BankingUpdate

The European Central Bank (ECB) has imposed two administrative penalties totaling €3.54 million on Confédération Nationale du Crédit Mutuel for using a method leading to underestimating the credit risk on certain loans, as stated by the ECB in a statement released on Thursday. According to the ECB, which oversees 113 significant banks in Europe, Crédit Mutuel failed to apply certain requirements, known as "floors," set by the central bank's rulebook when calculating the risk of certain loan portfolios using its internal models between May 2021 and April 2022. As a result, the bank provided misleading information about its capital strength and its ability to absorb losses. "This constitutes serious negligence as said floors were clearly stipulated in the relevant ECB decisions, and the bank omitted to take obvious actions to avoid the breaches. It also prevented the ECB from having a comprehensive view of the bank’s risk profile," stated the ECB. Crédit Mutuel Gr...

  PT Bank Danamon Indonesia Tbk. (BDMN) has announced that the acquisition process of Standard Chartered Bank Indonesia's (SCBI) consumer business portfolio will be completed this week. Tresia Sarumpaet, Head of Unsecured Business at BDMN, stated that the value of the assets being acquired amounts to more than Rp 1 trillion. "The process itself will take place over the weekend. So, after this weekend, Standard Chartered's credit card, mortgage, and personal loan (KTA) customers will be transferred to Danamon. Starting from the end of this week," she said at the Bank Danamon Tower on Tuesday, December 5, 2023. According to Tresia, this acquisition process is one of Bank Danamon's strategies to develop its retail business, in line with the bank's risk appetite. "We want to develop loan businesses that are in line with the segments that Bank Danamon wants to target," she explained. As known, SCBI signed an agreement with Bank Danamon to transfer its con...

During the Annual General Meeting of Shareholders (AGMS) held on Friday, March 22, 2024, PT Bank Danamon Indonesia Tbk. (BDMN) has agreed to distribute cash dividends for the fiscal year 2023 amounting to Rp1.2 trillion or approximately Rp125.48 per share. The Japanese-owned bank, a subsidiary of MUFG, will allocate 35% of its net profit for the fiscal year 2023, recorded at Rp3.5 trillion, for this purpose. Shareholders unanimously approved all proposed agendas during the meeting. Daisuke Ejima, the President Director of the Company, conveyed that the AGMS 2024 approved, among other things, the Annual Report, Financial Statements, Profit Allocation, and Changes in the Company's Board of Directors. "We will continue to grow as a Financial Group that provides solutions across various target segments and ecosystems, as well as continue the significant progress in business expansion and investment," stated Ejima in his official statement on Saturday, March 23, 2024. Sharehol...

Capital gains tax is a levy imposed on the profit gained from the sale of capital assets, such as stocks, real estate, and cryptocurrency. While many European countries apply varying rates of capital gains tax, some impose higher taxes compared to others. Highest Capital Gains Tax Rates in Europe According to the Tax Foundation's 2024 report on European capital gains tax, Denmark imposes the highest capital gains tax rate at 42%, followed by Norway at 37.8%. Finland and France both apply a tax rate of 34%, with Ireland at 33%. In contrast, Moldova has the lowest capital gains tax rate at 6%, while Bulgaria and Romania stand at 10% each, and Croatia at 12%. Factors Influencing High Capital Gains Tax Rates Alex Mengden, a global policy analyst at Tax Foundation, suggests that Denmark and Norway's high capital gains tax rates are linked to their statutory personal income tax rates. This alignment may prevent individuals from disguising their labor income as capital income. However...

In a move aimed at curbing inflationary pressures, the Swiss National Bank (SNB) announced a reduction in interest rates by a quarter of a percentage point, bringing the key rate down to 1.5%. Thomas Jordan, the outgoing SNB chairman, attributed this decision to the central bank's successful efforts in containing inflation in the affluent Alpine nation. Explaining the rationale behind the rate cut, Jordan highlighted the effectiveness of the SNB's monetary policy in combating inflation over the past two and a half years. He noted that inflation had remained below 2% for several months, signaling stability in price levels—a key objective for the central bank. "With inflation back below 2%, which we consider as price stability, and with our new forecast indicating continued stability in the coming years, we have decided to ease our monetary policy," stated Jordan. The unexpected announcement had an immediate impact on the Swiss franc, causing it to depreciate against th...

Gold bullion prices at PT Pegadaian experienced a significant decline in today's trading session, Saturday (23/3/2024). PT Pegadaian offers various types of gold, including Antam gold, Antam Retro gold, and UBS gold, with sizes ranging from 0.5 grams to 1,000 grams. In today's trading, the price of 1 gram of Antam gold was recorded at Rp 1,242,000. This marks a decrease of Rp 8,000 compared to the previous day's price, which was Rp 1,250,000 per gram. Antam gold is available in sizes ranging from 0.5 grams to 1,000 grams. Meanwhile, the price of UBS gold, issued by PT Untung Bersama Sejahtera, was set at Rp 1,206,000 per gram, reflecting a decline of Rp 21,000 compared to the previous day's price of Rp 1,227,000 per gram. UBS gold is available in sizes ranging from 0.5 grams to 500 grams. The decline in gold prices at PT Pegadaian mirrors the global trend. In the last trading session of the week on Friday (22/3/2024), the price of gold closed at US$ 2,164.15 per troy ou...