Recent News

Swiss banking giant UBS has bought the struggling Credit Suisse bank for 3 billion Swiss francs ($3.24 billion). Source:https://www.ubs.com/global/en/media/display-page-ndp/en-20230319-tree.html The deal was approved by the Swiss government, which provided guarantees to the country's regulator to provide liquidity to Credit Suisse. "The Federal Council supports the acquisition of Credit Suisse by UBS. In order to strengthen the stability of the financial markets prior to the acquisition, the Swiss Confederation is providing a guarantee to the Swiss National Bank to provide Credit Suisse with additional liquidity assistance," the government said. The government also provided the bank with CHF 9 billion to mitigate the risks associated with the acquisition. Credit Suisse has become the latest and most important victim of the crisis of confidence, which has already led to the bankruptcy of two medium-sized US banks and the emergency damage to the industry of another. In addition, Switzerland's second largest lender was considered one of the 30 largest banks in the world, so the Swiss authorities hastily implemented this takeover. The main factor in the crisis was the sharp rise...

The European Central Bank raised all three key interest rates by 50 basis points on Thursday, 16 March. The base interest rate on loans was increased to 3.5%, the deposit rate to 3%, and the margin loan rate to 3.75%. According to the ECB website, this is the highest level of rates since the global financial crisis of 2008. Earlier, it was expected that inflation in the euro area would remain "too high" and average 5.3% this year, 2.9% in 2024 and 2.1% in 2025. At the same time, the ECB stressed that these forecasts were made before the current market turmoil. "The Governing Council of the ECB is closely monitoring the current market tensions and is ready to take the necessary measures to ensure price and financial stability in the euro area. The European banking sector is resilient, with strong capital adequacy and liquidity ratios," the regulator said. According to Reuters, on Thursday morning, after several days of market turmoil, financial investors considered a 50% chance of a smaller move by the ECB - by only 25 basis points. Eurozone bank stocks have been tumbling this week, spooked first by the collapse of SVB and Signature Bank, and then by the plunge in the value of...

On March 12, U.S. regulators shut down New York-based Signature Bank, making it the third largest bankruptcy in U.S. banking history. Source:https://www.reuters.com/business/finance/new-york-state-regulators-close-signature-bank-2023-03-12/ According to the New York State Department of Financial Services, the Federal Deposit Insurance Corporation (FDIC) has taken control of Signature Bank, which had assets of $110.36 billion and deposits of $88.59 billion at the end of 2022. All of the depositors of Signature Bank and Silicon Valley Bank will be made whole, and "no losses will be borne by the taxpayer," the U.S. Treasury Department and other bank regulators said in a joint statement. The bank provided services for placing digital assets on customer deposits, but did not invest in or trade cryptocurrencies, nor did it accept them as collateral for loans. The bankruptcy came just two days after the authorities closed Silicon Valley Bank, which became the largest bank in the United States to fail after the 2008 financial...

Silicon Valley Bank, the largest lender to startups, has "burst" in the U.S. The bankruptcy of the financial institution greatly affected global markets, and entrepreneurs could lose billions of dollars, writes The New York Times. Source:https://www.nytimes.com/2023/03/10/business/silicon-valley-bank-stock.html Based in Santa Clara, California, the bank was founded in 1983 and was immediately involved in the tech ecosystem, providing banking services to nearly half of all venture-backed tech companies in the United States. Silicon Valley Bank was the bank of choice for more than 2,500 venture capital firms. By the end of 2022, Silicon Valley Bank had about 209 billion assets and more than $175 billion in total deposits. The Federal Deposit Insurance Corporation (FDIC) took control of Silicon Valley Bank's $175 billion in customer deposits on March 10. Deposits up to $250,000 were insured by the FDIC, but customers were not told when they would be given access to the money. Billionaire Elon Musk has now said he is willing to consider options to buy Silicon Valley Bank (SVB), whose bankruptcy was the largest in the U.S. since the 2008...

Lithuania's fintech sector defied the global investment downturn in 2022, recording an 80% increase in revenue. Source:https://www.finextra.com/newsarticle/41902/lithuanian-fintech-sector-defies-global-downturn The country, which has nurtured a position as a fintech hub, scored an 80% increase in the income generated from all licensed Lithuanian fintechs’ banking activities in H1 2022 over the same period in 2021, reaching €375 million. This was up 26 times on the first half of 2018, with the top ten highest-growth fintechs posting increases in revenue of more than 100%. The report reveals that 263 fintech companies are now domiciled in Lithuania employing 7 000 people - a 19% increase over 2021. Lithuanian regulators have taken a proactive approach to making the country the largest fintech hub in the EU by licences issued. The government is set to continue its push, with the Ministry of Finance finalising its “National Fintech Guidelines for 2023-2028”, which will set the strategic direction for the sector’s growth for the next five years. The government has also dedicated €80 million for an extensive three-year national upskilling and reskilling programme,...

At the end of 2022, Law No. 2571-IX entered into force, which amended the legislation on the submission of information on the final beneficial owners (BPOs) of legal entities. Interestingly, there is an opportunity to submit information about the UBO and the ownership structure in electronic form, and about the main changes below: 1. Changes in the terms of submission of information about UBO The law stipulates that the Ministry of Finance will develop a Methodology for determining the UBO of a legal entity and, accordingly, legal entities will be obliged to disclose or submit corrected information about the beneficiary within six months from the date of approval of the Methodology, but not earlier than three months (90 days) from the date termination of martial law in Ukraine. 2. The requirement for annual reporting on the UBO has been cancelled The law retained the obligation to maintain up-to-date information on the UBO and the ownership structure of a legal entity, but canceled the requirement to annually submit information on the beneficiary and the ownership structure. Therefore, the message will need to be sent in the following cases: within 30 working days from...

On Friday, February 24, Financial Action Task Force (FATF) suspended Russia's membership, saying that Russia's war in Ukraine violates the organization's principles. Source:https://www.reuters.com/world/europe/financial-crime-watchdog-fatf-suspends-russias-membership-over-ukraine-war-2023-02-24/ FATF is an inter-governmental organisation set up to combat money laundering and terrorism financing by setting global standards and checking if countries respect them. "This is the first time a member of FATF is suspended," FATF President Raja Kumar told a news conference. "Russia is effectively sidelined from the organisation." FATF strongly condemns the aggressive war of the Russian Federation against Ukraine and recognizes the UN General Assembly Resolution ES-11/1, which requires the Russian Federation to immediately, completely and unconditionally withdraw all its military forces from the territory of Ukraine within its internationally recognized borders. The actions of the Russian Federation are unacceptably inconsistent with the FATF's core principles aimed at promoting the safety and integrity of the global financial system. They are a gross violation of the obligations of...

The Swiss bank Credit Suisse, Switzerland’s second-largest bank, has blocked Russian assets worth more than 19 billion dollars (17.6 billion Swiss francs), which is a third of all declared Russian assets in Switzerland. Source:https://www.tagesanzeiger.ch/17-6-milliarden-franken-russen-gelder-793972606992?idp=OneLog&new_user=yes Of the amount blocked by the bank, only 4.32 billion belong to persons previously included in the sanctions list by the Swiss authorities. The remaining 14.7 billion dollars concern persons who have been sanctioned in other countries. In addition, Credit Suisse froze the funds of the Russian Central Bank. It is noted that earlier the State Secretariat of the Economy of Switzerland announced the blocking of Russian assets in the amount of 8.1 billion dollars and 15 real estate objects. The blocking of Russian assets took place within the framework of sanctions imposed on the Russian Federation due to a full-scale invasion of...

Israel’s Banking Supervision Department has fined three banks in the country for violating the norms of debt collection from customers. Source:https://www.retailbankerinternational.com/news/israel-supervisor-fines-three-banks/ Israel Discount Bank, Bank Hapoalim, and Mizrahi-Tefahot Bank are facing fines of NIS1.2m, ($349,202.65), NIS850,000($247,351.88), and NIS700,000 ($203,701.55), respectively. The central bank imposed financial sanctions on all three banks for failing to report the monies received that were paid against the debt. As Israel Discount Bank failed to promptly notify the authorities of the debt restructuring agreements agreed upon between the bank and the customer, the bank was subject to an additional financial penalty. The banking regulator said that the banks had informed the receipts were recorded on their books and taken into account throughout the closing process and therefore no financial harm was caused to consumers. Supervisor of Banks Yair Avidan said: “The Banking Supervision Department sees importance in enhancing consumer enforcement and will continue to act to carry out controls with information received from the public. We see in this...