Europe
Banking and finance news from the United Kingdom, European Union, and broader Europe
The new bank resilience test: capital is strong, supervision is getting more granular
In a reverse stress test the ECB asked 110 banks to design scenarios cutting CET1 by 300bp, and found some mitigating actions overly optimistic, even with aggregate CET1 at 16.00%; the Fed is weighing making the tool routine.
Turkey assigns 131 investment funds to İşbank and Ziraat for liquidation
Turkey’s markets regulator assigned 131 investment funds managed by seven portfolio companies to İşbank and Ziraat Bank for liquidation, affecting assets reported above TRY890 billion.
ECB revises bank licensing guide for authorisations and licence extensions
The ECB revised its bank licensing guide, replacing the 2019 version and clarifying how supervisors assess initial authorisations, bridge-bank applications and extensions across the Single Supervisory Mechanism.
SRB issues bank resolution communication guidance with April 2028 deadline
The Single Resolution Board issued operational guidance for banks’ crisis communications and gave institutions until April 2028 to incorporate the clarified expectations into their plans where needed.
EBA issues non-ICT third-party risk guidelines for European financial firms
The EBA issued final guidelines for managing non-ICT third-party services, focusing on governance, monitoring and critical functions while excluding services already covered by DORA’s Chapter V.
Armenia raises refinancing rate 25 basis points to 6.75% as core inflation rises
The Central Bank of Armenia raised its refinancing rate by 25 basis points to 6.75% with annual inflation at 4.4% and core inflation at 4.8% in August, above the bank’s 3% medium-term target.
Turkey revokes Bank Mellat’s operating licence after 44-year local presence
Turkey’s banking regulator revoked Bank Mellat’s Istanbul branch licence under provisions covering risks to depositors and financial stability, ending the Iranian lender’s 44-year local presence.
Jefferies-linked fund alleges Radiant World may hold just $10,000 in cash
A Jefferies-linked trade-finance fund alleged in court submissions that Radiant World may have held only $10,000 in cash despite audited accounts showing more than $200 million.
ECB president Lagarde leaves timing of her 2027 departure open
Christine Lagarde told Irish broadcaster RTÉ she would leave the European Central Bank in 2027 but declined to say whether she would stay until her term ends in October that year.
Investec forecasts higher first-half earnings as southern Africa offsets UK weakness
Investec forecast adjusted earnings per share of 41.7p to 43.3p for the first half, with Southern African profit growth expected to offset a weaker UK business.
UniCredit issues €750 million AT1 bond at record-low reset margin
UniCredit placed a €750 million perpetual AT1 bond with a 6.25% coupon after attracting more than €3.5 billion of demand from over 220 investors worldwide.
ECB wage tracker indicates 2.7% negotiated wage growth in first half of 2027
The ECB’s wage tracker indicated average negotiated-pay growth of 2.7% in the first half of 2027, although agreements covered only 28.8% of employees for that period.