Unicredit: Non-Performing Loans still badly under-provisioned and the Italian bank has a capital deficit

Unicredit’s 2017 Group results presentation shows that group Non-Performing Loans (“NPLs”) stand at €48.5 billion nominal, up from the €36.9 billion nominal as at the end of 2016, when the bank had taken €8 billion of supposedly “one-off” provisions as a charge to its Profit&Loss Account to bring the Carrying Value of NPLs down to […]

Is the ECB bankrupt, at least on a mark-to-market basis?

Yesterday Reuters published an article entitled “Restive bond markets may complicate ECB’s exit plans”.

This was a piece speculating about how and when the ECB can taper off and finish its Asset Purchase Programme (“APP”), and the piece stated that “Currency strength and a doubling of benchmark borrowing costs over just two months may be tightening […]

Ripple – the big story of Q4 2017

Ripple is one of the most talked-about phenomena in the cryptocurrency world, and its profile reached new heights in Q4 2017, both because of its own conference (in the same place and the same time as that of SWIFT, the organisation Ripple aims to take down), its own PR machine, and the price of its […]

Carillion: further detail on recommendations to unsecured creditors – please share

Since my earlier blogs it has come out that the liquidator is indeed “dealing in” Carillion’s contracts and this is very important for the unsecured creditors who have supplied and remained unpaid in those contracts.

The key point is that the liquidator has not repudiated the contracts, and declared them null and void, which was within […]

Recommendations to Unsecured Trade Creditors of Carillion

On the back of my blog “Carillion – who is protecting the Trade and other Unsecured Creditors?”, I was contacted by an unsecured trade creditor and made some recommendations. As these recommendations are not “get to the court house first before the other unsecured creditors” but to co-operate with others in the same boat, there […]

Carillion – who is protecting the Trade and other Unsecured Creditors?

There will be an important corollary to the collapse of Carillion and it will be whether the shareholders really experience “moral hazard”.

Do they only make a recovery from the liquidation once all creditors higher up the “creditor ladder” have had their claims satisfied in full?

Unfortunately the Trade and other Unsecured Creditors are likely to fall […]

Predictions for the Payments industry in 2018 – the global Remittances business

This is the fourth and final one of our four predictions for the Payments industry in 2018.

It is about the global Remittances business.

We all know that this area has been badly hit by “de-risking”, and that the result of that has been the withdrawal by the big clearers in currency centres of correspondent banking services […]

Predictions for the Payments industry in 2018 – new EU Treaty signed for full Economic & Monetary Union

This is the third of our predictions for the Payments industry in 2018, and it is about the Euro and its path to full completion.

Brexit is both a threat and an opportunity for the “centralisers” at the European Commission. Their arguments will be firstly that the Single Market and the Customs Union (“Economic” union) cannot […]

Predictions for the Payments industry in 2018 – New Entrants

This is the second of our predictions for the Payments industry in 2018, and it is about New Entrants to the payments business.

The main focus is on Third-Party Providers and Payment Institutions as ordained under Payment Services Directive. We should also mention eMoney Institutions and – more UK-centric – Challenger Banks.

In sum these are the […]

Predictions for the Payments industry in 2018 – Open Banking

This is the first of our predictions for the Payments industry in 2018, and it is about the UK’s Open Banking.

This is a very high-profile and government-endorsed project to open up Retail and SME banking to technology-based new entrants, who will offer innovative and exciting propositions on top of the data they can receive from […]