Source: Reserve Bank of India
Ajit Prasad Press Release: 2024-2025/1184 |
Category: Banking
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MIL-OSI Economics: Result of the 4-day Variable Rate Reverse Repo (VRRR) auction held on September 30, 2024
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MIL-OSI: Share repurchase programme
Source: GlobeNewswire (MIL-OSI)
The share repurchase programme runs as from 3 June 2024 and up to and including 31 January 2025. In this period, Jyske Bank will acquire shares with a value of up to DKK 1.5 billion, cf. Corporate Announcement No. 12/2024 of 7 May 2024. The share repurchase programme is initiated and structured in compliance with the EU Commission Regulation No. 596/2014 of 16 April 2014, the so-called “Market Abuse Regulation”.
The following transactions have been made under the program:
Number of
sharesAverage purchase
price (DKK)Transaction
value (DKK)Accumulated, previous announcement 2,715,553 542.95 1,474,418,891 23 September 2024 829 520.36 431,380 24 September 2024 371 521.60 193,513 25 September 2024 138 521.00 71,898 26 September 2024 56 533.62 29,883 27 September 2024 60 531.92 31,915 Accumulated under the programme 2,717,007 542.94 1,475,177,479 Following settlement of the transactions stated above, Jyske Bank will own a total of 2,717,007 of treasury shares, excluding investments made on behalf of customers and shares held for trading purposes, corresponding to 4.23% of the share capital.
In accordance with the EU Commission Regulation No. 596/2014, transactions related to the share buy-back programme are attached to this corporate announcement in detailed form.
Yours faithfully,
Jyske BankContact: Birger Krøgh Nielsen, CFO, tel. +45 89 89 64 44.
Attachment
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MIL-OSI Germany: Germany’s international investment position at the end of 2023
Source: Deutsche Bundesbank in English
At the end of 2023, Germany’s net external assets totalled €2,964 billion, thus amounting to just over 70% of Germany’s nominal gross domestic product (GDP). Overall, both assets and liabilities vis-à-vis non-residents rose further in 2023. This was especially true of claims and liabilities from cross-border portfolio investment. However, corporate ties resulting from direct investment by German investors also continued to expand in 2023. By contrast, both assets and liabilities from other investment declined. These include loans and trade credits (where these do not constitute direct investment) as well as currency and deposits. However, as German liabilities in this segment fell even more sharply than claims in 2023, the other investment balance also rose. In net terms, Germany’s net external assets at the end of 2023 were €206 billion higher than at the end of 2022. This increase was attributable in large part to the surplus on the German current account and the resulting net capital exports.
Net external assets rise on the year once again
At the end of 2023, Germany’s net external assets stood at €2,964 billion. This was slightly more than 70 % of nominal gross domestic product and meant that this ratio remained virtually unchanged on the year. In 2023, the German net external asset position rose by around €206 billion in absolute terms. Claims on non-residents were up on the year by €381 billion (or 3.1 %) to €12,579 billion; liabilities rose by €175 billion (or 1.9%) to €9,616 billion. Claims mainly reflected transaction-related changes, i.e. asset purchases, as well as positive market price effects. The exchange rate effect, meanwhile, was negative: as the euro effectively appreciated against the currencies of its most important trading partners over the course of the year,[1] the value, in euro terms, of German assets abroad tended to drop where they were reported in a foreign currency. Other non-transaction-related adjustments had a positive impact on Germany’s external assets.[2] The rise in German foreign liabilities was mainly attributable to market price effects, which predominantly occurred around year-end, driven by a more favourable inflation outlook and expectations of falling key interest rates.
The cross-border transactions recorded in the financial account resulted in net capital exports of €250 billion last year, in line with Germany’s current account surplus. Non-transaction-related changes reduced the increase by €44 billion, however. On balance, negative market price and exchange rate effects were contributory factors. Other adjustments made a positive overall contribution to Germany’s external position.
Surplus in portfolio investment slightly higher than in 2022
At €807 billion, the portfolio investment balance at the end of 2023 was around €23 billion higher than in the previous year. Securities claims on non-residents slightly outpaced the corresponding liabilities.[3]
At the end of 2023, resident investors held foreign securities totalling €4,004 billion, up by €392 billion (or 10.9 %) on the previous year. The rise was mainly the result of net purchases of foreign bonds and positive market price effects. The relative strength of the euro, meanwhile, caused mostly negative exchange rate effects on the assets side. Alongside foreign bonds, resident investors also bought foreign investment fund shares and money market papers. However, they sold foreign shares – in small amounts.
At the end of 2023, non-resident investors held German securities to the tune of €3,197 billion in their portfolios, which was €369 billion (or 13.1 %) more than at the end of 2022. This was mainly the result of positive market price effects, especially in relation to shares and long-term debt securities. Transactions recorded in the financial account also contributed to the build-up of holdings. On balance, non-resident investors almost exclusively bought German long-term debt securities, as well as, to a lesser extent, short-term debt securities. By contrast, they were net sellers of German shares and investment fund shares.
Drop in the positive balance for financial derivatives
At the end of 2023, holdings of financial derivatives and employee stock options registered a positive balance of €27 billion. This was, however, only slightly more than half the size of the previous year’s balance. In 2022, Russia’s war of aggression against Ukraine had triggered severe disruptions in the energy markets and caused considerable net capital exports in forward and futures contracts relating to electricity and gas.
Further expansion in direct investment
Cross-border corporate ties involving German firms continued to expand in 2023. German outward direct investment was up on the year by a total of €85 billion (3.0 %) to €2,929 billion, an increase that was, on balance, exclusively attributable to transactions. In particular, German investors boosted their equity capital in enterprises abroad, but also issued additional loans to affiliated group entities. The effective appreciation of the euro meant that exchange rate effects had a negative impact on Germany’s outward foreign direct investment stocks. These valuation losses were, however, largely offset by positive other adjustments and slightly positive market price effects.
Non-resident enterprises increased their direct investment in Germany by €26 billion (1.3 %) to €1,995 billion in 2023, with transactions accounting for just over two-thirds of this total. Non-resident investors augmented their equity capital in German enterprises but reduced their intra-group lending to domestic enterprises.
On balance, Germany’s direct investment balance at the end of 2023 amounted to around €933 billion and was therefore €59 billion higher than at year-end 2022.
Other investment: net claims higher
In other investment, comprising loans and trade credits (where these do not constitute direct investment) as well as currency and deposits amongst others, Germany’s positive net asset position rose by €133 billion on the year, bringing it up to €905 billion at the end of 2023. The Bundesbank’s external claims in this segment fell by €174 billion, which was, on balance, exclusively attributable to the Bundesbank’s lower TARGET balance vis-à-vis the ECB.[4] At the same time, the Bundesbank’s external liabilities in other investment declined, as non-euro area counterparties reduced their deposits with the Bank. On balance, the Bundesbank’s net external position in other investment sank by €33 billion. Monetary financial institutions (excluding the central bank) granted additional loans to non-residents and expanded their holdings of currency and deposits. In both segments, negative valuation effects as a result of exchange rate changes reduced the overall effect on outstanding claims, which rose by €19 billion on balance. Non-residents’ deposits with German monetary financial institutions (excluding the Bundesbank) came down by €65 billion. Overall, the balance of monetary financial institutions (excluding the central bank) in other investment rose by €84 billion last year. General government also recorded a rise in its net claims, by €9 billion, in 2023. By contrast, other investment by enterprises and households swelled by €73 billion on balance. At the end of 2023, claims on non-residents arising from other investment had dropped by €17 billion, or 0.4 %, to €3,867 billion across all sectors. External liabilities fell even more sharply; they stood at €2,963 billion at year-end 2023, down €150 billion, or 4.8 %, on the year.
Increase in reserve assets
The Bundesbank’s reserve assets amounted to €292 billion at the end of 2023 and were therefore up by €16 billion on the previous year. They grew only marginally by €1 billion as a result of transactions. Reserve asset holdings increased on the back of positive market price effects, in particular (€18 billion), with the rise in the price of gold dominating. Taken in isolation, the appreciation of the euro against the US dollar and other important currencies brought the value of reserve assets down by €3 billion.
uncollectable credit claims, changes in sector classifications, changes in the functional category of a financing instrument, as well as statistical discrepancies between the international investment position and the balance of payments due to differing data sources, for example.
Footnotes:
The fact that the Eurosystem raised key interest rates was also a factor.
Non-transaction-related changes include valuation effects as a result of exchange rate or market price movements and other adjustments. Other adjustments include, for instance, write-downs on uncollectable credit claims, changes in sector classifications, changes in the functional category of a financing instrument, as well as statistical discrepancies between the international investment position and the balance of payments due to differing data sources, for example.
For more information on transactions in portfolio investment, see Deutsche Bundesbank, German balance of payments in 2023, Monthly Report, March 2024.
The Bundesbank’s TARGET claims on the ECB dropped by €176 billion in 2023. That was attributable, amongst other things, to the fact that payments from maturing securities under the asset purchase programme (APP) were no longer being reinvested in full. Reinvestments under the APP were discontinued as of July 2023. See Deutsche Bundesbank, German balance of payments in 2023, Monthly Report, March 2024. -
MIL-OSI China: Notice of the People’s Bank of China and the National Financial Regulatory Administration on Optimizing the Policy on Minimum Down Payment Ratios for Personal Housing Loans
Source: Peoples Bank of China
The People’s Bank of China Shanghai Head Office and branches of provinces, autonomous regions, municipalities directly under the Central Government, and cities specifically designated in the state plan; local offices of the National Financial Regulatory Administration; state-owned commercial banks, the Postal Savings Bank of China, and joint-stock commercial banks:
To implement the decisions and arrangements made by the Communist Party of China Central Committee and the State Council, support the rigid housing demand of urban and rural residents as well as their diverse needs to improve living conditions, and promote stable and sound development of the property market, the People’s Bank of China and the National Financial Regulatory Administration hereby issue the notice on the following matters concerning the personal housing loan policy：
For households that borrow loans to buy homes, the minimum down payment ratios for commercial personal mortgage loans shall no longer be distinguished between first-home and second-home loans, but rather be set uniformly at no less than 15 percent.
Based on the national policy on minimum down payment ratios, the provincial-level branches of the People’s Bank of China and the local offices of the National Financial Regulatory Administration shall adopt city-specific approaches. In line with the regulatory requirements of the local governments, they shall decide on their own whether to apply the policy on minimum down payment ratios on a differentiated basis in the cities within their respective jurisdictions, and they shall set for the cities the floor ratios of minimum down payment.
The People’s Bank of China
National Financial Regulatory Administration
September 24, 2024
Date of last update Nov. 29 2018
2024年09月29日
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MIL-OSI China: Notice on Improving Central Bank Lending for Affordable Housing
Source: Peoples Bank of China
To China Development Bank, policy banks, state-owned commercial banks, Postal Savings Bank of China, and joint-stock commercial banks,
To support local state-owned enterprises in purchasing completed yet unsold housing at reasonable prices and in turning them into affordable housing, and to further enhance market-based incentives for financial institutions and acquiring entities, the People’s Bank of China (PBOC) has decided to adjust and improve relevant policies for central bank lending for affordable housing. For eligible loans issued by financial institutions, central bank lending issued by the PBOC to financial institutions will be increased from 60 percent of the loan principal to 100 percent.
In the case of any inconsistency between previous policies and this notice, this notice shall prevail. Other matters, operational procedures, and work requirements for central bank lending for affordable housing will continue to follow relevant provisions of the “Notice of the People’s Bank of China on Launching Central Bank Lending for Affordable Housing” (Yinfa No. 110 [2024]) and the “Notice of the People’s Bank of China and the National Financial Regulatory Administration on Implementing Central Bank Lending for Affordable Housing” (Yinfa No. 135 [2024]).
General Administration Department of the People’s Bank of China
September 27, 2024
Date of last update Nov. 29 2018
2024年09月29日
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MIL-OSI Europe: Germany’s international investment position at the end of 2023
Source: Deutsche Bundesbank in English
At the end of 2023, Germany’s net external assets totalled €2,964 billion, thus amounting to just over 70% of Germany’s nominal gross domestic product (GDP). Overall, both assets and liabilities vis-à-vis non-residents rose further in 2023. This was especially true of claims and liabilities from cross-border portfolio investment. However, corporate ties resulting from direct investment by German investors also continued to expand in 2023. By contrast, both assets and liabilities from other investment declined. These include loans and trade credits (where these do not constitute direct investment) as well as currency and deposits. However, as German liabilities in this segment fell even more sharply than claims in 2023, the other investment balance also rose. In net terms, Germany’s net external assets at the end of 2023 were €206 billion higher than at the end of 2022. This increase was attributable in large part to the surplus on the German current account and the resulting net capital exports.
Net external assets rise on the year once again
At the end of 2023, Germany’s net external assets stood at €2,964 billion. This was slightly more than 70 % of nominal gross domestic product and meant that this ratio remained virtually unchanged on the year. In 2023, the German net external asset position rose by around €206 billion in absolute terms. Claims on non-residents were up on the year by €381 billion (or 3.1 %) to €12,579 billion; liabilities rose by €175 billion (or 1.9%) to €9,616 billion. Claims mainly reflected transaction-related changes, i.e. asset purchases, as well as positive market price effects. The exchange rate effect, meanwhile, was negative: as the euro effectively appreciated against the currencies of its most important trading partners over the course of the year,[1] the value, in euro terms, of German assets abroad tended to drop where they were reported in a foreign currency. Other non-transaction-related adjustments had a positive impact on Germany’s external assets.[2] The rise in German foreign liabilities was mainly attributable to market price effects, which predominantly occurred around year-end, driven by a more favourable inflation outlook and expectations of falling key interest rates.
The cross-border transactions recorded in the financial account resulted in net capital exports of €250 billion last year, in line with Germany’s current account surplus. Non-transaction-related changes reduced the increase by €44 billion, however. On balance, negative market price and exchange rate effects were contributory factors. Other adjustments made a positive overall contribution to Germany’s external position.
Surplus in portfolio investment slightly higher than in 2022
At €807 billion, the portfolio investment balance at the end of 2023 was around €23 billion higher than in the previous year. Securities claims on non-residents slightly outpaced the corresponding liabilities.[3]
At the end of 2023, resident investors held foreign securities totalling €4,004 billion, up by €392 billion (or 10.9 %) on the previous year. The rise was mainly the result of net purchases of foreign bonds and positive market price effects. The relative strength of the euro, meanwhile, caused mostly negative exchange rate effects on the assets side. Alongside foreign bonds, resident investors also bought foreign investment fund shares and money market papers. However, they sold foreign shares – in small amounts.
At the end of 2023, non-resident investors held German securities to the tune of €3,197 billion in their portfolios, which was €369 billion (or 13.1 %) more than at the end of 2022. This was mainly the result of positive market price effects, especially in relation to shares and long-term debt securities. Transactions recorded in the financial account also contributed to the build-up of holdings. On balance, non-resident investors almost exclusively bought German long-term debt securities, as well as, to a lesser extent, short-term debt securities. By contrast, they were net sellers of German shares and investment fund shares.
Drop in the positive balance for financial derivatives
At the end of 2023, holdings of financial derivatives and employee stock options registered a positive balance of €27 billion. This was, however, only slightly more than half the size of the previous year’s balance. In 2022, Russia’s war of aggression against Ukraine had triggered severe disruptions in the energy markets and caused considerable net capital exports in forward and futures contracts relating to electricity and gas.
Further expansion in direct investment
Cross-border corporate ties involving German firms continued to expand in 2023. German outward direct investment was up on the year by a total of €85 billion (3.0 %) to €2,929 billion, an increase that was, on balance, exclusively attributable to transactions. In particular, German investors boosted their equity capital in enterprises abroad, but also issued additional loans to affiliated group entities. The effective appreciation of the euro meant that exchange rate effects had a negative impact on Germany’s outward foreign direct investment stocks. These valuation losses were, however, largely offset by positive other adjustments and slightly positive market price effects.
Non-resident enterprises increased their direct investment in Germany by €26 billion (1.3 %) to €1,995 billion in 2023, with transactions accounting for just over two-thirds of this total. Non-resident investors augmented their equity capital in German enterprises but reduced their intra-group lending to domestic enterprises.
On balance, Germany’s direct investment balance at the end of 2023 amounted to around €933 billion and was therefore €59 billion higher than at year-end 2022.
Other investment: net claims higher
In other investment, comprising loans and trade credits (where these do not constitute direct investment) as well as currency and deposits amongst others, Germany’s positive net asset position rose by €133 billion on the year, bringing it up to €905 billion at the end of 2023. The Bundesbank’s external claims in this segment fell by €174 billion, which was, on balance, exclusively attributable to the Bundesbank’s lower TARGET balance vis-à-vis the ECB.[4] At the same time, the Bundesbank’s external liabilities in other investment declined, as non-euro area counterparties reduced their deposits with the Bank. On balance, the Bundesbank’s net external position in other investment sank by €33 billion. Monetary financial institutions (excluding the central bank) granted additional loans to non-residents and expanded their holdings of currency and deposits. In both segments, negative valuation effects as a result of exchange rate changes reduced the overall effect on outstanding claims, which rose by €19 billion on balance. Non-residents’ deposits with German monetary financial institutions (excluding the Bundesbank) came down by €65 billion. Overall, the balance of monetary financial institutions (excluding the central bank) in other investment rose by €84 billion last year. General government also recorded a rise in its net claims, by €9 billion, in 2023. By contrast, other investment by enterprises and households swelled by €73 billion on balance. At the end of 2023, claims on non-residents arising from other investment had dropped by €17 billion, or 0.4 %, to €3,867 billion across all sectors. External liabilities fell even more sharply; they stood at €2,963 billion at year-end 2023, down €150 billion, or 4.8 %, on the year.
Increase in reserve assets
The Bundesbank’s reserve assets amounted to €292 billion at the end of 2023 and were therefore up by €16 billion on the previous year. They grew only marginally by €1 billion as a result of transactions. Reserve asset holdings increased on the back of positive market price effects, in particular (€18 billion), with the rise in the price of gold dominating. Taken in isolation, the appreciation of the euro against the US dollar and other important currencies brought the value of reserve assets down by €3 billion.
uncollectable credit claims, changes in sector classifications, changes in the functional category of a financing instrument, as well as statistical discrepancies between the international investment position and the balance of payments due to differing data sources, for example.
Footnotes:
The fact that the Eurosystem raised key interest rates was also a factor.
Non-transaction-related changes include valuation effects as a result of exchange rate or market price movements and other adjustments. Other adjustments include, for instance, write-downs on uncollectable credit claims, changes in sector classifications, changes in the functional category of a financing instrument, as well as statistical discrepancies between the international investment position and the balance of payments due to differing data sources, for example.
For more information on transactions in portfolio investment, see Deutsche Bundesbank, German balance of payments in 2023, Monthly Report, March 2024.
The Bundesbank’s TARGET claims on the ECB dropped by €176 billion in 2023. That was attributable, amongst other things, to the fact that payments from maturing securities under the asset purchase programme (APP) were no longer being reinvested in full. Reinvestments under the APP were discontinued as of July 2023. See Deutsche Bundesbank, German balance of payments in 2023, Monthly Report, March 2024. -
MIL-OSI: Landsbankinn hf.: Tender offer
Source: GlobeNewswire (MIL-OSI)
Today, Landsbankinn hf. announced an offer to the holders of its EUR 2025 notes (ISIN: XS2306621934) to tender such notes for purchase by the bank for cash. The tender offers are subject to the terms and conditions outlined in the tender offer memorandum dated 30 September 2024, including the outcome of the bank‘s intended new issuance.
Further information on the tender offers is available in the announcement made public on Euronext Dublin where the bonds are listed. Subject to certain distribution restrictions, a tender offer memorandum can be obtained from the tender agent: Kroll Issuer Services Limited, landsbankinn@is.kroll.com.
Dealer managers are ABN AMRO Bank, J.P. Morgan, Natixis and Nomura.
This announcement is released by Landsbankinn hf. and contains information that qualified or may have qualified as inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 (“MAR”), encompassing information relating to the Offer described above. For the purposes of MAR and Article 2 of Commission Implementing Regulation (EU) 2016/1055, this announcement is made by Hreiðar Bjarnason, Chief Financial Officer for Landsbankinn hf.
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MIL-OSI Economics: The amount of student loan available for drawing down was raised in August
Source: Bank of Finland
In August 2024, drawdowns of student loans totalled EUR 165 million – almost the same as in the corresponding month last year. However, the volume of student loan drawdowns was affected by opposing forces.
At the beginning of August 2024, the amount of student loan available for drawdown per month was raised by up to 30%.[1] As a result of an amendment to the Act on Financial Aid for Students, persons over 18 years studying in Finland have been able to draw down EUR 850 per month of government-guaranteed loan, instead of the previous EUR 650. The previous raise to the government-guaranteed amount of student loan was made in August 2017.
Another change affecting the monthly drawdown volume was that students in secondary education now have more frequent student loan disbursements than before.[2] From now on, there are four disbursement dates in an academic year, regardless of the duration of studies. The change of the number of disbursements reduces the drawdowns in August and January and correspondingly increases them in March and November. According to Kela’s statistics, students in secondary education drew down approximately 19% of all student loans in the academic year 2022/2023.
The rise in level of interest rates has reduced the volume of student loan drawdowns. However, interest rates on student loans have declined in 2024. In August 2024, the average interest rate on new student loans drawn down declined further, to stand at 4.07% in August. The average interest rate was slightly lower than at the same time a year earlier. 89% of the student loans drawn down were linked to Euribor rates and 11% to banks’ own reference rates.
The reduced drawdown volume has contributed to the slowdown in the growth rate of the student loan stock in recent years.[3] However, the annual rate of growth of the student loan stock (4.2% in August) has picked up somewhat in recent months, and the increase of the government guarantee and lower interest rates may accelerate it further going forward. In August 2024, the stock of student loans (EUR 6.3 billion) was the largest ever.
Loans
In August 2024, Finnish households drew down EUR 1.1 billion of new housing loans, which is EUR 40 million less than in the same period a year earlier. Buy-to-let mortgage loans accounted for EUR 110 million of the new housing loan drawdowns. The average interest rate on new housing loans decreased from July, to stand at 3.93% in August. At the end of August 2024, the housing loan stock totalled EUR 105.9 billion, and its year-on-year change amounted to -0.7%. Buy-to-let mortgages accounted for EUR 8.7 billion of the housing loan stock. At the end of August, Finnish households’ loan stock included EUR 17.9 billion of consumer credit and EUR 17.6 billion of other loans.
Drawdowns of new loans by Finnish non-financial corporations in August totalled EUR 1.5 billion, including EUR 440 million of loans to housing corporations. The average interest rate on new corporate-loan drawdowns rose from July, to stand at 5.36 %. At the end of August, the stock of loans granted to Finnish non-financial corporations was EUR 107.7 billion, whereof housing corporations accounted for EUR 44.8 billion.
Deposits
At the end of August 2024, the total stock of Finnish households’ deposits was EUR 110.6 billion, and the average interest rate on these deposits was 1.35%. Overnight deposits accounted for EUR 67.1 billion and deposits with an agreed maturity for EUR 14.6 billion of the total deposit stock. In August, Finnish households made new deposit agreements with an agreed maturity in the amount of EUR 1.1 billion. The average interest rate on these new term deposits was 3.39%.
Loans and deposits to Finland, preliminary data* June, EUR million July, EUR million August, EUR million August, 12-month change1, % Average interest rate, % Loans to households, stock 141,421 141,223 141,425 -0.4 4.53 – of which housing loans 106,032 105,861 105,914 -0.7 3.95 – of which buy-to-let mortgages 8,682 8,680 8,708 4.14 Loans to non-financial corporations2, stock 108,10 107,497 107,747 1.1 4.62 Deposits by households, stock 110,784 109,951 110,644 1.2 1.35 Households’ new drawdowns of housing loans 1,096 1,049 1,104 3.93 – of which buy-to-let mortgages 96 96 111 4.06 * Includes loans and deposits in all currencies to residents in Finland. The statistical releases of the Bank of Finland up to January 2021, as well as those of the ECB, present loans and deposits in euro to euro area residents and also include non-profit institutions serving households. For these reasons, the figures in this table differ from those in the aforementioned releases.
1 Rate of change has been calculated from monthly differences in levels adjusted for classification and other revaluation changes.
2 Non-financial corporations also include housing corporations.For further information, please contact:
Markus Aaltonen, tel. +358 9 831 2395, email: markus.aaltonen(at)bof.fi,
Ville Tolkki, tel. +358 9 183 2420, email: ville.tolkki(at)bof.fi.
The next news release on money and banking statistics will be published at 10:00 on 28 October 2024.
Related statistical data and graphs are also available on the Bank of Finland website: https://www.suomenpankki.fi/en/statistics2/.
[1] A larger amount of student loan can be taken out starting from August | Kela
[2] Amount of the student loan | Our services| Kela. For students in higher education, there are two disbursement dates.
[3] To a limited extent, the slowdown also reflects student loan compensations paid by Kela. Student loan compensation | Our services| Kela.
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MIL-OSI: Danske Bank share buy-back programme: Transactions in week 39
Source: GlobeNewswire (MIL-OSI)
Company announcement no. 43 2024 Group Communications
Bernstorffsgade 40
DK-1577 København V
Tel. +45 45 14 00 0030 September 2024
Danske Bank share buy-back programme: Transactions in week 39
On 2 February 2024, Danske Bank A/S announced a share buy-back programme for a total of DKK 5.5 billion, with a maximum of 70 million shares, in the period from 5 February 2024 to 31 January 2025, at the latest, as described in company announcement no. 2 2024.
The programme is being carried out under Regulation (EU) No. 596/2014 of the European Parliament and of the Council of 16 April 2014 and the Commission’s delegated regulation (EU) 2016/1052 of 8 March 2016, also referred to as the Safe Harbour Rules.
The following transactions were made under the share buy-back programme in week 39:
Number
of sharesVWAP
DKKGross value
DKKAccumulated, last announcement 17,760,029 202.4341 3,595,235,496 23/09/2024 150,000 203.7085 30,556,275 24/09/2024 165,000 203.9081 33,644,837 25/09/2024 161,000 202.7496 32,642,686 26/09/2024 110,000 203.5980 22,395,780 27/09/2024 166,636 202.3942 33,726,160 Total accumulated over week 39 752,636 203.2400 152,965,737 Total accumulated during the share buyback programme 18,512,665 202.4669 3,748,201,233 With the transactions stated above the total accumulated number of own shares under the share buy-back programme corresponds to 2.15% of Danske Bank A/S’ share capital.
We enclose share buy-back transaction data in detailed form of each transaction in accordance with the Commission’s delegated regulation (EU) 2016/1052 of 8 March 2016.
Danske Bank
Contact: Stefan Singh Kailay, Group Press Officer, tel. +45 45 14 14 00
Attachments
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MIL-OSI United Kingdom: Pan-African partnership reaches milestone for long-term climate finance solutions in Kenya
Source: United Kingdom – Executive Government & Departments
Mobilisation of climate finance set to be boosted across East Africa through new UK-backed company as investors put pen to paper to begin operations.
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Investors back Dhamana Guarantee Company’s work to transform East Africa’s financial landscape.
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Tackling climate change given another boost in Kenya as, for second time in a week, a UK-Government backed investor in green finance solutions puts pen to paper.
Monday 30 September 2024 – Dhamana Guarantee Company Ltd (Dhamana) has reached a major milestone, marked at an event in Nairobi today.
Investors in the new company put pen to paper at a signing ceremony, which will allow the company to kick-start operations.
Dhamana aims to mobilise private sector finance to support the development of sustainable businesses. It will do so by issuing guarantees to commercially viable projects, businesses, and institutions that tackle the climate crisis and make progress towards the Sustainable Development Goals (SDGs).
The design and creation of the company was supported by the UK-Government backed investor the Private Infrastructure Development Group (PIDG) through InfraCo Africa. With its anchor investment, PIDG kick-started Dhamana, attracting further equity investment from the African Development Bank (AfDB) and CPF Group, with support provided by Cardano Development and FSD Africa.
Dhamana is a new limited liability company based in Kenya with a mandate to deliver for the East African region – including – Kenya, Tanzania, Uganda and Rwanda. It will provide credit guarantees on debt capital market instruments, to boost the credit rating of such instruments and crowd in investment from pension funds, insurance companies and sovereign wealth funds to support sustainable infrastructure and business development in East Africa.
Dhamana will target businesses that add value to people’s lives, improving the day-to-day life of Kenyans and of people across the region. The increase in affordable finance for Kenyan businesses will mean projects will require less capital to get off the ground, make money, and generate growth. Dhamana will also enable investors to diversify their portfolios, acting as a catalyst to transform East Africa’s financing landscape.
This is the second time in a week that an investor in climate solutions backed by the UK Government has achieved a milestone. Last week, MOBILIST signed a partnership with the Nairobi Securities Exchange which aims to drive the listing of new investment products in the Kenyan market and increase the amount of private sector capital available for development and climate projects in Kenya and drive growth.
Dhamana CEO, Christopher Olobo, said:
With the support of our investors and supporters, we have worked to develop Dhamana as an important catalyst for long-term sustainable finance in the region. Dhamana’s local currency guarantees will connect pools of untapped capital with East Africa’s real economy, making a tangible difference to people’s lives and offering local investors the opportunity to invest in Paris-aligned initiatives.
Deputy High Commissioner and Development Director, British High Commission Nairobi, Leigh Stubblefield, said:
For the second time in a week I am proud to say that the UK has supported a climate finance solution in Kenya – an example of our long-term commitment to long-term investment and growth. This is a great pan-Africa partnership that will improve the lives of East Africans for the better, and as the saying goes, we go far when we go together.
Representing PIDG, InfraCo Africa CEO, Gilles Vaes, added:
Building on the success of other PIDG-supported credit enhancement facilities in Nigeria and Pakistan, Dhamana will demonstrate the value of such a facility in the East African market, opening up opportunities for investors and clients alike. Crucially, Dhamana will engage new partners and investors in our efforts to urgently address the climate crisis and accelerate delivery of the UN sustainable development goals.
In his remarks at the launch event, Solomon Quaynor, African Development Bank Vice President for Private Sector, Infrastructure & Industrialisation, said:
The African Development Bank’s equity investment in Dhamana reinforces the catalytic role and potential of credit enhancement companies in leveraging opportunities for infrastructure financing in local currency and supporting debt capital markets deepening in our regional member countries. We intend to replicate this business model in appropriate markets across Africa with partners such as the Private Infrastructure Development Group (PIDG) and others. The first example of this type of credit enhancement company was InfraCredit in Nigeria which has had demonstrated success, and now Dhamana in East Africa. The investment in Dhamana aligns with the Bank’s priority to mobilise financing through innovative vehicles from African institutional funds including pension funds, sovereign wealth funds and insurance companies for infrastructure development in Africa.
On his part, Dr. Hosea Kili, OGW – CPF Group Managing Director/CEO – said:
We are proud to be part of this transformative initiative through Dhamana Guarantee Company. We believe in the power of innovative financial solutions to drive sustainable growth. By leveraging local currency guarantees, Dhamana will unlock critical capital for critical infrastructure projects, advancing economic development. This partnership aligns with our commitment to investing in initiatives that improve the lives of people’s lives and our economy while contributing to a more sustainable future.
Joost Zuidberg, CEO of Cardano Development concluded:
Dhamana’s true strength lies in its capacity to attract significant investments from East Africa’s institutional capital, laying a strong foundation for future scaling up according to its sizeable potential and thus meaningfully contribute to sustained economic growth in the region. Part of our core work is to incubate guarantee solutions for emerging and frontier markets, and we are thrilled to formalise this partnership today, as we collectively provide Dhamana with the crucial support and capital needed to fulfil this vital objective.
NOTES FOR EDITORS
The UK-Kenya Strategic Partnership
The UK-Kenya strategic partnership joint statement can be found here.
About Dhamana
Dhamana Guarantee Company (Dhamana): Dhamana is working to catalyse the development of domestic capital markets in East Africa. It does this by connecting significant under-utilised sources of domestic institutional capital with the real economy, such as new green infrastructure, and providers of credit to businesses. This increases access and the affordability of local capital, providing new low-risk opportunities for local investors. Dhamana will also serve to provide a portfolio of businesses with access to the local currency capital needed to deliver bankable projects, meeting the high demand for new affordable housing, transportation, water, and energy infrastructure, and promoting long term economic development. http://www.dhamana.com
About PIDG
The Private Infrastructure Development Group (PIDG) is an innovative infrastructure project developer and investor which mobilises private investment in sustainable and inclusive infrastructure in sub-Saharan Africa and south and south-east Asia. PIDG investments promote socio-economic development within a just transition to net zero emissions, combat poverty and contribute to the Sustainable Development Goals (SDGs). PIDG delivers its ambition in line with its values of pioneering, partnership, safety, inclusivity, and urgency. PIDG offers Technical Assistance for upstream, early-stage activities and concessional capital; its project development arm – which includes InfraCo Africa and InfraCo Asia – invests in early-stage project development and project and corporate equity. PIDG credit solutions include EAIF (the Emerging Africa Infrastructure Fund), one of the first and more successful blended debt funds in low-income markets; GuarantCo, its guarantee arm that provides credit enhancement and local currency solutions to de-risk projects; and a growing portfolio of local credit enhancement facilities, which unlocks domestic institutional capital for infrastructure financing. Since 2002, PIDG has supported 233 infrastructure projects to financial close, which provided an estimated 228 million people with access to new or improved infrastructure. PIDG is funded by the governments of the United Kingdom, the Netherlands, Switzerland, Australia, Sweden, Global Affairs Canada, Germany, and the IFC. http://www.pidg.org
About the African Development Bank (AfDB)
The African Development Bank (AfDB) is Africa’s premier development finance institution. It comprises three distinct entities: the African Development Bank (AfDB), the African Development Fund (ADF) and Nigeria Trust Fund (NTF). On the ground in 34 African countries with an external office in Japan, the AfDB contributes to the economic development and the social progress of its 54 regional member states. http://www.afdb.org
About the CPF Group
The CPF Group offers a comprehensive range of services through its various subsidiaries including CPF Financial Services which administers both private and public pension funds; notably – the Public Service Superannuation Scheme (PSSS); The Local Authorities Pensions Trust (LAPTRUST); the Taifa Pension Fund; the County Pension Fund and CPF Individual Pension Plan. The funds under our administration have a total membership of just over 500,000 members.
Other subsidiaries include Laser Infrastructure & Technology Solutions (LITES); Laser Property Services; Rukisha Advances payment platform; CPF Asset Managers; CPF Capital & Advisory; and Laser Insurance Brokers (LIB). The Group offers a wide range of services in ICT & renewable energy solutions, Property Services, Insurance Brokerage, Smart Money platform, fund management, Transaction Advisory, Trust fund services, training & consultancy, and Corporate Trustee Services. Derived from uncompromised commitment to fulfilling lives, the CPF Group prioritises new models and approaches in engineering turnkey solutions for clients across the region. http://www.cpfgroup.or.ke
About Cardano Development
Cardano Development (CD), established in 2007, incubates new companies, and creates and manages fund managers. Through careful risk-management analysis in data poor settings, CD identifies scalable solutions that can help to make frontier financial markets more inclusive, investible, and sustainable to unlock lasting economic value. CD creates scalable solutions for currency, credit, and liquidity risks in these markets. With over USD 6 billion assets and USD 3.1 billion capital under management, CD supports scale-up ventures (TCX, GuarantCo, Frontclear, BIX Capital, ILX Fund, AGRI3 Fund), and a number of new start-ups, with ongoing management support services and corporate governance oversight. http://www.cardanodevelopment.com.
Updates to this page
Published 30 September 2024 -
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MIL-OSI Asia-Pac: Consultation conclusions on information sharing among Authorized Institutions to aid in prevention or detection of crime
Source: Hong Kong Government special administrative region
Consultation conclusions on information sharing among Authorized Institutions to aid in prevention or detection of crime
Consultation conclusions on information sharing among Authorized Institutions to aid in prevention or detection of crime
******************************************************************************************The following is issued on behalf of the Hong Kong Monetary Authority: The Hong Kong Monetary Authority (HKMA) published today (September 30) the conclusions of the public consultation on a proposal for information sharing among Authorized Institutions (AIs) to aid in prevention or detection of crime (Conclusions Document). The Conclusions Document sets out the main comments received, the HKMA’s responses, and the next steps on taking forward the HKMA’s proposal. The HKMA launched a public consultation on January 23, 2024 to seek views from the banking sector and the public on proposals to facilitate sharing of information among AIs of information on customer accounts (including personal customers) for the purposes of preventing and detecting crime. The aim of the proposals is to help protect bank customers and the banking system against abuse for fraud, money laundering and terrorist financing (ML/TF). The HKMA received a total of 18 submissions from the banking industry, professional associations, public sector, law enforcement agencies, relevant firms and organisations and members of the public in the consultation. Respondents were generally in support of the proposal. In particular, the HKMA welcomes the comments provided by the Office of the Privacy Commissioner for Personal Data (PCPD) from the perspective of protection of personal data privacy under the Personal Data (Privacy) Ordinance (Cap. 486) (PDPO), which are reflected in the Conclusions Document. The HKMA will take into account the comments received and proceed with preparation of the necessary legislative amendments, which will form part of the overall review of the Banking Ordinance. In the meantime, the HKMA will continue to engage stakeholders on practical matters relating to implementation of the proposal. The Conclusions Document is available on the HKMA website.
Ends/Monday, September 30, 2024Issued at HKT 16:12NNNN
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MIL-OSI China: Announcement No. 11 [2024] of the People’s Bank of China
Source: Peoples Bank of China
The Announcement No. 16 [2019] of the People’s Bank of China has played an important role in advancing the market-based interest rate reform and promoting the stable and healthy development of the real estate market since its release. In order to implement the decisions and arrangements of the CPC Central Committee and the State Council, respond to new changes in the supply and demand of the real estate market, meet new expectations of the people for high-quality housing, deepen the market-oriented reform of interest rates, better play the role of market mechanisms, and safeguard the legitimate rights and interests of both borrowers and lenders, relevant matters regarding improving the pricing mechanism for commercial personal housing loans are hereby announced as follows:
1. The borrower, when applying for commercial personal housing loans, can choose fixed or floating interest rate as the pricing methods for the loan contract. If the contract specifies a fixed interest rate, the interest rate shall remain unchanged during the contract period. If the contract specifies a floating interest rate, the interest rate shall be formed by adding spread to the latest Loan Prime Rate (LPR), and the spread, which can be positive or negative, shall reflect factors such as market supply and demand and risk premium of the borrower.
2. The borrower of a fixed-rate commercial personal housing loan, after negotiating with the banking institution, can obtain a new floating-rate commercial personal housing loan to replace the existing one. The interest rate in the replacement is formed by adding spread to the latest LPR, and spread equals the difference between the interest rate of the original contract and the latest LPR.
3. From November 1, 2024 onwards, the borrower of a commercial personal housing loan may negotiate with the banking institution for a different fixing period, if the contract specifies a floating interest rate. On the fixing date, the benchmark for repricing should be reset to the latest LPR. The fixing period and the way for adjustments shall be specified in the loan contract.
4. From November 1, 2024 onwards, the borrower of a floating-rate personal housing loan may negotiate with the banking institution when the interest rate on the loan deviates to a certain extent from that on the newly issued personal housing loans nationwide. The banking institution shall then grant a new floating-rate personal housing loan to replace the existing one based on the negotiation. The newly agreed spread added to LPR shall reflect changes in factors such as the market supply and demand, and the risk premium of the borrower. The new spread shall not be lower than the floor set by the city where the replacement is made, if the floor exists.
5. All provincial branches of the PBOC shall provide guidance to the self-regulatory pricing mechanism for market interest rates at their corresponding levels. The latter shall guide the financial institutions within their jurisdictions to implement the requirements effectively, regulate market competition, and maintain market order, according to the development of the real estate market in the cities within their jurisdictions and regulations of local governments.
6. Banking institutions shall effectively disseminate and explain the policies and provide consultations. They shall safeguard the rights of the borrowers granted by the contract, and protect the legitimate rights and interests of consumers according to laws and regulations, to ensure that relevant work is carried out in a smooth and orderly manner.
This announcement shall come into force on the date of its issuance, while the Announcement No. 16 [2019] of the People’s Bank of China shall be repealed at the same time. Where the previous relevant regulations are inconsistent with this announcement, this announcement shall prevail.
The People’s Bank of China
September 29, 2024
Date of last update Nov. 29 2018
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MIL-OSI: Sydbank share buyback programme: transactions in week 39
Source: GlobeNewswire (MIL-OSI)
Company Announcement No 45/2024
Peberlyk 4
6200 Aabenraa
DenmarkTel +45 74 37 37 37
Fax +45 74 37 35 36Sydbank A/S
CVR No DK 12626509, Aabenraa
sydbank.dk30 September 2024 Dear Sirs
Sydbank share buyback programme: transactions in week 39
On 28 February 2024 Sydbank announced a share buyback programme of DKK 1,200m. The share buyback programme commenced on 4 March 2024 and will be completed by 31 January 2025.The purpose of the share buyback programme is to reduce the share capital of Sydbank and the programme is executed in compliance with the provisions of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 and Commission Delegated Regulation (EU) 2016/1052 of 8 March 2016, collectively referred to as the Safe Harbour rules.
The following transactions have been made under the share buyback programme:
Number of shares VWAP Gross value (DKK) Accumulated, most recent
Announcement2,163,000
772,968,750.00
23 September 2024
24 September 2024
25 September 2024
26 September 2024
27 September 202417,000
17,000
15,000
15,000
16,000335.79
339.99
335.19
337.94
335.705,708,430.00
5,779,830.00
5,027,850.00
5,069,100.00
5,371,200.00Total over week 39 80,000 26,956,410.00 Total accumulated during the
share buyback programme2,243,000
799,925,160.00
All transactions were made under ISIN DK 0010311471 and effected by Danske Bank A/S on behalf of Sydbank A/S.
Further information about the transactions, cf Article 5 of Regulation (EU) No 596/2014 of the European Parliament and of the Council on market abuse and Commission delegated regulation, is available in the attachment.
Following the above transactions, Sydbank holds a total of 2,325,322 own shares, equal to til 4.26% of the Bank’s share capital.
Yours sincerely
Mark Luscombe Jørn Adam Møller
CEO Deputy Group Chief ExecutiveAttachment
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MIL-OSI Translation: Extraordinary Meeting of the Council of Ministers on September 30, 2024
MIL OSI Translation. Timor-Leste Portuguese to English –
Presidency of the Council of Ministers
Spokesperson for the Government of Timor-Leste
……………………………………………. ……………………………………………. …………………….
Press release
Extraordinary Meeting of the Council of Ministers on September 30, 2024
The Council of Ministers met at the Government Palace in Dili and approved the Draft State Budget (OGE) Bill for 2025, presented by the Minister of Finance, Santina José Rodrigues F. Viegas Cardoso, with a total value of US$ 2.6 billion allocated to the Central Administration, the Special Administrative Region of Oe-Cusse Ambeno (RAEOA) and Social Security, including the Social Security Reserve Fund. This amount includes an allocation of US$ 2.07 billion for the Central Administration, US$ 482 million for Social Security and US$ 62 million for the RAEOA.
The 2025 State Budget Bill continues the strategy of implementing the priorities set out in the Government Programme, under the motto “Investment in strategic infrastructure, strengthening the economy and improving the well-being of citizens”. The Proposal is formulated based on the Strategic Objectives of the IX Constitutional Government, with a view to promoting the socio-economic development of the Nation through targeted investments in strategic infrastructure, economic strengthening and initiatives aimed at improving the well-being of citizens. The 2025 State Budget aims to promote economic development and improve the living conditions of the Timorese population, through a clear strategy focused on sustainable economic growth, improving public services and ensuring that the benefits of development reach all citizens.
In terms of strategic infrastructure, US$227.3 million has been earmarked for the construction, expansion, rehabilitation and maintenance of road networks and bridges, as well as for the implementation of measures to protect against natural disasters, with the aim of improving connectivity and protecting communities from the effects of climate change. Funding is also provided for the rehabilitation of Presidente Nicolau Lobato International Airport and for the completion of the submarine fibre optic cable that will link Timor-Leste to Australia. The expansion of the internal fibre optic network will enable the provision of high-speed internet throughout the country from 2025 onwards. In the electricity sector, the budget foresees a significant increase in subsidies to the public company EDTL, EP, with the aim of improving and expanding the continuous supply of electricity, especially in rural and remote areas, ensuring a more stable and comprehensive service.
In the natural resources sector, the proposal allocates US$40 million to improve industrial and oil and mineral extraction areas on the country’s southern coast, contributing to economic development and strengthening energy security.
In the financial sector, an investment of US$5 million is expected in the capitalization of the Central Bank of Timor-Leste, with the aim of strengthening the stability and resilience of the national financial system.
The bill allocates a significant portion of the spending, around US$406 million, to support civil society, health and social services. In human capital development, US$17.2 million is allocated to vocational and technical training programs, as well as to grant scholarships. Education will also receive US$145.8 million to build new schools, train teachers and strengthen the education management system.
In health, the budget allocates US$99.2 million to improve the hospital network and health centers throughout the country, in addition to US$14.2 million for the acquisition and distribution of essential medicines and medical equipment. In terms of social protection, the Bolsa da Mãe program will be strengthened with an increase of more than US$7 million, plus US$2.86 million earmarked for improving the health and nutrition of pregnant women and children. The proposal also includes a transfer of US$124.1 million to the Social Security Budget, an increase of US$37.4 million compared to 2024, which reflects the expansion of the Social Security system and the value of the social old-age and disability pension. END
EDITOR’S NOTE: This article is a translation. Apologies should the grammar and/or sentence structure not be perfect.
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MIL-OSI: Interim Results for the six months ended 30 June 2024
Source: GlobeNewswire (MIL-OSI)
CAMBRIDGE, United Kingdom, Sept. 30, 2024 (GLOBE NEWSWIRE) — Bango (AIM: BGO), today announces its interim results for the six months ended 30 June 2024.
Financial Overview (unaudited):
Results for the 6 months ended 30 June 2024 1H24 1H23 Change Total Revenue $24.1M $20.3M +18.6% Transactional Revenue1 $16.4M $15.5M +5.3% DVM, Audiences & One-Off2 $ 7.7M $ 4.7M +62.5% Annual recurring revenue (ARR)3 $12.9M $5.6M +130.4% Net Revenue Retention4 159% Adjusted EBITDA5 $4.0M ($0.2M) +$4.2M Profit/(Loss) before taxation ($3.4M) ($4.9M) +$1.5M Net (Debt6)/Cash ($5.1M) $5.5M -$10.6M
Notes:- Transactional revenue grew 9.4% on a constant currency basis.
- Other Income of $1.4M, which is not included in the revenue figure above, related to recovery of tax costs from the acquisition of DOCOMO Digital. $1.1M will be accounted for as a tax cost, resulting in $0.3M profit.
- Gross profit margin of 80.8% (1H23: 90.0%) reduced from 82.8% in 2H 2023 due to geographic mix. Improvements expected in 2H 2024 as high margin DVM revenue grows.
- Net debt6 of $5.1M at 30 June 2024 (net debt of $3.9M at 31 Dec 2023) after R&D investment of $7.6M in the period.
Operational Highlights
- Bango signed 4 new Digital Vending Machine® (DVM) customers in 1H24, including a Bank in Brazil. Post-period there has been a further 3 new customer wins.
- A leading European telco that adopted the DVM in 2020 extended their contract for a further 3 years, with a minimum contract value of $1.5M over the term.
- 13 new subscription content providers were added to the DVM in 1H24, taking the total to 106.
- The eDisti7 program now has 20 content providers, including Microsoft and Disney, allowing Bango to provide a ‘pre-stocked’ Digital Vending Machine, reducing time to revenue for both DVM customers and Bango.
- Bango signed a global agreement with Uber to accelerate the take-up of Uber One subscriptions through telco channels, proving the appeal of the Bango DVM beyond digital video, music and gaming services.
- The ‘global technology leader’ (announced in June 2022) launched its first two telcos with Bango in 1H24. Additional launches are underway.
- Chartered Accountant Tony Perkins joined the Bango Board as a Non-Executive Director and Chair of the Audit Committee. In Q3, Tony was appointed as Senior Independent Director replacing Eric Peacock who retired from the Board to focus on his recovery from an accident.
Presentation and Webcast
A presentation of the interim results will be made to investors and analysts at 10:00 BST today via the Investor Meet Company Platform. Those wishing to join the call can sign up to Investor Meet Company for free via:
https://www.investormeetcompany.com/bango-plc/register-investorFull RNS announcement
Read the full Interims Results RNS announcement here: https://polaris.brighterir.com/public/bango_plc/news/rns/story/r7ze9jw
Paul Larbey, Chief Executive Officer of Bango, commented:
“The first six months of 2024 have gone to plan and are in-line with the Trading Update issued in July. The payments business continues to deliver growth, providing cash to fund expansion of the Digital Vending Machine® (DVM), which continues to be adopted as the defacto standard platform for subscription bundling by the world’s largest companies. The addition of Disney+ to the Bango eDisti program is further evidence of this and will help accelerate time-to-revenue from DVM deals. With 4 new DVM wins in the 1H and a further 3 in Q3, the pipeline built over the past years continued to deliver results and provides confidence in meeting market expectations for the full year.
The subscriptions market is vast and growing, and the percentage of subscriptions bundled through channels is increasing. Bango’s leadership position in this market is strengthening with the DVM now playing a key role in the customer acquisition and engagement strategies of major content brands. We are excited by the opportunity ahead and remain on track to continue our strong growth trajectory and return to a positive net cash position in FY25.”
1 Transactional Revenue is revenue derived by charging a percentage of the retail price paid by the consumer and is made up of direct carrier billing, resale and revenue share amounts.
2 DVM, Bango Audiences & one-off Revenue includes all DVM license and support fees, revenue from Bango Audiences (discontinued in Q1) and one-off fees including DVM set-up and change requests.
3 Annual Recurring Revenue is the expected annual revenues to be generated in the next 12 months based on contracted revenues recognized as at 30 June 2024.
4 Net Revenue Retention is a measure of the retention and expansion of revenue from customers over the previous 12 months and is calculated by dividing the ARR from existing customers at the end of 1H24 to the ARR from those same customers at the end of 1H23.
5 Adjusted EBITDA is earnings before interest, tax, depreciation, amortization, negative goodwill, exceptional items, share of net loss of associate and share based payment charge
6 Net debt is cash and cash equivalents plus short-term investments less the loan from NHN and borrowings. Barclays continues to provide an overdraft facility which was not used at the end of the period .
7eDisti is a program that allows Bango to resell subscriptions from content providers removing the need for a commercial agreement between the DVM customer and the content provider.Contact Details:
investors@bango.comAbout Bango
Bango enables content providers to reach more paying customers through global partnerships. Bango revolutionized the monetization of digital content and services, by opening-up online payments to mobile phone users worldwide. Today, the Digital Vending Machine® is driving the rapid growth of the subscriptions economy, powering choice and control for subscribers.
The world’s largest content providers, including Amazon, Google and Microsoft trust Bango technology to reach subscribers everywhere.
Bango, where people subscribe. For more information, visit http://www.bangoinvestor.com
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MIL-OSI Russia: IMF Staff Completes 2024 Article IV Mission to Cambodia
Source: IMF – News in Russian
September 30, 2024
End-of-Mission press releases include statements of IMF staff teams that convey preliminary findings after a visit to a country. The views expressed in this statement are those of the IMF staff and do not necessarily represent the views of the IMF’s Executive Board. Based on the preliminary findings of this mission, staff will prepare a report that, subject to management approval, will be presented to the IMF’s Executive Board for discussion and decision.
- The Cambodian economy is projected to grow by 5½ percent in 2024, faster than in 2023, but performance is uneven across sectors. Garment and agricultural exports are strong, and tourism is recovering while real estate and construction are undergoing a correction.
- Fiscal policy needs to rebuild buffers, while supporting a durable and inclusive recovery of the economy. Raising revenues for growth-enhancing spending on education, health, and infrastructure is important. The risk of debt distress remains low.
- Monetary and financial measures need to focus on safeguarding financial stability against the backdrop of slowing credit growth and rising non-performing loans (NPLs).
- Structural reforms to enhance human capital, make the business environment more competitive, and strengthen institutions and governance would promote inclusive and sustainable economic development.
Phnom Penh,Cambodia : An International Monetary Fund (IMF) team, led by Kenichiro Kashiwase, visited Cambodia during September 17-30 to hold discussions for the 2024 Article IV consultation. At the end of the mission, Mr. Kashiwase issued the following statement:
“Cambodia’s economic growth has strengthened, but the recovery remains uneven. Real GDP growth is estimated at 5 percent in 2023, a similar pace as in 2022. For 2024, the economy is projected to expand by 5½ percent driven by a strong rebound in garment and agricultural exports and the ongoing recovery in tourism. However, the construction and real estate sectors are going through a correction, following rapid growth in prior years.
“Inflation has moderated to an average of 1.6 percent (y/y) in the first half of 2024, down from 2.1 percent in 2023, reflecting global commodity price trends and weak domestic demand growth. For the full year, inflation is projected to reach around 1.5 percent before converging towards the long-term trend of 3 percent.
“The current account (CA) balance is expected to swing back to a deficit of around 1¾ percent of GDP this year as strong imports are expected to outpace robust export growth. International reserves improved and coverage remains broadly adequate.
“Fiscal deficit in 2023 is estimated at 2.8 percent of GDP with tax revenues falling due to softening of economic growth momentum and rising tax exemptions. Capital expenditure was also lower than planned due to delays in infrastructure execution. The fiscal deficit is projected at around 3 percent of GDP in 2024 and decline gradually over the medium term. Public debt to GDP is projected to increase moderately during the next decade, though the risk of debt distress remains low.
“Credit growth has sharply slowed amidst deteriorating asset quality and high private sector debt. In 2024Q1, NPLs rose to 6 percent of total loans, reflecting emerging vulnerabilities with the temporary roll-back of the COVID-19 forbearance measures.
“Risks to the outlook have shifted to the downside, notably due to weaker-than-projected demand from advanced economies and China, geoeconomic fragmentation, and high domestic private debt. Rising NPLs in the tourism and real estate sectors also pose risks to growth and financial stability. On the upside, a continued loosening of global financial conditions would support the recovery.
“Turning to policies, fiscal policy needs to rebuild the buffers diminished by the pandemic, while accommodating a durable and inclusive recovery of the economy. In case of adverse shocks to the economy, fiscal policy should react with a focus on priority spending measures aligned with development goals and well-targeted social protection for the vulnerable. Strengthening revenues is important to create space for growth enhancing spending on education, health, and infrastructure. Tax exemptions and incentives should be reviewed and rationalized to reduce tax base erosion. Other measures to strengthen revenues include implementing the personal income tax and improving tax compliance and administration efficiency. Improving the targeting of social assistance programs and strengthening public investment management are also priorities. As Cambodia approaches graduation from the least developed country status, continuing to strengthen policy frameworks alongside enhancements to public financial management practices, improved fiscal transparency and governance, and the development of the domestic government bond market would be critical.
“Monetary policy normalization should resume at a pace calibrated to the economic recovery and banking sector liquidity conditions. Important progress has been made in modernizing monetary policy and FX operations. Further efforts in this direction will be needed to enhance monetary policy transmission and support de-dollarization. Priorities include promoting an active KHR interbank market, developing a liquidity forecasting framework, further strengthening market determination of exchange rates, and improving the operational efficiency of monetary policy.
“Financial sector policies should focus on maintaining financial stability. Forbearance measures should be phased out to alleviate capital misallocation and address risks of debt overhang. The authorities should ensure proper reporting of loans subject to forbearance and foster the preservation of banks’ liquidity and capital buffers. Provision of credit by real estate developers to homebuyers should be monitored closely and subject to stringent prudential requirements to avoid regulatory arbitrage. Intensified supervision efforts are warranted in the current environment. In the medium term, a comprehensive macroprudential policy strategy should be implemented, and a crisis resolution framework and deposit insurance scheme established.
“Structural reforms are needed to diversify growth drivers and improve productivity. Enhancing skills and education is essential to reap the demographic dividend, foster technology adoption, and facilitate the transition to climate-resilient, higher-productivity industries. The government’s efforts to promote quality investment in higher-value-added activities and capture more of the value chain in agriculture are commendable. Further efforts to improve financial inclusion, advance digitalization, and enhance climate change resilience will also be needed for inclusive and sustainable development.
“Continued efforts to strengthen institutions and governance, and to improve quality and transparency of public service deliveries would bolster long-term sustainable growth. Priorities include approval of the law on Whistleblower Protection, the draft law on Transparency, and the draft law on Access to Information. The National Audit Authority’s independence and resources should be strengthened along with improvements in the asset declaration regime and inter-agency cooperation. Addressing data limitations and improving macroeconomic data quality would benefit monitoring of the economy and policymaking. The IMF will continue to provide technical assistance to help improve statistics, and in other areas of capacity development.
“The IMF team held discussions with senior officials of the Royal Government of Cambodia, the National Bank of Cambodia, and other public agencies, as well as a wide range of stakeholders, including representatives of the business and banking sectors, and development partners. The team wishes to express its deep appreciation to the authorities and other interlocutors for open and constructive discussions.”
IMF Communications Department
MEDIA RELATIONS
PRESS OFFICER: Randa Elnagar
Phone: +1 202 623-7100Email: MEDIA@IMF.org
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MIL-OSI Banking: AIIB, Uzbekistan Cement Long-Term Partnership With Landmark Agreements at 9th AIIB Annual Meeting
Source: Asia Infrastructure Investment Bank
The Asian Infrastructure Investment Bank (AIIB) further solidified its long-standing partnership with the Republic of Uzbekistan through a series of agreements signed in Samarkand, Uzbekistan, at the Bank’s 9th Annual Meeting, its first in Central Asia.
The agreements follow the signing of a three-year rolling pipeline for sovereign-backed financed projects by Uzbekistan President Shavkat Mirziyoyev and AIIB President Jin Liqun in Beijing. This strategic partnership established a solid foundation for the current agreements, aimed at supporting Uzbekistan’s sustainable development goals.
At the Annual Meeting, the Bank and the Swiss State Secretariat for Economic Affairs (SECO) signed an agreement for a USD8.8 million contribution to support the Karakalpakstan and Khorezm Water Supply and Sanitation Project. This critical initiative aims to improve water resource management, sanitation services and flood risk management in some of Uzbekistan’s most water-stressed regions. The project aligns with AIIB’s green infrastructure and technology-enabled Infrastructure thematic priorities and is a key step in advancing Uzbekistan’s long-term goals for climate resilience and water security.
Following this, AIIB signed a pivotal loan agreement with Asakabank, marking AIIB’s inaugural partnership with the financial institution. The RMB-denominated loan will expand Asakabank’s portfolio in renewable energy and energy efficiency and provide much-needed financial support for green investments. This agreement is a critical part of Uzbekistan’s energy transition strategy and highlights AIIB’s role in fostering climate-resilient infrastructure development across Central Asia.
Building on this momentum, AIIB signed a mandate letter with SQB (formerly Sanoat Qurilish Bank) to promote sustainable energy projects. This partnership will provide longer-tenor funding than typically available in the market, equipping SQB to finance renewable energy projects and furthering AIIB’s contribution to Uzbekistan’s clean energy goals. The agreement strengthens the relationship that began with the signing of a letter of intent in January 2024.
Finally, AIIB signed a grant agreement to expand and modernize the country’s public education infrastructure, which marked AIIB’s first project in Uzbekistan’s education sector. This project addresses the pressing need for additional classroom capacity and focuses on building new schools, renovating existing ones and introducing modern educational tools and technology. This initiative has special emphasis on gender inclusion, digital technology and climate resilience, and will ensure that Uzbekistan’s youth are well-equipped to meet the demands of the future.
“The three-year rolling pipeline agreement between President Mirziyoyev and President Jin established a strategic framework for aligning Uzbekistan’s development goals with AIIB’s expertise and resources,” said Konstantin Limitovskiy, AIIB Vice President for Investment Clients Region 2 and Project and Corporate Finance, Global. “The agreements signed during the Annual Meeting further underscore AIIB’s commitment to advancing impactful, long-term projects that foster prosperity, resilience and sustainable growth in Uzbekistan.”
“The Asian Infrastructure Investment Bank has been a long-standing partner of Uzbekistan, supporting our country in its pursuit of sustainable infrastructure and investment development, improving living conditions for people, and achieving the goals of the Strategy 2030,” said Laziz Kudratov, Uzbekistan’s Minister of Investment, Industry, and Trade and Governor for Uzbekistan at the AIIB. “The signing of the grant agreement for the project on the modernization and expansion of school infrastructure is another significant step on this path, supported by AIIB and our other partners.”
AIIB’s continued investments in green infrastructure, renewable energy, education and water management demonstrate the Bank’s commitment to supporting Uzbekistan’s Sustainable Development Strategy: Vision 2030, which aims to alleviate poverty, promote inclusive growth and enhance resilience to global challenges. As AIIB and Uzbekistan continue to deepen their cooperation, these projects will serve as key drivers of the nation’s green transformation, promoting economic resilience and improving the quality of life for its citizens.
About AIIB
The Asian Infrastructure Investment Bank (AIIB) is a multilateral development bank whose mission is Financing Infrastructure for Tomorrow in Asia and beyond—infrastructure with sustainability at its core. We began operations in Beijing in 2016 and have since grown to 110 approved members worldwide. We are capitalized at USD100 billion and AAA-rated by the major international credit rating agencies. Collaborating with partners, AIIB meets clients’ needs by unlocking new capital and investing in infrastructure that is green, technology-enabled and promotes regional connectivity.
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MIL-OSI: Medallion Bank Announces Fintech Strategic Partnership With Kashable
Source: GlobeNewswire (MIL-OSI)
SALT LAKE CITY, Sept. 30, 2024 (GLOBE NEWSWIRE) — Medallion Bank (Nasdaq: MBNKP), an FDIC-insured bank specializing in consumer loans for the purchase of recreational vehicles, boats, and home improvements, as well as loan products and services offered through fintech strategic partners, today announced a strategic partnership with Kashable, a leading fintech company dedicated to providing socially responsible credit and financial wellness solutions. This collaboration builds on Medallion Bank’s existing nationwide financing footprint while expanding Kashable’s services to a broader audience, offering working Americans access to affordable personal loans.
“Adding Kashable to our growing strategic partnership program expands Medallion Bank’s consumer finance reach while supporting Kashable’s mission to improve the financial well-being of its customers” stated Donald Poulton, President and Chief Executive Officer of Medallion Bank. “Medallion Bank is proud to leverage our expertise in lending and partnerships to help extend Kashable’s services to a broader audience of working Americans.”
Medallion Bank will originate personal loans on the Kashable platform, enhancing Kashable’s ability to introduce its services to employers, benefit administration platforms, marketplaces, and industry brokers, further solidifying its leadership in the financial wellness industry.
“Our relationship with Medallion Bank provides Kashable with a strong financial partner that will support us on our journey to expand financial wellness into new communities, employers, and their employees. This partnership enables us to leverage our patented proprietary system and demonstrate an unparalleled ability to look beyond credit scores alone to reward long-term, stable employees,” added Einat Steklov, Co-Founder and Co-CEO of Kashable. “The opportunities this partnership unlocks advance our mission of providing access to affordable credit with the convenience of automated repayments through deep integrations with HRIS and payroll systems.”
About Medallion Bank
Medallion Bank specializes in providing consumer loans for the purchase of recreational vehicles, boats, and home improvements, along with loan origination services to fintech strategic partners. The Bank works directly with thousands of dealers, contractors and financial service providers serving their customers throughout the United States. Medallion Bank is a Utah-chartered, FDIC-insured industrial bank headquartered in Salt Lake City and is a wholly owned subsidiary of Medallion Financial Corp. (Nasdaq: MFIN).
For more information, visit http://www.medallionbank.com.
About Kashable, LLC
Kashable is a financial technology company that provides access to Socially Responsible Credit™ and financial wellness solutions for employees, offered as an employer-sponsored voluntary benefit. By partnering with hundreds of employers, Kashable helps to provide access to financial health and wellness tools to millions of employees.
Founded in 2013, Kashable deploys innovative technology to improve the financial well-being of working Americans with a commitment to both reliability and affordability. Offering a smart, economical, and fast alternative for employees who may otherwise be driven to borrow from retirement plans, high-rate credit cards, or other high-cost loans to bridge short-term gaps in their finances, Kashable focuses on providing a path to financial security.
For more information, visit Kashable.com.
Forward-Looking Statements
Please note that this press release contains forward-looking statements that involve risks and uncertainties relating to business performance, cash flow, costs, sales, net investment income, earnings, returns and growth. These statements are often, but not always, made through the use of words or phrases such as “remain,” “anticipate” or the negative version of this word or other comparable words or phrases of a future or forward-looking nature, such as “look forward.” These statements may relate to our future earnings, returns, capital levels, sources of funding, growth prospects, asset quality and pursuit and execution of our strategy. Medallion Bank’s actual results may differ significantly from the results discussed in such forward-looking statements. For a description of certain risks to which Medallion Bank is or may be subject, please refer to the factors discussed under the captions “Cautionary Note Regarding Forward-Looking Statements” and “Risk Factors” included in Medallion Bank’s Form 10-K for the year ended December 31, 2023, and in its Quarterly Reports on Form 10-Q, filed with the FDIC. Medallion Bank’s Form 10-K, Form 10-Qs and other FDIC filings are available in the Investor Relations section of Medallion Bank’s website. Medallion Bank’s financial results for any period are not necessarily indicative of Medallion Financial Corp.’s results for the same period.
Medallion Bank Contact:
Investor Relations
212-328-2176
InvestorRelations@medallion.comKashable Contact:
Kashable@mww.com -
MIL-OSI: Changes in the number of own shares held by Aktia Bank Plc
Source: GlobeNewswire (MIL-OSI)
Aktia Bank Plc
Stock Exchange Release
30 September 2024 at 1.00 p.m.Changes in the number of own shares held by Aktia Bank Plc
Aktia Bank Plc has today, based on a decision made by the company’s Board of Directors, transferred a total of 4,586 own shares held by the company to eight persons based on the company’s remuneration programs. Of the transferred shares, 2,086 were transferred to six persons as part of variable remuneration previously deferred in accordance with regulation, and 2,500 shares to two persons as part of the Restricted Share Plan.
The divestment of own shares is based on the authorisation by the Annual General Meeting of Shareholders held on 3 April 2024. After the above-mentioned divestments, a total of 71,490 shares remain in the company’s possession.
Aktia Bank Plc
Further information:
Oscar Taimitarha, Director, Investor Relations, tel. +358 40 562 2315, ir (at) aktia.fiDistribution:
Nasdaq Helsinki Ltd
Mass media
http://www.aktia.comAktia is a Finnish asset manager, bank and life insurer that has been creating wealth and wellbeing from one generation to the next for 200 years. We serve our customers in digital channels everywhere and face-to-face in our offices in the Helsinki, Turku, Tampere, Vaasa and Oulu regions. Our award-winning asset management business sells investment funds internationally. We employ approximately 850 people around Finland. Aktia’s assets under management (AuM) on 30 June 2024 amounted to EUR 14.1 billion, and the balance sheet total was EUR 12.4 billion. Aktia’s shares are listed on Nasdaq Helsinki Ltd (AKTIA). aktia.com.
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MIL-OSI Africa: Ivorian Fintech, Daba Finance Crowned 2024 Ecobank Fintech Challenge Winner, taking home US$50,000
Source: Africa Press Organisation – English (2) – Report:
LOMÉ, Togo, September 30, 2024/APO Group/ —
Ecobank (www.Ecobank.com), the leading pan-African financial services group, announced Daba Finance, the Ivorian Fintech, as the Grand Winner of its flasghip Ecobank Fintech Challenge 2024.
Twelve (12) innovative fintech startups competed to impress the esteemed panel of five judges for the US$50,000 prize. The judges, comprised of renowned industry experts, evaluated the finalists based on criteria such as innovation, market potential, scalability and team strength.
After fierce competition, Daba Finance takes home US$50,000 with its solution to make investing accessible to everyone by offering a one-stop investment platform for trading stocks, bonds, and other financial products.
BOUM III JR, CEO of Daba Finance, expressed immense gratitude for the opportunity and the recognition, stating, “Winning this challenge propels our mission to make investing and wealth building opportunities available for all. With Ecobank as our partner, we are accelerating the journey to making our innovation accessible to millions and bringing financial empowerment to the continent.”
The judges also rewarded two additional fintechs whose solutions made a lasting impression. Melanin Kapital from Kenya took second place, winning US$10,000 and Guinean’s fintech YMO secured third place with US$5,000. For the first time, the general public was given the opportunity to vote for their preferred fintech, and MiaPay from Togo won the “Public Choice Award” for this year’s edition.
The 12 finalists were carefully selected from a record 1,550 Fintech Challenge 2024 entrants from 70 countries, demonstrating the competition’s rising prominence over its seven years. This also showcases the impressive innovation and creativity, especially on the African continent.
At the Ceremony, all the finalists were enrolled into the prestigious Ecobank Fintech Fellowship programme, which provides them with valuable exposure to investors and industry leaders, access to Ecobank’s Banking Sandbox to test and develop their innovative solutions, with the possibility of scaling across the Bank’s large pan-African footprint.
This annual event, which is unique in sub-Saharan Africa, is a testament to Ecobank’s commitment to helping African fintechs to develop and grow, and for the Bank to identify potential partnerships with fintechs which can be scaled to bridge the financial inclusion gap and streamline access to payments.
During his remarks, Jeremy Awori, Group CEO of Ecobank stated, “The African continent is a hotbed for fintech innovation globally and is constantly pushing the boundaries to enhance convenience and establish new digitally enabled capabilities. Ecobank’s Fintech Strategy centres on leveraging our borderless pan-African digital platform, to provide cutting edge solutions to fintechs that will benefit millions of africans. I am particularly proud of what we have achieved so far with fintechs through our annual Ecobank Fintech Challenge.”
He added: “I am hugely impressed by the quality of the pitch of our twelve finalists, and I want to congratulate Daba Finance for making it to the top of the podium. I look forward to seeing how our collaboration will help them grow and scale.”
He ended by expressing his sincere appreciation to the judges, sponsors and partners who include Konfidants, Proparco, Huawei, Asky Airlines, TechCabal, BlueSpace, Afrilabs, Africa Fintech Network, MEST Africa, Naija Startups, Expand in Africa and Founders Africa. He extended special thanks to Asky Airlines who donated round-trip tickets to the winners.
Since its inception in 2017, the Ecobank Fintech Challenge has attracted over 7,000 applications from fintech innovators from 70 countries. This impressive pool of talent has resulted in 72 fintechs being inducted into the Ecobank Fintech Fellowship.
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MIL-OSI USA: How to Apply for FEMA Assistance After Tropical Storm Helene
Source: US Federal Emergency Management Agency 2
strong>ATLANTA, Ga.- North Carolina homeowners and renters in 25 counties and the Eastern Band of Cherokee Indians who had uninsured damage or losses caused by Tropical Storm Helene may be eligible for FEMA disaster assistance.
FEMA may be able to help with serious needs, displacement, temporary lodging, basic home repair costs, personal property loss or other disaster-caused needs. Homeowners and renters in Alexander, Alleghany, Ashe, Avery, Buncombe, Burke, Caldwell, Catawba, Clay, Cleveland, Gaston, Haywood, Henderson, Jackson, Lincoln, Macon, Madison, McDowell, Mitchell, Polk, Rutherford, Transylvania, Watauga, Wilkes and Yancey counties and the Eastern Band of Cherokee Indians can apply.
There are several ways to apply: Go online to DisasterAssistance.gov, use the FEMA App or call 800-621-3362 from 7 a.m. to 11 p.m. ET daily. The telephone line is open every day and help is available in most languages. If you use a relay service, such as Video Relay Service (VRS), captioned telephone or other service, give FEMA your number for that service.
To view an accessible video on how to apply, visit Three Ways to Apply for FEMA Disaster Assistance – YouTube.
FEMA’s disaster assistance offers new benefits that provide flexible funding directly to survivors. In addition, a simplified process and expanded eligibility allows North Carolinians access to a wider range of assistance and funds for serious needs.
What You’ll Need When You Apply
- A current phone number where you can be contacted.
- Your address at the time of the disaster and the address where you are now staying.
- Your Social Security number.
- A general list of damage and losses.
- Banking information if you choose direct deposit.
- If insured, the policy number or the agent and/or the company name.
If you have homeowners, renters or flood insurance, you should file a claim as soon as possible. FEMA cannot duplicate benefits for losses covered by insurance. If your policy does not cover all your disaster expenses, you may be eligible for federal assistance.
For the latest information about North Carolina’s recovery, visit fema.gov/disaster/4827. Follow FEMA on X at x.com/femaregion4 or on Facebook at facebook.com/fema.
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MIL-OSI USA: How to Apply for FEMA Assistance in Florida After Hurricane Helene
Source: US Federal Emergency Management Agency 2
How to Apply for FEMA Assistance in Florida After Hurricane Helene
WASHINGTON — Florida homeowners and renters in 17 counties who had uninsured damage or losses caused by Hurricane Helene may be eligible for FEMA disaster assistance.
FEMA may be able to help with serious needs, displacement, temporary lodging, basic home repair costs, personal property loss or other disaster-caused needs. Homeowners and renters in Charlotte, Citrus, Dixie, Franklin, Hernando, Hillsborough, Jefferson, Lafayette, Lee, Levy, Madison, Manatee, Pasco, Pinellas, Sarasota, Taylor and Wakulla counties can apply.
If you applied to FEMA after Hurricane Debby and have additional damage from Hurricane Helene, you will need to apply separately for Helene and provide the dates of your most recent damage. Apply for either storm online at DisasterAssistance.gov. You can also apply using the FEMA mobile app or by calling FEMA’s helpline toll-free at 800- 621-3362. Lines are open every day and help is available in most languages. If you use a relay service, such as Video Relay Service (VRS), captioned telephone or other service, give FEMA your number for that service. To view an accessible video on how to apply visit Three Ways to Apply for FEMA Disaster Assistance – YouTube.
FEMA’s disaster assistance offers new benefits that provide flexible funding directly to survivors. In addition, a simplified process and expanded eligibility allows Floridians access to a wider range of assistance and funds for serious needs.
What You’ll Need When You Apply
- A current phone number where you can be contacted.
- Your address at the time of the disaster and the address where you are now staying.
- Your Social Security number.
- A general list of damage and losses.
- Banking information if you choose direct deposit.
- If insured, the policy number or the agent and/or the company name.
If you have homeowners, renters or flood insurance, file a claim as soon as possible. FEMA cannot duplicate benefits for losses covered by insurance. If your policy does not cover all your disaster expenses, you may be eligible for federal assistance.
For the latest information about Florida’s Hurricane Helene recovery, visit fema.gov/disaster/4828. Follow FEMA on X at x.com/femaregion4 or on Facebook at facebook.com/fema.
mashana.davis
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MIL-OSI Banking: Verizon and Vertical Bridge agree to $3.3 billion tower transaction
Source: Verizon
Headline: Verizon and Vertical Bridge agree to $3.3 billion tower transaction
NEW YORK, NY & BOCA RATON, FL – September 30, 2024 – Verizon Communications Inc. (NYSE, Nasdaq: VZ) and Vertical Bridge today announced they have entered into a definitive agreement for Vertical Bridge to obtain the exclusive rights to lease, operate and manage 6,339 wireless communications towers across all 50 states and Washington, D.C. from subsidiaries of Verizon for approximately $3.3 billion, including certain commercial benefits. The transaction is structured as a prepaid lease with upfront proceeds of approximately $2.8 billion in cash.
Under the terms, Verizon will enter into a 10-year agreement1 to lease back capacity on the towers from Vertical Bridge, serving as the anchor tenant, with options that could extend the lease term up to 50 years. Verizon will also have access to certain additional space on the towers for its future use, subject to certain restrictions. This agreement, along with Verizon’s existing build-to-suit joint venture with Vertical Bridge, will support Verizon’s efforts to drive down tower-related costs and provide greater vendor diversity in a concentrated industry.
“As the nation’s largest mobility provider, we are well positioned with greater financial flexibility to invest in our business, return value to our shareholders and make the nation’s best network even better for customers,” said Verizon Chairman and CEO Hans Vestberg. “This transaction builds on our existing relationship with Vertical Bridge while realizing substantial value for this unique set of assets and allows us to be agile in optimizing the network with one of the best operating partners.”
“We are pleased to have been selected by Verizon as the counterparty in the largest US tower transaction in almost a decade,” said Ron Bizick, President and CEO of Vertical Bridge. “This transaction represents a significant step for Vertical Bridge. The vision of the company founders 10 years ago was to create a permanent, private, and at-scale US tower company. This transaction marks a significant milestone in the realization of that vision. Upon the completion of this transaction, these assets, together with our existing portfolio which includes thousands of young, purpose-built towers, enhance Vertical Bridge’s position as a fast, friendly, and flexible colocation partner to the wireless industry.”
“Since co-founding Vertical Bridge in 2014, we’ve been on a transformative journey, and this landmark transaction with Verizon Communications marks an inflection point in that evolution,” said Marc Ganzi, CEO of DigitalBridge and Vice Chairman of Vertical Bridge. “This transaction not only solidifies our leadership in the tower space but also strategically positions us to capitalize on the growing demand for wireless infrastructure, especially as AI-driven technologies and 5G continue to reshape connectivity needs across industries.”
DigitalBridge, a leading global alternative asset manager dedicated to investing in digital infrastructure and majority owner of Vertical Bridge, has committed capital to support the transaction.
CDPQ, a global investment group and an important shareholder of Vertical Bridge since 2019, also committed capital to finance this transaction.
The transaction is expected to close by the end of 2024, subject to customary closing conditions.
Advisors
J.P. Morgan acted as financial advisor to Verizon and Jones Day acted as legal counsel. Centerview Partners LLC served as financial advisor to Vertical Bridge and Greenberg Traurig acted as legal counsel. Simpson Thacher & Bartlett acted as legal counsel to DigitalBridge. Mayer Brown LLP acted as legal counsel to CDPQ.About Vertical Bridge
Vertical Bridge REIT, LLC, headquartered in Boca Raton, Florida, was founded in 2014 and is the largest private owner and operator of communications infrastructure and locations in the United States, with a portfolio of more than 500,000 sites, including over 11,000 owned and master-leased towers pre-transaction. Vertical Bridge provides build-to-suit and colocation solutions to the wireless industry. The Company’s portfolio spreads across all 50 states and Puerto Rico.In 2020, Vertical Bridge became the first tower company in the world to achieve the CarbonNeutral® company certified status and has been recertified every year since. For more information, please visit http://www.verticalbridge.com.
Forward-Looking Statements
n this communication we have made forward-looking statements. These statements are based on our estimates and assumptions and are subject to risks and uncertainties. Forward-looking statements include the information concerning our possible or assumed future results of operations. Forward-looking statements also include those preceded or followed by the words “anticipates,” “assumes,” “believes,” “estimates,” “expects,” “forecasts,” “hopes,” “intends,” “plans,” “targets” or similar expressions. For those statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. We undertake no obligation to revise or publicly release the results of any revision to these forward-looking statements, except as required by law. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements.
[1] Initial term of 10 years, plus 8 optional renewal terms of 5 years each, subject to certain early termination rights.
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MIL-OSI Economics: Development Asia: Enhancing Environmental Safeguards in Financial Intermediaries
Source: Asia Development Bank
A look at how ADB, a financial intermediary (FI) itself, appraises projects and manages them over the project cycle can help give a better understanding of how other FIs manage theirs. Multilateral development banks (MDBs) and governments follow the same logic flow when deciding whether or not to invest.
First, a proposed project should meet the minimal criteria to be eligible for consideration and assessment. ADB has a Prohibited Investment Activity List, which identifies investment activities that do not qualify for ADB financing. Other FIs might have their own list to reflect their priority areas or discouraged investment. If a proposal already fails at technical and financial screening, it will be returned for revision or rejected outright without the need to proceed to environmental–social screening.
Second, after passing the eligibility screening, a project’s technical feasibility and economic–financial viability will be evaluated in the feasibility study. This necessitates development of the project’s technical design, which is also needed to estimate the cost.
The evaluation of environmental sustainability and social acceptability of a project was added in the 1970s and has gradually become stand-alone as the Environmental Impact Assessment (EIA).
The EIA aims to (i) aid decision making (e.g. drop or proceed with a project and conditions; (ii) improve the project design to minimize negative impacts (e.g. by adding pollution treatment); and (iii) mitigate the residual impacts through action plans such as the environmental management plan.
Third, once the feasibility study and EIA show the proposed project meets technical-financial and social-environmental requirements, and related actions can be carried out, the FI (or government) can decide to approve the project and proceed with its execution.
Since these assessments are time- and resource-consuming, their intensity and level of management need to match the level of risks and impacts. Most countries and MDBs classify environmental impacts into high, medium, and low level categories that require corresponding degrees of evaluation—full EIA, simplified EIA, and no assessment—and management. Likewise on the technical aspect, not all projects require a full feasibility study.
Such impact categorization needs to take place during the proposal stage to determine the level of ensuing assessment. How can the impact level (i.e. category) of a proposal be judged? This is one of the major challenges for FIs, which has led to mis-categorization.
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MIL-OSI Economics: Swaminathan J: Governance in Small Finance Banks – driving sustainable growth and stability
Source: Bank for International Settlements
Chairpersons and Directors of the Boards of Small Finance Banks; Chief Executive Officers of SFBs; Executive Directors, Chief General Managers and colleagues from the Reserve Bank of India; ladies and gentlemen. A very good morning to all of you.
It is an honour to address this distinguished gathering in the inaugural conference of Board of Directors of Small Finance Banks organised by the RBI. As has been mentioned, this conference is in continuation of the Reserve Bank’s efforts to reach out to its supervised entities through a direct dialogue with their Boards and Top Management. Our objective is to reaffirm the importance of good governance for maintaining financial stability and fostering sustainable growth.
In his address1 to the Directors of Public and Private Sector Banks last year, the Governor outlined a comprehensive 10-point charter that addressed key aspects such as the role of the Board, its independence, the importance of setting the tone from the top, etc. His speech serves as an excellent blueprint for regulatory expectations from the Boards of Directors, and I encourage you to review it if you haven’t already.
Today, I would like to discuss three key issues with you: (i) the vital role of Small Finance Banks in promoting financial inclusion, (ii) the necessity of strengthening governance and assurance functions for sustainable growth, and (iii) important considerations regarding business models and risks that Boards should be mindful of.
Important Financial Inclusion objective of SFBs
As you are aware, the licensing of Small Finance Banks was introduced a decade ago, in 2014, with the primary objective of advancing financial inclusion. Beyond serving as a vehicle to mobilise savings, SFBs were also envisioned to extend affordable credit to underserved and unorganised sectors, such as small and marginal farmers as well as small business units, by leveraging technology to reduce costs and improve accessibility.
India, today, stands at a pivotal moment in her development trajectory. In the last 75 years, we have transformed ourselves from an agrarian economy into one driven by industry and services. However, translating our GDP into higher per capita Gross National Income comparable to developed economies will require a comprehensive approach towards inclusive and sustainable economic growth. This will inter-alia entail education, skill development, employment generation, and more pertinently further deepening of financial inclusion. Thus, the goal for small finance banks is not ‘small’. On the contrary, it is very significant, as SFBs play a crucial role in extending financial services to the underserved, fostering entrepreneurship, and driving inclusive growth that will be essential for India’s progress towards becoming a high-income economy.
In a developing country like India, it is imperative for the financial sector, including small finance banks to strike a balance between profitability and social objectives. This can be achieved through a strategic focus on sectors that deliver high social impact, ensuring that financial growth is aligned with the broader goal of inclusive development. It is therefore essential for SFBs to actively participate in extending credit under various Government Sponsored Schemes to promote greater accessibility of affordable credit, especially among the vulnerable sections of the society.
As the target group of such lending is mostly the marginalised and underserved sections of the society, it is essential for the SFBs to adopt responsible lending practices. It is disheartening to come across egregious practices by some SFBs, such as charging excessive interest rates, collecting instalments in advance as well as not adjusting such advance collections against loan outstanding, levying of usurious fees, etc. It is also observed that grievance redressal mechanism is far from adequate in most SFBs.
I therefore feel that periodically reviewing how your bank is fulfilling its financial inclusion objectives is an area that Boards should give much deeper consideration to. It is not just about meeting regulatory requirements such as priority sector lending but also about assessing the true impact of your efforts on underserved communities. Boards can reflect on whether the bank is genuinely reaching marginalised groups, such as low-income households, small businesses, and rural populations, and how effectively it is using technology and innovative products to bridge financial gaps, as these were the objectives of having a differentiated licensing for SFBs.
Strengthening Governance
An effective governance framework is the foundation of resilient and well managed institutions, especially in the context of banks. There needs to be a clear division of responsibilities between the Board and the management to ensure smooth functioning of the bank. While the Board is responsible for setting the overall strategic direction, establishing policies, and ensuring that the bank adheres to regulatory frameworks and ethical standards, the management is responsible for the execution of the Board’s strategy and operations. It is the Board’s role to provide oversight, asking the right questions and holding the management accountable for executing the bank’s strategy within the agreed risk appetite.
In this context, it is imperative that the views of the Board are clearly articulated and documented in the minutes of the meetings of the Board and its various sub-committees. It is said that the ‘palest ink is better than the best memory’. Proper documentation serves as a vital record of the Board’s deliberations, decisions, and rationale behind those decisions, ensuring transparency and accountability in governance. Clear minutes not only provide a historical account of the Board’s discussions but also serve as a reference for future decision-making, helping to maintain continuity and clarity in governance practices.
Boards should prioritise proper succession planning for top management. Having just one Whole Time Director (WTD) can create potential vulnerabilities, especially in times of transition or unforeseen circumstances. Without a well-thought-out succession plan, the bank may face leadership gaps that could disrupt operations and affect strategic decision-making. A broader pool of experienced leaders also contributes to better governance and more resilient management structures. We observe that while the SFBs are strengthening their Boards by bringing in new directors, some SFBs are yet to ensure the presence of at least two Whole Time Directors. I would request these banks to expeditiously consider appointing more WTDs.
Empowering Assurance Functions
Boards should accord due importance to assurance functions, namely, risk management, compliance and internal audit. These functions play a critical role in identifying and mitigating risks, ensuring compliance with laws and regulations as well as safeguarding the organisation’s integrity.
Boards should ensure that heads of assurance functions are positioned appropriately within the organisational hierarchy and granted direct access to the Board. Dual-hatting, or combining assurance responsibilities with operational or management duties, undermines the independence and objectivity of assurance functions by creating conflicts of interest. Therefore, any dual hatting of assurance functions, should be avoided.
Key risks to reflect upon
Small Finance Banks have demonstrated strong growth since their inception, now accounting for 1.18 percent of total banking assets (as of March 2024). This is a substantial rise from 0.44 percent in March 2018. The deposit base has grown at a 32 per cent compounded annual growth rate (CAGR) over the last five years whereas net advances recorded a CAGR of 26 per cent. While the business growth in Small Finance Banks is indeed impressive, it is imperative that Boards remain vigilant for hidden and emerging risks that could jeopardise their long-term success.
In this context, I would like to highlight a few areas that Boards could keep in mind.
Business model
Firstly, I would urge Boards to consider the sustainability of their growth strategies and business models by conducting a thorough review of both the liability and asset sides of the balance sheet. Specifically, they should assess whether there is an overdependence on high-cost term deposits or bulk deposits from a limited number of institutions. Additionally, they should evaluate any substantial asset exposures that could adversely impact the bank if they were to sour. These are essential aspects that the Board and its Risk Management Committee must scrutinise to ensure long-term stability and resilience.
Credit risks
Secondly, I would like to emphasise proper credit risk underwriting. While many banks have expanded into unsecured retail lending, hoping to leverage the diversification benefits it offers, there is an underlying correlation risk that becomes more pronounced during economic downturns. In such scenarios, the credit profile of a large segment of borrowers can be significantly impacted, leading to higher default rates. This highlights the importance of rigorous underwriting processes that carefully assess the creditworthiness of borrowers, rather than relying solely on automated systems or algorithms. Effective underwriting should consider a comprehensive range of factors, including income stability, credit history, and the overall economic environment, to ensure that loans are made judiciously.
Further, while digital lending solutions have streamlined the process and made access to credit easier, on-the-ground presence for collections remains crucial. Resorting to coercive recovery practices as a means of mitigating risk is not a sustainable solution. Such practices not only harm the bank’s reputation but can also lead to legal and regulatory repercussions. A better approach is to implement collection strategies that prioritise communication and collaboration with borrowers. This includes strictly adhering to fair practices code and adopting an empathetic approach while dealing with stressed loan book.
Cyber-security risk and third-party dependencies
Thirdly, I would like to address the issue of cyber security and IT vulnerabilities. Being relatively new entities, SFBs have used technology to enhance their product offerings and customer service. However, with their increasing digital footprint, these banks face significant operational risks from growing cyber threats, digital frauds, and possible data breaches.
The cyber security landscape is evolving rapidly, and SFBs must stay ahead of emerging threats to protect their customers’ data and maintain operational resilience. The SFBs should adopt robust business continuity plans and effective IT outsourcing strategies. There is also a need to ensure rigorous change management processes, comprehensive data protection measures, vigilant transaction monitoring, stringent access controls and network security protocols. These measures will help SFBs to significantly enhance their IT resilience against possible disruptions.
Operational Risk
Fourthly, while I have covered cybersecurity threats, I would also like boards of SFBs to be mindful of the larger issue of operational risks. During periods of rapid growth, the focus on increasing market share, launching new products, and acquiring customers can lead to a neglect of essential risk management practices. For example, hastily onboarding new customers without thorough KYC due diligence or rushing the deployment of technology solutions without adequate testing can increase the likelihood of frauds, errors and service disruptions. Growth is important for the success of Small Finance Banks. However, it must not come by overlooking operational controls.
Another significant area of concern for operational risk is the high attrition rate among staff in Small Finance Banks. While the branch network and employee headcounts are expanding, the sector faces a very high attrition rate of nearly 40 per cent, particularly among frontline staff and junior management. Such elevated turnover, though mostly at the entry and junior management levels, poses substantial operational risks, as it can lead to a loss of institutional knowledge, disruption in service delivery, and increased training costs for new hires. To mitigate these risks, Board-level efforts are essential to focus on employee retention strategies at all levels. Further, the absence of succession planning for critical managerial positions is a common issue across SFBs, which requires immediate attention from Boards to ensure a smooth transition of leadership and maintain operational effectiveness.
Conclusion
In conclusion, SFBs with their outreach to rural and semi-urban areas, are intended to be one of the key enablers in credit offerings to individuals, weaker sections, entrepreneurs, SHGs/JLGs and MSMEs. They have a large role to play in achieving our aspirational goal of becoming a developed nation by 2047.
As RBI celebrates 90 years of its foundation this year, we have set deepening financial inclusion as one of our cherished objectives for RBI@100. RBI, with its continued commitment towards a financially inclusive India, has taken several measures to support these segments ranging from Priority Sector Lending targets to the introduction of TReDS for MSMEs. A new chapter in this book is the Unified Lending Interface (ULI) platform which aims at “enabling frictionless credit” with the ‘new trinity’ of JAM-UPI-ULI, further propelling India’s growth story.
SFBs should strive to harness this opportunity and other such opportunities offered by latest technological innovations for efficient and cost-effective service delivery. Further, with robust governance and effective board oversight, SFBs can capitalise on their strengths while meeting growth and stability objectives.
With this, I wish you all the best for the coming sessions and hope that you find these sessions professionally enriching and stimulating. Thank you!
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MIL-OSI Economics: Joachim Nagel: Interactions between monetary policy, regulation and financial markets
Source: Bank for International Settlements
Check against delivery
1 Introduction
Ladies and gentlemen,
Good morning and welcome to the Conference on Markets and Intermediaries, an event jointly organised by the Bundesbank and the Humboldt-Universität zu Berlin.
In my opening speech, I will take you on a helicopter tour of the programme and share some thoughts on the topics that will be covered over the next two days. The programme certainly does cover a wide range of topics. It addresses current challenges facing financial markets, financial intermediaries, and central banks.
Since the Great Financial Crisis, central banks worldwide have expanded their balance sheets, injected additional liquidity into the financial system, and broadened their collateral frameworks. In addition, financial regulation has been adapted to make the financial system more stable.
While these measures served useful purposes, they also had side effects, not least in money and capital markets. Policymakers and regulators are therefore well-advised to evaluate the effects of their measures.
2 Non-bank financial institutions
The first session is dedicated to non-bank financial institutions, or NBFIs.
This sector includes, amongst others, insurers, investment funds, and money market and hedge funds. It is strongly interconnected, both with other sectors and across countries. Its share of the global financial system, as measured by total financial assets, is almost one-half.
Clearly, it could be a source of systemic risks. But the risks presented by NBFIs often lie out of view. This makes them more difficult to monitor and assess. All the more important, then, to close data gaps and strengthen the resilience of the sector.
One particular source of vulnerability are fire sales of open-ended funds. These are the subject of a paper that Rüdiger Weber is presenting this morning.1
Open-ended funds are especially prone to fire sales because, during episodes of market stress, they often face significant pressure from investors who want to liquidate their holdings quickly. Fund managers may then be forced to offload fund assets at short notice. And if those assets are less liquid, they may have to sell them at lower prices. This may amplify price declines and liquidity shortages.
Effective liquidity management and regulation are very important here. A recently published Bundesbank paper shows that price-based liquidity management tools help keep the financial fragility of open-ended mutual funds in check.2
In times of stress, investors also try to protect their capital by shifting it into safer assets. However, this flight to safety can intensify the downward pressure on the prices of riskier assets as demand for the latter declines.
The Financial Stability Board is doing important work in this field. But it is currently focused on microprudential regulation. I think the FSB’s work on this front needs to be complemented by the development of macroprudential regulation for the NBFI sector.
In any case, we should not jeopardise what we have achieved in the banking regulation space by allowing stability risks to build up elsewhere in the financial system.
3 Central bank digital currencies
The second session is on central bank digital currencies (CBDC).
CBDC is an issue that is keeping almost all central banks very busy at the moment. The Eurosystem is hard at work preparing for the potential introduction of a digital euro.
As the world turns increasingly digital, the digital euro would provide a secure and efficient digital payment option that complements cash. It aims to strengthen Europe’s strategic autonomy by building on European infrastructures, and to promote innovation in the private sector.
However, introducing a CBDC could also have unintended side effects. If bank customers were allowed to hold it in large amounts, periods of banking distress could trigger large, sudden shifts out of deposits into CBDC. This could lead to financial instability.
And if CBDC were too attractive a substitute for deposits, commercial banks’ access to retail deposits could erode over time. Which could lead to structural disintermediation and call into question our proven two-tier banking system. It is therefore of the essence to design CBDC in a way that prevents these risks from materialising.
The challenge is to optimise the usability of CBDC as a means of payment while at the same time limiting its effects on the market for bank deposits. Two decisive factors in this regard are remuneration and holding limits. Let me say a few words on each of these.
Remuneration means the rate of interest on people’s holdings of CBDC. If that rate of interest were positive, holding CBDC would be more attractive. But at the same time, that would lead to outflows out of bank deposits.
Based on a welfare-maximising model setting, Pascal Paul will argue later this afternoon that central banks should allow for a positive interest rate.3 This stands in contrast to the intention of the Governing Council not to remunerate digital euro holdings.4
Why are we not in favour of remuneration?
Because our aim is to make the digital euro a digital complement to cash, and there is no remuneration for holding cash. We neither want to compete with commercial banks for deposits, nor do we want to employ the digital euro as a monetary policy instrument.
The second, perhaps even more important, factor is holding limits. We intend to limit digital euro holdings to a certain amount, because we want to ensure the digital euro does not lead to large sudden shifts or disintermediation.
The limits currently under discussion range from €500 to €3,000.5 A recent Bundesbank paper finds that an optimal holding limit would be in a range between €1,500 and €2,500.6 On the Governing Council, we have not yet taken a decision on the exact amount. What is more, EU legislators might be involved here.
But as regards the practical usability of the digital euro, the exact limit does not play a major role anyway. This is because a reverse waterfall system, as it is called, would allow users to link their digital euro wallet to their bank account. They can then convert their bank deposits into digital euro automatically and instantly if their holdings are insufficient to make a payment.
4 Banking and deposit flows
Allowing users to convert an unlimited amount of deposits into CBDC would expose commercial banks to substantial run risk. In any case, zero or lower interest rates will not discourage them from doing that in times of crisis. However, digital bank runs can happen even without CBDC.
The failure of Silicon Valley Bank and other regional banks in March 2023 showed how quickly customers can withdraw their deposits these days. At Silicon Valley Bank alone, customers pulled out USD 42 billion within the space of a single day, which equated to around one-quarter of total deposits. And another USD 100 billion would have been withdrawn a day later.7 The depositors on the run were apparently account holders with uninsured deposits.
Banking and deposit flows are the subject of Session 3. Dominic Cucic will present a paper showing that bank customers do indeed redistribute their deposits when deposit insurance limits change.8 Credible and reliable deposit insurance helps to prevent bank runs and preserve financial stability.
In the euro area, we currently have deposit insurance at the national level. Adding a European layer in the form of a hybrid model would help prevent situations where large shocks overwhelm national deposit insurance systems and lead to cross-border contagion.
As a European layer should be risk-based, large exposures of banks to individual sovereigns are an issue. Currently, many banks hold a disproportionately large number of bonds issued by their domestic governments. If this were to continue, a common deposit insurance arrangement could lead to a redistribution of sovereign solvency risks.
In my view, the new EU legislative session provides a good opportunity to move forward on both issues: with a reduction in banks’ exposures to individual sovereigns, and a common European deposit insurance system.
5 Central bank interventions and market behaviour
Session 4 of this conference focuses on the impact of central bank interventions on market behaviour. Both papers in this session underline that such central bank measures need to be carefully designed.9
Central banks have taken a wide range of non-standard monetary policy measures to ensure sufficient monetary stimulus at the effective lower bound. But in the medium to long term, such policies may lead to inefficiencies. These could arise in financial markets themselves or in the allocation of resources affected by the boost to lending.
This makes it all the more important to evaluate the instruments used and the lessons learned. It is therefore very fitting that we are currently carrying out a strategy review in the Eurosystem. Amongst other things, this will provide an opportunity to critically review the quantitative easing policies we have seen in the past.
The extensive bond purchases contributed to price stability in an era of low inflation, but they were also associated with numerous side effects in financial markets. Without prejudging the outcome of the review, I think their use should be limited to exceptional circumstances.
6 Conclusion
Ladies and gentlemen,
The conference concludes with a panel discussion on the ECB’s new operational framework. As I have already expressed my views on this on a different occasion,10 I will end my speech by expressing my gratitude.
Thanks to the organisers from the Bundesbank and Humboldt University for setting up this conference. Thanks to the presenters, discussants and panellists for sharing their insights. Thanks to all participants for their contributions. And special thanks to Annette Vissing-Jørgensen from the Federal Reserve Board, who will give a keynote on “Balance sheet policy above the effective lower bound”.11
Now I wish you all an exciting conference with valuable insights.
Thank you very much.
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MIL-OSI Economics: Jerome H Powell: Economic outlook
Source: Bank for International Settlements
I have some brief comments on the economy and monetary policy and look forward to our discussion.
Our economy is strong overall and has made significant progress over the past two years toward achieving our dual-mandate goals of maximum employment and stable prices. Labor market conditions are solid, having cooled from their previously overheated state. Inflation has eased, and my Federal Open Market Committee colleagues and I have greater confidence that it is on a sustainable path to 2 percent. At our meeting earlier this month, we reduced the level of policy restraint by lowering the target range of the federal funds rate by 1/2 percentage point. That decision reflects our growing confidence that, with an appropriate recalibration of our policy stance, strength in the labor market can be maintained in an environment of moderate economic growth and inflation moving sustainably down to our objective.
Recent Economic Data
The labor market
Many indicators show the labor market is solid. To mention just a few, the unemployment rate is well within the range of estimates of its natural rate. Layoffs are low. The labor force participation rate of individuals aged 25 to 54 (so-called prime age) is near its historic high, and the prime-age women’s participation rate has continued to reach new all-time highs. Real wages are increasing at a solid pace, broadly in line with gains in productivity. The ratio of job openings to unemployed workers has moved down steadily but remains just above 1-so that there are still more open positions than there are people seeking work. Prior to 2019, that was rarely the case.Still, labor market conditions have clearly cooled over the past year. Workers now view jobs as somewhat less available than they were in 2019. The moderation in job growth and the increase in labor supply have led the unemployment rate to increase to 4.2 percent, still low by historical standards. We do not believe that we need to see further cooling in labor market conditions to achieve 2 percent inflation.
Inflation
Over the most recent 12 months, headline and core inflation were 2.2 percent and 2.7 percent, respectively. Disinflation has been broad based, and recent data indicate further progress toward a sustained return to 2 percent. Core goods prices have fallen 0.5 percent over the past year, close to their pre-pandemic pace, as supply bottlenecks have eased. Outside of housing, core services inflation is also close to its pre-pandemic pace. Housing services inflation continues to decline, but sluggishly. The growth rate in rents charged to new tenants remains low. As long as that remains the case, housing services inflation will continue to decline.Broader economic conditions also set the table for further disinflation. The labor market is now roughly in balance. Longer-run inflation expectations remain well anchored.
Monetary Policy
Over the past year, we have continued to see solid growth and healthy gains in the labor force and productivity. Our goal all along has been to restore price stability without the kind of painful rise in unemployment that has frequently accompanied efforts to bring down high inflation. That would be a highly desirable result for the communities, families, and businesses we serve. While the task is not complete, we have made a good deal of progress toward that outcome.
For much of the past three years, inflation ran well above our goal, and the labor market was extremely tight. Appropriately, our focus was on bringing down inflation. By keeping monetary policy restrictive, we helped restore the balance between overall supply and demand in the economy. That patient approach has paid dividends: Inflation is now much closer to our 2 percent objective. Today, we see the risks to achieving our employment and inflation goals as roughly in balance.
Our policy rate had been at a two-decade high since the July 2023 meeting. At the time of that meeting, core inflation was above 4 percent, well above our target, and unemployment was 3.5 percent, near a 50-year low. In the 14 months since, inflation has moved down, and unemployment has moved up, in both cases significantly. It was time for a recalibration of our policy stance to reflect progress toward our goals as well as the changed balance of risks.
As I mentioned, our decision to reduce our policy rate by 50 basis points reflects our growing confidence that, with an appropriate recalibration of our policy stance, strength in the labor market can be maintained in a context of moderate economic growth and inflation moving sustainably down to 2 percent.
Looking forward, if the economy evolves broadly as expected, policy will move over time toward a more neutral stance. But we are not on any preset course. The risks are two-sided, and we will continue to make our decisions meeting by meeting. As we consider additional policy adjustments, we will carefully assess incoming data, the evolving outlook, and the balance of risks. Overall, the economy is in solid shape; we intend to use our tools to keep it there.
We remain resolute in our commitment to our maximum-employment and price-stability mandates. Everything we do is in service to our public mission.
Thank you. I look forward to our conversation.
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MIL-OSI Economics: Michael S Barr: Supporting market resilience and financial stability
Source: Bank for International Settlements
Thank you, and thank you for the opportunity to speak to you today.1
It is great to be here again, particularly because this year marks the 10th annual conference on the Treasury market, a milestone that is worth celebrating. I want to acknowledge the Federal Reserve Bank of New York for its leadership in this area, including the dedication and excellence it has brought to hosting this conference over the past decade, in collaboration with the Inter-Agency Working Group on Treasury Market Surveillance, led by the Treasury Department. The Treasury market is the means by which our government meets its financing needs in service to the American people, and it is also the bedrock of the financial system. Promoting the resilience of the Treasury market and ensuring it can continue to fulfill these roles requires the collaboration of agencies and individuals across the government along with the private sector.
As others have pointed out today, we have made important progress since last year’s conference. The Securities and Exchange Commission has finalized a rule on central clearing of Treasury transactions, the Treasury Department has instituted a program for buying back less-liquid Treasury securities, and the Office of Financial Research is preparing for its permanent collection of data on non-centrally-cleared bilateral repurchase agreement (repo) transactions, which will support our understanding of this market segment as it evolves.
I will share some thoughts with you on how I see the work of the Federal Reserve in supporting Treasury market resilience. Our capital and liquidity regulations, our supervision of the firms over which we have authority, and our liquidity facilities play important roles in supporting market resilience and financial stability. Earlier this month, I gave a speech where I reiterated the crucial role of capital in serving these objectives, and the need to balance resilience and efficiency in designing our rules. In that speech, I also outlined the elements of a capital re-proposal that I believe will have broad consensus at the Federal Reserve Board. The adjustments are in response to a robust public comment process, and some of them are designed to address interactions and market functioning concerns raised by commentators.
In terms of rulemaking, today I will focus on some additional aspects of our regulatory framework-namely, enhancements to our liquidity regulations. I will share some perspective on how our liquidity regulations work together and are supportive of market functioning and the smooth implementation of monetary policy.
The Intersection of Monetary Policy Tools and Supervision and Regulation
We consider how all of the Fed’s tools work together to support our objectives. In previous speeches, I have talked about the role of the discount window and the standing repo facility (SRF) in supporting both monetary policy implementation and financial stability, noting how important it is that eligible institutions be ready to use these facilities.2 Today I want to dig into this topic a bit more, including how these tools support monetary policy implementation through appropriate incorporation into liquidity regulations and supervisory practices.
After the banking stress in March 2023, we saw a substantial improvement among banks of all sizes in their level of readiness to tap the discount window both in taking the necessary steps for set-up and in their pledging of collateral. Since that time, over $1 trillion in additional collateral has been pledged to the discount window, and additional banks have established access to the SRF. Both of these facilities are potential venues for monetizing assets and raising liquidity to address volatility in private funding market rates or gaps in the availability of private-market funding.
We had been hearing that some were confused about how banks could incorporate ready access to the discount window and the SRF into their contingency funding plans and internal liquidity stress tests. Supervisors have a role in assessing the viability of large banks’ plans to meet stressed outflows in their stress scenarios, and we have been asked whether the discount window, the SRF, and also Federal Home Loan Bank advances can play a role in those scenarios. The answer to this question is “yes.”
We provided clarity to the public in August on permissible assumptions for how firms can incorporate the discount window and the SRF into their internal liquidity stress-test scenarios. There are a couple of principles that underlie our response in the frequently asked questions we posted on the Board’s website.3 One principle is that our tools are readily available to firms. This means that we see it as acceptable and beneficial for firms to incorporate our facilities to meet liquidity needs in both planning and practice. If firms plan to use our facilities, we expect them to demonstrate ex ante that they are fully capable of doing so, including through test transactions. An additional principle underlying our approach is that, while firms should be ready to use a range of funding sources, firms need to hold sufficient highly liquid assets to meet their potential liquidity needs. That is, they need to self-insure against their own liquidity risks. A third principle is that firms should be ready and able to use private channels to turn these assets into cash, in addition to any public channels they may plan to use.
I want to dig a bit deeper into the benefits to both individual firms and the financial system when firms incorporate Fed facilities into their stress preparedness planning. Again, a design feature of our liquidity regulations is that large banks must self-insure against major liquidity risks. Our regulations also provide flexibility in terms of the portfolio composition such banks use to do so. This flexibility allows them to adjust their portfolios based on market conditions and firm needs. A key component of this flexibility is that reserves and certain high-quality liquid assets (HQLA), such as Treasury securities, are equivalent in terms of being treated as the highest quality of liquid assets. This feature is important because, while it allows firms to manage their liquidity buffers more flexibly, it also allows for greater flexibility in our monetary policy implementation and it supports market functioning. We have heard over the years, however, that the degree of substitutability among these assets has been limited by concerns about capacity in stress for the market to turn securities into reserves immediately; these concerns are valid. This constraint can be addressed in part by the appropriate incorporation of Federal Reserve facilities into monetization plans in firms’ internal liquidity stress tests.
When firms understand that they will not be fully constrained by the capacity of private markets or their individual credit lines to monetize HQLA immediately in stress, they can reduce their demand for reserves in favor of Treasury securities, all else being equal, for their stress planning purposes. This dynamic improves the substitutability of holding reserves and holding Treasury securities either outright or through repo transactions.
When banks exhibit a high degree of substitutability of demand for these assets, money market functioning improves. Let me explain with an example. If a bank sees holding reserves and investing in Treasury repo as near substitutes in its liquidity portfolio, it should lend into Treasury repo markets when repo rates rise above the interest rate earned on reserves. When banks can nimbly adjust portfolios in response to price incentives, the efficiency of reserves redistribution through the system improves, and market functioning is enhanced.
In aggregate, this activity can prevent rates from rising further, all else being equal. The point at which banks, in aggregate, have a relatively immutable demand for reserves, and are unwilling to lend them out, is evident when a small decrease in the supply of reserves results in a sharp increase in the cost to borrow them. Our monetary policy tools are well positioned to help us avoid this outcome. But, of course, greater willingness of banks to reallocate across close substitutes should help avoid the emergence of sudden pressures in money markets by reducing money market frictions.
In 2021, the Federal Reserve launched the SRF, which, along with the discount window, should help cap upward pressure in repo markets that could spill over into the federal funds market. Use of these facilities also increases the supply of reserves in the system. The enhanced clarity for firms that Fed facilities are a fully acceptable venue to get same-day liquidity for their HQLA should help reassure firms about holding reserves and their close substitutes, such as Treasury securities, in their liquidity portfolios.
Of course, as I stated earlier, for the largest banks, there is a requirement that they hold highly liquid assets to address their own liquidity risks. They must also be ready to use private markets to monetize these assets. It is also critical that banks recognize and manage the interest rate and liquidity risk of their securities portfolios to ensure those securities held for liquidity purposes can be monetized in stress without creating other adverse effects on a firm’s safety and soundness. In 2022 and 2023, certain large banks did not effectively manage the risks of rising rates, and suffered significant fair value losses on their securities holdings, including those in held-to-maturity (HTM) portfolios. These losses affected their ability to respond to liquidity stress, as monetizing the assets could result in realizing losses. When the banking stress hit in March 2023, these securities could not be sold to meet stressed outflows because large unrealized losses inhibited their sale without significant capital implications. This is further complicated in the case of HTM securities, which cannot be sold without risking revaluing a firm’s entire HTM portfolio. Selling HTM securities to generate liquidity would therefore have had a particularly large effect on these firms’ capital levels, likely increasing the stress on these firms. Further, some firms were unable to rely on private channels such as repo markets for monetization because they were not prepared, they were not regular participants in the market, and market participants were unwilling to lend because of counterparty credit concerns. This combination of factors meant that HTM securities that had been identified by banks as available to serve as a liquidity buffer of assets in stress could not effectively serve that function.
Improvements to Our Liquidity Regulations
As I have mentioned in previous speeches, to address the lessons about liquidity learned in the spring of 2023, we are exploring targeted adjustments to our current liquidity framework.4 Many firms have taken steps to improve their liquidity resilience, and the regulatory adjustments we are considering would ensure that large banks maintain better liquidity risk–management practices going forward. Improvements to our liquidity regulations will also complement the other components of our supervisory and regulatory regime by improving banks’ ability to respond to funding shocks.
Specifically, we are exploring a requirement that larger banks maintain a minimum amount of readily available liquidity with a pool of reserves and pre-positioned collateral at the discount window, based on a fraction of their uninsured deposits. Community banks would not be covered, and we would take a tiered approach to the requirements. The collateral pre-positioned at the window could include both Treasury securities and the full range of assets eligible for pledging at the discount window. It is vital that uninsured depositors have confidence that their funds will be readily available for withdrawal, if needed, and this confidence would be enhanced by a requirement that larger banks have readily available liquidity to meet requests for withdrawal of these deposits. This requirement would be a complement to existing liquidity regulations such as those that require the internal liquidity stress tests (ILST) I described earlier as well as meeting the liquidity coverage ratio (LCR).5
Incorporating the discount window into a readiness requirement would also reemphasize that supervisors and examiners view use of the discount window as appropriate under both normal and stressed market conditions.
In addition, as I have discussed previously, we identified significant gaps in interest rate risk management in the March 2023 banking stress, including in portfolios of highly liquid securities. Relatedly, we saw that banks faced constraints in monetizing HTM assets with large unrealized losses in private markets because they were unable to repo these securities or sell these securities without realizing significant losses. To address these gaps, we are considering a partial limit on the extent of reliance on HTM assets in larger banks’ liquidity buffers, such as those held under the LCR and ILST requirements. These adjustments would address the known challenges of banks being able to use these assets in stress conditions.
Finally, we are reviewing the treatment of a handful of types of deposits in the current liquidity framework. Observed behavior of different deposit types during times of stress suggests the need to recalibrate deposit outflow assumptions in our rules for certain types of depositors. We are also revisiting the scope of application of our current liquidity framework for large banks.
These enhancements to our liquidity regulations will help bolster firms’ ability to manage liquidity shocks, and they will also be well integrated with our monetary policy tools and framework.
Modernizing Our Tools to Meet Current and Future Needs
Turning back to the discount window, I also want to note that the discount window has served its role well in recent years, and that we are also engaging in ongoing work to improve its operations. Given the crucial role of the discount window in providing ready access to liquidity in a wide variety of market conditions, we continuously work to assess and improve its functionality while engaging with current and potential users of the window.
Among the steps we have taken recently include that we now have an online portal, Discount Window Direct, that allows firms to request and prepay discount window loans in a more streamlined manner than was previously possible. We also recently published a request for information on discount window operations and daylight credit asking about key components of these functions. Feedback from the public will help us prioritize areas for improvement, so I strongly encourage anyone with an interest in this topic to weigh in during the comment period. Your feedback will help us ensure that the discount window continues to improve in its role of providing ready access to funding under a variety of market conditions.
Thank you.
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MIL-OSI Economics: Darryl Chan: Opening remarks – Treasury Markets Summit 2024
Source: Bank for International Settlements
Distinguished guests, members and friends of the TMA, ladies and gentlemen: good morning.
On behalf of the HKMA and the TMA, a very warm welcome to you all for joining this annual Treasury Markets Summit. The annual event has been, and will continue to be, a great gathering that promotes the sharing of thoughts, ideas and friendship among professionals from the treasury markets and experts from related disciplines.
I’d like to congratulate the TMA team on curating a highly relevant and interesting programme for this year’s Summit. Special thanks to our panellists who will generously share their insights and foresights on subjects that are so closely related to our day-to-day work such as China’s economic outlook, and subjects that will or may have profound impact on the way financial markets including the treasury markets operate – here I am referring to CBDC and DeFi. And, speaking of China’s economic outlook, these past couple of days were extraordinary. I am sure we can’t wait to hear the sharing by our experts.
And of course we also look forward to hearing what Eddie has to say about offshore RMB business, a topic that I’m sure concerns almost every one of us here today, and a topic that is hugely important to sharpening the edge of Hong Kong as an international financial centre.
But before we embark on the forward-looking journey, let me take a few minutes to highlight a number of remarkable achievements by the TMA in the past year or so.
In terms of market infrastructure, the TMA’s dedicated working group has done a wonderful job in helping market practitioners prepare for the smooth transition of LIBOR to alternative reference rates and facilitating the adoption of Hong Kong dollar overnight index average, or HONIA, as an alternative to HIBOR. No fanfare, but the silence spoke volumes about the hard work behind the scenes.
On the introduction this week of severe weather trading in our stock market, the TMA has reviewed the arrangements of the financial benchmarks it administers and undertook to continue publishing HKD and CNH FX spot rates during severe weather conditions, facilitating the implementation of the new trading arrangement.
The TMA also actively provides market perspectives and advice in support of the development of Hong Kong’s offshore RMB business hub. It provided industry feedback to the People’s Bank of China in facilitating the launch of the northbound Swap Connect. It also set up a dedicated working group and made a comprehensive proposal to the HKMA on ways to further promote our RMB business, including building a market-driven CNH yield curve and enhancing Hong Kong’s RMB liquidity pool. The specific measures proposed by the TMA are valuable reference that helps us focus our policy priorities and map out concrete steps to achieve those objectives.
These are just some of the examples demonstrating the TMA’s efforts to make our treasury markets more competitive and more supportive of our financial sector, not to mention the many ongoing initiatives in nurturing treasury markets talent, implementing international standards and best practices, as well as engaging with international and regional peers.
There’s still a lot of work ahead. Earlier this year, with the support of the banking and financial community, the TMA launched the data licensing arrangement to align with international practices on benchmark usage and surveillance. Under the arrangement, a small fee is charged on the subscription and use of certain benchmarks administered by the TMA. Hopefully the additional income will ensure the TMA is better resourced to discharge its heavy responsibilities going forward.
Before I conclude, I would like to express my heartfelt gratitude to the members of the Council, Executive Board and various Committees of the TMA, and all institutional and individual members, for your unfailing support and contribution. My thanks also go to the TMA team for their dedication and commitment. With all your support, I’m sure the TMA has what it takes to go from strength to strength.
May I wish you all a productive and fruitful summit. Thank you.
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MIL-OSI Europe: In-Depth Analysis – Can the Banking Union foster market integration, and what lessons does this hold for Capital Markets Union? – 01-10-2024
Source: European Parliament
We discuss the contribution of the Banking Union in its current form to market integration in the euro area. While the introduction of single supervision has fostered banking integration, limited progress in single resolution and the absence of a European deposit insurance scheme undermine further advancements. We argue that a significant obstacle to financial integration lies in the persistence of national interests in regulation, supervision, and politics. We also explore the lessons that can be learned from ten years of the Banking Union for the development of the Capital Markets Union and the integration of capital markets. The successes of the Banking Union in common supervision and rule-setting can provide a path forward.