作者： bankr

The leaders of the International Monetary Fund and the World Bank on Thursday confirmed that they were preparing to hold their annual meetings in October largely online given the coronavirus pandemic.

In a joint statement, IMF Managing Director Kristalina Georgieva and World Bank President David Malpass said they were recommending the annual meetings, set for Oct. 12-18, be held in a “primarily virtual format.”

They said they remained flexible about the format of the talks, depending on developments, and would work to accommodate the needs of their members.

Malpass first disclosed the plans for virtual annual meetings in a letter to the Bank’s governors on Monday.

The institutions’ semi-annual meetings usually bring some 10,000 government officials, business people, civil society representatives and journalists from across the globe to a tightly packed, two-block area of downtown Washington that houses their headquarters.

The annual events including meetings of the IMF’s 24-member International Monetary Fund and Financial Committee (IMFC) and the Development Committee, which oversees the work of the World Bank, as well as many smaller meetings throughout the week.

Reserve Bank of India (RBI) Governor Shaktikanta Das on Saturday warned of higher bad loans as a direct fallout of the pandemic and said the medium-term outlook for the economy remains uncertain, with supply chains and demand yet to be fully restored.

A protracted lockdown, which began on March 25 and continued in various phases albeit with the significant easing of restrictions since early May, has resulted in the severe disruption of industrial production and consumer spending, with GDP growth forecast to contract sharply in April-June, pushing Indian economic growth for 2020-21 into a deep recession.

“The economic impact of the pandemic – due to lock-down and anticipated post lock-down compression in economic growth – may result in higher non-performing assets and capital erosion of banks,” Shaktikanta Das said at the 7th SBI Banking and Economics Conclave.

A recapitalisation plan for public sector banks (PSBs) and private banks (PVBs) has, therefore, become necessary, he said, adding despite the substantial impact of the pandemic on daily lives, the financial system of the country, including all the payment systems and financial markets, are functioning without any hindrance.

“The Indian economy has started showing signs of getting back to normalcy in response to the staggered easing of restrictions. It is, however, still uncertain when supply chains will be restored fully; how long will it take for demand conditions to normalise; and what kind of durable effects the pandemic will leave behind on our potential growth,” Shaktikanta Das said.

Shaktikanta Das said the 2008 global financial crisis and the current one show that such economic shocks have “fatter tails” than generally believed, and that the country’s financial system should have larger capital buffers.

The RBI, Shaktikanta Das said, has been guided by the age-old wisdom that ascribes the role of Lender of Last Resort (LOLR) to the central bank.

It has cut interest rates by 115 basis points in response to the pandemic, taking the total policy rate reduction to 250 basis points since February 2019, Shaktikanta Das said.

Also, the RBI has provided liquidity of Rs 9.57 lakh crore, eased some bad loan provisioning norms and allowed loan moratoriums for retail customers.

Shaktikanta Das said targeted and comprehensive reform measures already announced by the government should help support the country’s potential growth.

Also, special emphasis is being placed on the assessment of business model, governance and assurance functions (compliance, risk management and internal audit functions), as these have been the areas of heightened supervisory concern.

“RBI has taken a number of important historic measures to protect the financial system and support the real economy in the current crisis. While the eventual success of our policy responses will be known only after some time, they appear to have worked so far,” Shaktikanta Das said.

受冠病疫情等因素影响，中国银行业保险业信用风险有所上升。中国银保监会新闻发言人11日说，必须做好不良贷款可能大幅反弹的应对准备。

据中新社报道，发言人透露，截至6月末，各机构报告的不良贷款余额和不良贷款率总体较年初有所上升。目前国内经济运行边际改善，但还未回归正常水平。境外疫情尚未得到有效控制，世界经济面临深度衰退。一些受疫情影响较重的行业和企业经营压力巨大，还款能力下降。

发言人说，虽然采取了临时延期还本付息、借新还旧、展期、修改贷款合同等对冲政策措施，但经营不善的企业本身存在的问题并没有根本解决，今后仍然存在较大违约风险。一些银行、企业和地方政府不愿主动暴露不良，有的甚至故意粉饰和隐瞒。总的来说，当前不良贷款并未充分暴露，存在较大上升压力。

谈及如何应对可能出现的不良贷款大幅反弹，发言人强调，要进一步做实资产分类。严格区分受疫情影响出现困难的企业和本身经营风险较高的企业，对于后者，严格按规定确定资产分类，符合不良标准的必须划为不良，实质承担信用风险的其他表内外资产也应执行分类标准。

银保监会将继续加大处置力度，今年不良资产处置金额要在去年基础上合理增加，降低拨备覆盖率释放的资源必须全部用于处置不良；要拓宽不良资产处置渠道；综合使用核销、清收、批量转让、债转股等手段。

HSBC Amanah Malaysia Bhd (HSBC Amanah) is now an official member of the United Nations Global Compact (UNGC) via it’s local chapter, the Global Compact Malaysia (GCMY).

HSBC Amanah is currently the only international bank in Malaysia that is a member of GCMY, which evidently follows the footsteps of HSBC Group that has been an active member of UNGC since it was launched in 2000.

“We are proud to have been invited to become a member of UNGC. This invitation and our membership to UNGC through GCMY is an important part of our sustainability journey,” HSBC Amanah chief executive officer Oz Ahmed said in a statement today.

“The financial services sector has a critical role to play in supporting sustainable business activities and there is a need for the industry to change the nature of capital and increasingly direct it in more sustainable ways and Islamic banking is well placed to assist in this area,” he said.

The UNGC is a leadership platform for the development, implementation and disclosure of responsible corporate practices.

It is the largest corporate sustainability initiative in the

world, with more than 9,500 companies and 3,000 non-business signatories based in over 160 countries, and more than 70 local networks.

This voluntary initiative is a call to companies to align their operations and strategies with the UNGC 10 principles in the areas of human rights, labour, environment and anti-corruption, and to take action in support of UN goals and issues embodied in the Sustainable Development Goals (SDGs).

“Our UNGC membership also goes hand in hand with Bank Negara Malaysia’s value-based intermediation (VBI) initiative which aims to have Islamic financial institutions create greater value and impact by focusing on the triple bottom line which takes into consideration Prosperity, People and Planet instead of traditional bottom lines.

“As a leader in VBI, HSBC Amanah is committed to transitioning into a sustainable banking entity, and as part of this journey, we are providing support to our customers in transitioning to a low-carbon economy as well as delivering shared value within the communities we serve and the environment we live in; today and tomorrow,” Oz said.

UNGC also considers integrity and accountability as critical factors to progress its responsible business agenda to ensure the organisation’s objectives are achieved.

Therefore, UNGC requires its members to make an annual submission of a Communication on Progress (COP) that details members efforts to implement UNGC 10 principles.

“With regards to the COP, the HSBC Group has submitted the Group’s annual ESG report to fulfill the COP requirement and for us at HSBC Amanah, we intend to follow suit by

submitting our own non-financial disclosure to fulfill the requirement using our VBI isclosure that was published in 2019 as a starting base,” Oz said.

The Securities Commission Malaysia (SC) today cautioned the public against the usage of Crypto Automatic Teller Machines (Crypto ATMs).

In a statement today, the SC said a Crypto ATM is a machine that allows individuals to buy and/or sell digital assets via cash, debit or credit cards or e-wallets. These machines are installed iat various locations in Malaysia, facilitating the exchange of different types of digital assets with fiat currency and vice versa.

“The SC wishes to alert the public that entities operating Crypto ATMs are considered to be operating a Digital Asset Exchange (DAX) which requires registration with the SC. In this regard, the SC has not authorised any entity to operate Crypto ATMs.

“We wish to caution and remind members of the public not to deal with unlicensed or unauthorised entities or individuals. Those who do so are not protected under the Malaysian securities laws and are exposed to various risks, including fraud and money laundering,” it said.

The SC also warned all unauthorised Crypto ATM operators in Malaysia to immediately cease their activities. Operating a DAX without authorisation from the SC is an offence under Malaysian securities laws.

“Anyone convicted may be liable to a fine not exceeding RM10 million or imprisonment of up to 10 years or both,” it said.

The SC said members of the public may verify if a digital asset operator is registered with the SC at https://www.sc.com.my/development/digital/digitalassets.

Additionally, investors are encouraged to alert the SC if they come across any suspicious activities or websites, and if they receive any unsolicited phone calls or e-mails offering investment advice and opportunities, especially those that offer high returns with seemingly little or no risks.

New York regulators fined Deutsche Bank $150 million Tuesday and slammed the lender for “mistakes and sloppiness” in its relationship with accused sex-trafficker Jeffrey Epstein.

Authorities said Deutsche Bank’s “significant compliance failures” allowed Epstein to conduct hundreds of transactions totaling millions of dollars that should have prompted additional scrutiny.
The penalties, which also relate to Deutsche Bank (DB)’s ties to scandal-ridden financial institutions Danske Bank Estonia and FBME Bank, are the first enforcement actions by regulators against a bank for dealings with Epstein.
The New York State Department of Financial Services said Deutsche Bank failed to detect “many subsequent suspicious transactions” conducted by the late multimillionaire, who died by suicide in August 2019 while awaiting trial on federal charges accusing him of operating a sex-trafficking ring involving girls as young as 14 at his Manhattan mansion and his Palm Beach estate.

The suspicious transactions flagged by the regulator included payments to individuals who were publicly alleged to have been Epstein’s co-conspirators in sexually abusing young women — as well as payments to Russian models, school tuitions for several women, hotel expenses and direct payments to numerous women with Eastern European last names.
Regulators said Deutsche Bank, Germany’s largest bank and one with a history of legal problems in the United States, failed to properly monitor account activity conducted on behalf of the registered sex offender “despite ample information that was publicly available” linked to his earlier criminal misconduct.
In a statement, Deutsche Bank acknowledged its “error of onboarding Epstein in 2013 and the weaknesses in our processes, and have learnt from our mistakes and shortcomings.” The bank said it immediately contacted law enforcement to offer assistance after Epstein’s arrest. It has also invested nearly $1 billion in training, controls and operational processes and has hired more than 1,500 people to its financial crime team.
“Our reputation is our most valuable asset and we deeply regret our association with Epstein,” the bank said. DFS credited Deutsche Bank’s “exemplary cooperation” with the investigation.
The order sheds some light on Epstein’s financial dealings, which have long been a source of mystery and, DFS said, may be fit for criminal inquiry.
Among several red flags, Epstein was using more than $200,000 in cash annually, DFS said, writing that “whether or to what extent those payments or that cash was used by Mr. Epstein to cover up old crimes, to facilitate new ones, or for some other purpose are questions that must be left to the criminal authorities, but the fact that they were suspicious should have been obvious to Bank personnel at various levels.”

‘Terrible criminal history’

Epstein faced a federal investigation in 2006 regarding accusations he preyed on and sexually abused underage girls. He ultimately signed a non-prosecution deal with federal prosecutors in Miami the following year that allowed him to plead guilty to two state prostitution charges and serve just 13 months in a Florida state prison.
“Despite knowing Mr. Epstein’s terrible criminal history, the bank inexcusably failed to detect or prevent millions of dollars of suspicious transactions,” Linda Lacewell, superintendent of New York State DFS, said in a statement.
According to the regulator, the bank was repeatedly made aware of past accusations against Epstein and his alleged accomplices as soon as he became a client.
In April 2013, DFS says, a junior account executive flagged Epstein’s plea deal and prison sentence in a memorandum to be sent to senior bank executives. Another person working on the account sent the memo to senior executives and noted in a message “how lucrative the relationship could be,” the DFS order says, citing “[e]stimated flows of $100-300 [million] overtime [sic] (possibly more) w/ revenue of $2-4 million annually over time.”
In late 2014 and through 2015, DFS order adds, the bank’s anti-financial crime department identified Epstein red flags including a federal court ruling that would grant alleged victims access to his plea deal details and “additional allegations in the press regarding Mr. Epstein’s relationships with a prominent former U.S. politician and a member of a European royal family.”
Two of the bank’s executives agreed to explore the issues and met Epstein at his New York home, where one asked him “about the veracity of the recent allegations and appeared to be satisfied by Mr. Epstein’s response,” DFS says.
When bank executives met to discuss the Epstein relationship about a week later, they had kept no recorded minutes from the meeting even though bank policy required it, the order says. Later that day, according to the order, one executive emailed another to say the committee was “comfortable with things continuing” with Epstein, and that another committee member had “noted a number of sizable deals recently.”

Investors around the globe were buying bonds backed by a notorious mafia in Italy for four years, The Financial Times reported, citing financial and legal documents.

The report said an estimated €1 billion in private bonds backed by front companies charged with working for the Calabrian ‘Ndrangheta mafia group were bought by global investors between 2015 and 2019.

These bonds were bought by pension funds, hedge funds, family offices as well as Banca Generali — one of the biggest private banks in Europe — the FT reported. The Italian bank purchased those bonds through an instrument constructed by Geneva-base investment bank CFE, the newspaper said.

These bonds, according to the FT, were created out of unpaid invoices to public health authorities in Italy from companies providing medical services. One debt deal, which was purchased by institutional investors, contained assets sold by a refugee camp in Italy’s Calabria region.

CFE said it did not knowingly buy assets linked to criminal activity. Banca Generali told the newspaper it was “getting to know right now of the mentioned bad news.”