Keywords:

“The EBA stress test is hypocrisy.”
Sergio Ermotti, CEO of UBS, reportedly speaking on the premise that government bonds can be zero risk-weighted, even if investors have to take a haircut on them.



The following are notes from our Monday morning meeting.


Italy’s Intesa Sanpaolo named as CEO Enrico Cucchiani, head of Europe at Allianz, to replace former chief Corrado Passera, now economic development minister in Italy’s new government.

Brazilian banking group Safra bought Rabobank’s 46% stake in Bank Sarasin for $1.13b; Julius Baer was also bidding for the Swiss bank.

Union Bank for Africa launched its mobile banking app, Nigeria’s first, in a bid to capture the country's 55 million unbanked.

Dubai Bank and Emirates Islamic Bank, both owned by Emirates NBD, will integrate their retail operations.

The Tokyo Stock Exchange will merge with the derivatives-focussed Osaka Securities Exchange. Read our commentary on the development here.

China Construction Bank is in talks to buy an FI in Brazil; Bank of China is currently the only Chinese lender in the market, although China Development Bank also wants to set up there.

Taiwan’s FSC will set a timetable to allow Chinese banks to buy up to 10% of local lenders.

The State Bank of Vietnam announced a plan to promote mergers and shut down weak banks so that the country has 15 large lenders making up 80% of the financial services industry by 2015.

The World Bank has estimated that floods in Thailand will cost $45b and reduce economic growth to only 2.4%; local agencies estimate the economy will contract 3.7% in 3Q.

The Reserve Bank of India allowed the central bank of Iran to open rupee accounts with UCO Bank and IDBI Bank to facilitate payments for oil imports from Iran.

Westpac reshuffled its management, bringing in former RBS group retail head Brian Hartzer to head all Australian businesses, and likely succeed Gail Kelly as the bank’s CEO within two years.