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Weekly Lists
May 31, 2019 www.intellinews.com I Page 24
bne:Banker Turkey’s banking
watchdog approves establishment of new investment bank
Turkey’s banking sector regulator BDDK has approved the establish- ment of a new investment and development bank named Golden Global Yatirim Bankasi.
The bank would be launched by five individuals and its initial capital would stand at TRY150mn ($25mn), the BDDK said.
Investment banking amounts to only a small branch of the Turkish banking system.
There are currently 13 investment and development banks in the country.
According to data from the regulator, the total assets of Turkey’s devel- opment and investment banks stood at TRY284.6bn in the first quarter of this year versus deposits banks’ assets of TRY3.6 trillion, while loans extended by those financial institutions amounted to TRY203bn against the deposit banks’ lending volume of TRY2.2 trillion.
Fitch Ratings believes Mongolia's banking system will “eventually” strengthen as a result of the ongoing fallout from the central bank’s sector-wide asset-quality review (AQR), the ratings agency said in
a statement last week.
The volume of non-performing loans in Mongolia’s banking sec- tor rose by 61.2% y/y to MNT1.9 trillion in January to April. Total outstanding bank loans in Mongolia rose by 1% m/m and 21.9% y/y to MNT17.6 trillion. The banking sector’s non-performing loans (NPL) ratio rose to above 10% last year and some banks are still reporting loan deterioration from their legacy loans. This could trigger a need for capital injections or multiple bank closures, especially in case of systemically insignificant ones.
The National Bank of Ukraine (NBU) has filed appeals against two rulings that Kyiv District Administrative Court made in April over the nationalisation of the nation's largest lender PrivatBank.
Specifically, the central bank is challenging the court's ruling that the government’s bailout of the then insolvent PrivatBank was unlawful. In the second lawsuit, filed by PrivatBank’s former shareholder Cyprus- based Triantal Investments Ltd., the court overruled an NBU commis- sion’s decision that identified the list of PrivatBank’s related parties.
"Thus, the two rulings have no legal impact at this time, as they cannot come into force before the NBU’s appeals have been heard," the regulator said in a statement on May 24.
Fitch Ratings sees Mongolia’s banking system strengthening over long term due to sector-wide AQRs
Ukraine’s central
bank challenges court rulings over PrivatBank nationalisation