero lower bound.
    To provide further accommodation, the ECB’s Governing Council, which is the counterpart of the FOMC, announced in its July 2013 meeting that it “expects the key ECB interest rates to remain at present or lower levels for an extended period of time.”[14] The Governing Council continued to use variations of this statement for almost a decade. And there is now also ample evidence that the Eurosystem has been successful in implementing its forward guidance.[15]
    With the resurgence of inflation in 2021 and high uncertainty caused by major shocks and structural changes, the Eurosystem shifted to a data-dependent, meeting-by-meeting approach, largely stepping away from explicit forward guidance.
    More specifically, we now base our interest rate decisions on three elements: first, our assessment of the inflation outlook in light of the incoming economic and financial data, second, the dynamics of underlying inflation, and third, the strength of monetary policy transmission. These three elements can be seen as a further specification of our reaction function. However, the Governing Council does not pre-commit to any specific rate path.
    Taken together, apart from the publication of the dot plot, the approaches to monetary policy communication taken by the Federal Reserve System and the Eurosystem are largely comparable. Both institutions regard the monetary policy statement and the press conference as their primary communication tools. And both central banks have recently shifted from explicit forward guidance towards a data-dependent meeting-by-meeting approach.
    But the Eurosystem also continues to provide signals about future policy rates. It simply does it more implicitly. For example, the wording of the monetary policy statement and the answers of the ECB President during press conferences provide insights into future policy rates. As do speeches and interviews given by Governing Council members. Additionally, the Eurosystem influences market expectations through its quarterly staff projections.[16]
    Unlike some other central banks, the Eurosystem uses the interest rate implied by financial market prices on a specific cut-off day as a conditioning assumption for its macroeconomic projections. Specifically, this means that our medium-term inflation forecast aligns with market expectations for a particular policy rate path. Market participants can subsequently compare the exogenous path for the policy rate, as embedded in our macroeconomic projections, with our actual monetary policy decisions, in order to gain insights into our reaction function.
    You could say that the Eurosystem provides Athenian communication. Athena was known as the Goddess of wisdom and as a protector and guide to many Greek heroes. Rather than communicating directly with those she protected, Athena often used indirect guidance. And through her subtle guidance, Athena empowered the heroes she protected to take decisive action and make wise choices.
    3 A dot plot for the Eurosystem?
    Now, let us get to the heart of the matter. Should the Eurosystem introduce dot plots? Although this question can only be answered “yes” or “no”, complex issues are rarely black and white, as mentioned earlier.
    In the following, rather than simply listing the pros and cons of introducing dot plots in the Eurosystem, I will structure my discussion around three themes: First, the impact dot plots could have on the independence of the Eurosystem. Second, the potential for dot plots to improve the effectiveness of our monetary policy communication. And third, the role dot plots could play in capturing projection uncertainty around our baseline forecasts.
    Throughout, I will only consider adding projections for the policy rates to the existing macroeconomic projections by Eurosystem staff. For simplicity, I will not consider whether to also complement our current consensus projections for macroeconomic variables with individual macroeconomic projections.
    3.1 Independence
    Let me begin with the theme of independence. The ECB’s Governing Council consists of the six ECB Executive Board members and the 20 governors of the euro area’s national central banks. Although this setting may resemble that of the Federal Open Market Committee, which includes Federal Reserve Bank Presidents, there is a significant difference.
    The euro area is not composed of regions within a single country but of individual countries within a larger union, each with its own fiscal authority and national laws, as well as considerable differences in economic size and performance. Therefore, within the Governing Council we have a strong interest in finding and communicating a consensus perspective. This is, for example, enshrined in our statute, which states that the proceedings of the meetings of the Governing Council are confidential.
    When we discussed introducing ECB accounts from our Governing Council meetings – comparable to the published minutes of FOMC meetings – about a decade ago, we aimed to balance two things: On the one hand, to clearly articulate the consensus perspective. Yet on the other hand to represent the full spectrum of views in order to help market participants better understand the ECB Governing Council’s decision-making process.[17]
    In the end, the Eurosystem decided to represent the full spectrum of the discussion without naming individuals. Nevertheless, despite the anonymity of the arguments presented, markets and the media alike continue to attempt to discern the identities of the individuals behind them. Given that numerous members of the Governing Council express their views on monetary policy through speeches and interviews, identifying their positions is not a particular challenge.
    If there were anonymous dot plots of Governing Council members, media and the markets alike would probably attempt to match individual members to each dot as well. The primary distinction between speeches and dot plots is that Governing Council members deliver speeches voluntarily. In contrast, dot plots would force all Governing Council members to regularly articulate their perspectives on the future trajectory of interest rates. And this could potentially influence the Governing Council’s independence.
    Once national stakeholders become aware of “their” representative’s views on future interest rates, they may exert pressure on the representative to align with national interests. I am confident that, even if we were to publish dot plots, every member of the Governing Council would continue to act independently and in the best interests of the entire euro area. However, I believe we are well advised not to put ourselves in a situation that might increase pressure on us to act in ways others want us to.
    3.2 Effectiveness of monetary policy communication
    My second theme is whether a dot plot could significantly enhance the Eurosystem’s effectiveness of monetary policy communication. And here I am sceptical. To begin with, there is the previously discussed issue: the dot plot may conflict with the consensus message conveyed in the monetary policy statement. But the main reason for my scepticism is that comparative studies on different methods of monetary policy communication are inconclusive.
    A BIS working paper shows that interest rate projections provide additional information to macroeconomic projections, meaning that they are not redundant.[18] That could be seen as an argument for introducing dot plots. However, while market participants in countries that publish both interest rate projections and macroeconomic projections prefer the former, they might still be able to obtain sufficient information from macroeconomic projections alone.
    Furthermore, research on central bank communication in Norway and Sweden shows that publishing interest rate projections has not improved market understanding of what new macroeconomic information implies for future interest rate.[19] In other words, the publication of interest rate paths did not help market participants better understand the central banks’ reaction functions.
    This finding aligns with research published by the Reserve Bank of New Zealand that shows that announcements with interest rate forecasts and those with only written statements lead to similar market reactions across the yield curve.[20] The authors pointedly conclude that, while central bank communication is important, the exact form it takes is less relevant.
    This result echoes a seminal study by Blinder and co-authors, who concluded back in 2008 that there was no consensus on what constitutes an optimal communication strategy.[21]
    All things considered, I see no compelling evidence that the Eurosystem’s monetary policy communication would be significantly enhanced by the introduction of a dot plot.
    3.3 Projection uncertainty
    Now to the third and final theme – uncertainty. I am quite sure that the Eurosystem has room to improve how we handle projection uncertainty. Currently, the ECB’s Governing Council summarises its view on the uncertainty surrounding economic growth and inflation in the risk assessment section of its monetary policy statement. More specifically, the Eurosystem addresses the uncertainty around its baseline inflation forecast in two ways.[22]
    First, it produces fan charts with symmetric ranges around the point forecast, based on past projection errors. In this setup, past projection errors act as a catch-all proxy for uncertainty. Second, it occasionally publishes risk scenarios, conditional on assumptions different from those in the baseline projection. For instance, during the pandemic, the Eurosystem began using alternative assumptions about the future path of infections and contact restrictions to illustrate macroeconomic uncertainty.
    Could the use of dot plots enhance the communication of inflation forecast uncertainty within the Eurosystem? Given that dot plots offer only an indirect method for conveying uncertainty about the inflation outlook, there may be more effective alternatives.
    One might be to enhance the communication of our existing measures of uncertainty. Another might be to develop new measures, such as scenario and sensitivity analyses, as well as improved fan charts. We must carefully evaluate the pros and cons of each approach.
    Hence, it is quite fitting that the Eurosystem is currently performing an interim strategic review, which includes an analysis of how risk and uncertainty should inform both policy decisions and policy communication. I’m already looking forward to the results.
    4 Conclusion
    Ladies and gentlemen, let me conclude. I began my talk by discussing different schools of thought – New Keynesian and New Classical – and argued that complex issues are rarely black or white. When it comes to central bank communication about the future, there are certainly many promising approaches. And, undoubtedly, dot plots are an intriguing instrument for central bank communication.
    However, given the prevailing evidence, I do not see a compelling case for introducing dot plots for the Eurosystem.
    On the other hand, I firmly believe that we can and should enhance how we account for uncertainty in our macroeconomic projections. I have outlined a few options which the Eurosystem will address in the ongoing strategy review.
    Footnotes:
    Nagel, J. (2022), The ECB’s mandate: maintaining price stability in the euro area, speech at the Minda de Gunzburg Center for European Studies, Harvard University.
    Mankiw, G. (2006), The Macroeconomist as Scientist and Engineer, Journal of Economic Perspectives, Vol. 20(4), pp. 29-46.
    Goodfriend, M. and R. King (1997), The New Neoclassical Synthesis and the Role of Monetary Policy, in: NBER Macroeconomics Annual, Bernanke, B. and J. Rotemberg (eds.), MIT Press, pp. 231-283.
    Mankiw, G. (2006), op. cit.
    Campbell, J. et al. (2012), Macroeconomic Effects of Federal Reserve Forward Guidance, Brookings Papers on Economic Activity, Vol. 43(1), pp. 1-80. Another distinction is between time-dependent (or calendar-dependent) and state-dependent forward guidance. The former ties monetary policy to a specific time frame, whereas the latter ties future policy actions to specific economic conditions or thresholds. The concepts can overlap and be used in combination.
    SEP: Compilation and Summary of Individual Economic Projections, 24-25 January 2012.
    FOMC Statement, 25 January 2012.
    Bernanke, B. (2012), Transcript of Chairman Bernanke’s Press Conference, 25 January 2012,
    Yellen, J. (2014), Transcript of Chair Yellen’s Press Conference, 19 March 2014.
    Powell, J. (2019), Monetary Policy: Normalization and the Road Ahead, speech at the SIEPR Economic Summit, Stanford Institute of Economic Policy Research, Stanford, California.
    Wessel, D. and S. Boocker (2024), Federal Reserve communication – survey results, Hutchins Center on Fiscal and Monetary Policy at Brookings.
    See, for example, Gürkaynak, R. et al. (2005), Do Actions Speak Louder Than Words? The Response of Asset Prices to Monetary Policy Actions and Statements, International Journal of Central Banking, International Journal of Central Banking, Vol. 1(1), pp. 55-93; Wright, J. (2012), What Does Monetary Policy Do to Long‐term Interest Rates at the Zero Lower Bound?, Economic Journal, Vol. 122(564), pp. 447-466; and Swanson, E. (2021), Measuring the effects of federal reserve forward guidance and asset purchases on financial markets, Journal of Monetary Economics, Vol. 118(C), pp. 32-53.
    See, for example, Couture, C. (2021), Financial market effects of FOMC projections, Journal of Macroeconomics, Vol. 67 and Hillenbrand, S. (2023), The Fed and the Secular Decline in Interest Rates, Accepted, Review of Financial Studies.
    Draghi, M. and V. Constâncio (2013), Introductory statement to the press conference (with Q&A), Frankfurt am Main, 4 July 2013.
    See, for example, Altavilla, C. et al. (2021), Assessing the efficacy, efficiency and potential side effects of the ECB’s monetary policy instruments since 2014, ECB Occasional Paper, No. 278; Andrade, P. and F. Ferroni (2021), Delphic and Odyssean monetary policy shocks: Evidence from the euro area, Journal of Monetary Economics, Vol. (117), pp. 816-832; Kerssenfischer, M. (2022), Information effects of euro area monetary policy, Economics Letters, Vol. 216(C); and Monetary Policy Committee, Taskforce on Rate Forward Guidance and Reinvestment (2022), Rate forward guidance in an environment of large central bank balance sheets: A Eurosystem stock-taking assessment, ECB Occasional Paper No. 290.
    The Eurosystem produces macroeconomic projections four times a year. ECB staff produces them in March and September. In June and December, they are co-produced by ECB and national central bank staff.
    See Morris, S. and H. Shin (2005): Central Bank Transparency and the Signal Value of Prices, Brookings Papers on Economic Activity, Vol.36(2), pp. 1-66 for a general treatment of the role of transparency.
    Hofmann, B. and D. Xia (2022), Quantitative forward guidance through interest rate projections, BIS Working Paper No. 1009.
    Natvik, G. et al. (2020), Does publication of interest rate paths provide guidance?, Journal of International Money and Finance, Vol. 103.
    Detmers, G.-A (2021), Quantitative or Qualitative Forward Guidance: Does it Matter?, Economic Record, Vol. 97(319), pp. 491-503.
    Blinder, A. et al. (2008), Central Bank Communication and Monetary Policy: A Survey of Theory and Evidence, Journal of Economic Literature, Vol. 46(4), pp. 910-945.
    See ECB (2024), ECB staff macroeconomic projections for the euro area, March 2023, box 6 for a rundown.

    MIL OSI

    MIL OSI Europe News

  • MIL-OSI Europe: Breaking the vicious circle between banks and sovereigns for good | Joint guest contribution by Joachim Nagel and Nicolas Véron, op-ed for Politicoby Politico

    Source: Deutsche Bundesbank in English

    Twelve years after its initiation, it is time to complete the banking union
    In the early hours of 29 June 2012, boldness and clarity came together. After a long night of negotiations, European leaders laid the foundations for the banking union project. They found strong and clear words on its purpose, stating it is imperative to break the vicious circle between banks and sovereigns.
    The decision was taken in the aftermath of a twin crisis that had shaken the euro area – a sovereign debt crisis coupled with a banking crisis. The close links between sovereigns and banks had created a “doom loop”: sovereigns bailed out teetering banks, straining public finances, and rising sovereign yields put pressure on banks’ home-biased sovereign exposures. Such loops emerged as a particular vulnerability of the euro area, with its unique institutional setup as a monetary union of otherwise sovereign states, increasing the pressure on the Eurosystem to save the day. The banking union was conceived as the sword that would sever the doom loop.
    Today’s banking union is primarily the result of intensive legislative efforts between 2012 and 2014. They established a complete framework for supervising European banks, and an incomplete one for dealing with banking crises. This helped to mitigate the vicious circle, in particular by creating the Single Supervisory Mechanism under the European Central Bank and the national supervisory authorities. That has proven its effectiveness, but the vicious circle has not yet been broken.
    Before the lessons of 2012 are forgotten, the new EU term offers an opportunity to finish the task and break the vicious circle between banks and sovereigns for good. Action must go both ways. First, block the direct contagion channel from banks to sovereigns. Taxpayers should not have to suffer when banks run into problems. Second, close the contagion channel from sovereigns to banks. A sovereign credit event cannot and should not be ruled out in a monetary union with sovereign fiscal policies at the national level. At the same time, it must not be permitted to drag down banks with it and thus further jeopardise financial stability.
    The first aim calls for strengthening the crisis intervention framework. Valuable progress has been made with the establishment of the Single Resolution Board and the Single Resolution Fund. The latter reached its target level, currently at €78 billion, after a decade of build-up. However, a more streamlined and predictable framework is needed. Specifically, resolution should be a credible and feasible option to manage more, if not all, failing banks under EU law, instead of the current confusing mix of European and national procedures that leaves too much scope for national state aid and moral hazard.
    The reform of the framework for crisis management is closely linked to deposit insurance. A common European deposit insurance mechanism would strengthen confidence in depositor protection and thus reduce the risk of bank runs. It is intended to weaken the link between banks and their national sovereigns and thus to contribute to making the euro area as a whole more resilient. The two of us have different views on how it should be structured, whether fully centralised or a hybrid involving national authorities. However, we share the firm conviction that deposit protection needs a European level. All banks in the euro area should participate in it. Its funding can and should be risk-based, taking into account arrangements such as the institutional protection schemes that play a significant role in Austria and Germany.
    Under that mechanism, certain risks would be shouldered jointly within the EU. Conversely, risks that are within the remit of the individual Member States must be appropriately limited. To reduce negative spillovers from sovereigns to banks – the second aim – it is crucial to avoid large and undiversified exposures of bank balance sheets to a single sovereign. Concentration limits and capital charges can serve as effective tools here. With adequate calibration and a transition phase, these tools could incentivise banks to diversify their sovereign exposures, thereby gradually overcoming home bias.
    As it turns out, the issues of crisis management, deposit insurance and banks’ sovereign exposures are intertwined. Attempts to make progress have so far failed, not least because they were not comprehensive enough. Part of why the European Commission’s 2015 legislative proposal on deposit insurance was shelved is because banks’ concentrated sovereign exposures were not tackled at the same time. It seems that Member States are unwilling to make concessions if the outcome is merely a halfway house. A comprehensive approach that addresses the interlinked issues holistically is worth considering. It could complete the work that began with a promise twelve years ago – to break the vicious circle between banks and sovereigns.
    Nicolas Véron is a French economist. He is a senior fellow at Bruegel in Brussels, which he co-founded in 2002–05, and at the Peterson Institute for International Economics in Washington DC.

    MIL OSI

    MIL OSI Europe News

  • MIL-OSI Russia: HSE Graduate School of Economics Wins ESG Excellence Award

    Translation. Region: Russian Federation –

    Source: State University Higher School of Economics – State University Higher School of Economics –

    ESG Excellence Award is an annual award for achievements in the field of sustainable development and ESG that have significant social effects. Among the laureates and nominees of the award are the largest Russian companies – leaders of the ESG agenda, as well as companies and organizations that have made a tangible contribution to the sustainable development of the Russian economy and society.

    The HSE project to prepare globally competitive and socially responsible business leaders for the digital economy, possessing professional competencies in the field of sustainable development and ESG, received well-deserved recognition from the jury of the award. The project is being implemented jointly by representatives of the academic, professional and business communities, in particular, at the international level the partners are PRME, NBS Sustainability Centres Community; at the national level – the National ESG Alliance, SBER, the Agency for Strategic Initiatives, the Bank of Russia, Polyus, Norilsk Nickel, RUSAL, SIBUR, Rosatom, X5 Group, KEPT, E Change, YouSocial and other representatives of Russian business.

    The main objectives of the project are:

    Creation of innovative academic disciplines covering the main aspects of sustainable development, ESG and digital technologies, and development of a modern educational and methodological complex with a focus on problem-based learning; Implementation of project-based learning through the implementation of applied projects from customers from the professional and business community, organization of internships and practices in companies integrating the principles of sustainable development and ESG into their activities; Development of a culture of responsible behavior and management within the HSB to develop leadership qualities and management skills of students and graduates aimed at cultural and social change; Conducting applied scientific research in the field of sustainable development and ESG, contributing to the identification of best practices and new approaches with the involvement of students and graduates.

    We congratulate our colleagues on their victory and wish them further success!

    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.

    MIL OSI Russia News

  • MIL-OSI: River launches Bitcoin Interest on Cash: For the first time ever investors can hold dollars and earn bitcoin safely

    Source: GlobeNewswire (MIL-OSI)

    COLUMBUS, Ohio, Oct. 22, 2024 (GLOBE NEWSWIRE) — River, the most trusted U.S. Bitcoin exchange, announces the launch of Bitcoin Interest on Cash, a groundbreaking product where you can earn a high yield interest rate on cash deposits, that can be paid in bitcoin1. Bitcoin Interest on Cash is set to redefine how you save and build wealth, offering both security and opportunity in a volatile economic environment.

    Key features of Bitcoin Interest on Cash:

    • Earn 3.8%1 interest on cash, which can be paid in bitcoin1.
    • Your cash is FDIC insured up to $250,000, and all bitcoin is held in full-reserve custody.
    • There are no hidden fees or minimums.
    • Your cash can be withdrawn at any time.

    Disrupting traditional savings accounts
    Savings accounts can’t keep up with inflation anymore, and this is causing them to lose value over time. River Bitcoin Interest on Cash breaks from this trend by offering you the opportunity to grow your savings faster than inflation.

    “In a world where traditional savings accounts are unable to fully protect your wealth, Bitcoin Interest on Cash offers a new path forward. By combining the predictability of cash with the opportunity of bitcoin, we’re empowering you to take control of your financial future and earn more money for the things that matter.” — Alex Leishman, CEO of River

    The future of saving, powered by bitcoin
    By earning an asset with a proven track record of high returns, River is giving you the opportunity to grow your savings far beyond 3.8%1. In the last two years, Bitcoin Interest on Cash would have earned 16 times2 more than the average savings account.

    The best of both worlds: Earn bitcoin on FDIC-insured cash
    In the past, crypto companies have offered products that attempted to generate yield on bitcoin. Those failed. At River, we never put your bitcoin at risk. Bitcoin Interest on Cash earns yield on cash, not on bitcoin. River protects your assets with FDIC-insured cash, up to $250,000, and bitcoin that is always held in full reserve.

    About River
    River is a premier US-based, bitcoin-only financial services company dedicated to providing the most secure and transparent platform for investing in bitcoin. The company is fully licensed and regulated in the United States and adheres to strict compliance standards to ensure the security and transparency of its operations.

    River was founded with a mission to build the world’s most trusted institution to empower people to take ownership of their financial lives through Bitcoin, the world’s only incorruptible digital currency. The company launched River Proof of Reserves, allowing clients to independently verify that 100% of their Bitcoin deposits are held in full reserve. By combining robust security measures with a simple user experience, River empowers individuals and institutions to confidently manage their bitcoin investments.

    For more information about Bitcoin Interest on Cash, please visit river.com/bitcoin-interest or follow them on X (Twitter).

    1River Financial Inc. (“River”) is not a bank. USD funds are deposited by Lead Bank, Member FDIC. Your USD is FDIC insured up to $250,000, inclusive of any deposits that you already hold at Lead Bank in the same ownership capacity. FDIC insurance may protect against a failure by Lead Bank, but does not protect against River’s failure, nor does it protect against theft or fraud. Bitcoin is not insured by the FDIC, and may lose value.

    Interest may be earned on cash that has settled at Lead Bank. As of October 22, 2024, the interest rate is 3.8%, and is subject to change. You may choose to receive interest payouts in Bitcoin or in USD. Lead is not affiliated with River’s Bitcoin program, products, or offerings. Not available in all states. Fees may apply. Please review the Terms of Service for eligibility restrictions and additional details.

    2Historical returns are presented for illustrative purposes only. Calculations are based on the current interest rate for Bitcoin Interest on Cash and the price of Bitcoin over the prior two years and are compared to the national average APY (source: US News, as of Oct 9, 2024). Interest rates and Bitcoin prices may fluctuate over time. This is not a guarantee of future earnings. All investments involve risk.

    A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/4ba1036a-1f85-48ab-8051-f65121657f23

    The MIL Network

  • MIL-OSI: Independent Bank Corporation Announces Quarterly Cash Dividend on Common Stock

    Source: GlobeNewswire (MIL-OSI)

    GRAND RAPIDS, Mich., Oct. 22, 2024 (GLOBE NEWSWIRE) — Independent Bank Corporation (NASDAQ: IBCP), the holding company of Independent Bank, a Michigan-based community bank, announced that today its Board of Directors declared a quarterly cash dividend on its common stock of 24 cents per share. This dividend is payable on November 15, 2024 to shareholders of record on November 5, 2024.

    About Independent Bank Corporation

    Independent Bank Corporation (NASDAQ: IBCP) is a Michigan-based bank holding company with total assets of approximately $5.3 billion. Founded as First National Bank of Ionia in 1864, Independent Bank Corporation operates a branch network across Michigan’s Lower Peninsula through one state-chartered bank subsidiary. This subsidiary (Independent Bank) provides a full range of financial services, including commercial banking, mortgage lending, investments and insurance services. Independent Bank Corporation is committed to providing exceptional personal service and value to its customers, stockholders and the communities it serves.

    For more information, please visit our Web site at: IndependentBank.com.

    Contact: William B. Kessel, President and CEO, 616.447.3933
      Gavin A. Mohr, Chief Financial Officer, 616.447.3929 

    The MIL Network

  • MIL-OSI: Foresight Reports Third Quarter 2024 Results

    Source: GlobeNewswire (MIL-OSI)

    WINNEBAGO, Ill., Oct. 22, 2024 (GLOBE NEWSWIRE) — Foresight Financial Group, Inc., a Winnebago, IL based multi-bank holding company with fourteen offices in Stephenson, Winnebago, Boone and Kankakee counties, reported that for the third quarter of 2024, net income increased by 33.3% to $3,396,000 from $2,547,000 reported in the third quarter of 2023. The increase in net income compared to the third quarter of 2023 reflects a $1,386,000 decrease in the provision for loan losses and a $312,000 increase in net interest income. These favorable changes were partially offset by a $419,000 decrease in non-interest income and a $325,000 increase in operating expenses. The decrease in non-interest income includes a $328,000 reduction in net secondary market mortgage revenue, primarily due to reduction in the fair value of servicing rights. The increase in operating expense was largely driven by increased compensation expense, reflecting ongoing talent acquisition efforts initiated earlier in the year. Earnings per common share for the third increased to $0.97, compared to $0.71 for the third quarter of 2023.

    Net income reported for the first nine months of 2024 was $10,171,000, a 30.21% increase over the $7,815,000 earned for the nine months ending September 30, 2023. The increase in net income compared to the first nine months of 2023 includes a $4,092,000 decrease in the provision for loan losses, which was partially offset by a $454,000 reduction in non-interest income and a $697,000 increase in operating expenses. Year to date earnings per common share for 2024 was $2.93, compared to $2.19, for the first nine months of 2023. The results for the first nine months of 2024 produced a return on average assets of 0.85% and return on stockholders’ equity of 9.41%.

    Foresight’s balance sheet has experienced modest growth during the past year with total assets increasing 6.5% to $1.618 billion. Total gross loans increased 7.2% to $1.117 billion and total deposits increased 2.8% to $1.399 billion as of September 30, 2024. The majority of the loan growth was in commercial and commercial real estate lending. The deposit growth has been in demand deposits and certificates of deposit, with some funding shifting from savings and money market accounts to certificates of deposit to lock in term rates. The net interest margin for the first nine months of 2024 was 3.26% compared to 3.35%.

    Foresight’s asset quality remains strong. Non-performing assets of the Company as of September 30, 2024, totaled $23.7 million, up from $21.5 million the previous quarter. Loans past due 30 to 89 days remain low at 0.31% of outstanding loans.

    Chief Executive Officer Peter Morrison stated “we are pleased with the year over year performance improvement, despite continued net interest margin challenges industrywide. FGFH stock performance has been a bright spot in 2024 as its price has increased 41% since the end of 2023, however we still feel our stock is significantly undervalued. As we move into the final quarter of 2024, we anticipate a strong finish to a year of significant positive change on several levels within the organization.”

    The closing price for the Company’s stock was $33.07, as of close of business October 21, 2024. Book value of the Company’s common stock increased by $4.51 to $44.30 as of September 30, 2024, compared to $39.79 as of December 31, 2023. The increase in book value per share during the first nine months of 2024 includes a $2.42 increase in Accumulated Other Comprehensive Income, reflecting a decrease in the net unrealized loss on available for sale securities.

    About Foresight Financial

    Foresight Financial is a multi-bank holding company located in Northern Illinois, Its subsidiary community banks include Northwest Bank of Rockford, State Bank in Freeport, State Bank of Davis, German-American State Bank, German Valley, Lena State Bank, and the State Bank of Herscher. Foresight’s common stock is listed on the “OTCQX” market under the trading symbol FGFH.

    Forward-Looking Statements

    When used in this communication, the words “believes,” “expects,” “likely”, “would”, and similar expressions are intended to identify forward-looking statements. The Company’s actual results may differ materially from those described in the forward-looking statements. Factors which could cause such a variance to occur include, but are not limited to: heightened competition; adverse state and federal regulation; failure to obtain new or retain existing customers; ability to attract and retain key executives and personnel; changes in interest rates; unanticipated changes in industry trends; unanticipated changes in credit quality and risk factors, including general economic conditions particularly in the Company’s markets; potential deterioration in real estate values, success in gaining regulatory approvals when required; changes in the Federal Reserve Board monetary policies; unexpected outcomes of new and existing litigation in which the Company or its subsidiaries, officers, directors or employees is named defendants; technological changes; changes in accounting principles generally accepted in the United States; changes in assumptions or conditions affecting the application of “critical accounting policies”; inability to recover previously recorded losses as anticipated, and the inability of third party vendors to perform critical services for the Company or its customers. The inclusion of forward-looking information should not be construed as a representation by the Company or any person that future events or plans contemplated by the Company will be achieved. The Company undertakes no obligation to publicly update or revise any forward-looking statements whether as a result of new information or otherwise.

    The MIL Network

  • MIL-OSI Russia: One loan in one hand – the Central Bank of the Russian Federation will take MFIs seriously

    Translation. Region: Russian Federation –

    Source: Mainfin Bank –

    How will the Central Bank of the Russian Federation combat Russians’ indebtedness?

    The high level of debt burden of Russians is one of the problems that the regulator has been struggling with for several years, systematically tightening requirements and introducing restrictions for credit institutionsNow the Central Bank of the Russian Federation proposes to establish protective measures for clients MFO:

    the rule of issuing one will apply loan – it will not be possible to draw up a second agreement with an MFI before the first one is executed; the regulator will establish a cooling-off period – three days must pass after the return of one loan and before a new agreement is concluded; the amount of overpayment on microloans will be reduced from 130 to 100% of the original amount.

    “The key goal of the restrictions is to eliminate excessive indebtedness of the population, since most MFI clients have several loans at once, which leads to an increased burden and difficulties in fulfilling obligations,” the expert believes.

    The innovations are planned to be implemented as part of the reform of the industry – the Central Bank of the Russian Federation believes that the development of bills, their adoption and entry into force will take up to three years.

    What innovations await the microfinance organizations market?

    The Bank of Russia not only limits MFI borrowers, but also plans to streamline the microfinance services market – information about the upcoming changes appeared in August 2024. Thus, the regulator wants to divide MFIs into three groups:

    companies operating exclusively in the business segment – with entrepreneurs, legal entities, self-employed citizens; microfinance organizations issuing loans, the cost of which does not exceed 100% per annum; organizations that have received the right to provide loans at a rate exceeding 100%.

    Depending on the group they belong to, the Central Bank will set requirements for the capital of companies – microfinance organizations with increased risks will have to confirm their stability with a sufficient reserve of funds.

    16:30 10/22/2024

    Source:

    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.

    http://mainfin.ru/news/one-loan-in-one-hands-the Central Bank of the Russian Federation-will-seriously-take-up-MFO

    MIL OSI Russia News

  • MIL-OSI Economics: Klaas Knot: Strengthening financial resilience – lessons from Pittsburgh

    Source: Bank for International Settlements

    Good morning everyone.

    It could have been right here in New York City.

    That would have been fitting, as this city was, and still is, the center of gravity for global finance. But, as it happened, the US administration made a last-minute decision to pick Pittsburgh as the venue for the G20 summit.

    We are back in the fall of 2009. Less than a year earlier, when G20 leaders first met in Washington DC, the world economy had been facing its greatest crisis in generations. At the Pittsburgh Summit, the memory of the crisis was still fresh. The fall of Lehman. The rescue of AIG. The race against the clock to prevent a total meltdown of the financial system. Leaders from the 20 largest nations in the world had all gone through those fateful crisis days. They shared a conviction that this should not happen again. Ever. They decided on a massive strengthening of regulation to address the weaknesses in the global financial system and to curb excessive risk taking. And they endorsed the mandate of the newly established Financial Stability Board to coordinate and monitor progress. Pittsburgh turned the tide.

    The rest is history. But it is an unfinished history. For sure, the reforms that were agreed in Pittsburgh did substantially strengthen the global financial system.

    In recent years, markets have experienced several episodes of turmoil, and we have seen potentially destabilising failures of banks and non-banks. But the core of the system has held up relatively well. So, one interpretation is that the financial system has proved to be resilient. But that is not entirely true. Take March 2020 for example. This turmoil was contained both through improved resilience and unprecedented policy actions. Without the combined force of these policy actions, the reforms implemented since 2009 may have not been sufficient to stave off another financial crisis. And it’s not only in 2020 that unprecedented policy actions were needed. In 2023 the fire brigade had to turn out again.

    So, we’ve made progress, but there is much left to do if we want a truly resilient financial system. One that can finance the economy through thick and thin without recourse to extraordinary support. Furthermore, the financial system is evolving, and so must our regulations. Can we keep up the pace? Allow me to share some concerns about that.

    First of all, our work to make the banking sector more resilient is not yet complete. For one thing, the final Basel III standards still need to be implemented in many jurisdictions. In the meantime, the banking turmoil in March last year was a reminder that bank runs are not a thing of the past. The demise of Silicon Valley Bank and Credit Suisse not only brought lessons for banks and supervisors.

    They also highlighted that 13 years after the FSB issued its Key Attributes for Effective Resolution Regimes, authorities still face challenges in dealing with failing banks.

    Next to the unfinished agenda in banking, the non-bank financial sector continues to face serious vulnerabilities. Partly as a response to strengthening banking regulation, non-bank financial institutions are playing a larger role in financing the real economy, now accounting for nearly half of total global financial assets. And as we have seen over the past few years, structural vulnerabilities in the sector have the potential to cause systemic risk. These include liquidity mismatches, leverage, and inadequate margin preparedness. The FSB, working with other standard setters, has done a great deal of work on this issue. We have issued policy recommendations in several key areas. Drawing up these policy recommendations, however, is not enough to stem systemic risk in NBFI. For that to happen, we must implement them. That means authorities must not only put them into national laws and regulations, they must also have the capacity to operationalize them.

    Third, technological innovation continues to shape the way the financial sector functions, and it adds another layer of complexity. Technology can create new interdependencies, for example when many financial institutions rely on the same service providers. It can also increase the speed at which a crisis unfolds. And technology raises important questions about the regulatory perimeter. Above all technology related risks can exacerbate pre-existing vulnerabilities in the financial system and may create new ones. Take crypto-assets. This fast-growing market has seen more than its fair share of bankruptcies, liquidity crises and outright fraud, even as its links with traditional finance continue to grow. The FSB has issued recommendations to regulate the market for crypto-assets. The G20 has endorsed these recommendations and, again, they now need to be implemented globally.

    As you might notice, I’m talking a lot about implementation, because that’s where my concern lies. It seems that, 16 years after Lehman, implementation fatigue has started to set in. Political commitment for maintaining financial stability is usually the highest when the collective memory of the last crisis is still fresh. When this memory starts to fade, there is the risk that financial stability is taken for granted. Something that can be left to the bureaucrats, to the technicians. Not least because there are so many other policy priorities to deal with for governments. But that would be a mistake. We do need the involvement of politicians, of lawmakers, because without them, it becomes even harder to implement necessary regulations. After all, financial stability is the foundation for almost all public policy. If financial stability is gone, as a government you can forget about the other policy priorities. You will spend most of your time drawing up rescue plans for an economy in free fall. So we should not wait for the next crisis.

    We also need commitment in good times, when the work to develop and implement policy needs to get done. This commitment is even more important in a world that is getting more fragmented, both politically and economically. I am concerned about our capacity to work together on cross-border challenges in such a world. During the Global Financial Crisis, policymakers around the globe were able to respond swiftly and effectively. In a fragmented world, such a swift response could become more complicated. This could prove costly because the most important challenges to financial stability are precisely the cross-border issues that we can only solve if we work together.

    And to the financial industry I would say: rules that strengthen the resilience of the financial system are in your best interest too. Some in the industry view regulation as a constraint, something that limits profitability and imposes undue costs. But it’s just the other way around. Financial regulation is not an obstacle, it is an enabler of sustainable, long-term growth. Globally implemented regulation strengthens international financial stability, levels the playing field, and, in turn, enhances the confidence of your shareholders, clients, and counterparties. Strong regulation is not a constraint on the financial industry, it is an asset.

    15 years after Pittsburgh, strengthening the financial system is an unfinished history. Partly that comes with the job. The financial system is always evolving, so our policy also needs to evolve. But, that’s not the only reason. It is also important that authorities finish implementing the measures we’ve all agreed are needed to address existing vulnerabilities. Vulnerabilities that could lead to the next crisis, if they are allowed to persist.

    This calls for maintaining our ambition as policy makers, and for law makers to take the agreed policies all the way through to implementation. I wish for us to have the determination and collaborative spirit that the leaders in Pittsburgh collectively felt. Let’s work together to finish what we started. Let’s stay sharp, focused and committed to preserving financial stability. And where better to express that commitment than in the city that never sleeps.

    MIL OSI Economics

  • MIL-OSI: Greene County Bancorp, Inc. Reports Net Income of $6.3 million for the Three Months Ended September 30, 2024 and Reaches New Milestone of $2.9 Billion in Assets

    Source: GlobeNewswire (MIL-OSI)

    CATSKILL, N.Y., Oct. 22, 2024 (GLOBE NEWSWIRE) — Greene County Bancorp, Inc. (the “Company”) (NASDAQ: GCBC), the holding company for The Bank of Greene County and its subsidiary Greene County Commercial Bank, today reported net income for the three months ended September 30, 2024, which is the first quarter of the Company’s fiscal year ending June 30, 2025. Net income for the three months ended September 30, 2024 was $6.3 million, or $0.37 per basic and diluted share, as compared to $6.5 million, or $0.38 per basic and diluted share, for the three months ended September 30, 2023. Net income decreased $208,000, or 3.2%, when comparing the three months ended September 30, 2024 and 2023.

    Highlights:

    • Net Income: $6.3 million for the three months ended September 30, 2024
    • Total Assets: $2.9 billion at September 30, 2024, a new record high
    • Net Loans: $1.5 billion at September 30, 2024, a new record high
    • Total Deposits $2.5 billion at September 30, 2024, a new record high
    • Return on Average Assets: 0.93% for the three months ended September 30, 2024
    • Return on Average Equity: 11.86% for the three months ended September 30, 2024

    Donald Gibson, President & CEO stated: “I am pleased to report another solid quarterly performance highlighted by record high levels in deposits, loans, and total assets. This achievement is a testament to our team’s strategy of providing innovative financial solutions and outstanding service to our customers, which combined, has provided steady long-term growth for our organization. We remain committed to being the leading provider of community-based banking services throughout the Hudson Valley and Capital Region of New York State.”

    Total consolidated assets for the Company were $2.9 billion at September 30, 2024, primarily consisting of $1.5 billion of net loans and $1.1 billion of total securities available-for-sale and held-to-maturity. Consolidated deposits totaled $2.5 billion at September 30, 2024, consisting of retail, business, municipal and private banking relationships.

    Pre-provision net income was $6.9 million for the three months ended September 30, 2024 as compared to pre-provision net income of $6.6 million for the three months ended June 30, 2024, an increase of $314,000, or 4.8%, and pre-provision net income of $6.9 million for the three months ended September 30, 2023. Pre-provision net income measures the Company’s net income less the provision for credit losses on loans. Management believes that this measure assists investors in comprehending the impact of the provision on the Company’s reported results, offering an alternative view of the Company’s performance and the Company’s ability to generate income in excess of its provision for credit losses on loans. During the September 30, 2024 quarter, the Company was able to reprice assets into the higher interest rate market faster than it had raised rates paid on deposits. This resulted in a higher net interest margin for the three months ended September 30, 2024 as compared to the three months end June 30, 2024. The Company will continue to monitor the monetary policy of the Federal Reserve and interest rates paid on deposits, while maintaining our long-term customer relationships.

    Selected highlights for the three months ended September 30, 2024 are as follows:

    Net Interest Income and Margin

    • Net interest income decreased $303,000 to $13.1 million for the three months ended September 30, 2024 from $13.4 million for the three months ended September 30, 2023. The decrease in net interest income was due to an increase in the average balance of interest-bearing liabilities, which increased $64.1 million when comparing the three months ended September 30, 2024 and 2023, and increases in rates paid on interest-bearing liabilities, which increased 53 basis points when comparing the three months ended September 30, 2024 and 2023. The decrease in net interest income was partially offset by the increase in the average balance of interest-earning assets, which increased $54.7 million when comparing the three months ended September 30, 2024 and 2023, and increases in interest rates on interest-earning assets, which increased 40 basis points when comparing the three months ended September 30, 2024 and 2023.

      Average loan balances increased $60.4 million and the yield on loans increased 36 basis points when comparing the three months ended September 30, 2024 and 2023. Average balance of securities increased $13.7 million and the yield on such securities increased 45 basis points when comparing the three months ended September 30, 2024 and 2023. Average interest-bearing bank balances and federal funds decreased $19.4 million, while the yield increased 43 basis points when comparing the three months ended September 30, 2024 and 2023.

      The cost of NOW deposits increased 54 basis points, the cost of certificates of deposit increased 49 basis points, and the cost of savings and money market deposits increased 19 basis points when comparing the three months ended September 30, 2024 and 2023. The increase in the cost of interest-bearing liabilities was partially due to growth in the average balances of interest-bearing liabilities of $64.1 million. This was due to an increase in NOW deposits of $47.7 million and an increase in average certificates of deposits of $31.0 million, partially offset by a decrease in average savings and money market deposits of $39.3 million when comparing the three months ended September 30, 2024 and 2023. Average borrowings increased $24.7 million when comparing the three months ended September 30, 2024 and 2023. Yields on interest-earning assets and costs of interest-bearing deposits increased for the three months ended September 30, 2024, as the Company repriced assets and deposits due to the higher interest rate environment. The Company determines interest rates offered on deposit accounts based on current and future economic conditions, competition, liquidity needs, the asset-liability position of the Company and growing the retention of relationships.

    • Net interest rate spread and margin both decreased when comparing the three months ended September 30, 2024 and 2023. Net interest rate spread decreased 13 basis points to 1.76% for the three months ended September 30, 2024 as compared to 1.89% for the three months ended September 30, 2023. Net interest margin decreased 9 basis points to 2.03%, for the three months ended September 30, 2024 as compared to 2.12% for the three months ended September 30, 2023. The decrease was due to the higher interest rate environment, which caused competitive pressure to increase rates paid on deposits, resulting in higher interest expense. This was partially offset by increases in interest income on securities and loans, as they reprice at higher yields and the interest rates earned on new balances were higher than the levels from the prior periods.
    • Net interest income on a taxable-equivalent basis includes the additional amount of interest income that would have been earned if the Company’s investment in tax-exempt securities and loans had been subject to federal and New York State income taxes yielding the same after-tax income. Tax equivalent net interest margin was 2.29% and 2.37% for the three months ended September 30, 2024 and 2023, respectively.

    Credit Quality and Provision for Credit Losses on Loans

    • Provision for credit losses on loans amounted to $634,000 for the three months ended September 30, 2024 compared to $457,000 for the three months ended September 30, 2023. The loan provision for the three months ended September 30, 2024, was primarily attributable to updated economic forecasts used in the quantitative modeling as of September 30, 2024. The allowance for credit losses on loans to total loans receivable was 1.32% at September 30, 2024 compared to 1.28% at June 30, 2024.
    • Loans classified as substandard and special mention totaled $59.0 million at September 30, 2024 and $48.6 million at June 30, 2024, an increase of $10.4 million. The increase in loans classified was primarily due to downgrades of commercial real estate loans during the period ended September 30, 2024, that were considered to be performing and paying in accordance with the terms of their loan agreements. Of the loans classified as substandard or special mention, $55.3 million were performing at September 30, 2024. There were no loans classified as doubtful or loss at September 30, 2024 or June 30, 2024.
    • Net charge-offs on loans amounted to $114,000 and $93,000 for the three months ended September 30, 2024 and 2023, respectively, an increase of $21,000. There were no material charge-offs in any loan segment during the three months ended September 30, 2024.
    • Nonperforming loans amounted to $3.6 million at September 30, 2024 and $3.7 million at June 30, 2024. The activity in nonperforming loans during the period included $410,000 in loan repayments, $57,000 in charge-offs or transfers to foreclosure, $56,000 in loans returning to performing status, and $441,000 of loans placed into nonperforming status. Nonperforming assets were 0.13% of total assets at September 30, 2024 and June 30, 2024, respectively. Nonperforming loans were 0.25% of net loans at September 30, 2024 and June 30, 2024, respectively.

    Noninterest Income and Noninterest Expense

    • Noninterest income increased $438,000, or 13.3%, to $3.7 million for the three months ended September 30, 2024 compared to $3.3 million for the three months ended September 30, 2023. The increase for the three-month period was primarily due to an increase in fee income earned on customer interest rate swap contracts, and income from bank owned life insurance (“BOLI”). During the quarter ended December 31, 2023, the Company restructured $23 million of BOLI contracts, by surrendering and simultaneously purchasing new higher-yielding policies.
    • Noninterest expense increased $705,000, or 8.0%, to $9.6 million for the three months ended September 30, 2024 compared to $8.8 million for the three months ended September 30, 2023. The increase during the three months ended September 30, 2024 was primarily due to an increase of $387,000 in salaries and employee benefits, due to new positions created during the period to support the Company’s continued growth, an increase of $176,000 in service and data processing fees due to vendor price negotiations in prior periods, and an increase of $285,000 in the reserve for credit losses on off-balance sheet unfunded commitments, due to the Company’s increased contractual obligations to extend credit. This was partially offset by a decrease of $156,000 in computer software and support fees, as compared to the three months ended September 30, 2023.

    Income Taxes

    • Provision for income taxes reflects the expected tax associated with the pre-tax income generated for the given period and certain regulatory requirements. The effective tax rate was 6.4% for the three months ended September 30, 2024 and 13.0% for the three months ended September 30, 2023. The statutory tax rate is impacted by the benefits derived from tax-exempt bond and loan income, the Company’s real estate investment trust subsidiary income, and income received on the bank owned life insurance, to arrive at the effective tax rate. The decrease in the current quarter’s effective tax rate primarily reflects a higher mix of tax-exempt income from municipal bonds, tax advantage loans and bank owned life insurance in proportion to pre-tax income.

    Balance Sheet Summary

    • Total assets of the Company were $2.9 billion at September 30, 2024 and $2.8 billion at June 30, 2024, an increase of $48.8 million, or 1.7%.
    • Total cash and cash equivalents for the Company were $213.5 million at September 30, 2024 and $190.4 million at June 30, 2024. The Company has continued to maintain strong capital and liquidity positions as of September 30, 2024.
    • Securities available-for-sale and held-to-maturity increased $26.1 million, or 2.5%, to $1.1 billion at September 30, 2024 as compared to $1.0 billion at June 30, 2024. Securities purchases totaled $115.2 million during the three months ended September 30, 2024, and consisted primarily of $77.4 million of state and political subdivision securities, $24.7 million of U.S. Treasury securities, $9.2 million of collateralized mortgage obligations and $3.9 million of mortgage-backed securities. Principal pay-downs and maturities during the three months ended September 30, 2024 amounted to $97.0 million, primarily consisting of $66.5 million of state and political subdivision securities, $25.0 million of U.S. Treasury securities, $4.5 million of mortgage-backed securities, and $683,000 of collateralized mortgage obligations.
    • Net loans receivable remained at $1.5 billion at September 30, 2024 and June 30, 2024. Loan growth experienced during the three months ended September 30, 2024, consisted primarily of $15.3 million in commercial real estate loans, partially offset by a decrease of $11.5 million in commercial loans.
    • Deposits totaled $2.5 billion at September 30, 2024 and $2.4 billion at June 30, 2024, an increase of $96.7 million, or 4.1%. The Company had zero brokered deposits at September 30, 2024 and June 30, 2024, respectively. NOW deposits increased $87.9 million, or 5.0%, certificates of deposits increased $17.9 million, or 12.9%, and noninterest-bearing deposits increased $7.4 million, or 5.9% when comparing September 30, 2024 and June 30, 2024. Savings deposits decreased $7.9 million, or 3.2%, and money market deposits decreased $8.6 million, or 7.6%, when comparing September 30, 2024 and June 30, 2024.
    • Borrowings amounted to $142.5 million at September 30, 2024 compared to $199.1 million at June 30, 2024, a decrease of $56.6 million. At September 30, 2024, borrowings included $63.0 million of overnight borrowings with the Federal Home Loan Bank of New York (“FHLB”), $49.7 million of Fixed-to-Floating Rate Subordinated Notes, $25.0 million in the Bank Term Funding Program with the Federal Reserve Bank, and $4.8 million of long-term borrowings with the FHLB.
    • Shareholders’ equity increased to $216.3 million at September 30, 2024 compared to $206.0 million at June 30, 2024, resulting primarily from net income of $6.3 million and a decrease in accumulated other comprehensive loss of $5.6 million, partially offset by dividends declared and paid of $1.5 million.

    Corporate Overview

    Greene County Bancorp, Inc. is the holding company for The Bank of Greene County, and its subsidiary Greene County Commercial Bank. The Company is the leading provider of community-based banking services throughout the Hudson Valley and Capital Region of New York State. Its customers include individuals, businesses, municipalities and other institutions. Greene County Bancorp, Inc. (GCBC) is publicly traded on the Nasdaq Capital Market and is dedicated to promoting economic development and a high quality of life in the communities it serves. For more information on Greene County Bancorp, Inc., visit http://www.tbogc.com.

    Forward-Looking Statements

    This earnings release contains statements about future events that constitute forward-looking statements, as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by references to a future period or periods or by the use of the words “believe,” “expect,” “anticipate,” “intend,” “estimate,” “assume,” “will,” “should,” “could,” “plan,” and other similar terms of expressions. Forward-looking statements should not be relied on because they involve known and unknown risks, uncertainties and other factors, many of which are beyond the Company’s control. These risks, uncertainties and other factors may cause the actual results, performance or achievements expressed in, or implied by, the forward-looking statements to differ materially from those contemplated by the forward-looking statements. Factors that may cause such a difference include, but are not limited to, local, regional, national and international general economic conditions, including actual or potential stress in the banking industry, financial and regulatory changes, changes in interest rates, regulatory considerations, competition, technological developments, retention and recruitment of qualified personnel, changes in customer deposit behavior, and market acceptance of the Company’s pricing, products and services.

    The Company cautions readers not to place undue reliance on any forward-looking statements, which speak only as of the date made, and advises readers that various factors, including, but not limited to, those described above and other factors discussed in the Company’s annual and quarterly reports previously filed with the Securities and Exchange Commission, could affect the Company’s financial performance and could cause the Company’s actual results or circumstances for future periods to differ materially from those anticipated or projected.

    Unless required by law, the Company does not undertake, and specifically disclaims any obligations to, publicly release any revisions that may be made to any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements.

    For more information, please see our reports filed with the United States Securities and Exchange Commission (“SEC”), including our most recent annual report on Form 10-K and quarterly reports on Form 10-Q.

    Non-GAAP Measures

    In addition to presenting information in conformity with accounting principles generally accepted in the United States of America (GAAP), this news release contains financial information determined by methods other than GAAP (non-GAAP). The following measures used in this release, which are commonly utilized by financial institutions, have not been specifically exempted by the Securities and Exchange Commission (“SEC”) and may constitute “non-GAAP financial measures” within the meaning of the SEC’s rules.

    The Company has provided in this news release supplemental disclosures for the calculation of net interest margin utilizing a fully taxable-equivalent adjustment and pre-provision net income. Management believes that the non-GAAP financial measures disclosed by the Company from time to time are useful in evaluating the Company’s performance and that such information should be considered as supplemental in nature and not as a substitute for or superior to the related financial information prepared in accordance with GAAP.  Our non-GAAP financial measures may differ from similar measures presented by other companies. Refer to the tables on page 8 for Non-GAAP to GAAP reconciliations.

    (END)

    Greene County Bancorp, Inc.
    Consolidated Statements of Income, and Selected Financial Ratios (Unaudited)

      At or for the Three Months
      Ended September 30,
    (Dollars in thousands, except share and per share data)   2024     2023  
    Interest income $ 27,769   $ 24,672  
    Interest expense   14,633     11,233  
    Net interest income   13,136     13,439  
    Provision for credit losses   634     457  
    Noninterest income   3,737     3,299  
    Noninterest expense   9,550     8,845  
    Income before taxes   6,689     7,436  
    Tax provision   428     967  
    Net Income $ 6,261   $ 6,469  
         
    Basic and diluted EPS $ 0.37   $ 0.38  
    Weighted average shares outstanding   17,026,828     17,026,828  
    Dividends declared per share(4) $ 0.09   $ 0.08  
         
    Selected Financial Ratios    
    Return on average assets(1)   0.93 %   0.99 %
    Return on average equity(1)   11.86 %   14.09 %
    Net interest rate spread(1)   1.76 %   1.89 %
    Net interest margin(1)   2.03 %   2.12 %
    Fully taxable-equivalent net interest margin(2)   2.29 %   2.37 %
    Efficiency ratio(3)   56.60 %   52.84 %
    Non-performing assets to total assets   0.13 %   0.22 %
    Non-performing loans to net loans   0.25 %   0.38 %
    Allowance for credit losses on loans to non-performing loans   542.39 %   369.10 %
    Allowance for credit losses on loans to total loans   1.32 %   1.40 %
    Shareholders’ equity to total assets   7.52 %   6.85 %
    Dividend payout ratio(4)   24.32 %   21.05 %
    Actual dividends paid to net income(5)   24.48 %   21.05 %
    Book value per share $ 12.70   $ 10.82  
                 

    (1) Ratios are annualized when necessary.
    (2) Interest income calculated on a taxable-equivalent basis (non-GAAP) includes the additional interest income that would have been earned if the Company’s investment in tax-exempt securities and loans had been subject to federal and New York State income taxes yielding the same after-tax income.
    (3) The efficiency ratio has been calculated as noninterest expense divided by the sum of net interest income and noninterest income.
    (4) The dividend payout ratio has been calculated based on the dividends declared per share divided by basic earnings per share. No adjustments have been made to account for dividends waived by Greene County Bancorp, MHC (“MHC”), the Company’s majority shareholder, owning 54.1% of the shares outstanding.
    (5) Dividends declared divided by net income. The MHC waived its right to receive dividends declared during the three months September 30, 2022, December 31, 2022, March 31, 2023, June 30, 2023, December 31, 2023, March 31, 2024 and June 30, 2024. Dividends declared during the three months ended September 30, 2023 and September 30, 2024 were paid to the MHC.

    Greene County Bancorp, Inc.
    Consolidated Statements of Financial Condition (Unaudited)

      At
    September 30, 2024
      At
    June 30, 2024
    (Dollars In thousands, except share data)      
    Assets      
    Cash and due from banks $ 24,824     $ 13,897  
    Interest-bearing deposits   188,645       176,498  
    Total cash and cash equivalents   213,469       190,395  
           
    Long term certificate of deposit   2,579       2,831  
    Securities available-for-sale, at fair value   364,526       350,001  
    Securities held-to-maturity, at amortized cost, net of allowance for credit losses of $466 and $483 at September 30, 2024 and June 30, 2024   701,919       690,354  
    Equity securities, at fair value   339       328  
    Federal Home Loan Bank stock, at cost   4,795       7,296  
           
    Loans receivable   1,501,212       1,499,473  
    Less: Allowance for credit losses on loans   (19,781 )     (19,244 )
    Net loans receivable   1,481,431       1,480,229  
           
    Premises and equipment, net   15,498       15,606  
    Bank owned life insurance   57,898       57,249  
    Accrued interest receivable   14,909       14,269  
    Prepaid expenses and other assets   17,258       17,230  
    Total assets $ 2,874,621     $ 2,825,788  
           
    Liabilities and shareholders’ equity      
    Noninterest bearing deposits $ 132,897     $ 125,442  
    Interest bearing deposits   2,352,977       2,263,780  
    Total deposits   2,485,874       2,389,222  
           
    Borrowings, short-term   63,000       115,300  
    Borrowings, long-term   29,781       34,156  
    Subordinated notes payable, net   49,727       49,681  
    Accrued expenses and other liabilities   29,941       31,429  
    Total liabilities   2,658,323       2,619,788  
    Total shareholders’ equity   216,298       206,000  
    Total liabilities and shareholders’ equity $ 2,874,621     $ 2,825,788  
    Common shares outstanding   17,026,828       17,026,828  
    Treasury shares   195,852       195,852  
           

    The above information is preliminary and based on the Company’s data available at the time of presentation.

    Non-GAAP to GAAP Reconciliations

    The following table summarizes the adjustments made to arrive at the fully taxable-equivalent net interest margins.

      For the three months ended September 30,
    (Dollars in thousands)   2024     2023  
    Net interest income (GAAP) $ 13,136   $ 13,439  
    Tax-equivalent adjustment(1)   1,713     1,563  
    Net interest income-fully taxable-equivalent basis (non-GAAP) $ 14,849   $ 15,002  
         
    Average interest-earning assets (GAAP) $ 2,589,580   $ 2,534,918  
    Net interest margin-fully taxable-equivalent basis (non-GAAP)   2.29 %   2.37 %
                 

    (1) Interest income calculated on a taxable-equivalent basis (non-GAAP) includes the additional interest income that would have been earned if the Company’s investment in tax-exempt securities and loans had been subject to federal and New York State income taxes yielding the same after-tax income. The rate used for this adjustment was 21% for federal income taxes for the three months ended September 30, 2024 and 2023, 4.44% for New York State income taxes for the three months ended September 30, 2024 and 2023.

    The following table summarizes the adjustments made to arrive at pre-provision net income.

      For the three months ended
    (Dollars in thousands) September 30, 2024   June 30, 2024   September 30, 2023  
    Net income (GAAP) $ 6,261   $ 6,732   $ 6,469  
    Provision for credit losses on loans   634     (151 )   457  
    Pre-provision net income (non-GAAP) $ 6,895   $ 6,581   $ 6,926  
                       

    The above information is preliminary and based on the Company’s data available at the time of presentation.

    For Further Information Contact:
    Donald E. Gibson
    President & CEO
    (518) 943-2600
    donaldg@tbogc.com

    Nick Barzee
    SVP & CFO
    (518) 943-2600
    nickb@tbogc.com

    The MIL Network

  • MIL-OSI: Setting the Stage for Growth: Bank of Glen Burnie Names New Director of Commercial Banking and Vice President of Cash Management

    Source: GlobeNewswire (MIL-OSI)

    GLEN BURNIE, Md., Oct. 22, 2024 (GLOBE NEWSWIRE) — The Bank of Glen Burnie®, a wholly owned subsidiary of Glen Burnie Bancorp (NASDAQ: GLBZ), expanded its business banking team. Jonathan Shearin was named director of commercial banking and Ed Abedi was named vice president of cash management, announced Mark C. Hanna, President and CEO of Glen Burnie Bancorp and The Bank of Glen Burnie.

    Hanna commented, “We are thrilled to welcome Jonathan and Ed to the team. Growing our ability to serve the businesses of Anne Arundel County is goal number one for the Bank. As an independent, community-driven bank, we’re uniquely positioned to support small businesses—the backbone of job creation. Jonathan will champion this message in his role, ensuring that local companies know we have the products, services and people to meet their needs. Ed will play a key role in enhancing our digital services to keep pace with continually evolving demands.”

    Jonathan Shearin most recently served as a commercial relationship manager at Shore United Bank, where he worked with companies to provide banking solutions tailored to their operations and growth. Prior to this, he was a commercial relationship manager at Primis, overseeing and developing a portfolio of over $220 million. His banking career began with roles in treasury management and commercial lending at Eastern Virginia Bankshares, where he supported credit analysis and client management. He is a graduate of Randolph-Macon College in Ashland, Virginia, where he earned a Bachelor of Science in business with a concentration in finance.

    Shearin shared, “I am pleased to join the Bank of Glen Burnie. With a 75-year legacy of commitment to community and service, the Bank has deep roots in supporting local businesses. My focus will be on carrying forward that tradition, helping businesses thrive as we strengthen those connections.”

    Ed Abedi has over two decades of experience in commercial banking and treasury management. Most recently, he served as vice president of commercial banking at HTLF, a regional bank headquartered in Denver, Colorado. His previous roles include positions at First Horizon Bank, EagleBank, PNC, and Bank of America Merrill Lynch (now BofA Securities), where he specialized in treasury management and commercial banking solutions. Ed is a graduate of California’s San Francisco State University.

    Abedi shared, “The right digital banking tools enable companies to operate more efficiently and strategically. My role is to ensure businesses fully leverage these technologies to their advantage, which will enhance their overall experience with the Bank of Glen Burnie. I’m excited to join this team and to serve our valued customers as we continue to innovate.”

    About Glen Burnie Bancorp

    Glen Burnie Bancorp is a bank holding company headquartered in Glen Burnie, Maryland. Founded in 1949, The Bank of Glen Burnie® is a locally owned community bank with eight Anne Arundel County branches. The Bank is engaged in commercial and retail banking, including accepting demand and time deposits and originating loans to individuals, associations, partnerships, and corporations. The Bank’s real estate financing consists of residential first and second mortgage loans, home equity lines of credit and commercial mortgage loans. The Bank also originates automobile loans through arrangements with local automobile dealers. Additional information is available at thebankofglenburnie.com.

    Forward-Looking Statements

    The statements contained herein that are not historical financial information may be deemed to constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are subject to certain risks and uncertainties, which could cause the company’s actual results in the future to differ materially from its historical results and those presently anticipated or projected. These statements are evidenced by terms such as “anticipate,” “estimate,” “should,” “expect,” “believe,” “intend,” and similar expressions. Although these statements reflect management’s good faith beliefs and projections, they are not guarantees of future performance and they may not prove true. For a more complete discussion of these and other risk factors, please see the Company’s reports filed with the Securities and Exchange Commission.

    A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/634043fc-d456-4ff0-ab1a-e933cc748e3d

    A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/2fe23ee6-9936-4985-ad76-c6f68b1003f0

    The MIL Network

  • MIL-OSI: Five Star Bancorp Declares Third Quarter Cash Dividend

    Source: GlobeNewswire (MIL-OSI)

    RANCHO CORDOVA, Calif., Oct. 18, 2024 (GLOBE NEWSWIRE) — Five Star Bancorp (Nasdaq: FSBC) (“Five Star” or the “Company”), a holding company that operates through its wholly owned banking subsidiary, Five Star Bank (the “Bank”), announced today the declaration of a cash dividend of $0.20 per share on the Company’s voting common stock. The dividend is expected to be paid on November 12, 2024, to shareholders of record as of November 4, 2024.

    About Five Star Bancorp
    Five Star is a bank holding company headquartered in Rancho Cordova, California. Five Star operates through its wholly owned banking subsidiary, Five Star Bank. The Bank has eight branches in Northern California. For more information, visit https://www.fivestarbank.com.

    Special Note Concerning Forward-Looking Statements
    This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements represent plans, estimates, objectives, goals, guidelines, expectations, intentions, projections, and statements of the Company’s beliefs concerning future events, business plans, objectives, expected operating results, and the assumptions upon which those statements are based. Forward-looking statements include without limitation, any statement that may predict, forecast, indicate, or imply future results, performance, or achievements, and are typically identified with words such as “may,” “could,” “should,” “will,” “would,” “believe,” “anticipate,” “estimate,” “expect,” “aim,” “intend,” “plan,” or words or phases of similar meaning. The Company cautions that the forward-looking statements are based largely on the Company’s expectations and are subject to a number of known and unknown risks and uncertainties that are subject to change based on factors which are, in many instances, beyond the Company’s control. Such forward-looking statements are based on various assumptions (some of which may be beyond the Company’s control) and are subject to risks and uncertainties, which change over time, and other factors, which could cause actual results to differ materially from those currently anticipated. New risks and uncertainties may emerge from time to time, and it is not possible for the Company to predict their occurrence or how they will affect the Company. If one or more of the factors affecting the Company’s forward-looking information and statements proves incorrect, then the Company’s actual results, performance, or achievements could differ materially from those expressed in, or implied by, forward-looking information and statements contained in this press release. Therefore, the Company cautions you not to place undue reliance on the Company’s forward-looking information and statements. Important factors that could cause actual results to differ materially from those in the forward-looking statements are set forth in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 and Quarterly Reports on Form 10-Q for the three months ended March 31, 2024 and June 30, 2024, in each case under the section entitled “Risk Factors,” and other documents filed by the Company with the Securities and Exchange Commission from time to time.

    The Company disclaims any duty to revise or update the forward-looking statements, whether written or oral, to reflect actual results or changes in the factors affecting the forward-looking statements, except as specifically required by law.

    Investor Contact:
    Heather C. Luck, Chief Financial Officer
    Five Star Bancorp
    (916) 626-5008
    hluck@fivestarbank.com

    Media Contact:
    Shelley R. Wetton, Chief Marketing Officer
    Five Star Bancorp
    (916) 284-7827
    swetton@fivestarbank.com

    The MIL Network

  • MIL-OSI Banking: Retail Sales Remain Strong in September as Single-Family Starts Continue to Rebound

    Source: Fannie Mae

    Key Takeaways:

    • Retail sales and food services increased 0.4 percent in September, according to the Census Bureau. Sales at stores with big ticket items, including motor vehicle and parts dealers (flat over the month), furniture stores (-1.4 percent), and electronics and appliance stores (-3.3 percent) were generally soft. However, this was offset by strong sales at grocery stores (+1.0 percent), health and personal care stores (+1.1 percent), and miscellaneous store retailers (+4.0 percent), all of which may have been affected by consumers stocking up on goods in preparation for hurricanes. Sales at restaurants and bars were up 1.0 percent, their strongest monthly gain since November 2023. Control group retail sales (excluding food service, auto, building supplies, and gas station sales) increased by a strong 0.7 percent.
    • Industrial production, a gauge of output in the manufacturing, utility, and mining sectors, declined 0.3 percent in September, according to the Census Bureau. Additionally, August’s originally reported 0.8 percent gain was revised downward to just a 0.3 percent increase. Manufacturing activity declined 0.4 percent to 99.1. Mining activity declined 0.6 percent to 118.2, while utilities output rose 0.8 percent to 106.8.
    • Housing starts declined 0.5 percent in September to a seasonally adjusted annualized rate (SAAR) of 1.35 million, according to the Census Bureau. Single-family starts rose 2.7 percent to reach a SAAR of 1.027 million, a five-month high. This followed a 16.1 percent jump in August, which was a rebound after hurricane disruptions in July. Single-family permits were more measured with a 0.3 percent increase to a SAAR of 970,000, though that’s also the best pace since April. Multifamily starts declined 9.4 percent to a SAAR of 327,000, while multifamily permits declined 8.9 percent to a SAAR of 458,000.
    • The National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index increased 2 points to 43 in October, a four-month high. The index for single-family sales in the present rose 2 points to 47, while the index for single-family sales in the next six months rose 4 points to 57, the highest level since April. The index for the foot traffic of prospective buyers rose 2 points to a still subdued 29.
    Forecast Impact:

    The September retail sales report is supportive of our forecast for strong consumption in the third quarter. Control group retail sales, which flow directly into the Bureau of Economic Analysis’s estimate of personal consumption expenditures (PCE), have now posted strong increases for five consecutive months. We expect a bit of a slowdown in PCE in the fourth quarter toward something closer to the long-run trend growth rate, though we caution that recent hurricanes may distort the underlying trend in consumption growth over the next few months. Separately, the industrial production report continues to show that manufacturing activity has been roughly stagnant since January of last year. While this is more positive than the manufacturing surveys that have indicated the sector has been in outright contraction over that period, higher interest rates are likely continuing to weigh on growth in manufacturing.

    The strong gain in single-family starts was a bit above our expectations, though the typically more indicative series for single-family permits was in line with our forecast. While we expect some short-term volatility in the starts data following the hurricanes in Florida and surrounding states, the underlying trend for single-family construction remains positive. The particularly strong 4-point gain in the homebuilder confidence index for sales in the next six months adds to the bullish case for new home construction. Multifamily starts have been weaker, though, in line with our forecast. With a significant number of multifamily construction projects already underway, we expect multifamily starts will continue to soften through the end of 2024.


    Nathaniel Drake
    Economic and Strategic Research Group
    October 18, 2024

    Opinions, analyses, estimates, forecasts, beliefs, and other views of Fannie Mae’s Economic & Strategic Research (ESR) Group included in these materials should not be construed as indicating Fannie Mae’s business prospects or expected results, are based on a number of assumptions, and are subject to change without notice. How this information affects Fannie Mae will depend on many factors. Although the ESR Group bases its opinions, analyses, estimates, forecasts, beliefs, and other views on information it considers reliable, it does not guarantee that the information provided in these materials is accurate, current, or suitable for any particular purpose. Changes in the assumptions or the information underlying these views could produce materially different results. The analyses, opinions, estimates, forecasts, beliefs, and other views published by the ESR Group represent the views of that group as of the date indicated and do not necessarily represent the views of Fannie Mae or its management.

    MIL OSI Global Banks

  • MIL-OSI Africa: Afreximbank announces aim to double Creative Africa Nexus (CANEX) funding to $2 billion to boost Africa’s creative economy

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

    ALGIERS, Algeria, October 18, 2024/APO Group/ —

    President and Chairman of the Board of Directors of Afreximbank (www.AfreximBank.com), Professor Benedict Oramah, has announced that Afreximbank will increase its funding to the Creative Africa Nexus (CANEX) programme from $1 billion to $2 billion for the next three years. The announcement was made during the CANEX WKND 2024 opening ceremony in Algiers, Algeria, and underscores the Bank’s dedication to Africa’s growing creative economy.  

    The decision to double CANEX funding arises from a marked surge in demand across Africa’s creative sectors. Since 2022, Afreximbank has seen a significant increase in opportunities within industries from film production and music to fashion manufacturing and sports. With the newly increased $2 billion fund, Afreximbank aims to fulfil these verticals’ growing needs by providing infrastructure, financing, and other resources that will help Africa’s creative industries flourish on a global scale.  

    Professor Oramah observed that this expansion marks a historic progression in Afreximbank’s strategy to support the creative economy – from the Bank’s initial commitment of $500 million to the sector when CANEX launched in 2020. That figure, the President noted, increased to $1 billion in 2022 to satisfy demand. This upward trend reflects Afreximbank’s profound belief in the power of African creativity to drive economic growth and generate employment.  

    Commenting on the funding decision, Prof. Oramah said:  

    “As with many things in Africa, opportunities in the African creative industries abound but remain untapped. This is why Afreximbank has adopted a proactive approach to catalysing the industry. Today, I am pleased to announce a further doubling of our creative industry finance window to 2 billion US dollars for the next three years. This will enable us to support significant infrastructure investments for film production, stadia, arenas, manufacturing facilities for fashion, and training centres.” 

    The new funding will primarily focus on infrastructure development, which remains a key challenge in the creative sectors. Afreximbank plans to invest in film production facilities, music arenas, sports stadiums, and fashion manufacturing hubs across the continent. These projects aim to equip African creatives with the necessary tools and spaces to produce content and goods that can compete internationally.  

    Moreover, the fund will also support talent development. Afreximbank’s goal is to help nurture and train African creative professionals to international best-standards, ensuring they have the skills and resources to thrive.  

    Afreximbank also recognizes the need for innovative financing solutions tailored to the unique challenges of the creative economy. In response, the Bank is developing a $500 million private equity film fund through its impact equity arm, Fund for Export Development in Africa (FEDA). This initiative will finance film production and distribution, giving African filmmakers access to critical resources for creating content that can attract global audiences.  

    Another focus area for the Fund will be the fostering of collaborations between Africa and the Diaspora. The viability of this model has been demonstrated by partnerships such as that between African musicians and global artists like the Afro-Brazilian band OLODUM, which led to the production of the acclaimed “ONE Drum” EP. The expanded fund will enable more collaborations of this kind, amplifying African cultural expression and visibility on the global stage.  

    MIL OSI Africa

  • MIL-OSI United Nations: Note to Correspondents: 7th Annual Consultative Meeting of the African Union Peace and Security Council (PSC) and the United Nations Peacebuilding Commission (PBC)

    Source: United Nations secretary general





  • MIL-OSI USA: Pressley Applauds Student Debt Cancellation for 60,000 Additional Public Service Workers

    Source: United States House of Representatives – Congresswoman Ayanna Pressley (MA-07)

    Biden-Harris Admin. Has Now Cancelled Debt for Over 1 Million Public Service Workers, Including Over 22,000 in Massachusetts

    Under Project 2025, Public Service Loan Forgiveness Would Be Eliminated, Forcing 3.6M Workers to Pay $250B in Additional Debt

    BOSTON – Congresswoman Ayanna Pressley (MA-07) applauded the Biden-Harris Administration’s approval of approximately $4.5 billion in additional student debt cancellation for approximately 60,000 workers nationwide who work in public service. This relief, which is the result of significant fixes that the Administration has made to the Public Service Loan Forgiveness (PSLF) Program, brings the total loan forgiveness approved by the Administration to over $175 billion for more than 4.8 million Americans, which includes more than $73 billion for over one million borrowers through PSLF, including over 22,000 public service workers in Massachusetts.

    “Thanks to the improvements President Biden, Vice President Harris and Secretary Cardona have made to PSLF, over one million public service workers—including educators, nurses, first-responders, and more—have now received the life-changing and life-saving student debt relief they deserve,” said Congresswoman Pressley in a statement. “This program is an essential one that benefits not only borrowers but our communities writ large but helping to keep skilled and dedicated professionals in public service and recognizing our commitment to economic justice and educational opportunity. With Project 2025 threatening to eliminate PSLF and saddle borrowers in Massachusetts and across the country with billions in additional student loan debt, I’ll keep pushing to prevent that agenda from becoming reality and continue working to deliver this transformative relief to as many borrowers as possible.”

    More information on the Biden-Harris’ announcement is available here.

    Earlier this month, Rep. Pressley, co-founder of the Stop Project 2025 Task Force, joined the Student Borrower Protection Center (SBPC) and President of the American Federation of Teachers Randi Weingarten to unveil a groundbreaking state-by-state analysis quantifying the harm that Project 2025’s elimination of the PSLF would wreak on millions of workers. Under Project 2025, 3.6 million public service workers, including 78,000 in Massachusetts, would be forced to pay an additional $250 billion in student loan debt over the next decade.

    Rep. Pressley has been a leading voice in Congress urging President Biden to cancel student debt. Following years of advocacy by Rep. Pressley—in partnership with colleagues, borrowers, and advocates—the Biden-Harris Administration announced a historic plan to cancel student debt that stands to benefit over 40 million people. She has consistently helped borrowers access student debt cancellation resources, including PSLF, and she was proud to welcome a union educator and PSLF recipient as her guest to President Biden’s State of the Union Address in March.

    As a member of the House Oversight Committee, Rep. Pressley has repeatedly sounded the alarm on Project 2025, a bucket list extremist policies that would uproot every government agency and disrupt the lives of every person who calls America home.

    • On October 2, 2024, Rep. Pressley joined borrowers and advocates to unveil new state-by-state data quantifying the harm that Project 2025 would have on millions of public service workers nationwide.
    • On September 10, 2024, Rep. Pressley joined Senator Warren and Rep. Jim Clyburn in urging the U.S. Department of Education to consider terminating its contract with student loan servicer MOHELA.
    • On August 29, Rep. Pressley issued a statement following the Supreme Court’s refusal to reinstate President Biden’s Saving on a Valuable Education (SAVE) student debt relief program.
    • On August 9, 2024, Rep. Pressley joined Senator Warren, Representative Dean, and their colleagues urging student loan servicer Navient to reform its flawed process to cancel the private student loans of borrowers who attended fraudulent, for-profit colleges.
    • On June 25, 2024, Rep. Pressley issued a statement on federal judges in Missouri and Kansas siding with Republican states to block portions of President Biden’s Saving on a Valuable Education (SAVE) student debt relief program. 
    • On June 25, 2024, Rep. Pressley colleagues, borrowers, and advocates urged the Biden Administration to terminate the contract of federal student loan servicer MOHELA. Their calls follow MOHELA’s repeated failure to perform basic loan servicing functions and ongoing harm caused by MOHELA to student loan borrowers.
    • On May 20, 2024, Rep. Pressley, along with Reps. Omar, Clyburn and Wilson, led their colleagues in urging the U.S. Department of Education to ensure its proposed student debt relief rule is implemented in the most effective and efficient manner possible for millions of borrowers.
    • On May 1, 2024, Rep. Pressley issued a statement applauding the Biden Administration’s approval of student loan discharge for 317,000 borrowers who attended The Art Institutes, including over 3,500 borrowers in Massachusetts.
    • On April 14, 2024, Rep. Pressley applauded President Biden’s approval of an additional $7.4 billion in student debt cancellation for 277,000 borrowers.
    • On April 8, 2024, Rep. Pressley hailed President Biden’s announcement of new plans to provide student debt relief for tens of millions of borrowers across the country.
    • On March 21, 2024, Rep. Pressley applauded the Biden-Harris Administration’s approval of $5.8 billion in additional student loan debt cancellation for 77,700 public service workers.
    • On March 20, 2024, Rep. Pressley and Senator Elizabeth Warren led their colleagues in calling on federal agencies to end the practice of offsetting Social Security benefits to pay off defaulted student loans.
    • On March 7, 2024, Rep. Pressley welcomed Priscilla Higuera Valentine, a first generation American, a proud union educator with Boston Public Schools and the Boston Teachers Union, and the daughter of a Colombian immigrant, who has received over $117,000 in student debt relief under the Biden-Harris Administration’s improved Public Service Loan Forgiveness (PSLF) Program, as her guest to President Biden’s State of the Union Address.
    • On February 23, 2024, Rep. Pressley applauded the Biden-Harris Administration’s approval of $1.2 billion in student debt cancellation for nearly 153,000 borrowers nationwide, including $19.5 million in cancellation for 2,490 Massachusetts borrowers.
    • On January 26, 2024, Rep. Pressley and Senator Elizabeth Warren (D-MA) led their colleagues in calling on the Secretary of Education Miguel Cardona to host a fourth session of the student debt negotiated rulemaking to consider relief for borrowers experiencing financial hardship. She applauded ED’s announcement that it would heed their calls.
    • On December 11, 2023, Rep. Pressley testified at the U.S. Department of Education’s final hearing on student debt cancellation.
    • On December 11, 2023, Rep. Pressley and Senator Elizabeth Warren (D-MA), along with Senators Chuck Schumer (D-NY), Bernie Sanders (I-VT), Alex Padilla (D-CA), and Representatives Ilhan Omar (MN-05) and Frederica Wilson (FL-24), sent a letter to U.S. Secretary of Education Miguel Cardona, urging him to leverage his existing and full authority under the Higher Education Act to provide expanded student debt relief to working and middle-class borrowers. 
    • On November 30, 2023, Rep. Pressley emphasized the crucial role of the Consumer Financial Protection Bureau (CFPB) in protecting student loan borrowers from incompetent and predatory student loan servicers.
    • On November 6, 2023, Rep. Pressley joined Attorney General Andrea Campbell, Mayor Michelle Wu, and Senator Elizabeth Warren (D-MA) for a clinic to help federal student loan borrowers access a temporary opportunity to get closer to Public Service Loan Forgiveness (PSLF). 
    • On September 25, 2023, Rep. Pressley hosted a policy discussion with borrowers and advocates at which they renewed their urgent call for student debt cancellation with loan payments set to resume on October 1, 2023.
    • On August 23, 2023, Rep. Pressley, Sen. Warren, and their colleagues led over 80 lawmakers in a letter to President Joe Biden, urging him to swiftly deliver on his promise to deliver student debt cancellation to working and middle class families by early 2024. 
    • On August 22, 2023 Rep. Pressley applauded Governor Maura Healey’s plan to provide student debt relief for health care workers in Massachusetts. 
    • On June 30, 2023, Rep. Pressley responded to the President’s alternative proposal to deliver relief under the Higher Education Act and called for swift and efficient implementation.
    • On June 30, 2023, Rep. Pressley issued a statement slamming the Supreme Court’s decision to block President Biden’s student debt cancellation plan and calling on the President to use other tools available to swiftly cancel student debt.
    • On May 30, 2023, Rep. Pressley filed an amendment to H.R. 3746, legislation to raise the debt ceiling, to protect student loan borrowers and preserve the Biden Administration’s pause on federal student loan payments.
    • On May 24, 2023, Rep. Pressley issued a statement slamming Republicans’ harmful effort to overturn President Biden’s student debt relief, including his debt cancellation plan, the pause on student loan payments, and the expanded Public Service Loan Forgiveness (PSLF) program.
    • On May 24, 2023, Rep. Pressley delivered a powerful speech in support of President Biden’s plan to cancel student debt, which would benefit millions of people across the country.
    • On April 5, 2023, Rep. Pressley and Senator Elizabeth Warren wrote to the CEO of SoFi Technologies and SoFi Lending Corp calling on the company to answer for its lawsuits attempting to end the student loan payment pause and force borrowers back into repayment.
    • On March 7, 2023, Rep. Pressley, along with Sens. Warren, Schumer, Sanders, Padilla and Reps. Clyburn, Omar and Wilson led a letter to the Biden Administration expressing continued support for President Biden’s student debt relief plan.
    • On February 28, 2023, Rep. Pressley rallied with borrowers and advocates outside the Supreme Court to call on the Supreme Court to affirm the legality of President Biden’s student debt cancellation plan.
    • On November 22, 2022, Rep. Pressley issued a statement applauding the extension of the student loan payment pause.
    • On October 25, 2022, Rep. Pressley and Senator Warren toured communities across Massachusetts to celebrate the Biden administration’s student debt cancellation plan and help residents sign up for student loan relief.
    • On October 12, 2022, Rep. Pressley joined parent borrowers and advocates for a discussion on the impacts of student debt cancellation on parents and families.
    • On September 29, 2022, Rep. Pressley, along with Senate Majority Leader Schumer and Reps. Omar, Jones and advocates, held a press conference to call for swift and equitable implementation of President Biden’s student debt cancellation plan.
    • On September 21, 2022, Rep. Pressley delivered a powerful speech on the House floor in which she heralded President Biden’s action to cancel student debt for millions of families in the Massachusetts 7th and across the nation. Watch the full video here.
    • On September 12, 2022, Rep. Pressley and Senator Warren wrote to the nine federal student loan servicers to inquire about how they are providing borrowers with accurate and timely information about student loan cancellation.
    • On August 24, 2022, Congresswoman Pressley issued a statement applauding President Biden’s action to cancel student debt.
    • On August 10, 2022, Congresswoman Pressley and Senator Warren Massachusetts joined Massachusetts union leaders in Dorchester for a roundtable discussion on student debt cancellation.
    • On July 18, 2022, Congresswoman Pressley delivered remarks at the American Federation of Teachers (AFT) national convention and renewed her calls for President Biden to cancel student debt by executive action.
    • On July 8, 2022, Congresswoman Pressley with The Debt Collective hosted a virtual roundtable with student debt holders from all walks of life to highlight the intersectional burden the nearly $2 trillion student debt crisis has had on individuals and families. 
    • On June 22, 2022, Congresswoman Ayanna Pressley, with Senator Elizabeth Warren and Senate Majority Leader Chuck Schumer, joined AFL-CIO and union leaders for a roundtable discussion on the importance of student debt cancellation for American workers.
    • On May 20, 2022, Congresswoman Pressley applauded the Congressional Black Caucus’ (CBC) statement calling on President Biden to cancel student loan debt.
    • On May 4, 2022, Congresswoman Pressley visited Bunker Hill Community College to celebrate the $1 million in federal community project funding she secured and continued her calls for President Biden to cancel student debt.
    • On March 17, 2022, Congresswoman Pressley and Arisha Hatch, vice president and chief of campaigns at Color of Change, published an op-ed in Grio calling on President Biden to use his executive order authority to cancel up to $50,000 in student loan debt per borrower.
    • On December 8, 2021, Congresswoman Ayanna Pressley, Senator Elizabeth Warren, and Senate Majority Leader Chuck Schumer sent a bicameral letter to President Joe Biden releasing new data about the adverse impact of restarting student loan payments and calling on him to act to cancel up to $50,000 of student debt.
    • On December 2, 2021, Congresswoman Pressley delivered remarks on the House floor in which she reiterated her calls for President Biden to cancel $50,000 in federal student loan debt by executive action.
    • On October 8, 2021, Representatives Ayanna Pressley and Ilhan Omar and their House colleagues sent a letter to President Biden and Secretary of Education Miguel Cardona urging him to release the memo to determine the extent of the administration’s authority to broadly cancel student debt through administrative action.
    • On July 29, 2021, Congresswoman Pressley issued a statement reaffirming President Biden’s authority – and the urgency – to cancel student loan debt.
    • On June 23, 2021, Congresswoman Ayanna Pressley, Senator Elizabeth Warren, Senate Majority Leader Chuck Schumer, and Congressman Joe Courtney led their colleagues on a bicameral letter to President Biden calling on him to extend the pause on federal student loan payments.
    • On April 13, 2021, Congresswoman Pressley testified at a Senate Banking, Housing, and Urban Affairs Committee’s Subcommittee on Economic Policy hearing to examine the student loan debt crisis in our country.
    • On April 1, 2021, Congresswoman Pressley, along with Senator Elizabeth Warren and Massachusetts Attorney General Maura Healey, held a press conference calling on President Biden to tackle the student loan debt crisis.
    • On February 4, 2021, Congresswoman Pressley, along with several Democratic House and Senate leaders, led their colleagues in reintroducing a bicameral resolution outlining a bold plan for President Biden to tackle the student loan debt crisis. 
    • On December 17, 2020, Representatives Ayanna Pressley, Ilhan Omar, Maxine Waters, and Alma Adams introduced a resolution outlining a bold plan for President-elect Joe Biden to cancel up to $50,000 in Federal student loan debt for student loan borrowers.
    • On December 10, 2020, Congresswoman Pressley was in Yahoo Finance urging the Biden administration to cancel student debt, stressing the impact on Black borrowers.
    • On May 8, 2020, Representatives Ayanna Pressley, Alma Adams, and Ilhan Omar, led 28 of their colleagues and sent a letter to House Speaker Nancy Pelosi and House Minority Leader Kevin McCarthy calling for the universal, one-time, student debt cancellation of at least $30,000 per borrower in the next round of COVID-19 relief legislation.
    • On March 23, 2020, Representatives Ayanna Pressley and Ilhan Omar introduced the Student Debt Emergency Relief Act, legislation that provides immediate monthly payment relief for federal student loan borrowers.
    • On March 17, 2020, Congresswoman Ayanna Pressley and Senator Elizabeth Warren were on The Hill calling on congressional leadership to include student debt cancellation in the next coronavirus relief package.
    • On October 11, 2019, Congresswoman Pressley introduced legislation – the Ending Debt Collection Harassment Act – to protect consumers from abusive debt collection.
    • On July 17, 2019, Congresswomen Pressley introduced legislation – the Student Borrower Credit Improvement Act – to provide much needed support to private student loan borrowers with a pathway to financial stability by helping them improve their credit.

    ###

    MIL OSI USA News

  • MIL-OSI: Chino Commercial Bancorp Reports Quarterly Earnings

    Source: GlobeNewswire (MIL-OSI)

    CHINO, Calif., Oct. 18, 2024 (GLOBE NEWSWIRE) — The Board of Directors of Chino Commercial Bancorp (OTC: CCBC), the parent company of Chino Commercial Bank, N.A., announced the results of operations for the Bank and the consolidated holding company for the third quarter ended September 30, 2024.

    Net earnings year-to-date increased by 0.90% or by $33.2 thousand, to $3.74 million, as compared to $3.71 million for the same period last year. Year-to-date net earnings per share was $1.17 for the period ending September 30, 2024 and $1.16 for the same period last year. Net earnings for the third quarter of 2024, were $1.27 million, which represents a decrease of $7.6 thousand or 0.60% in comparison with the same quarter last year. Net earnings per basic and diluted share were $0.39 for the third quarter of 2024 and $0.40 for the same quarter in 2023, respectively.

    Dann H. Bowman, President and Chief Executive Officer, stated, “The Bank’s operating performance for the third quarter, and year-to-date continue to be strong. Total deposits reached an all time record at quarter-end, and we are optimistic about additional opportunities for growth and expansion. Loan quality also remains stable, with the Bank having only one delinquent loan at quarter-end, and year-to-date credit losses were a net recovery of $10,241, meaning that the Bank collected more bad debt than was charged-off.

    “In 2023 the Bank became a member of the Card Brand Association and began to offer Credit Card processing for its customers. Not only does this service provide an additional non-interest source of revenue, but the Bank has also been able to provide significant savings and transparency to its customers. For every business, efficient and cost effective processing of electronic payments has become a very important part of managing cash flow. In the future we can envision expanding this service outside of our immediate market; and the revenue from this service becoming an increasingly important part of the Bank’s business model.”

    Financial Condition

    At September 30, 2024, total assets were $464.4 million, an increase of $19.5 million or 11.68% over $446.4 million at December 31, 2023. Total deposits increased by $46.4 million or 14.52% to $366.2 million as of September 30, 2024, compared to $319.8 million as of December 31, 2023. At September 30, 2024, the Company’s core deposits represent 97.65% of the total deposits.

    Gross loans increased by $15.1 million or 8.4% to $194.4 million as of September 30, 2024, compared to $179.0 million as of December 31, 2023. The Bank had three non-performing loans for the quarter ended September 30, 2024, and as of December 31, 2023. OREO properties remained at zero as of September 30, 2024 and December 31, 2023 respectively.

    Earnings

    The Company posted net interest income of $3.4 million for the three months ended September 30, 2024 and $3.3 million for the same quarter last year. Average interest-earning assets were $442.1 million with average interest-bearing liabilities of $248.4 million, yielding a net interest margin of 3.08% for the third quarter of 2024, as compared to the average interest-earning assets of $442.9 million with average interest-bearing liabilities of $235.8 million, yielding a net interest margin of 2.98% for the third quarter of 2023.

    Non-interest income totaled $793.1 thousand for the third quarter of 2024, or an increase of 17.84% as compared with $673.1 thousand earned during the same quarter last year. The majority of the increase is attributed to the Company’s merchant services processing revenue that reached $129.2 thousand, representing an increase of $75.7 thousand during the third quarter as compared to $53.5 thousand for the same period last year.

    General and administrative expenses were $2.5 million for the three months ended September 30, 2024, and $2.2 million for the same period last year. The largest component of general and administrative expenses was salary and benefits expense of $1.5 million for the third quarter of 2024 and $1.4 million for the same period last year.

    Income tax expense was $500 thousand, which represents a decrease of $4 thousand or 0.77% for the three months ended September 30, 2024, as compared to $503 thousand for the same quarter last year. The effective income tax rate for the third quarter of 2024 and 2023 was approximately 28.3%.

    Forward-Looking Statements

    The statements contained in this press release that are not historical facts are forward-looking statements based on management’s current expectations and beliefs concerning future developments and their potential effects on the Company. Readers are cautioned not to unduly rely on forward-looking statements. Actual results may differ from those projected. These forward-looking statements involve risks and uncertainties, including but not limited to, the health of the national and California economies, the Company’s ability to attract and retain skilled employees, customers’ service expectations, the Company’s ability to successfully deploy new technology and gain efficiencies therefrom, and changes in interest rates, loan portfolio performance, and other factors.

    Contact: Dann H. Bowman, President and CEO or Melinda M. Milincu, Senior Vice President and CFO, Chino Commercial Bancorp and Chino Commercial Bank, N.A., 14245 Pipeline Avenue, Chino, CA. 91710, (909) 393-8880.

           
    Consolidated Statements of Financial Condition
    As of 9/30/2024      
      Sep-2024
    Ending Balance
      Dec-2023
    Ending Balance
    Assets      
    Cash and due from banks $56,235,795     $35,503,719  
    Cash and cash equivalents $56,235,795     $35,503,719  
           
    Fed Funds Sold $34,246     $25,218  
           
    Investment securities available for sale, net of zero allowance for credit losses $6,735,550     $6,736,976  
    Investment securities held to maturity, net of zero allowance for credit losses $187,751,860     $208,506,305  
    Total Investments $194,487,410     $215,243,281  
           
    Gross loans held for investments $194,405,145     $179,316,494  
    Allowance for Loan Losses ($4,460,580 )   ($4,465,622 )
    Net Loans $189,944,565     $174,850,872  
    Stock investments, restricted, at cost $3,576,000     $3,126,100  
    Fixed assets, net $7,204,530     $5,466,358  
    Accrued Interest Receivable $1,466,479     $1,439,178  
    Bank Owned Life Insurance $8,421,648     $8,247,174  
    Other Assets $3,583,393     $3,010,916  
           
    Total Assets $464,413,004     $446,414,238  
           
    Liabilities      
    Deposits      
    Noninterest-bearing $186,644,255     $167,131,411  
    Interest-bearing $179,588,806     $152,669,374  
    Total Deposits $366,233,061     $319,800,785  
           
    Federal Home Loan Bank advances $0     $15,000,000  
    Federal Reserve Bank borrowings $40,000,000     $57,000,000  
    Subordinated debt $10,000,000     $10,000,000  
    Subordinated notes payable to subsidiary trust $3,093,000     $3,093,000  
    Accrued interest payable $1,556,057     $2,156,153  
    Other Liabilities $2,145,941     $1,876,475  
    Total Liabilities $423,028,059     $408,926,413  
           
    Shareholder Equity      
    Common Stock ** $10,502,558     $10,502,558  
    Retained Earnings $32,664,661     $28,920,732  
    Unrealized Gain (Loss) AFS Securities ($1,782,273 )   ($1,935,465 )
    Total Shareholders’ Equity $41,384,946     $37,487,825  
           
    Total Liab & Shareholders’ Equity $464,413,004     $446,414,238  
           
    ** Common stock, no par value, 10,000,000 shares authorized and 3,211,970 shares issued and outstanding at 9/30/2024 and 12/31/2023
           
             
    Consolidated Statements of Net Income
    As of 9/30/2024        
      Sep-2024
    QTD Balance
    Sep-2023
    QTD Balance
    Sep-2024
    YTD Balance
    Sep-2023
    YTD Balance
    Interest Income        
    Interest & Fees On Loans $3,035,928   $2,467,400   $8,564,927   $7,245,563  
    Interest on Investment Securities $1,843,696   $1,166,387   $5,725,365   $3,444,135  
    Other Interest Income $661,305   $1,410,450   $2,181,584   $2,990,487  
    Total Interest Income $5,540,929   $5,044,237   $16,471,876   $13,680,185  
             
    Interest Expense        
    Interest on Deposits $1,168,014   $841,282   $3,255,683   $1,835,134  
    Interest on Borrowings $945,921   $877,179   $3,256,138   $2,112,955  
    Total Interest Expense $2,113,935   $1,718,461   $6,511,821   $3,948,089  
             
    Net Interest Income $3,426,994   $3,325,776   $9,960,055   $9,732,096  
             
    Provision For Loan Losses ($14,173 ) $6,578   ($15,312 ) ($81,806 )
             
    Net Interest Income After Provision for Loan Losses $3,441,167   $3,319,198   $9,975,367   $9,813,902  
             
    Noninterest Income        
    Service Charges and Fees on Deposit Accounts $445,176   $424,453   $1,345,691   $1,184,329  
    Interchange Fees $113,647   $106,418   $308,680   $314,803  
    Earnings from Bank-Owned Life Insurance $59,599   $48,677   $174,474   $142,799  
    Merchant Services Processing $129,184   $53,513   $410,722   $140,904  
    Other Miscellaneous Income $45,488   $39,989   $149,010   $130,747  
             
    Total Noninterest Income $793,094   $673,050   $2,388,577   $1,913,582  
             
    Noninterest Expense        
    Salaries and Employee Benefits $1,521,825   $1,381,721   $4,444,120   $4,101,388  
    Occupancy and Equipment $182,813   $164,092   $515,286   $485,502  
    Merchant Services Processing $77,452   $47,345   $222,055   $82,807  
    Other Expenses $684,102   $619,533   $1,964,230   $1,876,220  
             
    Total Noninterest Expense $2,466,192   $2,212,691   $7,145,691   $6,545,917  
             
    Income Before Income Tax Expense $1,768,070   $1,779,556   $5,218,253   $5,181,566  
    Provision For Income Tax $499,565   $503,424   $1,474,323   $1,470,859  
             
    Net Income $1,268,505   $1,276,132   $3,743,930   $3,710,707  
             
    Basic earnings per share $0.39   $0.40   $1.17   $1.16  
             
    Diluted earnings per share $0.39   $0.40   $1.17   $1.16  
             
    Effective Income Tax Rate   28.25 %   28.29 %   28.25 %   28.39 %
             
             
    Financial Highlights        
    As of 9/30/2024        
      Sep-2024
    QTD
    Sep-2023
    QTD
    Sep-2024
    YTD
    Sep-2023
    YTD
    Key Financial Ratios        
    Annualized Return on Average Equity   12.42 %   14.34 %   12.73 %   14.57 %
    Annualized Return on Average Assets   1.08 %   1.09 %   1.06 %   1.13 %
    Net Interest Margin   3.08 %   2.98 %   2.97 %   3.11 %
    Core Efficiency Ratio   58.44 %   55.33 %   57.87 %   56.21 %
    Net Chargeoffs/Recoveries to Average Loans   -0.01 %   0.00 %   -0.01 %   -0.02 %
             
             
    Average Balances        
    (thousands, unaudited)        
    Average assets $ 466,891   $ 463,977   $ 472,470   $ 439,669  
    Average interest-earning assets $ 442,078   $ 442,870   $ 447,855   $ 418,593  
    Average interest-bearing liabilities $ 248,448   $ 235,812   $ 255,169   $ 209,835  
    Average gross loans $ 192,243   $ 178,251   $ 187,406   $ 179,089  
    Average deposits $ 344,372   $ 340,261   $ 335,140   $ 333,225  
    Average equity $ 40,630   $ 35,312   $ 39,297   $ 34,046  
             
             
    Credit Quality        
    Non-performing loans $ 448,233   $ 492,242      
    Non-performing loans to total loans   0.23 %   0.27 %    
    Non-performing loans to total assets   0.10 %   0.11 %    
    Allowance for credit losses to total loans   2.29 %   2.49 %    
    Nonperforming assets as a percentage of total loans and OREO   0.23 %   0.27 %    
    Allowance for credit losses to non-performing loans   995.15 %   907.20 %    
             
    Other Period-end Statistics        
    Shareholders equity to total assets   8.91 %   8.40 %    
    Net Loans to Deposits   51.72 %   54.52 %    
    Non-interest bearing deposits to total deposits   50.96 %   52.26 %    
    Company Leverage Ratio   9.91 %   9.26 %    

    The MIL Network

  • MIL-OSI Russia: IMF Executive Board Completes the Fifth Review of the Extended Fund Facility Arrangement for Ukraine

    Source: IMF – News in Russian

    October 18, 2024

    • The IMF Board today completed the Fifth Review of the extended arrangement under the Extended Fund Facility (EFF) for Ukraine, enabling a disbursement of about US$1.1 billion (SDR 834.9 million) to Ukraine, which will be channeled for budget support.
    • Ukraine’s economy remains resilient, and performance remains strong under the EFF despite challenging conditions. The authorities met all end-June quantitative performance criteria and completed four structural benchmarks.
    • Sustained reform momentum, domestic revenue mobilization, and timely disbursement of external support are necessary to safeguard macroeconomic stability, restore fiscal and debt sustainability, and enhance institutional reforms.

    Washington, DC: The Executive Board of the International Monetary Fund (IMF) today completed the Fifth Review of the EFF arrangement for Ukraine, enabling the authorities to draw US$1.1 billion (SDR 834.9), which will be channeled for budget support. This will bring the total disbursements under the IMF-supported program to US$8.7 billion.

    Ukraine’s 48-month EFF arrangement, with access of SDR 11.6 billion (equivalent to US$15.5 billion, or about 577 percent of quota), was approved on March 31, 2023, and forms part of a US$151.4 billion support package for Ukraine. The authorities’ IMF-supported program helps anchor policies that sustain fiscal, external, and macro-financial stability at a time of exceptionally high uncertainty. The EFF aims to support the economic recovery, enhance governance, and strengthen institutions with the aim of promoting long-term growth in the context of reconstruction and Ukraine’s path to EU accession.

    All end-June and continuous quantitative performance criteria and indicative targets were met. The authorities have implemented prior action for the review, and completed structural benchmarks relating to tax privileges, public companies affected by the war, customs reform and public investment management, underscoring their continuing commitment to an ambitious reform agenda. Two structural benchmarks have been reset to allow more time for completion of the reform.

    The economy was more resilient than expected in the first half of 2024, with continued growth, moderate inflation, and adequate reserves bolstered by continued sizeable external support. Nevertheless, the outlook for the remainder of the year and 2025 has worsened since the Fourth Review, largely due to sustained Russian attacks on Ukrainian energy infrastructure and uncertainty about the war; overall, the outlook remains subject to exceptionally high uncertainty.

    Following the Executive Board discussion on Ukraine, Ms. Kristalina Georgieva, Managing Director of the IMF, issued the following statement[1]:

    1. Russia’s war in Ukraine continues to bring a devastating social and economic toll on Ukraine. Despite the war, macroeconomic and financial stability is being preserved through skillful policymaking by the Ukrainian authorities as well as substantial external support. The economy has remained resilient, despite significant damage to the energy infrastructure, reflecting the continued adaptability of households and firms.
    2. Ukraine’s performance and commitment under the program continues to be strong. All quantitative performance criteria for end-June were met, and those for end-September are expected to have been met. All but one structural benchmark through end-September were completed, while the missed structural benchmark has been reset to accommodate delays in the appointment process partly beyond the control of the authorities. Moreover, two structural benchmarks due later in the year and the prior action for the review was also implemented. The program remains fully financed with a cumulative external financing envelope of US$151 billion in the baseline and US$187 billion in the downside over the 4-year program period, including with new commitments from the Extraordinary Revenue Acceleration Loans for Ukraine (ERA) initiative.
    3. Looking ahead, the recovery is expected to slow amid headwinds from the impact of the attacks on energy infrastructure and the continuing war, while risks to the outlook remain exceptionally high. Preparedness is necessary to enable appropriate policy action should risks materialize.
    4. Ukraine’s financing needs remain large, driven by the continuing war. Timely and predictable external support—on terms consistent with debt sustainability—is essential to closing financing gaps and safeguarding stability. At the same time, decisive domestic revenue mobilization is critical for Ukraine to meet elevated spending needs, respond to shocks, and restore fiscal sustainability, which will require further tax policy measures as well as efforts to improve compliance and combat evasion, as envisioned under the National Revenue Strategy.

    Further strengthening medium-term budgeting, fiscal risk frameworks and transparency, and public investment management should advance in support of these goals.

    1. The Eurobond exchange in August was an important milestone in the authorities’ strategy to restore debt sustainability. Efforts to conclude the remaining steps in line with the authorities’ strategy and the program’s debt sustainability objectives should continue.
    2. Continued exchange rate flexibility under the managed exchange rate regime will help strengthen the resilience of the economy to external shocks. The recent uptick in inflation suggests limited room for further easing in the near term, though inflation remains well-anchored, and the FX cash market continues to show stability. A state-dependent and gradual approach to the easing of FX controls remains essential to safeguard FX reserves. The authorities’ efforts to avoid monetary financing should continue.
    3. The financial sector remains stable. Efforts should continue to strengthen bank resolution and supervision, governance, and contingency planning in view of risks to the outlook.
    4. Continuing the reform momentum in anticorruption and governance, including ensuring the effectiveness of anticorruption institutions and strengthening governance in the energy sector, remain essential to help contain fiscal risks, secure donor confidence and enhance growth, which would also support Ukraine’s path to EU accession.

    Table 1. Ukraine: Selected Economic and Social Indicators, 2021–33

     

    2021

    2022

    2023

    2024

    2025

    2026

    2027

     

     

     

    Act.

    Act.

    Act.

    Proj.

    Proj.

    Proj.

    Proj.

     

     

    Real economy (percent change, unless otherwise indicated)

    Nominal GDP (billions of Ukrainian hryvnias) 1/

    5,451

    5,239

    6,538

    7,542

    8,542

    9,715

    10,761

    Real GDP 1/

    3.4

    -28.8

    5.3

    3.0

    2.5-3.5

    5.3

    4.5

    Contributions:

    Domestic demand

    12.9

    -22.9

    13.9

    6.3

    5.1

    4.6

    4.3

    Private consumption

    4.7

    -16.8

    5.5

    3.1

    3.2

    3.8

    3.5

    Public consumption

    0.1

    12.5

    2.6

    -0.1

    -1.0

    -2.5

    -2.0

    Investment

    8.1

    -18.6

    5.8

    3.3

    2.9

    3.3

    2.7

    Net exports

    -9.5

    -5.9

    -8.6

    -3.3

    -2.6

    0.7

    0.2

    GDP deflator

    24.8

    34.9

    18.5

    12.0

    10.5

    8.0

    6.0

    Unemployment rate (ILO definition; period average, percent)

    9.8

    24.5

    19.1

    14.2

    12.7

    10.4

    9.4

    Consumer prices (period average)

    9.4

    20.2

    12.9

    5.8

    9.0

    7.7

    5.0

    Consumer prices (end of period)

    10.0

    26.6

    5.1

    9.0

    7.5

    6.6

    5.0

    Nominal wages (average)

    20.8

    1.0

    20.1

    16.6

    17.1

    14.1

    10.6

    Real wages (average)

    10.5

    -16.0

    6.4

    10.2

    7.5

    6.0

    5.3

    Savings (percent of GDP)

    12.5

    17.1

    9.7

    9.2

    5.2

    10.5

    16.4

    Private

    12.7

    30.2

    24.6

    25.5

    20.2

    15.7

    14.0

    Public

    -0.2

    -13.1

    -14.8

    -16.3

    -15.0

    -5.1

    2.5

    Investment (percent of GDP)

    14.5

    12.1

    15.1

    17.3

    19.5

    21.0

    22.3

    Private

    10.7

    9.6

    10.4

    14.8

    15.4

    16.6

    17.2

    Public

    3.8

    2.5

    4.8

    2.4

    4.1

    4.4

    5.1

    General Government (percent of GDP)

    Fiscal balance 2/

    -4.0

    -15.6

    -19.6

    -18.7

    -19.2

    -9.5

    -2.7

    Fiscal balance, excl. grants 2/

    -4.0

    -24.8

    -26.1

    -24.5

    -20.0

    -9.8

    -3.8

    External financing (net)

    2.4

    10.8

    16.5

    15.2

    18.2

    8.8

    3.3

    Domestic financing (net), of which:

    1.6

    5.0

    3.1

    3.5

    1.0

    0.8

    -0.6

    NBU

    -0.3

    7.3

    -0.2

    -0.2

    -0.2

    -0.1

    -0.1

    Commercial banks

    1.5

    -1.5

    2.5

    3.5

    1.0

    0.8

    -0.6

    Public and publicly-guaranteed debt

    50.5

    77.7

    82.3

    95.6

    106.6

    107.6

    102.6

    Money and credit (end of period, percent change)

    Base money

    11.2

    19.6

    23.3

    16.7

    13.2

    12.7

    12.4

    Broad money

    12.0

    20.8

    23.0

    15.4

    13.3

    11.9

    10.1

    Credit to nongovernment

    8.4

    -3.1

    -0.5

    9.0

    12.9

    21.5

    18.7

    Balance of payments (percent of GDP)

    Current account balance

    -1.9

    5.0

    -5.4

    -8.1

    -14.3

    -10.5

    -5.9

    Foreign direct investment

    3.8

    0.1

    2.6

    2.0

    2.1

    4.3

    4.9

    Gross reserves (end of period, billions of U.S. dollars)

    30.9

    28.5

    40.5

    42.6

    44.9

    49.1

    52.4

    Months of next year’s imports of goods and services

    4.5

    3.8

    5.1

    5.1

    5.4

    5.7

    6.0

    Percent of short-term debt (remaining maturity)

    67.5

    64.3

    89.5

    106.2

    106.3

    118.3

    124.5

    Percent of the IMF composite metric (float)

    104.4

    103.6

    124.3

    113.5

    104.7

    104.0

    106.9

    Goods exports (annual volume change in percent)

    35.1

    -43.7

    -15.4

    15.7

    6.2

    14.0

    6.3

    Goods imports (annual volume change in percent)

    17.0

    -24.1

    21.5

    14.1

    7.0

    8.8

    9.5

    Goods terms of trade (percent change)

    -8.4

    -11.6

    3.6

    0.3

    -1.8

    1.2

    1.4

    Exchange rate

    Hryvnia per U.S. dollar (end of period)

    27.3

    36.6

    38.0

    Hryvnia per U.S. dollar (period average)

    27.3

    32.3

    36.6

    Real effective rate (deflator-based, percent change)

    10.2

    27.5

    -1.5

    Memorandum items:

    Per capita GDP / Population (2017): US$2,640 / 44.8 million

    Literacy / Poverty rate (2022 est 3/): 100 percent / 25 percent

    Sources: Ukrainian authorities; World Bank, World Development Indicators; and IMF staff estimates.

    1/ GDP is compiled as per SNA 2008 and excludes territories that are or were in direct combat zones and temporarily occupied by Russia (consistent with the TMU).

    2/ The general government includes the central and local governments and the social funds.

    3/ Based on World Bank estimates.

    [1] At the conclusion of the discussion, the Managing Director, as Chairman of the Board, summarizes the views of Executive Directors, and this summary is transmitted to the country’s authorities. An explanation of any qualifiers used in summing up can be found here: http://www.IMF.org/external/np/sec/misc/qualifiers.htm.

    IMF Communications Department
    MEDIA RELATIONS

    PRESS OFFICER: Camila Perez

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

    @IMFSpokesperson

    https://www.imf.org/en/News/Articles/2024/10/18/pr24381-ukraine-imf-executive-board-completes-fifth-rev-eff-arrangement

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  • MIL-OSI Asia-Pac: National SC-ST hub mega conclave for creating awareness among SC-ST Entrepreneurs organised at Moga, Punjab

    Source: Government of India

    Posted On: 18 OCT 2024 6:29PM by PIB Delhi

    The Ministry of Micro, Small & Medium Enterprises (MSME), Government of India organized National SC-ST Hub (NSSH) Conclave at Moga, Punjab today to promote entrepreneurship culture and spread awareness of the NSSH Scheme and other Schemes of the Ministry. Ms. Mercy Epao, Joint Secretary, M/o MSME, Dr. Manjeet Bhatoya, Dy. Director General of Foreign Trade, Ministry of Commerce & Industry, Dr. Subhransu Sekhar Acharya, CMD, NSIC, Shri S. P. Angra, Addl. CEO, State Rural Livelihood Mission, Punjab, Shri Hitesh Veer Gupta, Asst. Commissioner, Govt. of Punjab, Shri S. S. Rekhi, GM (DIC) – Moga and other dignitaries were present. The event saw the participation around 700 aspiring and existing SC/ST entrepreneurs.

    Dr. Subhransu Sekhar Acharya, CMD, NSIC , in his opening remarks , briefed  all the dignitaries and participants about the day’s agenda and described the Public Procurement Policy of Government of India which mandated 4% public procurement from SC/ST enterprises and 3% from women enterprises. He said, for inclusive growth, Ministry of MSME implements the National SC-ST Hub Scheme with an objective of creating an ecosystem for SC/ST entrepreneurs and handholding them to participate in the public procurement to reach 4% mandate as per the public procurement policy. He further deliberated on the various initiatives implemented under the National SC-ST Hub scheme for SC/ST entrepreneurs.

    Addressing the conclave, Ms. Mercy Epao, Joint Secretary, M/o MSME emphasized the significant role of the MSME Sector in the Indian Economy.  She stated that MSMEs not only provide huge employment opportunities but also help in the industrialization of rural and backward areas. She highlighted that the contribution of MSMEs is nearly 30% to the GDP and 45% to exports from the country. The sector consists of more than 5.21 crore units (Udyam registered units) employing over 22.28 crore people. She urged the participants to take up entrepreneurship as a profession and be a producer and not only a consumer. She also highlighted the potential of various schemes of the Government of India to empower the MSME Sector and said that the entrepreneurs of the State will explore innovative ideas and business opportunities and avail maximum benefits of these schemes. She also informed about the recent initiative titled ‘Yashawini’ aimed at promoting women-led development through entrepreneurship.

    Ms. Ishita Thaman, Deputy Director, Office of Development Commissioner-MSME described about the PM Vishwakarma Scheme which provides end-to-end support to artisans and craftspeople of 18 trades who work with their hands and tools. The objective of the scheme is to help the traditional artisans and craftspeople to become entrepreneurs and self-reliant.  Information relating to Prime Minister’s Employment Generation Programme (PMEGP), Udyam Registration, etc. were also given. Shri S. P. Angra, Addl. CEO, SRLM, Punjab briefed about various initiatives for Self Help Groups under SRLM in the State of Punjab.

    A special technical session with CPSEs, Banks & Lending institutions was also held providing an interactive platform for aspiring and existing SC/ST entrepreneurs. The CPSEs like GAIL, BHEL, ESIC, NFL etc. gave presentations on their vendor empanelment process and shared the details of products/services that can be procured from SC/ST owned MSEs. The program had the participation of financial institutions such as SIDBI, Punjab & Sind Bank, Indian Overseas Bank and Punjab Gramin Bank, which detailed various lending schemes pertaining to the MSME sector. Other Government bodies like GeM, KVIC, NSFDC, NSTFDC, TRIFED, IFCI Venture Capital and NVCFL also participated in the program and deliberated on their schemes for MSMEs. The program included facilitation desks of PM Vishwakarma and UDYAM Registration for facilitating the on-the-spot registration of SC/ST MSEs participants in the Programme.

    ******

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  • MIL-OSI Asia-Pac: Text of the Vice-President’s address at the Indian School of Business (ISB) Leadership Summit at Mohali, Punjab

    Source: Government of India

    Posted On: 18 OCT 2024 9:20PM by PIB Delhi

    Very warm good afternoon to all of you. 

    Distinguished audience and most importantly boys and girls, I am here for you. It is an absolute delight to address this gathering, and why? you are young minds. You are young minds at the ISB. You are young minds at the moment, participating in the ISB Leadership Summit. Your set is the most significant stakeholder in governance and democracy.

    Our youth demographic dividend is the envy of the world at the moment and it is the fuel to our growth engine destined to accomplish a developed nation@2047. I must appreciate the management for having crafted such a theme.and the theme is leadership in India’s century. This bears boys and girls huge contemporaneous elements. And why not? It is for the first time in history that the voice of India, the voice of India’s Prime Minister, is heard with respect like never before. India has come to count. India has come to count in global affairs, consistent with its populace being a repository of knowledge and wisdom, home to one-sixth of humanity.

    Never before we had this enjoyable moment as we are having now. Having been elected to Parliament in 1989, I faced a situation where our foreign exchange reserves were one billion US dollars. One billion! We crossed 700 billion last week, what an accomplishment. 700 times something beyond a geometric leap. India is being looked upon as a nation that can legitimately address issues confronting the globe. And why not? India’s G20 presidency, according to one and all in the world, has set a very high benchmark but look at the outcomes:

    One, the African Union was made a member of the G20. Only the European Union was before. I’ll come to that later.

    But the Global South, most people like me have not heard of it. It’s a name that resonates and mind you, the armature contributed to the world in terms of populace and GDP.

    International Solar Alliance, International Yoga Day all have been fortified for the benefit of the world on account of one individual: India’s Prime Minister. His vision, his foresightedness, his commitment and therefore, it has great contemporaneous relevance.

    It has two parts: leadership and India’s century. To begin with, the Indian century. Bharat, our Bharat, is no longer a nation with promise, some people have wrong notions that India has arrived. They are mistaken, We are no longer a nation with promise, the promise has been realised, fully exploited. 

    We are a nation on the rise, the rise is unstoppable, the rise is incremental, the rise is continual. The rise is various elements that matter to our growth. Let me advert to some aspects that make Bharat a  land of hope and possibility and before that, all of you know it. Just a decade ago, what was the mood of the nation? We were in a state of despondency and dejection. The daily public domain discourse was one of scams, corruption, favouritism. What has been transformed in a decade? There is an over-pervasive mood of hope and possibility and I had seen those days 34 years ago when world institutions the IMF and the World Bank used to be dictatorial, like a teacher in a class for a student who has not done homework and we were just meekly sitting but look at what they say we are getting accolades from the International Monetary Fund. And the accolades is favourite global investment and opportunity destination, I had the occasion to meet the head of the IMF, an enormously talented lady. Every time she talked of India, it was in these words and why not? This is the ground reality. 

    Our technological advancements, deep penetration, and digitalisation are termed by the World Bank as ‘a global role model’. Indicated by a statement that what India accomplished in six years is otherwise not possible in over four decades plus. Our exponential economic upsurge makes Bharat the fastest-growing large global economy. India has transformed in the last decade, becoming a $4 trillion economy with 8% growth potential, expanding infrastructure with four new airports and one metro system built yearly. 

    Every year, four new airports and a metro. There is daily addition of 14 kilometres of highways quality highways, world-class highways and six kilometres of railways. Digital technologies have enabled massive public infrastructure projects, benefiting 85 million people with housing, 330 million with health coverage, and 29 million small businesses with loans annually. When I talk to global leaders, I have to be a little careful because the volume is so high. The numbers are so staggering that instantly a person would believe I have just added one or two zeros. Just imagine a country where you add 500 million bank accounts in the shortest time.

    India leads in digital transactions, should I give the figure to you? Hold your breath. 6.5 billion monthly digital transactions, and we have the third-largest startup ecosystem with 58 unicorns. With 800 global capability centres generating 60 billion US dollars yearly.

    There is significant expansion in education. Your Chairman, Vice-Chairman of the group, is associated with this venture in a meaningful way here and elsewhere. It is soothing for us all that Indian talent is increasingly relevant globally. You know young boys and girls. Indian human resources are dominating global discourse when it comes to corporate heads.

    Driving interest in mobility agreements, India now takes pride in its lunar and Mars missions. Vaccine production and growing importance in semiconductors, as was indicated by Mr. Mittal and engineering he knows it out of experience, and you all will gather when you take a big leap into the public domain. Manufacturing is the key to making us leap forward. 

    All this has happened because of leadership, the government’s historic continual third term after six decades focuses on growth and innovation. It will be interesting for you these initiatives will concern all of you. They broaden your basket of opportunities. They will ignite your talent, expertise, and potential, and fructify your aspirations, these include creating 12 industrial zones, industrial zone itself is a huge step. To boost manufacturing, we are prioritising skill development, improving logistics and this is not just one  it’s a jump in sync with other institutions stakeholders. Everything is converging to these developments, and therefore, results will be seen. Mr. Mittal referred to the Green Hydrogen Mission. I am so thrilled by it. ₹19,000 crores were allocated by the Government of India for the Green Hydrogen Mission. We are among the few countries with a single-digit focus on it. I know it will have to be negotiated through tough terrain. There will be headwinds, but the commitment is there. by 2030, we will have an investment of ₹6 lakh crores and an equal number of jobs. Who will provide these jobs? Your leadership will. You will be somewhere in the entire system to ensure the success of this Quantum Computing Commission. ₹6,000 crores were allocated, we are getting more into it. 

    A technology that is close to your heart—6G. It will be implemented in two phases, with commercialisation expected between 2025 and 2030. For a layman like me, it may not mean much for him and you, it will open enormous vistas of contribution, opportunities, and changes to the landscape of this country. These are the issues, all these can get cutting edge only with leadership. Without leadership, nothing happens. If you look into our ancient history, if a leader collapses white flag comes up. A leader is all-important. And a leader does not only mean the leader of a country. It means leadership in every walk of life. It could be in a small office, a branch office, a regional office, the head office everywhere, even on the board.

    India’s engagement with world nations is crucial, offering expanded markets and reliable supply chains. Our cooperation in green energy, urbanisation, and emerging technology, including AI, was reflected upon by Mr.Mittal. Electric mobility and semiconductors benefit global progress and strengthen collaboration but to fructify these collaborations, to generate synergetic strength, a leader has to be well-informed, a leader must know about it. 

    I had the occasion on on of the conclave where six vice presidents from Africa were present. Our interest in that continent, in agriculture, mining, and technology, can create wonders. Only our leaders need to measure up to those requirements. You are the future leaders, you are leaders in the making, your role and responsibilities will be very different once you take the leap and carry the tag of ISB. It is not that we are celebrating India’s century merely because India is going to be a force to reckon with but we are, and will be, a force for good in the world. That is fundamental.

    India stand for what? Our civilisational ethos essence. What was the motto of G20? “One world, one family, one future.”  vasudhaiva kutumbakam, that is our belief. Therefore, India’s rise in the world would mean global peace, global stability, and global harmony. You are as leaders in making principal stakeholders to generate this ecosystem. Now, what do you need in a scenario which was not there when Honourable Governor was a young man or Mr. Mittal was a young man or the dean was or I was? I shouldn’t forget Dr. Sudesh Dhankhar when she was. What we faced? There was no equality of opportunity. There was no equality before the law. Meritocracy was in the backseat. And what has happened now? A great transformation has shaped, everyone is now equal before the law. No one is above the law. No one is immune from the law. 

    The stranglehold of the law is reaching them, they are feeling the heat. The privileged pedigree is now no longer in existence that is the greatest boon to the young minds, to the boys and girls before me. You don’t need favour, you don’t need patronage. You are always concern would by case be handicapped because someone less meritorious has a contact. there can be patronage in favour of someone. Gone are those days. That’s a great gain for you.

    The second issue, which you painfully suffered from, was corruption. What could we do? A contract, a job, was available only through means where one had to grease the palm of someone. But boys and girls, fortunately for you, we were not so fortunate. The power corridors have been duly sanitised of corrupt elements and liaison elements  Mr. Mittal rose by virtue of being an industry leader, there were people who extra-legally influenced decision-making, where the industry had no option but to bend. That doesn’t happen now. Our governance is dictated only by principles of transparency and accountability. You are in that area now. What does this mean to you? It means that you have an ecosystem where you can fully exploit your talent and energy, realising your dreams and aspirations because nothing holds you back in a systemic manner. A great thing for you. 

    Let me remind you of something I saw myself as Governor-General of West Bengal. COVID. It was a challenge to humanity, a non-discriminatory challenge, and it was really difficult then for a population of more than 1.3 billion but the Prime Minister visualised a mechanism to involve the people at large. We had our own vaccines, but we hand-held hundred other countries by providing vaccines at that time. The handling by India of COVID pandemic earned laurels for us, for our health workers, and for our health warriors but some were uncomfortable. The class is small, but they are uncomfortable with anything good that happens in this country. Your leadership will need to neutralise these forces as well. Scientists have been talking about climate change since the 1970s. One thing I never forget is the year 1979. You may wonder why, I was married in 1979 to Dr. Sudesh Dhakhar. In that very year, I became a lawyer, and you will come to easily once you google. But that year,  there was a film Mad Max, It was a global sensation as it talked about the end of the world due to climate change. No one was bothered despite years of conversation, no one thought of harnessing solar energy. India’s visionary leadership came to the rescue of the world in relation to solar alliance in Gurugram more than 122 countries have already joined part with it. And our landscape all over the country is dotted by harnessing of solar energy. It was left to India. India did it.

    I have many reasons to say that India’s century will prove to be a global good. Think what we have done with governance solutions. We developed various technological solutions for digital identity management.  World’s largest and fastest financial inclusion, as I said earlier. 500 million Indian bank accounts when I wanted to become a lawyer, I needed a library, and I needed ₹6,000. A man like me throughout a gold medallist  had difficulty getting a loan of ₹6,000. I still vividly remember the face of the manager who said, “I’ll give you ₹6,000 without a guarantee.” I had none. That changed my life. And look what has happened, you people have everything at your door.

    You only have to look around avail the opportunity grab the opportunity serve yourself serve your family serve society and serve the nation. We made them open source for the world to use through our India stack programme. Now any developing country can use these solutions free of charge. Not only, the kind of products India has visualised are available to the world without any charge. As a matter of fact this has graduated to our soft diplomacy taking a new height. More than intellectual property we are concerned how can we shorten the path of good governance for the countries of the global south. And we are contributing hugely in several countries. Friends the more we rise the more stability it will provide to the world order. The world knows it. Some misguided souls in our country do not share it. Either they fail to come up to the requirements of this great nation and its citizenship or they are dictating their actions by narrow partisan interests self interest in some cases survival interests. This is India’s century friends that is not desirous of hegemony or domination but global public good.

    India is the only country in the world and it has a history of 5000 years. That has never engaged in expansion. India’s Prime Minister Narendra Modi is on record warning to the entire world we are not living in an era of expansion and that global disputes must resolutely be addressed through dialogue and diplomacy. Our journey, friends, is not over, we have so many things to assert. Economic upsurge, the third largest global economy at the moment, third largest global purchasing power, on the way to becoming the third largest economy ahead of Japan and Germany. All that. But we must realise that to be a developed nation, our per capita income has to go eightfold. 

    This is achievable because we have human resources in your shape that will bring it about. You are capable of it. And when you do it, you are opening a new basket of opportunities for employment, for entrepreneurship, and for growth. Our journey of progress is a work in progress nothing is given to expedite this journey. India needs next generation leaders who can drive innovation and change. 

    I am reminded of a Greek philosopher, Pre-Socrates Heraclitus, Heraclitus reflected and is highly quoted. The only constant is the change. Change is the only constant. He buttressed it. The same person cannot enter the same river twice. Neither the person is the same, nor the river is the same. So we are in the process of change. But we don’t have to be captive of change. We have to bring about the change which we need and this happens to be more relevant when it comes to disruptive technologies, Artificial intelligence, Internet of Things, machine learning, blockchain. These at the time were just words for me but I was enormously enlightened when I had a presentation by the senior ministry officials. And I know we are in for a big change. These disruptive technologies, as going by their name, are both challenges and opportunities. 

    In the world of finance, the RBI governor has hinted only a day or two before, we have to keep things in check for artificial intelligence. You as leaders will be creating opportunities out of these challenges. You are those who will be actual players when it comes to execution and implementation. Whatever be your role in the hierarchy, your mindset has to be ahead of times. I have no doubt with your commitment, direction and dedication, India will exploit its potential and make available leaders for global conglomerates and international organisations. Our footfalls have already increased, I remember there was a time when we could never imagine someone from this country would be CEO of an outfit in Silicon Valley and now they say, jokingly, can we have a CEO who is not of Indian origin? That’s where we have come. All this because our DNA on this point is very strong. 

    I must caution you. Don’t look at leadership in a my pick way, Leadership is not with respect to your balance sheet in the corporate entity. Leadership is not limited to the role of your sector. Like suppose you are in the telecom or metro sector, You might look beyond your company, but you normally don’t look beyond the sector and it is there that might appeal to you. Business and leadership schools, the one like yours, have additional responsibility towards public and good governance.

    You have to give something back to the society. And you have to give back to the society something in a structured manner which is not individually specific. Imagine the benefit for a government department that receives policy solution inputs based on innovation and leadership training at schools. 

    In this country, there is a long and successful programme of public-private partnership in infrastructure. We need public-private partnership in leadership and innovation also. I have long nurtured an idea. It has not taken wings. When the Vice-Chancellor of Punjab University invited me for a convocation, in my capacity as Chancellor, I made one fervent appeal and she has taken various steps in that direction. Alumni of institutions have great experience, great exposure, great expertise. Individually, they are talent. As a group, they are powerhouse, why not use that for the nation? And I therefore noted an idea. There must be confederation of alumni associations. They can well suggest to the government in the field of policy making, they can give direction to our economy because framing those policies needs all the inputs. They are not all-in-all. Sometimes a small suggestion can work wonders. I am sure some step will be taken. 

    I will make one appeal to Mr. Mittal and to the Dean, we have leadership now constitutionally structured at Village level because India is the only country that has constitutionally structured democracy at village level and Municipal level. Most nations have legislatures at State and Central level. Now a Sarpanch plays a key role, a Pradhan plays a key role, a zila Pramukh plays a key role. Their funds are at their disposal. If they do not come up to the leadership expectations, the political head and the executive head will not be able to work in togetherness or in tandem. To generate that awareness, to generate that expertise, an outfit of your stature can certainly create a module, a training module that will go a long way in helping them. Once some people come to know about the usefulness of it, it will be replicated on its own but a beginning has to be made because majority of Indians or Bharat is in villages. If their optimal utilisation of funds can take place, if good trends can set in there, the economy of the nation will also get a big leap. 

    My young friends, I will be adverting to another important aspect and that aspect is, I want to turn to a matter of national importance, and that is nationalism. The academia, the industry, leaders and students ponder here over the issue of leadership. I suggest you ponder over facets of leadership with Indian characteristics. Indian nation has to be kept at the centre. Whatever we may do in any part of the globe, our heart and soul reside in India and therefore, I urge that leadership should be deeply wedded to nationalism. Without this undergirding, without this split, no amount of leadership skills will serve the greater good of the nation. Such individuals can be successful. They can be known but they will never be able to in that group which earns respect to the nation. 

    Therefore, I urge everyone, serve your nation optimally, serve your nation with full dedication and this is uniform ordinance for all of us. It is not optional, it is the only way. You all are tomorrow’s leaders. You will have an occasion to make decisions, key commercial decisions. and therefore, imagine if you think of economic nationalism while making decisions. If that spirit is there in you, you will immediately find great gain to the nation. I firmly believe no fiscal gain, howsoever great, howsoever quantum in economic terms, can be a justification, reason or a compromise for nationalism. 

    A fiscal gain should never be a consideration when it comes to economic nationalism. Economic nationalism is fundamental to our growth. It has been indicated, be vocal for local or Swadeshi. But I leave it with you and find out, once I am gone, how much foreign exchange is drained out in avoidable imports. Billions of US dollars every year are being drained out for the import of shoes, socks, trousers, undergarments, coats, curtains, flooring, toys, kites, electronic goods, furniture. 

    All that can happen in this country. I am not advocating parochial protectionism. Mr. Mittal has been to global forums. He knows that this policy cannot be propagated. The World Trade Organisation is there but then it has to emanate from every soul in this country. Once you do that, not only will you save foreign exchange in billions of US dollars, you will create jobs for millions of people in this country. There will be blossoming of entrepreneurship and all these aspects are next to none so you young leaders, just after a few months or years, be ambassadors of economic nationalism for the nation. It will be your lasting contribution to the economy of this nation. 

    Friends, Mr. Mittal emphasised on manufacturing. It is critical, it is not only about manufacturing in India, but the idea is to research in India, innovate in India, design in India. The growth engine of the nation is fuelled by research and development. You know it. The nations that are ahead in research and development march ahead. This makes focus on research and development of paramount importance. I don’t want to say more, but industry has to do a lot in that direction. I need to find a corporate of our country to be amongst top 20 global entities to be in that field when it comes to research and development but I am urging industry and stakeholders and corporates to invest in research and development, hand-hold stakeholders, in unleashing their potential and provide impetus to holistic growth of the nation but I am worried on another aspect. Manufacturing is fine, sir. 

    But what a painful scenario to face, our raw materials leave our shores in shiploads. Look at iron ore being shipped from Paradigm. Look at our precious products going outside without value addition. I appeal to young leaders to reflect what is writing on the wall. We are sending raw material because we are not capable of converting it to value-added products. We are capable, but someone who has ownership of that raw material in a cosy room finds it expedient to make a buck fast, sacrificing economic nationalism. 

    In the process, he is coming in the way of your employment, your innovation, your skill development. It is here that trade organisations, commercial organisations, industry organisations must be on the same page. We must develop economic ethics that we will not export our raw material without value addition. Then we find another global way of finding. Minimum value addition. Once we do it, the economic scenario will show a big change.

    Well, I must reflect on a tribe to which I belong, to which the Honourable Governor belongs. Now we are constitutional functionaries. The politician, The leader in the politician must also be fired by the zeal of nationalism. He or she should keep national interest above partisan or self-interest. In a democracy partisan stance is unavoidable. People have to take partisan interest, partisan stance, partisan viewpoint, nothing wrong with that. But on some issues, issues of national security, issues of foreign policy, issues of diplomacy, issues of nationalism, there is no room for politics. We all as Indians are ambassadors of our nation and once we leave the source of this country, we are its representatives. Our political hat has to be kept behind. But what I find, people take journey outside, took to destinations, just to find public space, to target taint and demean our progress and institutions. Young leaders have full capacity to neutralise these forces. These sinister forces, they are being activated by interests that are inimical to Bharat. It is surfacing. I had the occasion to reflect this morning on National Human Rights Day. 

    They say, India, there can be hunger crisis. What are they talking? Since April 1, 2020, till now and for five more years to come, 850 million people of this country will be fed free meal. Rice and wheat and pulses are given to them. You know it, I know it. What are they talking about? Because some of us do not rise for the nation, but raise the flag only for political interest. We need to be that, discord and voices for parties and political purposes and gains is a matter of deep concern. I’m sure you youngsters will know it. Their strategy to begin with is very soothing. They make inroads after having made inroads, they try to create disruptions, divisiveness in a nation like ours. You have to be extremely alert.

    It is here in such kind of challenging situations that leadership trade are called inaction, be prepared for that. Let me talk something about economy. There was a gentleman who occupied a prominent position in the Reserve Bank of India not long ago. Now this gentleman made a partisan assertion. I quote the assertion, “India will be lucky if it can have 5% growth rate”. During that contemporaneous time, India had 7.5% growth rate to a layman like me, 5% and 7.5% make some meaning but for the dean and Mr. Mittal, even 0.01 matters. How wrong he was but go to the background, why did he make that statement? Why did he act in a manner only to bring down the healthy mood of the nation? And why were there no regrets? Or any justification for having made that statement? In such situations, leadership collective must be proactive. And call these people to the bar. Call to the bar for a lawyer is a normal term, therefore I used it.

    Just imagine, how sickening you will find and how frightening it is that a member of parliament holding a constitutional position will troop to foreign universities and then, in a small corner, of which the university members will be aware, and a small group will try to set afloat a narrative that is dangerous to our unity, our institutions, our national interest. A handful of people. This is a large gathering, well represented, It means a lot to me. Not in a fraction of it and such people we need to hand hold, counsel, and suggest in whatever form we can and that has to emanate from young minds. 

    Social media has given power to brilliant young impressionable minds to express themselves. Your silence on such kind of situations will ever resonate in your ears. A couple of years later you will feel, why did I not voice my concern? If I had voiced my concern, then things would have been slightly better and therefore, do it. If this mindset of placing narrow partisan interests over national interests persists, it will give space to whom? It will give space to those who are our enemies. Enemies to our interests. Do we want it? Certainly not. Friends, we are at a leadership summit.

    Think how over the years leadership programmes have used to indoctrinate young minds of the country by the deep state. I’ll focus on it at some length. I come across several people, including parliamentarians. I have been invited by young leadership forum in the US, some ministry has invited in that category, it is a sense of elation, a sense of joy.

    Be aware, be cautious. Those who have been there earlier, where are they now? It’s a subtle method of indoctrination. It is giving hard sugar to a diabetic patient, it is creating enemies of the nation from outside only by making their life affordable. I can give instances of many number of young minds today. You may be envying their life, but they are parasitical when it comes to financial situations. They are greedy and they act like robots. You have to be extremely careful about such leadership programmes which are all over the place.

    Through institutional mechanisms, they do it. Fellowships, they do it, visiting programmes, university affiliations, by this they groom them. They are brainwashed, indoctrinated. They themselves have not seen India. They are painted as if we are crumbling far from it. But an individual committed to nationalism will be able to thwart these moves. Even by being a part of it, he will be able to stand on his own spinally and thereby neutralise such forces. 

    Friends, as you move forward with many leadership initiatives through this institution, I want to leave you with two thoughts.

    First, I said earlier, nationalism as a part of leadership curriculum is the foremost curriculum as a matter of fact. Groom leaders who place the nation above all else, 

    Second, create leaders who will find Indian solutions for Indian and global problems. Bring this talent into the service of governance, create solutions, create partnerships to resolve challenges of everyday Indians, we are here to work for the average Indian, the average Indian who has to be handheld and helped. 

    My young friends, the nation needs you, it is India’s century. The world needs you but you will make this movement in history successful if you are deeply wedded to these values in this endeavour. My very best wishes to you. I leave this place with full optimism and confidence. 

    Thank you so much. 

    ****

    JK/RC/SM

    (Release ID: 2066248) Visitor Counter : 78

    MIL OSI Asia Pacific News

  • MIL-OSI Europe: Malta: EIB Vice President Kakouris unveils Green Gateway report during MDB Visit

    Source: European Investment Bank

    The Malta Development Bank (MDB) today welcomed EIB Vice President Kyriacos Kakouris for the official presentation of the Market Assessment and Recommendations Report under the Green Gateway Advisory initiative. This project, launched earlier this year, aims to fast-track climate action and sustainability investments across Malta.

    With backing from the EIB Group, which also includes the European Investment Fund (EIF), the MDB is enhancing its capabilities to identify, support, and finance green projects. This collaboration bolsters the MDB’s role, aligning it with international standards and enabling the Bank to tap into emerging green market opportunities.

    The report is a key deliverable of the MDB’s €30 million climate-action operation, funded by the EIB, which is focused exclusively on green and sustainable projects. In addition, the MDB is gearing up to introduce new schemes under the EIF InvestEU Sustainability Guarantee, designed to further boost the green transition of Maltese SMEs and small mid-caps.

    The Green Gateway Report pinpoints critical sectors in Malta’s economy ripe for green investment, particularly in climate action and environmental sustainability. It also assesses the MDB’s current portfolio, evaluating existing grant and financial products to highlight untapped investment potential.

    A central feature of the report is its detailed comparison of eligibility criteria across various EIB Group funding sources. This ensures a streamlined funding strategy, maximising efficiency and the potential for combining multiple financing sources.

    As part of the evaluation, four green financing solutions were proposed for discussion, focusing on electric vehicles, energy-efficient buildings, renewable energy, and waste management.

    “National promotional banks like the MDB in Malta are our key partners to back the economic growth of small and medium-sized companies and promote their green and digital transition,” remarked EIB Vice President Kyriacos Kakouris. “The Green Gateway Advisory initiative marks a strategic milestone for the MDB. By adopting innovative financing solutions, and with the support of the EIB Group, the MDB is setting the stage for significant environmental progress that will help Malta meet its climate targets.”

    Mr. Leo Brincat, Chairman of the MDB, added, “This partnership with the EIB enables us to take a leading role in advancing Malta’s sustainability agenda. With their support, the MDB is well-equipped to drive transformative projects that will strengthen the nation’s environmental resilience.”

    Mr. Paul V. Azzopardi, CEO of the MDB, commented that, “This Report is another step forward in enabling Malta’s transition to a greener economy. By fostering innovative funding solutions, we are not only addressing the urgent challenges of climate change but also ensuring sustainable growth for the country’s businesses and communities.”

    Background information

    European Investment Bank Group

    The European Investment Bank (EIB) is the long-term lending institution of the European Union owned by its Member States. It provides long-term financing for sound investments that contribute to EU policy. The Bank finances projects in four priority areas: infrastructure, innovation, climate and environment, and small and medium-sized enterprises (SMEs).

    The European Investment Fund (EIF) is part of the EIB Group. It supports Europe’s small and medium-sized enterprises (SMEs) by improving their access to finance through a wide range of selected financial intermediaries. The EIF designs, promotes and implements equity and debt financing instruments targeting SMEs. In this role, EIF fosters EU objectives in support of entrepreneurship, growth, innovation, research and development, the green and digital transitions and employment. In 2023, the EIF mobilized over €134 billion for the European economy, enhancing competitiveness, supporting innovative entrepreneurs, promoting social impact, fostering sustainability, and advancing the green transition. Going forward, EIF aims to strengthen financing access for European entrepreneurs, focusing on key sectors to drive sovereignty, competitiveness, and a greener, more inclusive future.

    Green Gateway 

    Financed with InvestEU Advisory Hub funds, the Green Gateway advisory programme was created by the EIB together with the European Commission to enable European financial institutions to invest in green projects. The Green Gateway’s advisory services aim to strengthen the skills, procedures and operational tools of EIB financial intermediaries to promote the planning, selection and financing of initiatives with positive environmental impact. The Green Gateway also offers an online portal full of guidelines, case studies and useful information on green investment. The portal provides access to the Green Eligibility Checker, a tool making it possible to assess the eligibility and climate impact of green economy investment projects in various sectors.

    MIL OSI Europe News

  • MIL-OSI Europe: EIB at #AnnualMeetings24: Reinforcing the global financial architecture and deploying innovative instruments to support countries in crisis

    Source: European Investment Bank

    • President Nadia Calviño and EIB Group delegation join partners at International Monetary Committee and World Bank Group Annual Meetings in Washington DC.
    • The EIB will announce new support for Ukraine and innovative financial instruments for countries on the frontline of climate change.
    • Alongside fellow Multilateral Development Banks, the EIB will play an active role in reinforcing the network of MDBs working more effectively as a system  

    The European Investment Bank Group (EIB) President Nadia Calviño travels to Washington DC next week, heading an EIB delegation to the annual meetings of the International Monetary Committee and World Bank Group.

    The EIB will announce new financing in Washington to support Ukraine and countries on the frontline of climate change. Accompanied by Vice-Presidents Ambroise Fayolle and Thomas Östros, as well as the Director General of EIB Global Andrew McDowell, the delegation will join international partners to present fresh solutions and innovative financing in line with the European Union’s Global Gateway Agenda.

    President Calviño said: “More than ever, the world needs joint solutions to the challenges we face. We need to cooperate and reinforce our joint tools to tackle high indebtedness, to support countries on the frontline of climate change, and build a fairer financial system. As the financial arm of the European Union, owned by the 27 member states, the EIB Group is playing its part. In Washington we are announcing new support for Ukraine. And alongside our partners we will also be signing new investments and backing innovative financing to support climate action and resilience. When we act together, we move further and faster.”

    The EIB in Washington:

    The EIB delegation will be taking part in a number of events on the margins of the Annual Meetings.You can find the highlights here.  

    For interview requests with members of the EIB delegation please get in touch with the .

    Background information

    The European Investment Bank (EIB) is the long-term lending institution of the European Union owned by its Member States. It is active in more than 160 countries and provides long-term finance for individual projects and strategic partnerships contributing to EU priorities and policy goals.

    EIB Global is the EIB Group’s specialised arm dedicated to investments outside the EU, building  international partnerships and financing projects contributing to development and climate action EIB Global brings the Group closer to local people, companies and institutions through our offices across the world

    MIL OSI Europe News

  • MIL-OSI Canada: Statement from Premier Pillai on Yukoner Appreciation Week and Small Business Week

    Source: Government of Canada regional news

    Premier and Minister of Economic Development Ranj Pillai has issued the following statement:

    “Yukoner Appreciation Week and Small Business Week are two well-loved, annual traditions that celebrate our incredible local businesses and the Yukoners who support them. 

    “This year, the Whitehorse Chamber of Commerce and the Business Development Bank of Canada have partnered to offer both events as one. This new, collaborative initiative highlights the adaptability and creativity of our local business community.

    MIL OSI Canada News

  • MIL-OSI United Nations: Experts of the Committee on the Elimination of Discrimination against Women Praise Cuba’s High Percentage of Women in Parliament, Ask about Measures to Address Sex Trafficking and Reduce the Burden of Unpaid Care Work

    Source: United Nations – Geneva

    The Committee on the Elimination of Discrimination against Women today considered the ninth periodic report of Cuba, with Committee Experts praising the State’s high percentage of women in Parliament, and asking about measures to protect women and girls from sex trafficking and reduce the burden of unpaid care work on women.  Committee Experts also discussed the impact that the United States’ economic blockade had on Cuban women’s rights.

    A Committee Expert welcomed that Cuba currently had one of the highest rates of female participation in Parliament worldwide.

    Rhoda Reddock, Committee Expert and Rapporteur for Cuba, raised the issue of the economic blockade on Cuba by the United States, which she said was estimated to have cost Cuba a significant percentage of its gross domestic product.  Had the State party had been able to address all the challenges that came with the blockade?

    One Committee Expert said there were concerning reports of sexual abuse of girls in the tourism industry and of criminalisation of women victims of sex trafficking.  When would the State party adopt a comprehensive law on trafficking with clear provisions on prevention and reparation for victims?

    Another Expert said women spent twice as much time doing domestic and care work compared to men, and there had been successive cuts to social care programmes.  How did the State party intend to sustain these programmes?

    Introducing the report, Inés María Chapman Waugh, Deputy Prime Minister of Cuba and head of the delegation, said women accounted for 56 per cent of members of Cuba’s Parliament, the second highest percentage in the world.  Around 80 per cent of judges in the judiciary were women; eight in every 10 prosecutors were women; and women made up 60 per cent of university graduates.  The State also had a high representation of women in its science and technology sector, she noted.

    Ms. Chapman Waugh said the United States’ financial blockage against Cuba was a flagrant violation of the rights of Cubans and it had disproportionately affected women. It had led to devastating shortages in medication, food and energy.  Progress in distributing the human papilloma virus vaccine, for example, had been hampered by the blockade.

    The delegation said Cuba had a zero-tolerance policy regarding all forms of trafficking.  Trafficking in persons had been included as a crime in the Criminal Code, as had forced labour.  The State did not criminalise women victims of trafficking.  Detection and combatting systems were in place in the tourism industry.

    The Government was calling for fair distribution of household and care work between men and women, the delegation said.  A recent decree on the national care system provided for a more equitable approach to care.  The State was training carers to provide formalised care for the aging population and raising awareness about the need for men and women to spend equal time on care duties.

    In closing remarks, Ms. Chapman Waugh said Cuba valued the recommendations of the Committee, which would be scrutinised with due rigour.  The Government was committed to implementing the Convention and promoting women’s rights.  It would do its utmost to achieve its goals in this regard, despite the economic blockade imposed by the United States.

    Ana Peláez Narváez, Committee Chair, in concluding remarks, said that the Committee commended Cuba for its efforts and called on the State party to implement the Committee’s recommendations for better implementation of the Convention for the benefit of all women and girls in the State.

    The delegation of Cuba consisted of representatives from the National Assembly of People’s Power; Ministry of Justice; National Secretariat of the Federation of Cuban Women; Ministry of Education; University of Havana; Ministry of Foreign Affairs; and the Permanent Mission of Cuba to the United Nations Office at Geneva.

    The Committee will issue the concluding observations on the report of Cuba at the end of its eighty-ninth session on 25 October.  All documents relating to the Committee’s work, including reports submitted by States parties, can be found on the session’s webpage.  Meeting summary releases can be found here.  The webcast of the Committee’s public meetings can be accessed via the UN Web TV webpage.

    The Committee will next meet in public at 10 a.m. on Monday, 21 October to consider the fifth periodic report of Benin (CEDAW/C/BEN/5).

    Report

    The Committee has before it the ninth periodic report of Cuba (CEDAW/C/CUB/9).

    Presentation of Report

    INÉS MARÍA CHAPMAN WAUGH, Deputy Prime Minister of Cuba and head of the delegation, said gender equality and the eradication of all forms of violence against women were objectives that Cuba and the Committee shared.  Almost 80 per cent of the Committee’s recommendations from the last review had been complied with.  Cuba was steadfastly committed to complying with its obligations under the Convention.

    Since 2019, Cuba had undergone a far-reaching process to strengthen its legislative framework. The 2019 Constitution promoted the right to equality and the prohibition of discrimination.  Direct and indirect discrimination had been prohibited in the Criminal Code.  The newly adopted Family Code defended women’s rights, permitted same-sex marriage, and set the age of marriage at 18.

    The national programme for the advancement of women was implemented in 2021.  It included 46 measures promoting women’s advancement and established a follow-up mechanism to ensure its implementation.  Under the programme, the State party adopted polices to promote the inclusion of women in the labour market.  Around 250 creches had been established to support working women.

    A Cuban association for persons with disabilities had been established, and the social assistance programme provided support for the children of women with disabilities. Around one quarter of women were self-employed.  The State’s unemployment rate was low, at around two per cent.  Six decree laws were recently adopted that promoted the protection of women working in the private sector.  The national response to the COVID-19 pandemic included benefits provided to working women and women who lost their jobs.  Over 60 per cent of persons who coordinated COVID-19 vaccination development in Cuba were women.

    Women accounted for 56 per cent of members of Parliament, the second highest percentage in the world.  In the Supreme Court, women accounted for 53 per cent of judges, while around 80 per cent of judges in the judiciary were women.  Eight in every 10 prosecutors were women.  Women made up 60 per cent of university graduates.  The State also had a high representation of women in its science and technology sector.  Care services accounted for a high percentage of the State budget.  The State party continued to work to collect cross-cutting and intersectoral data on women. 

    Cuba had developed robust legislation and a national action plan to tackle gender-based violence. It addressed direct and indirect violence in all settings.  In 2022, the murder of women was specifically criminalised in the Criminal Code. Education measures played a key role in preventing gender-based violence in the State.  In the coming days, Cuba would set up a data mechanism that would provide real-time information about violent deaths of women and girls, and a hotline for reporting violence against women.  Measures would also be implemented to address the disproportionate burden of care placed on women.

    The United States had been imposing a financial blockage against Cuba for several decades. This was a flagrant violation of the rights of Cubans and it had disproportionately affected women.  It had led to devastating shortages in medication, food and energy.  Progress in distributing the human papilloma virus vaccine, for example, had been hampered by the blockade.

    The Government was working to address macho stereotypes, and support women’s access to health, education and land.  Measures were implemented to support the many rural women who were engaged in low paid or unpaid work.  Programmes had also been implemented to address the high prevalence of teenage pregnancies.  Cuba promoted women’s bodily autonomy and allowed women to decide regarding abortion.

    Seventy per cent of the people murdered in the Gaza Strip were women and girls.  Ms. Chapman Waugh appealed for peace in the Middle East.

    Cuba, on the basis of its international commitments and in spite of the blockade placed upon it, would continue to do its best to implement the Convention and protect the rights of all women in its territory.

    Questions by a Committee Expert

    RHODA REDDOCK, Committee Expert and Rapporteur for Cuba, congratulated Cuba on its achievements over the years.  Cuba was the first country to sign and the second to ratify the Convention, and several Cuban experts had served on the Committee.  The economic blockade on Cuba by the United States had been in place since the 1960s.  It was estimated to have cost Cuba a significant percentage of its gross domestic product.  Cuba had also been added to the United States’ list of States that sponsored terrorism, further hindering Cuba’s access to resources.  Women were worst affected by this situation.  They were forced to spend most of their time working to obtain resources to support their families, and more than one million women and girls had fled the State to seek a better life.

    Ms. Reddock welcomed that the State party had introduced several laws to address discrimination and violence against women.  It was also promising that a National Ombudsperson’s Office had recently been established.

    The death penalty remained in place for more than 20 offences.  Were there plans to implement a moratorium?  The July 2021 protests against increasing shortages of fuel and food were met with disproportionately violent responses by State agents.  Many women protesters reportedly remained in detention.  There were also reports of poor conditions for women in Cuban prisons.  Were there plans to release the women protesters detained since 2021?  Was there a right of appeal for detained protestors?  What was the status of the National Ombudsperson?  Had it received complaints from women?

    Another Committee Expert welcomed efforts by the State party to disseminate the Convention and provide training for State agents on the Convention.  What concrete steps had been taken to enhance women’s awareness of their rights under the Convention?  How was the Committee disseminating the Convention among politicians and the judiciary? What was the national mechanism for monitoring the Committee’s recommendations?  What was the position of the State party on the ratification of the Optional Protocol?

    The Committee was concerned that the State party had failed to incorporate a comprehensive definition of discrimination against women in the Constitution or in State legislation. Why was this?  What legislative and policy measures were in place to address intersectional discrimination against women?

    Responses by the Delegation

    The delegation said access to justice was a constitutionally recognised right for all Cubans.  Men and women enjoyed the same legal status and the same rights with regard to succession.  Exorbitant fees could not be charged for legal aid services.  Around 700 pro-bono services were made available in 2024, the majority of which related to gender-based violence cases. 

    The National Ombudsperson was established in June 2023.  Its role was to protect and restore the rights of marginalised people, including women, young people, the elderly, and persons with disabilities.  It had received 102 complaints of violence and discrimination.  Forty-eight of these cases had been resolved; the rest were being reviewed.

    No authority could modify the rulings of courts or instruct judges.  The judiciary’s independence met the highest international standards.  The public was actively engaged in trials and rulings could be appealed.

    Cuba was in favour of removing the death penalty when the conditions were favourable to do so.  It had not been applied or handed down as a sanction for 20 years and had never been issued against a woman.  Four crimes had been removed from the list of crimes for which the death penalty could be applied. 

    There were no political prisoners in Cuba.  All prisoners had been sentenced for violating the law and had benefited from fair trial guarantees.  In the 2021 riots, there was vandalism and public and private property was destroyed. No country would allow such actions to go unpunished.  Criminal trials of persons who committed such actions were fair; rioters were prosecuted based on their actions, not their gender.

    Cuba engaged in ongoing awareness raising and training on the Convention and other international human rights instruments for civil servants and the judiciary.  There was also an awareness raising campaign for women and vulnerable groups.  The State party worked with local media and civil society to support this work. There were also post-graduate courses in universities on women’s empowerment and gender-based violence.

    The State party did not recognise the competence of any international treaty bodies to receive individual communications.  This was a long-standing position of the Government and there were no plans to change it.

    The State party had a follow-up mechanism to assess the implementation of the Convention and the national programme for the advancement of women.  It was working to ensure that women could play their full roles in the family, the economy and society.  The mechanism included representatives of all government bodies and civil society organizations.

    Cuba prohibited all forms of discrimination.  State legislation addressed discrimination based on sex and gender identity, amongst others.  The 2019 Constitution stated that international treaties ratified by Cuba were directly applicable in the State.  The State party had adopted over 400 decrees promoting gender equality.  An important example was the new Family Code, which placed gender equality at its core.  Members of parliament were provided with training on this legislation to ensure that they were able to apply it.  The national programme against racism and discrimination also addressed intersectional forms of discrimination.

    Questions by Committee Experts 

    A Committee Expert asked about the State party’s assessment of its efforts to disseminate the Convention. The Optional Protocol put into practical effect the rights of the Convention and would be of benefit to Cuba if it were ratified.

    RHODA REDDOCK, Committee Expert and Rapporteur for Cuba, asked if the State party had been able to address all the challenges that came with the United States’ blockade.

    Another Committee Expert shared deep concerns about the negative impact of unilateral coercive measures on human rights.  Businesses and multilateral actors needed to consider the impacts of overcompliance with sanctions, and States needed to act in line with their international obligations.

    One Committee Expert said the Federation for Cuban Women coordinated the national programme for the advancement of women.  How did the Federation mainstream gender equality across different sectors and promote the participation of women of African descent and women with disabilities in the creation of public policies?  How did it assist civil society organizations in efforts to promote gender equality?

    Cuba did not have a national human rights institute, but the National Ombudsperson might be a first step towards this.  How many complaints had it received from women?  To what extent had gender sensitivity training been provided?  Did the State party plan to establish a national human rights institute in accordance with the Paris Principles?

    Responses by the Delegation

    The delegation said that specialised training on international treaties was a challenge.  To address this, the State party had stepped up training of police, journalists and other stakeholders on the Convention, including in rural areas.  A gender approach was gradually being implemented in university textbooks. There was a communication strategy in place to promote positive portrayals of women in the media and prevent gender stereotypes.

    The State party did not recognise the competence of the treaty bodies to receive individual communications as Cuba believed that its national rights protection framework was sufficient.

    The economic blockade had primarily impacted women and families.  Banks did not allow Cuba to conduct many transactions, due to the State having been classified as a co-sponsor of terrorism.  This had hampered efforts to invest in energy and infrastructure. During the COVID-19 pandemic, there was a shortage of ventilators in hospitals, and the Government was unable to acquire them due to the blockade.  Twenty-five days of the blockade represented a year’s worth of financing required to acquire the basic basket of food and medical supplies for one year.  Eighteen days of the blockade covered a year’s worth of investment in fuel. Thirty-six hours of the blockade represented the annual cost of education materials in the country.

    Since the establishment of the Ombudsperson, it had dealt with 1,001 cases, 616 of which it had accepted for follow-up.  Over 300 of these cases had been resolved.  Two national workshops had been held to strengthen the capacity of Ombudsperson Office staff.  The State was working to ensure that women were aware of the national programme for women’s empowerment.  National and local groups provided follow-up on human rights issues affecting certain communities; these issues included racism, women’s empowerment, and the rights of persons with disabilities.  In all these fora, civil society participated actively.

    Among Cuban members of Parliament, there were 149 Afro descendants, representing over 30 per cent of members. Around 56 per cent of women members of Parliament were Afro descendants.  The State party was working to address discrimination and racism against this group.  A national observatory on racism had been established and there was a reporting line for lodging complaints of racism.  A national day for Afro-Latina and Afro-Caribbean women had been established. Over 60 civil society organizations representing these women participated in celebrations of this day.

    Questions by Committee Experts 

    A Committee Expert said the Federation of Cuban Women was very strong.  How did it support independent civil society organizations which did not belong to the Federation?

    Another Committee Expert asked whether the State party believed that there was a need to enact temporary special measures to support young girls and older women?  Were temporary special measures planned to address the phenomenon of rural to urban migration?

    RHODA REDDOCK, Committee Expert and Rapporteur for Cuba, commended the State party for continuing efforts to eliminate gender discrimination of women and carry out training and sensitisation programmes on gender discrimination.  How effective had these programmes been?  Would the State party consider establishing a multi-sectoral strategy to eliminate patriarchal stereotypes?  What work on gender stereotypes had been carried out with men and boys?  Schools reproduced gender ideologies.  To what extent were gender studies part of the teacher training curriculum?

    There were many legislative changes put in place related to gender-based violence since the last dialogue.  To what extent had the implementation of this legislation been affected by the economic blockade?  Were there official shelters for victims of gender-based violence and did the State party collaborate with civil society organizations that supported victims?  Was there a reparations procedure for victims?  Did the State party have an aversion to addressing femicide in its legislation?  What was the social perception of this phenomenon?

    One Committee Expert said that the State party had a zero-tolerance policy to trafficking.  However, there were concerning reports of sexual abuse of girls in the tourism industry and of criminalisation of women victims of sex trafficking.  When would the State party adopt a comprehensive law on trafficking with clear provisions on prevention and reparation for victims?  When would it review its Penal Code to criminalise the use of services of trafficking victims?  How would it prevent the revictimisation of trafficking victims? How many victims had been identified and assisted in the past year, and how many perpetrators had been prosecuted? Did the State party intend to include women’s non-governmental organizations in the process of identifying and preventing trafficking?  How was the State party training officials to respond to trafficking, including online trafficking activities?  What awareness raising campaigns were in place regarding trafficking?  How many shelters were available for victims of trafficking and what services did they provide?

    Responses by the Delegation

    The delegation said more than four million Cubans belonged to the Federation of Cuban Women.  The Federation of Cuban Women coordinated a working group on implementing the national programme on women’s empowerment, which also included civil society organizations that were not part of the Federation.

    Cuba had a tradition of enacting temporary special measures when needed.  For example, it had reopened children’s creches in workplaces. Measures were also being implemented to support women’s access to the basket of foodstuff and employment, and to support women and girls migrating from rural areas to cities.  The Government was supporting rural women to access livelihoods to reduce their need to migrate from rural areas.  There was a working group in place that addressed internal and external migration, developing policies to support migrants and manage urban development

    The national education system was being reviewed in 2023 and 2024 to strengthen guidelines for teachers. Issues such as gender inequality and sexual division of labour were being incorporated in students’ education. Intergenerational meetings were held with men and boys, in which elderly men taught boys about the importance of tackling gender stereotypes.

    The State party had a comprehensive legal framework and a national strategy to address gender-based violence. One of the goals of the strategy was to develop a comprehensive law on violence against women.  The Criminal Code imposed severe sanctions for the crime of murder of a women motivated by gender.  There were shelters for female victims of violence provided by grassroots organizations.  Workshops were held to coordinate the Government and civil society’s responses to gender-based violence.  Comprehensive reparations for violence could be sought through civil courts.  Members of parliament had discussed but had not agreed to include the concept of “femicide” within legislation.

    Cuba had a zero-tolerance policy regarding all forms of trafficking and was a State party to international instruments addressing various forms of trafficking.  Trafficking in persons had been included as a crime in the Criminal Code, as had forced labour.  There was a very low incidence of human trafficking in Cuba, thanks in part to the absence of significant organised crime networks.  Cuba had a national action plan and a national working group addressing trafficking.  The national action plan included strong measures promoting support for victims. The State did not criminalise women victims of trafficking. 

    State regulations prohibited sex tourism.  Detection and combatting systems were in place in the tourism industry.  The State party had identified a small number of foreigners in the country who were involved in facilitating child sex tourism, who were duly sentenced.  Over 700 training sessions had taken place for 7,000 workers in the tourism sector on the prevention of trafficking. 

    Cuba had published an annual report on trafficking that contained data on cases of trafficking before the courts. There were 14 prosecutions for trafficking crimes in 2023.  The State party did not criminalise prostitution but did punish pimping with severe penalties.  Social workers were supporting sex workers and the State was working to eradicate the root causes of women becoming involved in prostitution.

    Questions by Committee Experts 

    A Committee Expert welcomed that Cuba currently had one of the highest rates of female participation in Parliament worldwide.  However, a gender gap persisted in cabinet ministries, with only 18.5 per cent of ministerial positions being held by women.  Men were concentrated in the most influential spheres of Government.  How was the State party measuring the number of women in executive posts in the private sector?  Was it encouraging private sector bodies to promote women’s representation?  How many heads of standing committees in Parliament were women?  How many women civil society organizations were there and were they affected by laws preventing access to foreign funding?

    Another Committee Expert asked about circumstances in which Cuban women could lose their nationality.  Could the State party strip people of their nationality? Was there a mechanism for Cuban women born abroad to regain their nationality?

    Responses by the Delegation

    The delegation said Cuba had made significant progress over the reporting period regarding the representation of women in Parliament.  Three women played a key role in leadership of the Central Communist Party Committee and 46 per cent of members of this committee were women.  Six provinces had female governors; 80 per cent of vice-ministerial posts were held by women; and six of the 11 standing working committees of Parliament were led by women.  The State party had put in place an action plan to increase the representation of women in non-traditional sectors and in leadership positions, and to increase the number of women-owned enterprises.

    Civil society organizations could receive foreign funding, but not financing for activities that subverted the constitutional order.

    The Constitution regulated how citizenship was acquired.  The acquisition of citizenship of other States did not lead to the revoking of Cuban citizenship.  A new law on citizenship had been adopted but had not yet come into force.  The law would require persons who applied to renounce Cuban nationality to hold another nationality.

    Questions by Committee Experts 

    A Committee Expert asked if there was a follow-up mechanism in place to assess the number of women in executive posts.

    RHODA REDDOCK, Committee Expert and Rapporteur for Cuba, said that the President could issue decisions on the removal of citizenship.  Could this lead to statelessness?

    One Committee Expert commended Cuba for its efforts to make the right to education free and universal and to promote women’s academic achievements.  The Expert cited reports of an increased rate of teenage pregnancies in rural and remote areas, particularly for people of African descent.  When would the State party start implementing a sexual education programme?  How was it working around the economic blockade to support rural and Black women? How many rural and marginalised women were attending university?  Did the State party have legislation and policies that addressed bullying in schools and cyber bullying?  How did the State party ensure that women and men earned the same in the education sector?

    Another Committee Expert said women’s labour force participation rate was relatively low, at 39 per cent.  How would the State party increase this rate, particularly in the formal sector, and ensure that women in the informal sector had the same access to protections as in the formal sector?  What measures were in place to address the segregation of women in the workforce and to promote the employment of women of African descent and women with disabilities?  The State party had prohibited discrimination on the basis of employment.  How was this being implemented?  Women spent twice as much time doing domestic and care work, and there had been successive cuts to social care programmes.  How did the State party intend to sustain these programmes? 

    How effective was legislation promoting shared parental responsibility?  How was the State party working to prevent workplace sexual harassment? How many complaints of workplace harassment had been received since 2019?  What were the obstacles to the State party ratifying International Labour Organization Conventions 189 and 160?

    Responses by the Delegation

    The delegation said the national programme for the advancement of women included measures to assess the representation of women in construction, agriculture, mining and water resource fields, in which there were fewer women in executive posts.  The ministries of transport and energy and mining had vice-ministers who were women.  The Government would continue to undertake actions to incentivise women’s participation in non-traditional sectors.

    Citizens needed to comply with specific requirements to renounce nationality.  There needed to be serious circumstances, such as membership of an armed group that had attacked the State, for nationality to be deprived. The President authorised the deprivation of nationality.

    For the current school year, the State party had incorporated comprehensive sexual education into the common compulsory syllabus at both primary and secondary levels.  Students and their families had contributed to drafting a protocol to tackle violence in schools.  Capacity building on responding to violence was provided through conferences and training for teachers.  There was only a small number of girls who dropped out of school, but every effort was taken to encourage them to return.  This had led to a decline in the dropout rate in recent years.  At the secondary level, around 1,500 students with disabilities had graduated in the most recent school year.  There was no gender wage gap in the educational sector.

    Cuba was promoting the prevention of cyber violence.  The law on social communications established that online content could not be used to discriminate against any group on any grounds.  Online advertising could not employ stereotypical depictions of women. There was also legislation sanctioning online child pornography and bullying.  The Criminal Code addressed criminal activities using digital spaces. In the 10 years since the last review, access to the internet in Cuba had improved significantly, despite the United States’ blockade, which affected the telecommunications industry.

    The Government was calling for the fair distribution of household and care work between men and women.  A recent decree on the national care system provided for a more equitable approach to care.  The decree recognised that carers’ unpaid work made valuable contributions to society.  The State was training carers to provide formalised care for the aging population and raising awareness about the need for men and women to spend equal time on care duties.

    The Labour Code included a definition of workplace harassment.  If the victim was a subordinate to the perpetrator, or if the harassment was based on gender, higher sanctions were implemented.  Mechanisms for reporting harassment were in place in each workplace and complaints could also be submitted directly to the Government. 

    Women workers enjoyed the right to maternity leave, which had recently been extended to 15 weeks after the birth of a child.  The posts of women who took maternity leave were reserved for when they returned. The Government was also encouraging sharing of parental leave between mothers and fathers.  It had opened early childhood facilities across the country, increasing places in those facilities ten-fold.  Workplace creches provided childcare for 5,000 children.  Wage equality between men and women was established as a right within legislation.

    Cuba did not believe it was currently necessary to ratify International Labour Organization Convention 160.  It was a party to the main eight International Labour Organization Conventions.

    Questions by Committee Experts 

    A Committee Expert said the Committee welcomed actions taken by the State party to reduce under five mortality rates.  The life expectancy in Cuba had reached 81 years, which was remarkable.  The Government provided a public and free health care system.  Did it cover the needs of poor and rural women?  How did the State party succeed in being the first country to eradicate mother-to-child HIV and syphilis transmission?  There was a high level of teenage pregnancy in Cuba.  What measures were in place to provide affordable contraception to women and girls who needed it?  How was the State party reducing post-partum complications and ensuring the availability of family doctors in rural and remote areas?

    Another Committee Expert noted that there were multiple initiatives to promote women’s access to employment in fields such as agriculture.  The Government had promoted 20 affirmative actions in the rural sector to advance the empowerment of women.  What resources were available to women to succeed in business initiatives?  Were there opportunities for women to participate in the blue economy?  A law on the transfer of agricultural land had recently been enacted; how had it assisted rural women to access land?  To what extent had Cuba provided loans and credit for women?  Were there plans to improve data on women’s access to credit?

    Responses by the Delegation

    The delegation said that in 2023, there were around 27,500 general practitioners in the State party. Priority was attached to providing health services in rural areas. 

    The State party needed to continue to increase the percentage of women in agriculture and the percentage of women landowners.  The Government was supporting women to access bank loans.  It planned to collect data on recipients of bank loans, disaggregated by sex and ethnicity.

    Cuba had managed to keep prevalence rates of HIV at the lowest rates in Latin America through prophylaxis measures implemented with the support of the World Health Organization.  There were several programmes in place for the prevention and monitoring of sexually transmitted infections.

    Questions by Committee Experts 

    RHODA REDDOCK, Committee Expert and Rapporteur for Cuba, said that only 10 per cent of the agricultural land distributed by the Government had been distributed to women.  What factors were affecting women’s involvement in agriculture and their access to land?

    Another Committee Expert said that there were restrictions on people changing residence, particularly affecting women in the eastern part of the island.  Institutions had been authorised to find and deport people to their places of origin.  How would the State party guarantee the right to internal migration?

    Women deprived of liberty reportedly faced violence from staff and inmates.  How did the State party work with civil society to oversee prisons? Was prenatal care provided to pregnant women in prisons?

    How was the State party providing elderly women with basic care, food and services?  What steps had been taken to ensure substantive equality for women of African descent?  What services were provided for women with disabilities in rural areas?  How was the State party promoting the right to identity for lesbian, bisexual, transgender and intersex women?

    One Committee Expert said that the economic blockade on Cuba was a flagrant violation of the rights of Cubans, damaging their rights to food, education, health and other areas.  The Expert commended legislation that increased the age of marriage to 18.  How did the State party plan to address de facto unions with children?  How many criminal cases related to child marriage had there been in the last four years?

    Responses by the Delegation

    The delegation said the gender observatory was compiling data on women who owned land and worked in agriculture. The Government was working to support more rural women to gain access to land, State services and economic empowerment.

    The national health system had 53 different services for older persons delivered at the community level.  Cuba continued to promote access to services, cultural spaces and employment for persons with disabilities.  The State party was taking steps to ensure that Afro descendant women played their full role by supporting access to education and breaking down stereotypes.

    The treatment of detainees in Cuba was in line with the Mandela and Bangkok Rules.  The right to free medical care was provided in places of detention, along with recreational activities.  Women prisoners received differentiated treatment.  Support and care for children staying in prisons with their mothers was provided.

    The Family Code recognised same-sex marriage and assisted reproduction.  There had been 85 same-sex marriages between women in the last year. The State party was providing care and support for trans women.  Campaigns to tackle homophobia and transphobia were being rolled out across the country.

    Concluding Remarks 

    INÉS MARÍA CHAPMAN WAUGH, Deputy Prime Minister of Cuba and head of the delegation, thanked the Committee for the constructive dialogue.  Cuba valued the recommendations of the Committee, which would be scrutinised with due rigour.  The Government was committed to implementing the Convention and promoting women’s rights. It would do its utmost to achieve its goals in this regard, despite the economic blockade imposed by the United States.

    ANA PELÁEZ NARVÁEZ, Committee Chair, said that the Committee commended Cuba for its efforts and called on the State party to implement the Committee’s recommendations for better implementation of the Convention for the benefit of all women and girls in the State.

     

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

     

    CEDAW24.030E

    MIL OSI United Nations News

  • MIL-OSI: Oak Valley Bancorp Reports 3rd Quarter Results

    Source: GlobeNewswire (MIL-OSI)

    OAKDALE, Calif., Oct. 18, 2024 (GLOBE NEWSWIRE) — Oak Valley Bancorp (NASDAQ: OVLY) (the “Company”), the bank holding company for Oak Valley Community Bank and their Eastern Sierra Community Bank division, recently reported unaudited consolidated financial results. For the three months ended September 30, 2024, consolidated net income was $7,324,000, or $0.89 per diluted share (EPS), as compared to $5,889,000, or $0.71 EPS, for the prior quarter and $7,354,000, or $0.89 EPS, for the same period a year ago. Consolidated net income for the nine months ended September 30, 2024 was $18,940,000, or $2.30 EPS, compared to $24,983,000 or $3.04 EPS for the same period of 2023.

    The increase in third quarter net income compared to the prior quarter was primarily due to loan recoveries that resulted in a reversal of allowance for credit losses of $1,620,000. The QTD and YTD decreases compared to the same periods of 2023 were related to an increase in deposit interest expense and general operating expenses.

    Net interest income for the three months ended September 30, 2024 was $17,655,000, compared to $17,292,000 in the prior quarter, and $18,938,000 in the same period a year ago. The increase in net interest income over the prior quarter is attributed to earning asset growth and an increase of 3 basis points in the average earning asset yield. The decrease from the same period a year ago is due to an increase in deposit interest expense, as the average cost of funds increased to 0.83% bps for the third quarter of 2024, compared to 0.33% for the comparable period of 2023. The higher interest expense was partially offset by loan growth of $103.9 million over the same period. Net interest margin for the three months ended September 30, 2024 was 4.04%, compared to 4.11% for the prior quarter and 4.34% for the same period last year.

    “Our strong core deposits have helped manage funding costs and maintain a healthy net interest margin. Loan growth is crucial to minimizing future margin compression amid possible interest rate drops. Oak Valley was founded on service-focused relationship banking, which drives these efforts. Our success in growing relationships relies on standing out from our competitors by meeting and surpassing client expectations,” stated Rick McCarty, President and Chief Operating Officer.

    Non-interest income was $1,846,000 for the quarter ended September 30, 2024, compared to $1,760,000 for the prior quarter and $1,566,000 for the same period last year. The increases compared to prior periods was mainly due to unrealized gains on equity securities as a result of lower interest rates.

    Non-interest expense totaled $11,324,000 for the quarter ended September 30, 2024, compared to $11,616,000 in the prior quarter and $10,578,000 in the same quarter a year ago. The decrease compared to the prior period is mainly due to charitable contributions and data processing expense. The third quarter increase compared to the same period a year ago is mainly due to staffing expense and general operating costs related to servicing the growing loan and deposit portfolios.

    Total assets were $1.90 billion at September 30, 2024, an increase of $59.9 million and $65.1 million over June 30, 2024 and September 30, 2023, respectively. Gross loans were $1.08 billion at September 30, 2024, an increase of $5.1 million over June 30, 2024 and $103.9 million over September 30, 2023. The Company’s total deposits were $1.69 billion as of September 30, 2024, an increase of $45.6 million and $23.8 million from June 30, 2024 and September 30, 2023, respectively. Our liquidity position is very strong as evidenced by $213.9 million in cash and cash equivalents balances at September 30, 2024.

    Non-performing assets (“NPA”) remained at zero as of September 30, 2024, as they were for all of 2024 and 2023. The allowance for credit losses (“ACL”) as a percentage of gross loans increased to 1.07% at September 30, 2024, compared to 1.04% at June 30, 2024 and 1.00% at September 30, 2023. The increase over the prior quarter is due to macro-economic forecasts, loan growth and other credit-risk factors included in the ACL calculation which dictated an increase of $358,000 in the ACL. Loan recoveries totaled $2.0 million during the third quarter of 2024, which consisted of two loans that dated back to the recession. The net impact of the $2.0 million loan recoveries and the $358,000 increase in the ACL calculation resulted in a reversal of ACL provisions totaling $1.62 million. Given industry concerns of credit risk specific to commercial real estate, management has performed a thorough analysis of this segment as part of the CECL credit risk model’s ACL computation, concluding that the credit loss reserves relative to gross loans remains at acceptable levels, and credit quality remains stable.

    Oak Valley Bancorp operates Oak Valley Community Bank & their Eastern Sierra Community Bank division, through which it offers a variety of loan and deposit products to individuals and small businesses. They currently operate through 18 conveniently located branches: Oakdale, Turlock, Stockton, Patterson, Ripon, Escalon, Manteca, Tracy, Sacramento, Roseville, two branches in Sonora, three branches in Modesto, and three branches in their Eastern Sierra division, which includes Bridgeport, Mammoth Lakes, and Bishop.

    For more information, call 1-866-844-7500 or visit http://www.ovcb.com.

    This press release includes forward-looking statements about the corporation for which the corporation claims the protection of safe harbor provisions contained in the Private Securities Litigation Reform Act of 1995.

    Forward-looking statements are based on management’s knowledge and belief as of today and include information concerning the corporation’s possible or assumed future financial condition, and its results of operations and business. Forward-looking statements are subject to risks and uncertainties. A number of important factors could cause actual results to differ materially from those in the forward-looking statements. Those factors include fluctuations in interest rates, government policies and regulations (including monetary and fiscal policies), legislation, economic conditions, including increased energy costs in California, credit quality of borrowers, operational factors and competition in the geographic and business areas in which the company conducts its operations. All forward-looking statements included in this press release are based on information available at the time of the release, and the Company assumes no obligation to update any forward-looking statement.

    Contact: Chris Courtney/Rick McCarty
    Phone: (209) 848-2265
      http://www.ovcb.com
    Oak Valley Bancorp
    Financial Highlights (unaudited)
                 
    ($ in thousands, except per share) 3rd Quarter 2nd Quarter 1st Quarter 4th Quarter 3rd Quarter
    Selected Quarterly Operating Data:   2024     2024     2024     2023     2023  
                 
      Net interest income $ 17,655   $ 17,292   $ 17,241   $ 17,914   $ 18,938  
      (Reversal of) provision for credit losses   (1,620 )           1,130     300  
      Non-interest income   1,846     1,760     1,519     1,755     1,566  
      Non-interest expense   11,324     11,616     11,529     10,760     10,578  
      Net income before income taxes   9,797     7,436     7,231     7,779     9,626  
      Provision for income taxes   2,473     1,547     1,504     1,914     2,272  
      Net income $ 7,324   $ 5,889   $ 5,727   $ 5,865   $ 7,354  
                 
      Earnings per common share – basic $ 0.89   $ 0.72   $ 0.70   $ 0.72   $ 0.90  
      Earnings per common share – diluted $ 0.89   $ 0.71   $ 0.69   $ 0.71   $ 0.89  
      Dividends paid per common share $ 0.225   $   $ 0.225   $   $ 0.160  
      Return on average common equity   16.54 %   14.19 %   13.86 %   16.44 %   19.85 %
      Return on average assets   1.56 %   1.30 %   1.26 %   1.27 %   1.57 %
      Net interest margin (1)   4.04 %   4.11 %   4.09 %   4.15 %   4.34 %
      Efficiency ratio (2)   56.96 %   59.12 %   59.61 %   53.08 %   49.89 %
                 
    Capital – Period End          
      Book value per common share $ 22.18   $ 20.55   $ 19.97   $ 20.03   $ 16.29  
                 
    Credit Quality – Period End          
      Nonperforming assets / total assets   0.00 %   0.00 %   0.00 %   0.00 %   0.00 %
      Credit loss reserve / gross loans   1.07 %   1.04 %   1.05 %   1.07 %   1.00 %
                 
    Period End Balance Sheet          
    ($ in thousands)          
      Total assets $ 1,900,455   $ 1,840,521   $ 1,805,739   $ 1,842,422   $ 1,835,402  
      Gross loans   1,075,138     1,070,036     1,039,509     1,016,579     971,243  
      Nonperforming assets                    
      Allowance for credit losses   11,479     11,121     10,922     10,896     9,738  
      Deposits   1,690,301     1,644,748     1,612,400     1,650,534     1,666,548  
      Common equity   185,393     171,799     166,916     166,092     135,095  
                 
    Non-Financial Data          
      Full-time equivalent staff   222     223     219     222     225  
      Number of banking offices   18     18     18     18     18  
                 
    Common Shares outstanding          
      Period end   8,358,711     8,359,556     8,359,556     8,293,168     8,293,468  
      Period average – basic   8,221,475     8,219,699     8,209,617     8,200,177     8,197,083  
      Period average – diluted   8,263,790     8,248,295     8,244,648     8,236,897     8,232,338  
                 
    Market Ratios          
      Stock Price $ 26.57   $ 24.97   $ 24.78   $ 29.95   $ 25.08  
      Price/Earnings   7.52     8.69     8.86     10.55     7.05  
      Price/Book   1.20     1.22     1.24     1.50     1.54  
                 
    (1) Ratio computed on a fully tax equivalent basis using a marginal federal tax rate of 21%.
    (2) Ratio computed on a fully tax equivalent basis using a marginal federal tax rate of 21%.
      A marginal federal/state combined tax rate of 29.56%, was used for applicable revenue.
                 
                 
        NINE MONTHS ENDED SEPTEMBER 30,      
    Profitability   2024     2023        
    ($ in thousands, except per share)          
      Net interest income $ 52,188   $ 57,888        
      Provision for (reversal of) credit losses   (1,620 )   (160 )      
      Non-interest income   5,125     4,876        
      Non-interest expense   34,469     30,397        
      Net income before income taxes   24,464     32,527        
      Provision for income taxes   5,524     7,544        
      Net income $ 18,940   $ 24,983        
                 
      Earnings per share – basic $ 2.30   $ 3.05        
      Earnings per share – diluted $ 2.30   $ 3.04        
      Dividends paid per share $ 0.450   $ 0.320        
      Return on average equity   14.90 %   23.71 %      
      Return on average assets   1.38 %   1.76 %      
      Net interest margin (1)   4.08 %   4.39 %      
      Efficiency ratio (2)   58.55 %   47.48 %      
                 
    Capital – Period End          
      Book value per share $ 22.18   $ 16.29        
                 
    Credit Quality – Period End          
      Nonperforming assets/ total assets   0.00 %   0.00 %      
      Credit loss reserve/ gross loans   1.07 %   1.00 %      
                 
    Period End Balance Sheet          
    ($ in thousands)          
      Total assets $ 1,900,455   $ 1,835,402        
      Gross loans   1,075,138     971,243        
      Nonperforming assets              
      Allowance for credit losses   11,479     9,738        
      Deposits   1,690,301     1,666,548        
      Stockholders’ equity   185,393     135,095        
                 
    Non-Financial Data          
      Full-time equivalent staff   222     225        
      Number of banking offices   18     18        
                 
    Common Shares outstanding          
      Period end   8,358,711     8,293,468        
      Period average – basic   8,216,947     8,191,749        
      Period average – diluted   8,252,286     8,228,869        
                 
    Market Ratios          
      Stock Price $ 26.57   $ 25.08        
      Price/Earnings   8.65     6.15        
      Price/Book   1.20     1.54        
                 
      (1) Ratio computed on a fully tax equivalent basis using a marginal federal tax rate of 21%.
      (2) Ratio computed on a fully tax equivalent basis using a marginal federal tax rate of 21%.
            A marginal federal/state combined tax rate of 29.56%, was used for applicable revenue.

    The MIL Network

  • MIL-OSI Russia: IMF Executive Board Completes the First Review under the Extended Credit Facility (ECF) Arrangement for Ethiopia

    Source: IMF – News in Russian

    October 18, 2024

    • The IMF Board completed the first review under the Extended Credit Facility (ECF) for Ethiopia, allowing the authorities to draw the equivalent of about US$340.7 million (SDR 255.6 million). The ECF was approved by IMF Board in July 2024 and forms part of a US$10.7 billion support package from development partners and creditors for Ethiopia.
    • The Ethiopian authorities have shown strong commitment to their homegrown economic reform program. Implementation of ECF-supported reforms is advancing well.

    Washington, DC: The Executive Board of the International Monetary Fund (IMF) completed today the first review of the 48-month Extended Credit Facility (ECF) for Ethiopia. The Board’s decision allows for an immediate disbursement of about US$340.7 million (SDR 255.6 million), which will help Ethiopia meet its balance of payments needs. The completion of the review brings total disbursements under the arrangement to about US$1.363 billion.

    Ethiopia’s ECF arrangement for a total of SDR 2.556 billion (850 percent of quota) or about US$3.4 billion at the time of program approval on July 29, 2024 (see Press Release 24/291) is aimed at supporting the authorities’ Homegrown Economic Reform Agenda (HGER) to address macroeconomic imbalances and lay the foundations for private sector led growth.

    All quantitative performance criteria and four out of five structural benchmarks for the first review have been met. The emergency liquidity assistance framework has been finalized prior to Board approval with a slight delay from end-September target date.

    The implementation of the authorities’ economic program, including the transition to the new exchange rate regime, has been commendable. The spread between the formal and parallel market exchange rates has narrowed to low levels, with little sign of disruption to the broader economy. The supply of foreign exchange is picking up, helping alleviate acute foreign exchange shortages. Nonetheless, some unmet foreign exchange demand persists as economic agents are still adjusting to the new FX regime.

    Steady implementation of the HGER reform plan will be key to macroeconomic stability and stronger economic growth. Continued tight monetary policy and elimination of monetary financing of the government will be key to durably reducing inflation. Expanding social safety nets is critical to mitigating the impact of reforms on vulnerable people. Maintaining momentum on domestic revenue mobilization and structural reforms in the SOE sector is essential to creating sufficient space for social and developmental capital spending.

    The authorities continue their efforts to restore debt sustainability. Financing assurances and adjustment efforts are consistent with IMF policy requirements and program parameters.

    Following the Executive Board discussion, Mr. Bo Li, Deputy Managing Director and Chairman of the Board, made the following statement:

    “Ethiopia’s program under the ECF has made a solid start, and the transition to a more flexible exchange rate has progressed well. Transitional one-off arrangements to address the foreign exchange (FX) backlog from past fuel imports are in place, relying principally on market participants with an additional contribution from the National Bank of Ethiopia (NBE). As economic agents adjust to the new FX regime, reform momentum and clear communication will need to continue to ensure a fully successful and sustained switch to a floating exchange rate.

    “Continuing to restrict NBE’s FX interventions and additional policy measures to support FX market development will be critical to enhance market efficiency and deepening. Prudent macroeconomic policies, including continued tight monetary policy and the elimination of monetary financing of government deficits are essential to reducing imbalances and shoring up macroeconomic stability.

    “Implementation of the early stages of the authorities’ monetary policy reforms and the shift to an interest-rate based regime has been encouraging, including the steady uptake of NBE open market operations. The authorities should step up efforts to improve monetary policy transmission, including by enhancing treasury bill market functioning. Close supervision and enforcement of net open position regulations for banks will help address financial sector vulnerabilities. 

    “The authorities have embarked on ambitious and comprehensive tax mobilization reforms, which will be guided by the recently approved National Medium-Term Revenue Strategy. The new VAT law further streamlines exemptions, expands the revenue base, and strengthens administration and compliance framework. Sustained tax revenue mobilization reforms are critical for creating sufficient space for social and development spending needs. The authorities are implementing plans to expand the targeted social safety net (PSNP), which will deliver cost-effective and efficient support to vulnerable people and mitigate the social impact of the FX reform. 

    “Amendments to the law governing the NBE tabled in Parliament include important improvements to the NBE’s mandate, functions, and powers. Robust lender-of-last resort provisions and legal safeguards to central bank autonomy and governance will also be important.

    Continued steps to secure debt treatment is crucial to restore debt sustainability. The progress made on debt restructuring negotiations under the Common Framework is welcome. The authorities are working to reach an agreement on debt treatment with official creditors by the time of the second program review. Negotiations with commercial creditors should follow on comparable terms. The authorities plan to develop a debt management strategy with Fund technical assistance.”

    Ethiopia Selected Economic Indicators, 2021/22-2028/29

    2021/22

    2022/23

    2023/24

    2024/25

    2025/26

    2026/27

    2027/28

    2028/29

    Proj.

    Proj.

    Proj.

    Proj.

    Proj.

    Proj.

    Output

    Real GDP growth (%)

    6.4

    7.2

    6.1

    6.5

    7.1

    7.7

    8.0

    7.8

    Prices

    Inflation – average (%)

    33.9

    32.5

    26.6

    25.0

    16.7

    12.2

    10.4

    9.6

    General government finances

    Revenue (% GDP)

    8.1

    7.9

    7.5

    8.4

    9.8

    10.9

    11.3

    11.5

    Expenditure (% GDP)

    12.7

    10.8

    9.9

    11.5

    12.4

    13.4

    13.7

    14.0

    Fiscal balance, including grants (% GDP)

    -4.2

    -2.6

    -2.0

    -1.7

    -2.1

    -2.0

    -2.0

    -2.0

    Public debt (% GDP)1

    48.9

    40.2

    34.7

    43.6

    39.1

    36.0

    33.6

    31.6

    Money and Credit

    Broad money (% change)

    27.2

    26.6

    14.1

    28.4

    28.3

    30.6

    22.1

    21.0

    Credit to private sector and state-owned enterprises (% change)

    18.9

    24.1

    9.7

    -14.3

    37.9

    40.1

    24.2

    21.1

    Balance of payments

    Current account (% GDP)

    -4.0

    -2.8

    -2.4

    -4.4

    -3.3

    -2.5

    -2.1

    -1.9

    FDI (%GDP)

    2.6

    2.1

    1.6

    2.7

    3.2

    2.9

    3.0

    3.0

    Reserves (in months of imports)

    0.8

    0.5

    0.7

    1.4

    2.1

    2.6

    3.5

    3.6

    External debt (% GDP)

    24.0

    18.1

    15.4

    28.9

    26.8

    24.5

    22.5

    19.7

    Exchange rate

    Real effective exchange rate (% change, end of period, depreciation –)

    10.1

    24.0

    1/Public and publicly guaranteed external debt, which includes long-term foreign liabilities of NBE and external debt of Ethio-Telecom. Does not include expected debt relief.

    For digital posting, please submit press release with an editable table (no images) already inserted in Microsoft Word file to ensure that the data in the SEI table is displayed as prepared.]

    IMF Communications Department
    MEDIA RELATIONS

    PRESS OFFICER: Tatiana Mossot

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

    @IMFSpokesperson

    https://www.imf.org/en/News/Articles/2024/10/18/pr-24383-ethiopia-imf-completes-the-1st-review-under-the-ecf-arrangement

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