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105-595: BayernLB has been designated as a Significant Institution since the entry into force of European Banking Supervision in late 2014, and as a consequence is directly supervised by the European Central Bank . As a commercial bank, BayernLB Group offers private and commercial customers a universal range of services in private, industrial, investment and foreign business. This includes loans , securities trading and asset management , as well as mid-term and long-term bond issuance and securitization . The bank

210-586: A royal charter to Scotsman James Wilson in 1853. Chartered opened its first branches in Bombay , Calcutta , and Shanghai in 1858; branches in Hong Kong and Singapore followed in 1859. The bank started issuing banknotes denominated in Hong Kong dollars in 1862. The Standard Bank was a British bank founded in the Cape Province of South Africa in 1862 by Scot, John Paterson . Having established

315-480: A "prudential backstop," or minimum common loss guarantee for the reserve funds that banks set up to deal with losses from future non-performing loans. If a bank fails to meet this agreed minimum level, deductions are made directly from its capital. In addition to the core SREP process, the ECB is also in charge of assessing banks’ acquisition of qualifying holdings, in accordance with Regulation 1024/2013, Art. 4. Before

420-607: A "rogue institution". The bank was ordered to appear and defend its actions, or risk losing its license to operate in the state of New York . The DFS said it had documents showing a cover up of transactions allegedly used to fund terrorist groups in the Middle East. On 14 August 2012, Lawsky announced that the DFS and Standard Chartered reached a settlement that allows the bank to keep its licence to operate in New York. According to

525-434: A 49% share of an Indian brokerage firm (UTI Securities) for $ 36 million in cash from Securities Trading Corporation of India Ltd., with the option to raise its stake to 75% in 2008, and, if both partners were in agreement, to 100% by 2010. On 29 February 2008, Standard Chartered PLC announced it had received all the required approvals leading to the completion of its acquisition of American Express Bank Ltd (AEB) from

630-534: A New York court, BayernLB asserted that Deutsche Bank sold residential mortgage-backed securities to external clients while secretly criticizing them within the bank and ultimately profiting from their failure. By 2014, both banks agreed to settle the $ 810 million lawsuit out of court. A number of legal cases over BayernLB's €1.63 billion acquisition of Hypo Alpe-Adria-Bank International Group AG in 2007 have marred relations between Bavaria and its southern neighbor Austria. In 2014, former chief executive Werner Schmidt

735-600: A Pakistani bank. The merged bank, Standard Chartered Bank (Pakistan) , is now Pakistan's sixth largest bank. On 22 October 2006, Standard Chartered announced that it had received tenders for more than 51% of the issued share capital of Hsinchu International Bank ("Hsinchu"), established in 1948 in Hsinchu, Taiwan . In 2007, Standard Chartered opened its Private Banking global headquarters in Singapore . On 23 August 2007, Standard Chartered entered into an agreement to buy

840-423: A bank is recognized as significant or when deemed necessary (i.e., in case of exceptional circumstances or when a non-Eurozone country joins the mechanism). Comprehensive assessments require too much resources for them to be conducted annually. Other supervision tools are therefore used on a more regular basis in order to assess how banks would cope with potential economic shocks. As required by EU law and as part of

945-723: A business consortium purchased a 35% stake to fend off Lloyds. A member of this consortium was Singaporean property tycoon Khoo Teck Puat , who purchased 5% of the bank's shares, which he later increased to 13.4%. In 1987, Standard Chartered sold its remaining interests in the South African bank; since then the Standard Bank Group has been a separate entity. In 1992, scandal broke when banking regulators charged several employees of Standard Chartered in Mumbai with illegally diverting depositors' funds to speculate in

1050-423: A change of CEO after profit warnings and money laundering fines in the first half of the year. In 2016, Standard Chartered announced that it would stop providing loans to the midstream segment of the diamonds and jewellery industries. The announcement was the result of a review of the bank's involvement in risky business sectors. In 2017, the bank was reported to have lost $ 400 million on risky diamond debt on

1155-517: A close advisor of BNP Paribas . This group led by de Larosière delivered a report highlighting the major failure of European banking supervision pre-2008. Based on this report, the European institutions have set up in 2011 “The European System of Financial Supervision” (ESFS). Its primary objective was: " to ensure that the rules applicable to the financial sector are adequately implemented, to preserve financial stability and ensure confidence in

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1260-525: A considerable number of branches Standard was prominent in financing the development of the diamond fields of Kimberley from 1867 and later extended its network further north to the new town of Johannesburg when gold was discovered there in 1885. Half the output of the second largest gold field in the world passed through the Standard Bank on its way to London . Standard expanded widely in Africa over

1365-583: A further 2 billion euros in the first quarter of 2008. The heavy public criticism took its first toll in March 2008 when CEO Werner Schmidt resigned less than a week after the bank wrote down €1.9 billion as a result of the US subprime crisis. The crisis also consumed the governing CSU party and its chairman, Erwin Huber , who as Bavarian Minister of Finance was the acting chair of the bank's Administrative Council and

1470-602: A member of the Global Banking Alliance for Women , Standard Chartered works with a consortium of banks to deliver financial services to women. In August 2012, Standard Chartered agreed to pay $ 340 million to the New York State Department of Financial Services over charges that the bank worked with the government of Iran to hide $ 250 billion in transactions in order to evade sanctions. In December 2012, Standard Chartered agreed to pay

1575-616: A new action against Standard Chartered over computer system breakdowns and was "discussing a potential settlement". On 19 August 2014, the bank was fined $ 300 million by the New York Department of Financial Services for breach of money-laundering compliance related to potentially high-risk transactions involving Standard Chartered clients in Hong Kong and the UAE. The bank issued a statement accepting responsibility and regretting

1680-562: A painting by Wassily Kandinsky in the bank's collection be restituted to the descendants of the Jewish family that originally owned the artwork. On July 24, 2023, BayernLB announced that it had decided to return the 1907 tempera painting, Colorful Life , to the heirs of Emanuel Lewenstein . European Banking Supervision European Banking Supervision , also known as the Single Supervisory Mechanism (SSM),

1785-573: A partnership with Standard Chartered through which the latter will help finance Asian operations for German export-oriented small and medium-sized businesses. BayernLB (Bayerische Landesbank) has concluded its EU state aid proceedings in June 2017 ahead of schedule, having repaid a total of almost 5.5 billion euros to the Free State of Bavaria. Under a ruling by the EU in 2012, BayernLB was required to pay

1890-527: A penalty of roughly $ 134 million from the United Kingdom's Financial Conduct Authority related to historical financial crime controls which takes the amount to over $ 1 billion. Standard Chartered Breeze is a mobile banking application for the iPhone & iPad that can also be used on the computer. It is largely similar to the online banking services offered by other banks, with the exception of its function to issue electronic bank cheques. Launched in

1995-552: A portfolio of loans that was once worth $ 3 billion. Owing to defaults of jewellery and diamond companies from 2013 onwards, Standard Chartered is currently estimated to have $ 1.7 billion of diamond debt still to be repaid. The company received criticism in April 2017 from the Institutional Shareholder Services (ISS). The investor advisory firm told shareholders it was concerned that targets set for

2100-451: A possible merger with WestLB but discussions were broken off after only a few weeks. That same year, it became the first of Germany's bailed-out Landesbanken to return to profitability, making pre-tax profits of about 885 million euros. By 2014, BayernLB returned 2.7 billion euros to its state owner Bavaria; in 2016, it repaid another 1.3 billion euros. The final tranche of 1 billion euros was paid in June 2017. In 2016, BayernLB entered into

2205-760: A practice contrary to bank rules". In 1994, the Hong Kong Securities and Futures Commission found Standard Chartered's Asian investment bank to have illegally helped to artificially support the price of new shares they had underwritten for six companies from July 1991 to March 1993. The bank admitted the offence, apologized, and reorganized its brokerage units. The commission banned the bank from underwriting IPOs in Hong Kong for nine months. In 1997, Standard Chartered sold Mocatta Bullion and Base Metals, its metals division, to Toronto -based Scotiabank for US$ 26 million. Standard Chartered's Asian investment banking operations never recovered. In 2000,

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2310-433: A recapitalization plan for 2015. 0 0 0 0 0 ¹ These banks have a shortfall on a static balance sheet projection, but will have dynamic balance sheet projections taken into account in determining their final capital requirements. 0 0 0 0 0 0 Under the dynamic balance sheet assumption, these banks have no or practically no shortfall taking into account net capital already raised. 0 0 0 0 0 ² Taking into account

2415-470: A subsidiary of Jardine Matheson ) took over PermataBank and in 2006, both shareholders increased their joint ownership to 89.01%. With 276 branches and 549 ATMs in 55 cities throughout Indonesia, PermataBank has the second largest branch network in Standard Chartered organization. On 15 April 2005, the bank acquired Korea First Bank , beating HSBC in the bid. The bank has since rebranded

2520-482: A total of 4.96 billion euros to the Free State of Bavaria by 2019 at the latest. The early repayment of the last outstanding state-aid money was made possible by BayernLB's strong business performance and the solid capital base that goes with it. The responsible authorities (ECB, German Bundesbank, BaFin and the European Commission) also acknowledged BayernLB's financial stability by approving the payout of

2625-545: Is divided in two: Finally, Basel III provides additional capital buffers covering more specific risks. European Banking Supervision has been actively involved in the making of Non-Performing Loans action plans. In the ECB guidance recommendations, the SSM, along with the European Banking Authority (EBA), have introduced a new definition of Non-Performing Loans (NPLs) that relates to the optimisation of

2730-505: Is organised by article 26 of the SSM regulation (Council regulation (EU) No 1024/2013). It is composed of all national participating supervisors, a chair, vice-chair and four ECB representatives. These members meet every three weeks in order to draft supervisory decisions then submitted to the Governing Council . The Supervisory Board is assisted in the preparation of its meetings by a Steering Committee. This committee gathers

2835-680: Is proportional to the risks they take. This is closely monitored by the supervisory authorities. Since 2016, if the results of the SREP for a bank do not reflect a proper coverage of the risks, the ECB may impose additional capital requirements to those required by the Basel agreement. This agreement provides a minimum capital requirement (called Pillar 1 requirement) of 8% of banks’ risk-weighted assets .  Since Basel II , extra requirements (called Pillar 2 requirements) can be set in order to cover additional risks. This second category of requirements

2940-437: Is refinanced through a variety of commercial debenture instruments. As a state and municipal bank, BayernLB is responsible for comprehensive credit and financial counsel for the state of Bavaria and its municipalities and districts . Through its subsidiaries, the bank is involved in a variety of further business areas. The Bayerische Landesbodenkreditanstalt is an organ of state housing policy. Through its full ownership of

3045-570: Is the Government of Singapore -owned Temasek Holdings . The Financial Stability Board considers it a systemically important bank . José Viñals is the group chairman of Standard Chartered. Bill Winters is the current group chief executive. The name Standard Chartered comes from the names of the two banks that merged in 1969 to create it: The Chartered Bank of India, Australia and China , and Standard Bank of British South Africa . The Chartered Bank began when Queen Victoria granted

3150-411: Is the policy framework for the prudential supervision of banks in the euro area . It is centered on the European Central Bank (ECB), whose supervisory arm is referred to as ECB Banking Supervision . EU member states outside of the euro area can also participate on a voluntary basis, as was the case of Bulgaria as of late 2023. European Banking Supervision was established by Regulation 1024/2013 of

3255-623: The American Express Company (AXP). The total cash consideration for the acquisition is US$ 823 million. On 13 November 2008, Standard Chartered Bank (Hong Kong) Limited, entered into an agreement with JPMorgan Cazenove to acquire 100% of Cazenove Asia Limited, an Asian equity capital markets , corporate finance , and institutional brokerage business. On 27 November 2009, Dow Jones Financial News reported that Dubai will restructure its largest corporate entity. Among international banks, Standard Chartered has one of

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3360-729: The Deutsche Kreditbank , based in Berlin, BayernLB is also involved in retail banking . Through its predecessor, the Bayerische Gemeindebank (founded 1914), and its much older subsidiary, the Bayerische Landesbodenkreditanstalt (founded 1884), BayernLB can claim to have more than 100 years of history. In its current form, the bank was founded by law on June 27, 1972, through the merger of the two institutions. Its first President

3465-470: The European Commission is in charge of checking the impacts such transactions will have on competition and, therefore, on consumers, the ECB is tasked to monitor the risks entailed by the suggested consolidations. If a transaction includes the acquisition of more than 10% of a bank’s shares or voting rights (i.e., a qualifying holding – Regulation 575/2013, Art. 4(1)36), it must be reported to

3570-476: The European Treaties , non-Eurozone countries do not have the right to vote in the ECB's Governing Council and, in return, are not bound by its decisions. As a result, non-Eurozone countries cannot become full members of the banking union (i.e., they cannot have the same rights and obligations as Eurozone members). However, non-Eurozone EU member states can enter into a "close cooperation agreement" with

3675-459: The Singapore state-owned private investment firm, Temasek , became the bank's largest shareholder when it bought the 11.55% stake held by Khoo Teck Puat's estate. On 9 August 2006, Standard Chartered announced it had acquired an 81% shareholding in the Union Bank of Pakistan in a deal ultimately worth $ 511 million. This deal represented the first acquisition by a foreign firm of

3780-478: The financial crisis of 2008 , an increasing number of banks were merging across Europe. This trend stopped as a result of the crisis: between 2008 and 2017, while we saw a decline in the number of cross-border M&As , domestic consolidations (i.e., between two national institutions) rose. In 2016, there were about 6 000 banks in the Eurozone , most of which with a clear focus on their domestic market. Today,

3885-544: The fintech community is focused in Hong Kong, working closely with and co-ordinated by 'The eXellerator'. The SuperCharger FinTech Accelerator, along with main partners, Standard Chartered Bank (a founding member) and Fidelity International, has twice conducted programmes enabling international growth-stage companies to expand their operations within Asia. Standard Chartered Bank has initiated proof of concept projects with two companies: Bambu and KYC Chain. In September 2009, it

3990-500: The risks taken by European banks . This process, undertaken annually by supervisors from the ECB and Joint Supervisory Teams, is an essential element of the implementation of the Single Supervisory Mechanism . The aim of the SREP is to make sure that banks remain safe and reliable; that any factors that could affect their capital and liquidity are under control. Today, the capital and liquidity levels of banks are then directly subject to an ECB monitoring system while beforehand it

4095-583: The 130 most significant credit institutions in the 19 Eurozone states representing assets worth €22 trillion (equal to 82% of total banking assets of the eurozone). The supervision report included: Based on these three criteria, the review found that a total of 105 out of the 130 assessed banks met all minimum capital requirements on 31 December 2013. A total of 25 banks were found to suffer from capital shortfalls on 31 December 2013, of which 12 managed to cover these capital shortfalls through raising extra capital in 2014. The remaining 13 banks were asked to submit

4200-623: The 2022–23 season and finally, in July 2022 that runs until the end of the 2026–27 season. The deal is estimated to be worth around £50 million per year by City A.M. , making it the joint-third most valuable sponsorship deal in the Premier League alongside Arsenal's deal with Emirates and Chelsea's deal with Yokohama . Standard Chartered is also the lead sponsor of the Singapore Marathon. The Priority Academy program

4305-628: The African custody business from Barclays PLC. On 13 May 2010, Standard Chartered PLC launched the first-ever Indian Depository Receipt "IDR" offer. On 17 June 2010, Standard Chartered Bank and the Agricultural Bank of China (ABC) entered into a strategic alliance meant to strengthened their strategic partnership and identify joint business opportunities. Joint business and cooperation task forces were set up in October that year to define

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4410-520: The Balkans. In early 2008 it was revealed that BayernLB had made large losses due to investments in sub-prime mortgage securities in the United States . Although the extent of these investments has been the topic of speculation, it was revealed from the company's Q2 2008 financial report that over €24 billion had been invested in critical securities, with losses of 2.3 billion euros in 2007 and

4515-729: The Chair and the Vice-Chair of the Supervisory Board, an ECB representative (Edouard Fernandez-Bollo since 2019) as well as five deputies of national supervisors. A division of labour has been established between the ECB and national supervisors. Banks deemed significant will be supervised directly by the ECB. Even though the ECB has the authority to take over the direct supervision of any bank, smaller banks will usually continue to be monitored directly by their national authorities. A total of 115 banks are currently being supervised by

4620-646: The Council, also known as the SSM Regulation , which also created its central (albeit not ultimate) decision-making body, the ECB Supervisory Board . Under European Banking Supervision, the ECB directly supervises the larger banks that are designated as Significant Institutions. The other banks, known as Less Significant Institutions, are supervised by national banking supervisors ("national competent authorities") under supervisory oversight by

4725-399: The ECB is not new. In November 2016, the ECB wrote in its Financial Stability Review the following sentence with regards to the banking sector: “ Consolidation could bring some profitability benefits at the sector level by increasing cost and revenue synergies without worsening the so-called “too-big-to-fail” problem ” (ECB Financial Stability Review, Nov. 2016, p. 75) This positioning of

4830-422: The ECB's staff, national competent supervisors and experts in the banking field, make the link between the national and supranational levels. There is a JST for each significant banking institution. They act as supporting bodies, responsible mainly for the coordination, control and evaluation of supervisory missions. The Supervisory Review and Evaluation Process, also known as ‘SREP’, is a periodic assessment of

4935-480: The ECB, in favor of bigger and more competitive banks in Europe, translates a certain bias of this institution towards the financial industry. This bias can be explained by different power mechanisms at stake: Standard Chartered Standard Chartered PLC is a British multinational bank with operations in consumer , corporate and investment banking , and treasury services . Despite being headquartered in

5040-600: The ECB. As of late 2022, the ECB directly supervised 113 Significant Institutions in the 21 countries within its geographical scope of authority, representing around 85% of the banking system's total assets (excluding financial infrastructures that are designated as LSIs such as Euroclear in Belgium, Banque Centrale de Compensation in France, or Clearstream in Germany and Luxembourg). European Banking Supervision represents

5145-405: The ECB. This procedure is organised by article 7 of the SSM regulation (Council regulation (EU) No 1024/2013) and the ECB decision 2014/510. In effect, these agreements imply the supervision of banks in these signatory countries by the ECB. A close cooperation agreement can be ended either by the ECB or by the participating non-Eurozone member state. Bulgaria , which is in the process of adopting

5250-576: The ECB; all other banks are supervised by their national supervisor. A bank is considered significant when it meets any of the following criteria: This significance status is subject to change due to, for example, mergers and acquisitions. In 2020, two additional banks (LP Group B.V. in the Netherlands and Agri Europe Cyprus in Slovenia ) have joined the list of banks supervised by the ECB. Joint Supervisory Teams (JST), composed of members of

5355-521: The EU level was the creation of the Lamfalussy Process in March 2001. It involved the creation of a number of committees in charge of overseeing regulations in the financial sector. The primary goal of these committees was to accelerate the integration of the EU securities market. This approach was not binding for the European banking sector and had therefore little influence on the supervision of European banks. This can be explained by

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5460-463: The European banking landscape is composed of banks with a smaller market share at the EU level than what can be observed in the United States. As a result, the European market is said to be more fragmented and therefore less competitive than in the US or Asia. Cross-border mergers in banking would help banks to diversify their portfolio and, therefore, better recover from localized shocks in

5565-404: The SREP, the ECB carries out annual stress tests on supervised banks. In 2016, a stress test was performed on 51 banks, covering 70% of EU banking assets. These banks entered the process with an average Common Equity Tier 1 (CET1, i.e., percentage of Tier 1 capital held by banks) ratio of 13%, higher than the 11.2% of 2014. The test showed that, with one exception, all the assessed banks exceeded

5670-803: The United Kingdom, it does not conduct retail banking in the UK, and around 90% of its profits come from Asia , Africa , and the Middle East . Standard Chartered has a primary listing on the London Stock Exchange and is a constituent of the FTSE 100 Index . It has secondary listings on the Hong Kong Stock Exchange , the National Stock Exchange of India , and OTC Markets Group Pink . Its largest shareholder

5775-463: The United States, while continuing expansion in their traditional markets in Asia and Africa. In 1986, Lloyds made a hostile takeover bid for the Group. The bid was defeated; however, it spurred Standard Chartered into a period of change, including a series of divestments notably in the US and South Africa. It sold Union Bank to Bank of Tokyo and United Bank of Arizona to Citicorp . In 1986,

5880-573: The Year awards in September 2014, largely "on the basis of its work in emerging markets, particularly Asia". In January 2015, the company announced that it was exiting the money-losing " equity capital markets business completely", "becoming one of the first global banks" to do so. In November that year, the bank announced that it would cut 15,000 jobs, including one thousand senior jobs, "from managing director up to board executives". The cuts followed

5985-635: The bank closed them down. In 2000, Standard Chartered acquired Grindlays Bank from ANZ , increasing its presence in private banking and further expanding its operations in India and Pakistan. Standard Chartered retained Grindlays' private banking operations in London and Luxembourg , as well as the subsidiary in Jersey , all of which were integrated into its own private bank. This now serves high-net-worth customers in Hong Kong, Dubai , and Johannesburg under

6090-420: The bank must further protect itself by increasing its equity reserve in the event the loan is not paid. The purpose of this procedure is to increase the bank's resilience to shocks by sharing the risk with the private sector. In other words, addressing the problems associated with PNPs in the future is paramount to consolidating the banking union, while developing lending activity. The new provisions put in place

6195-529: The benchmark used in 2014 in terms of CET1 capital level (5.5%). The results of this stress test show that, in 2016, EU banks had a better potential of resilience and shock absorption than in 2014. In 2018, two types of stress tests were performed: an EBA stress test for 33 banks and a SSM SREP stress test for 54 banks. The aggregate results of those tests show that, in 2018, both sets of banks had again strengthened their capital base compared to 2016, increasing their potential of resistance to financial shocks. Due to

6300-696: The branches as SC First Bank . Standard Chartered completed the integration of its Bangkok branch and Standard Chartered Nakornthon Bank in October, renaming the new entity Standard Chartered Bank (Thailand) . Standard Chartered also formed strategic alliances with Fleming Family & Partners to expand private wealth management in Asia and the Middle East, and acquired stakes in ACB in Vietnam, Travelex, American Express Bank ( Bangladesh ), and Bohai Bank (China). The largest shareholder, billionaire Khoo Teck Puat , died in 2004; and two years later, on 28 March 2006,

6405-489: The capacity of the ECB to monitor 6,000 banks ". The Vice-President of the European Commission at the time, Olli Rehn , responded to that concern that the majority of European banks would still be monitored by national supervisory bodies, while the ECB " would assume ultimate responsibility for the supervision, in order to prevent banking crises from escalating ". The European Parliament voted in favour of

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6510-543: The commission, the president of the Central Bank and of the Eurogroup on a preliminary report used as a basis for discussions at the summit. In compliance with the decisions made then, the European Commission published a proposal for a council regulation establishing European banking supervision in September 2012. The European Central Bank welcomed the proposal. Chancellor of Germany Angela Merkel questioned "

6615-566: The completion of the banking union, stalled since June 2022, also includes options for the regulatory treatment of sovereign exposures. The question of supervising the European banking system arose long before the financial crisis of 2007-2008 . Shortly after the creation of the monetary union in 1999, a number of observers and policy-makers warned that the new monetary architecture would be incomplete, and therefore fragile, without at least some coordination of supervisory policies among euro members. The first supervisory measure put in place at

6720-717: The conduct at issue involved transactions of at least $ 250bn." The bank issued a statement confirming that a settlement with the DFS had been reached and that "a formal agreement containing the detailed terms of the settlement is expected to be concluded shortly". Other US agencies—including the Federal Reserve , the Federal Bureau of Investigation , the Treasury Department , and the Justice Department —had also begun investigations into

6825-447: The controversial Carmichael Coal Mine, with a campaign led by Greenpeace calling for them to quit the project. The bank subsequently withdrew from the deal. Prior to 1973, management integration was still ongoing and the Standard Bank and Chartered Bank each had their own separate executives; Ronald Lane and H. R. Reed from the two banks first joined as co-managing directors in 1973, with Lane becoming sole managing director in 1975. As

6930-545: The coronavirus pandemic, the 2020 stress test has been postponed to 2021. The results of this test should be published by the end of June 2021. All 20 eurozone member states automatically participate in European Banking Supervision. Croatia , being the latest country to join the Eurozone on 1 January 2023, was accordingly added to the scope of application of European Banking Supervision. Under

7035-467: The deficiencies, at the same time noting the ruling would not jeopardize its U.S. licenses. In April 2019, it was reported that Standard Chartered may have to pay approximately $ 1 billion to settle its ongoing investigations in the US and UK. Earlier in February the company had set aside $ 900 million towards resolution of violations of U.S. sanctions and forex trading regulations. The company also faces

7140-602: The direction of the partnership and explore joint ventures. The committee was to be co-chaired by Peter Sands , CEO of Standard Chartered, and Zhang Yun , President of ABC. In December 2010, Standard Chartered was recognised as the Global Bank of the Year in The Banker ' s Bank of the Year 2010 awards. Standard Chartered also was named The Banker 's inaugural winners of the Global and European Transaction Bank of

7245-427: The disposal of the NPLs by the banks. The main purpose is to integrate the multidimensional framework that the banks use in their evaluation process in the comprehensive assessment by the Supervisory Authority. A bank loan is non-performing when the 90-day period is exceeded without the borrower paying the due amount or the agreed interest. If customers do not follow the agreed upon repayment terms for 90 days or more,

7350-415: The economy. On the other hand, spreading risks across different geographies could also be a threat to the stability of financial markets: one might, indeed, worry of a potential effect of contagion between regions. Such transactions could also lead to the creation of groups regarded as “ Too big to fail ”, which, in case of systemic crises, would require significant support from the public purse. Following

7455-421: The euro currency, signed a close cooperation agreement with the ECB in 2020. Croatia likewise had a close cooperation agreement with the ECB prior to joining the eurozone. The European Central Bank (ECB) has the leadership in European banking supervision. A strict administrative separation is foreseen between the ECB's monetary and supervisory tasks. However, final decision-making on both matters takes place in

7560-754: The fact that the European treaties did not allow the EU, at the time, to have real decision-making power on these matters. The idea of having to modify the treaties and of engaging in a vast debate on the Member States’ loss of sovereignty cooled down the ambitions of the Lamfalussy process. The financial and economic crisis of 2008 and its consequences in the European Union  incentivized European leaders to adopt a supranational mechanism of banking supervision. The main objective of

7665-454: The financial system as a whole ”. The ESFS brought together, in an unconventional manner, the European and the national supervisory authorities. Despite the creation of this new mechanism, the European Commission considered that, having a single currency, the EU needed to go further in the integration of its banking supervision practices. The idea was that the mere collaboration of national and European supervisory authorities

7770-406: The goal is to keep interest rates on hold. But it said it would end some of the measures it had introduced during the global downturn to increase the amount of money in the financial system. The German economy later recovered from recession but growth has flatlined since 2012. This is in stark contrast to more developed economies that fell into recession. In 2010, BayernLB held preliminary talks over

7875-465: The governance mechanism at stake (e.g. what the skills and experiences of the leadership are). With this communication, the ECB also took the initiative to clarify how it was computing the capital requirements of the new entity and how it would assess the quality of this new body's assets . According to two PwC analysts, the publication of this document by the ECB seems to indicate that it wishes to encourage banking consolidation. This position from

7980-445: The initial and so far most complete component of the broader banking union , a project initiated in 2012 to integrate banking sector policy in the euro area. The unfinished piece of the banking union agenda is about crisis management and resolution, for which the so-called Single Resolution Mechanism coexists with national arrangements for deposit insurance and other aspects of the bank crisis management framework. The policy agenda on

8085-456: The largest loan portfolios in the Dubai market and the UAE as a whole, estimated to be $ 7.77 billion in total. This amounts to 4.2% of Standard Chartered's total loans outstanding. Other impacted banks included HSBC , Barclays , and RBS . The bank stated that any impairment arising from this exposure would not be material. Standard Chartered announced an agreement on 27 April 2010 to buy

8190-422: The laundering allegations and were reportedly taken off guard by the speed of the settlement. The Treasury stated that its own investigation of Standard Chartered will continue. Several financial analysts predicted that, due to its strong financial position, the bank would be able to easily cover the $ 900 million fine without having to raise extra capital. On 6 August 2014, Lawsky was reported to be preparing

8295-648: The legislative proposal on the 12th of September 2013. The Council of the European Union gave its own approval on the 15th of October 2013. The SSM Regulation entered into force on the 4th of November 2014. The fact that European Banking Supervision is formulated as a regulation and not a directive is important. Indeed, a regulation is legally binding and Member States do not have the choice, unlike for directives, of how to transpose it under national law. The ECB published its first comprehensive assessment on 26 October 2014. This financial health check covered

8400-435: The lender and gave it €4.8 billion in guarantees for a portfolio of complex securities that turned sour after the collapse of Lehman Brothers . At the time, BayernLB agreed to repay 5 billion by 2019, while 5 billion euros would remain in the bank as part of Bavaria's 75 percent stake in the lender. Local savings banks own the rest. The bank representatives advise economy was not ready for an increase in borrowing costs, and so

8505-505: The management structure or the need of holding more capital especially in times of financial crisis ). These actions shall normally be fulfilled by the following year. In case of non-compliance with these requirements, the ECB can charge a fine up to the double of the profits (or losses) which have been generated (or caused) by the breach and that can amount up to 10% of these banks’ annual turnover . The ECB can also request national authorities to open proceedings against these banks.  In

8610-577: The name Standard Chartered Grindlays Offshore Financial Services. Leading to the incorporation of Standard Chartered (Hong Kong) on 1 July 2004, the Legislative Council of Hong Kong amended Legal Tender Notes Issue Ordinance. The amendment replaced Standard Chartered Bank with its newly incorporated subsidiary - Standard Chartered Bank (Hong Kong) Ltd - as one of the note-issuing banks in Hong Kong . The same year, Standard Chartered Bank and Astra International (an Indonesian conglomerate,

8715-462: The national competent authority of the Member State in which the bank is established. This national authority must then conduct an assessment of the deal and forward its conclusions to the ECB, which is the final decision-maker, validating (with or without conditions) or refusing the transaction (Council Regulation No 1024/2013, Art. 15). In 2020, the ECB published a document aiming to clarify

8820-485: The new supervisory mechanism was to restore confidence in financial markets. The idea was also to avoid having to bail out banks with public money in case of future economic crises. To implement this new system of supervision, the President of the European Commission in 2008, José Manuel Barroso , asked a group of experts to look at how the EU could best regulate the European banking market. This group

8925-494: The orderly resolution plan of this institution, which benefits from a State guarantee, there is no need to proceed with additional capital raising. This is the only time where a comprehensive assessment has been done for the 130 banks supervised by the ECB. Since 2014, only a few numbers of banks have been comprehensively assessed by the ECB: 13 in 2015, 4 in 2016 and 7 in 2019. These comprehensive assessments are conducted either when

9030-540: The potential of reducing the exposure of individual firms to localized shocks, studies show that they also increase systemic risks on financial markets. In the attempt to mitigate those risks, the ECB is, since 2013, responsible (as part of the Single Monitoring Mechanism), with the European Commission , for assessing the soundness of banking mergers (Council Regulation No 1024/2013, Art. 4). While

9135-409: The previous year and  after each cycle, there is an individual evaluation. Based on these assessments and simulations, supervisors write a report on the vulnerability of European banks, with a score ranging from 1 (low risk) to 4 (high risks), and list concrete measures for these banks to take. These measures can be quantitative - related to capital or liquidity, or qualitative (e.g., a change in

9240-660: The same body: the Governing Council. The Governing Council is the main decision-making entity of the ECB. It comprises the members of the Executive Board of the European Central Bank and the governors of all national central banks of the Eurozone 's member states. The Governing council is in charge, based on the opinion drafted by the Supervisory Board, of taking formal decisions with regards to its supervisory mandate. The Supervisory board

9345-523: The silent partner contributions. As member of a protection scheme for Germany's Landesbanken, BayernLB had to pay 120 million euros for the NordLB rescue deal struck in February 2019. In 2011, the bank's former chief risk officer was arrested after he received an alleged $ 50 million corrupt payment in connection with the bank's 2005 sale of a stake in Formula One motor racing. In a 2012 suit filed in

9450-622: The stock market. Fines by Indian regulators and provisions for losses cost the bank almost £350 million, at that time fully a third of its capital. In 1994, London's Sunday Times reported that an executive in the bank's metals division had bribed officials in Malaysia and the Philippines to win business. The bank, in a statement on 18 July 1994, acknowledged that there were "discrepancies in expense claims [that] ... included gifts to individuals in certain countries to facilitate business,

9555-467: The summer of 2010 and aggressively marketed, the reviews have been generally positive. In addition, it has attracted an uncommon amount of attention due to many innovative marketing strategies it used to promote its product, mostly focusing on social media. Standard Chartered Breeze organised a blogger's meet for bloggers to preview Breeze, and its Twitter campaign to give away a free iPad was extremely successful. Standard Chartered's primary engagement with

9660-403: The terms of the settlement, the bank agreed to pay a $ 340 million fine. The bank agreed to install a monitor to oversee the bank's money laundering controls for at least two years, and appoint "permanent officials who will audit the bank's internal procedures to prevent offshore money laundering". The monitor will report directly to the DFS. Lawsky's statement said "the parties have agreed that

9765-475: The terrible consequences of the Lehman Brothers ’ fall in 2008, public authorities seem committed to avoid the collapse of other systemic banks. One of the side effects of these public guarantees is to encourage moral hazard : protected by a public net, these financial institutions are incentivized to adopt riskier behaviors. As this opposition of opinions illustrates, if cross-border mergers might have

9870-529: The top bosses in the bank's long-term incentive plan (LTIP) were not demanding enough. Bill Winters, the chief executive, stands to net share awards with a face value of as much as £4.4m from the scheme, while Andy Halford, the chief financial officer, could receive £2.7m. On 6 August 2012, the New York Department of Financial Services (DFS), led by Benjamin Lawsky , accused Standard Chartered of hiding $ 250 billion in transactions involving Iran, labelling it

9975-461: The way they were assessing such transactions, with the objective of being more transparent and predictable. Even though transactions are assessed on a case-to-case basis, the supervision process of these deals follow the same three stages: In phase two, the ECB pays particular attention to the sustainability of the suggested business model (e.g., under which assumptions it has been built, what has been planned in terms of IT integration, etc.) and to

10080-679: The worst case scenario, when a bank is likely to fail, the second pillar of the European Banking Union , the Single Resolution Mechanism , enters into play. Eventually, even though the methodology and the timeframe are identical for banks, the actions to take can significantly differ among them as well as the sanctions. As banks can take considerable risks , holding capital is essential to absorb potential losses, avoid bankruptcies and secure people’s deposits . The amount of capital banks should hold

10185-546: The years, but from 1883 to 1962 was formally known as the Standard Bank of South Africa. In 1962 the bank changed its name to Standard Bank Limited, and the South African operations became a separate subsidiary that took the parent bank's previous name, Standard Bank of South Africa Ltd. Both banks acquired other smaller banks along the way and spread their networks further. In 1969, the banks decided to merge and to counterbalance their network by expanding in Europe and

10290-568: Was CSU veteran politician Karl Theodor Jacob . Later managers and Board members would also frequently be drawn from politics. The bank expanded internationally in the 1990s, gaining toeholds in East Asia, Eastern Europe and the United States. Through the 2007 acquisition of a 50.01% share in Hypo Alpe-Adria-Bank International for a sum of €1.625 billion, BayernLB expanded its geographic presence to Austria and

10395-483: Was accused of covering up the extent of losses. The bank and the losses were major factors in the September, 2008 parliamentary elections , in which the CSU had its worst election result since 1962 and Huber resigned. Later that year, BayernLB became the first German financial institution to accept assistance from the federal government's €500 billion rescue package. The state of Bavaria injected 10 billion euros in capital into

10500-478: Was announced that Standard Chartered had agreed to become the main sponsor of Liverpool Football Club for the period between July 2010 and the end of the 2013–14 football season, taking shirt sponsorship and various other branding rights. The sponsorship has been extended multiple times. First in 2013 to the end of the 2015–16 season, next in 2015 through the 2018–19 season, then again, in May 2018 that extends through

10605-596: Was created in 2006 by the bank, with educational programmes including a study tour of Shanghai, a summer internship programme and a study seminar in the United States. The program donated $ 250,000 to Chan Yik Hei, a science amateur who won the Intel International Science and Engineering Fair, for his studies at the Hong Kong University of Science and Technology. In 2015, Standard Chartered was widely criticised for its $ 12bn funding of

10710-441: Was found guilty of bribing the late Austrian politician Jörg Haider to facilitate the acquisition. In what was the first case in Germany to put management board members on trial for overpaying for an acquisition, seven former BayernLB executives went on trial over claims they overpaid by €550 million when they purchased the majority stake of Hypo Alpe-Adria-Bank. In June 2023, a German advisory panel on Nazi-looted art recommended

10815-509: Was heterogeneously done at a national level. This evaluation is based on the monitoring of four different areas: In addition, each year, the European Central Bank is, under European Union law , obliged to perform at least one stress test on all supervised banks. This test will be part of the annual SREP cycle. Stress tests are computer-simulated techniques which evaluate the capacity of banks to cope with potential financial and economic shocks . Annual SREP cycles are based on data from

10920-637: Was led by Jacques de Larosière , a French senior officer who held, until 1978, the position of Director General of the Treasury ;in France. He was also President of the International Monetary Fund from 1978 to 1987, President of the “ Banque de France ” from 1987 to 1993 and President of the European Bank for Reconstruction and Development from 1993. On a more controversial stance, Jacques de Larosière has also been

11025-549: Was not enough and that the EU needed a single supervisory authority. The European Commission therefore suggested the creation of the Single Supervisory Mechanism. This proposal was debated at the Eurozone summit that took place in  Brussels on 28 and 29 June 2012. Herman Van Rompuy , who was president of the European Council at the time, had worked upstream with the president of

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