TOP NEWS IN GLOBAL FINANCIALS
* U.S. President Joe Biden is poised to sign an executive order this week that will detail the government's plans for cryptocurrencies, Bloomberg News reported, citing unnamed sources. The order will direct federal agencies to look at potential regulatory changes and the security and economic impact of digital assets. It is also expected to address the possibility of a U.S.-issued central bank digital currency, according to the report.
* German regulators including the central bank and financial markets watchdog BaFin are monitoring VTB Bank (Europe) SE to prepare for a potential wind-down as its Russian parent VTB Bank PJSC is reported to be seeking to pull out of Europe amid sanctions, insiders told Bloomberg News. The authorities are reportedly exploring ways to avert triggering a deposit insurance scheme that would leave other banks in the country with a multibillion-dollar bill. BaFin is in close contact with the bank, a spokesperson for the regulator told Bloomberg.
* South Korea will end transactions with the Central Bank of the Russian Federation and two sovereign funds — the National Wealth Fund of the Russian Federation and the Russian Direct Investment Fund — starting March 8, Yonhap News Agency reported. It will also suspend transactions with Bank Rossiya.
➤ US banks exceeding CRE thresholds rose in Q4'21 as delinquencies fell
Data compiled by S&P Global Market Intelligence showed more banks taking on CRE exposure as borrowers recovered from the worst months of the COVID-19 pandemic.
➤ After raking in cash in 2021, APAC fintechs face investor test in 2022
Financial technology firms with strong market positions will likely have no trouble attracting investors in 2022 as accelerated digital trends set them up for an enhanced role as financial intermediaries.
➤ OTP Bank committed to dividend as Ukraine conflict clouds FY'22 outlook
The Hungarian lender, which has significant operations in Russia and Ukraine, hopes to distribute to shareholders at least some of its retained profits from 2019 and 2020.
READ MORE about the market reaction and industry impact of the evolving situation in Russia and Ukraine in our new Issue in Focus.
US & CANADA
* Cryptocurrency exchange Coinbase Global Inc. has blocked more than 25,000 addresses related to Russian individuals or entities the company believes to be engaged in "illicit activity," clarifying that the action is not specific to the time period of Russia's invasion of Ukraine, according to a blog post on the company's website. Coinbase said most of the addresses were identified before the invasion and that it has not seen a surge in sanctions evasion activity following Russia's incursion. Coinbase also said it is taking steps to block access to sanctioned actors and to update its global sanctions list to detect attempts at evasion.
* Citigroup Inc. plans to hire 900 employees, including 400 commercial bankers, in the next three years for its global commercial bank. Citi Commercial Bank said it will invest heavily in the multinational enterprises segment, expecting the bulk of hires to be concentrated in areas where the sector is set to see an uptick in business activity, namely the U.S., China, Brazil, India and countries in Western Europe, among others.
Click here for more of the day's essential bank and financial services news in the U.S. and Canada.
LATIN AMERICA
* The outlook for Peru's economy is "very uncertain" and downside risks are prevalent as 2022 growth is expected to slow to 3% on tighter external conditions and a withdrawal of policy stimulus, the International Monetary Fund said in a statement after its Article IV mission to the country. GDP for 2021 rose 13.3%.
* Mexico will probably have to cut its 2022 GDP growth forecast as economic results in the second half of 2021 were "not so favorable," Reuters reported, citing comments by central bank Deputy Governor Gerardo Esquivel to local media. The central bank recently forecast growth to be between 1.6% and 3.2% this year.
EUROPE
* Crédit Agricole SA's combined exposures to Ukraine and Russia amounted to roughly €6.44 billion, equivalent to about 0.6% of the French bank's total commercial lending portfolio as of 2021-end. Of the amount, about €4.94 billion is to Russia. The bank noted its exposures do not affect its proposed 2021 dividend.
* UBS Group AG said its current direct exposure to Russia, Ukraine and Belarus is limited, but market closures, sanctions and other measures may result in unexpected increases. In its annual report, the Swiss bank said its direct country risk exposure to Russia amounted to $634 million of its $20.9 billion total exposure to emerging markets as of 2021-end. The group has a roughly $200 million exposure to Russian assets used as collateral on so-called Lombard loans at its global wealth management unit.
* France-based Groupe BPCE said it had net banking exposures of €788 million to Russia and €63 million to Ukraine as of February-end.
Click here for more of the day's essential financial news in Europe.
MIDDLE EAST & AFRICA
* Bank Hapoalim BM recorded a fourth-quarter 2021 net profit attributed to shareholders of 934 million Israeli shekels, up from 915 million shekels a year earlier. For full year 2021, the bank's attributed net profit more than doubled on a yearly basis to 4.91 billion shekels from 2.06 billion shekels, mainly due to a 9.2% growth in total income and a reversal of credit loss provisions. Hapoalim also recently established a new banking services division, to be headed by Zeev Hayo.
* Mwalimu National savings and credit cooperatives, or Sacco, has reached an asset purchase agreement with a local buyer for troubled Kenya-based lender Spire Bank Ltd., Business Daily Africa reported. The potential deal, under which the buyer agreed to take over Spire Bank's assets and liabilities, is subject to regulatory approvals.
ASIA-PACIFIC
* Australia-based Pioneer Credit Ltd. agreed to buy an A$85 million portfolio of debt originated by a large financial group or bank, The Australian Financial Review's Street Talk blog reported. The firm will finance the deal with new debt from Fortress Investment Group LLC as well as by raising A$10 million to A$15 million via an equity deal.
* China-based Bank of Nanjing Co. Ltd. said in a bourse filing it would invest 387.9 million yuan in purchasing a majority stake in Suning Consumer Finance Co. Ltd., thus increasing its stake in the company to 56%. BNP Paribas SA will also pay 28.4 million yuan in purchasing 3% of Suning Consumer Finance.
Click here for more of the day's essential financial news in Asia-Pacific.
Erin Tanchico and Ryan Jeffrey Sy contributed to this report.
The Daily Dose has an editorial deadline of 8:30 a.m. Eastern Time. Some external links may require a subscription. Links are current as of publication time, and we are not responsible if those links are unavailable later.
