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Weekly Lists
November 9, 2018 www.intellinews.com I Page 26
bne:Banker
SWIFT suspends Iranian banks’ use of interbank transfer network
The world's biggest interbank-transfer network, SWIFT, on Novem- ber 5 announced that it was taking the "regrettable" step of sus- pending some Iranian banks' access to its messaging system "in the interest of the stability and integrity of the wider global financial system".
Belgium-based SWIFT (Society for Worldwide Interbank Financial Telecommunication) did not specify which “certain Iranian banks” it meant and did not mention the reimposed heavy sanctions trig- gered against Iran by the US earlier in the day. However, Washing- ton had advised the service that it was expected to comply with the US restrictions and that it could face sanctions if it failed to do so.
The move came as a disappointment to those trying to protect Iran’s trading activities, particularly given the potential disruption the loss of the system could cause to supplying the country with basic foods, medicine and other humanitarian supplies.
The National Bank of Ukraine (NBU) has revoked the banking and general licenses for foreign exchange operations at BM Bank, owned by Russian state-owned banking giant VTB.
BM Bank decided to voluntarily cease operations without liquidating the legal entity in accordance with the new Ukrainian law. The Ukrainian subsidiary of VTB fulfilled all obligations to customers and agreed to terminate its activities with the National Bank.
BM Bank was founded in 2005, and VTB gained control as part of its takeover of failed Russian bank the Bank of Moscow. As of July 1, 2018, BM Bank ranked 65th in terms of net assets among 83 Ukrainian banks.
The Czech National Bank (CNB) expects Czech banks to boost their capital and eligible liabilities by an estimated CZK120bn-140bn ($5.3bn-$6.1bn) over the next four years to meet new banking rules, the CNB said in the release of its general approach to set- ting a minimum requirement for own funds and eligible liabilities (MREL) on October 31.
Banks will comply with MREL gradually over a transition period, either by raising capital or by issuing bonds or other instruments. Under the rules, the CNB will set an MREL for each domestic bank individually as from January 1, 2019.
Ukrainian central bank revokes Russian VTB subsidiary's bank licence
Czech banks need to top up their capital by up to $6.1bn, according to central bank rules