Saturday 23rd August 2014
slib33
South Africa’s central bank has disagreed with a ratings decision by Moody’s to downgrade Capitec Bank Limited (Capitec) by two notches, and place it on review for a further downgrade. The central bank says it respects the independent opinion of rating agencies but that it does not “agree with the rationale given in taking this step”. Two reasons are given for the rating action: a lower likelihood of sovereign systemic support based on decisions recently taken in relation to African Bank Limited (African Bank), and heightened concerns regarding the risk inherent in Capitec’s consumer lending focus. “With regard to the first point, it is important to reiterate that the approach taken by the SARB to any resolution to address systemic risk will always be based on the circumstances and merits of the particular prevailing situation. Decisions will also be informed, as was the case with African Bank, by principles contained in the Key Attributes for Effective Resolution Regimes proposed by the Financial Stability Board (FSB), which have the objective that a bank should be able to fail without affecting the system,” notes the central bank in an official statement. “This is in keeping with evolving international best practice. In the case of African Bank bond holders and wholesale depositors are taking a 10% haircut, which is generally regarded as being very positive given that the trades following the announcement of African Bank's results were taking place at around 40% of par. Therefore in fact substantial support was provided, not reduced. Moreover, all retail depositors were kept whole and are able to access their accounts fully,” it adds - According to the Hong Kong Monetary Authority (HKMA) credit card receivables increased by 2.1% in the second quarter to HKD112, after a reduction of 6.7% in the previous quarter. The total number of credit card accounts edged up by 0.7% to around 16.8m.The rollover amount, which reflects the amount of borrowing by customers using their credit cards, increased by 2.9% during the quarter to HKD19.2bn. The rollover ratio also rose marginally from 17.0% to 17.1% in the same period. The charge-off amount increased to HKD569mduring the quarter from HKD528m in the previous quarter. Correspondingly, the quarterly charge-off ratio rose to 0.51% from 0.46% in the previous quarter. The amount of rescheduled receivables transferred outside the surveyed institutions’ credit card portfolios reduced to HKD94m from HK$109m in the previous quarter. The delinquent amount increased to HKD249m at end-June from HKD239m at end-March. However, the delinquency ratio remained the same at 0.22% because of an increase in total card receivables. The combined delinquent and rescheduled ratio (after taking into account the transfer of rescheduled receivables mentioned above) edged up to 0.29% from 0.28% during the same period - Harkand has been awarded a contract to support Apache with inspection, repair and maintenance work (IRM) as well as light construction (LC) across their assets in the North Sea, following completion of a competitive tender exercise. The award includes the provision of vessels, ROV and diving services for a three-year period, plus two one-year options. The firm will also support offshore marine construction contractor EMAS AMC who have been awarded a separate contract for pipe lay and heavy construction as part of the same tender process. Harkand Europe managing director, David Kerr, said: “This contract is an important step in strengthening our close working relationship and growing our North Sea business with Apache.

Euroclear Belgium, Euroclear France and Euroclear Nederland sign up to TARGET2-Securities

Tuesday, 12 June 2012
Euroclear Belgium, Euroclear France and Euroclear Nederland sign up to TARGET2-Securities Three Euroclear central securities depositories (CSDs) operating in the euro-zone, namely Euroclear Belgium, Euroclear France and Euroclear Nederland, have agreed to sign up to the Eurosystem's TARGET2-Securities (T2S) project. http://www.ftseglobalmarkets.com/

Three Euroclear central securities depositories (CSDs) operating in the euro-zone, namely Euroclear Belgium, Euroclear France and Euroclear Nederland, have agreed to sign up to the Eurosystem's TARGET2-Securities (T2S) project.

The depositaries have engaged in extensive market consultation and dialogue with national regulators and will finalise assessment of CSD outsourcing arrangements with relevant regulators before signing the T2S Framework Agreement. With support from parent company Euroclear SA/NV, the Boards of the three CSDs have agreed for each CSD to sign the T2S agreement.

As a result, Euroclear Belgium, Euroclear France and Euroclear Nederland will outsource settlement transaction processing to T2S. Clients of the three CSDs will continue to have accounts directly with the respective CSD and receive the full range of post-trade services from that CSD. The migration date and fees for connecting to and using T2S will be determined after completion of market consultation.

Joël Mérère, chairman of the Boards of Euroclear Belgium, Euroclear France and Euroclear Nederland, explains that: "The three Euroclear group central securities depositories are reflecting local market sentiment by taking the decision to sign the T2S Framework Agreement. As the first and only group of markets in continental Europe to have consolidated and harmonised transaction settlement and custody services on a shared platform, we appreciate the benefits of large-scale processing consolidation and harmonisation that T2S has the capacity to provide."

Valérie Urbain, chief executive officer of Euroclear Belgium, Euroclear France and Euroclear Nederland, add: "Euroclear has been preparing to operate within a T2S environment for some time. Our asset servicing capabilities are expanding, and we are introducing collateral management services for clients in the Belgian, French and Dutch markets, as well as with some local central banks. The depth and breadth of the domestic and cross-border post-trade services we offer will clearly help clients get the most out of the new operating environment in the easiest way possible."

Euroclear Belgium, Euroclear France and Euroclear Nederland claim to be the first and only group of central securities depositories in continental Europe that process client transactions on a shared platform and operate with harmonised market rules and practices. Known as the ESES (Euroclear Settlement of Euronextzone Securities) platform, the three CSDs settled EUR 87 trillion of securities transactions in 2011, representing 31 million transactions, and held approximately EUR 6 trillion of assets for clients.

The three ESES CSDs are part of the Euroclear group, which includes the international central securities depository Euroclear Bank, based in Brussels, as well as the national central securities depositories Euroclear Finland, Euroclear Sweden and Euroclear UK & Ireland. Euroclear also owns Xtrakter, operator of the TRAX trade matching and reporting system.

In 2011, the Euroclear group settled more than EU 580trn in securities transactions, representing 163m domestic and cross-border transactions, and held more than EUR22trn of assets for clients. Euroclear Bank is rated AA+ by Fitch Ratings and AA by Standard & Poor’s.

Related News

Related Articles

Related Videos

Tweets by @DataLend

DataLend is a global securities finance market data provider covering 42,000+ unique securities globally with a total on-loan value of more than $1.8 trillion.

What do our tweets mean? See: http://bit.ly/18YlGjP