Regulators in Germany will meet next Monday with representatives of more than 20 foreign banks, including Morgan Stanley, Goldman Sachs and Citigroup, to present requirements in relation to the possible relocation of operations from London to Frankfurt after Brexit, Reuters said on Wednesday a number of sources close to the dossier.
Reportedly, BaFin's supervisory authority in the financial Germany, decided to organize this meeting, the first of its kind organized in Germany to respond to requests detailed banks concerned to move its operations from London while the Sea Britain is preparing to initiate talks for divorce from the EU.
'BaFin wants to provide participants with an overview about the main issues for those who want to move their businesses in Germany, "said one of the sources. Reportedly, BaFin will emphasize very clearly that it will not accept operations such 'mailbox' and that banks will have to introduce significant risk management procedures and Frankfurt also have a number of top executives.
Other sources said that the meeting will be attended by officials from the German Central Bank (Bundesbank) and the European Central Bank. The sources added that the German Finance Minister, Wolfgang Schaeuble, Frankfurt supports efforts to attract some of bankers who now works in London.
Prime Minister Theresa May said last week that Britain will leave the single market, a move that will isolate the City of London for her customers. In these circumstances Frankfurt looks set to be one of the main winners of a possible exodus of bankers from London. But cities like Dublin announces Sand Pari serious competitors and some American banks could transfer some posts from New York to London.
Germany's economic strength and that Frankfurt already hosts the headquarters of the ECB is attractive elements for banks. But the financial capital of Germany has some disadvantages in attracting foreign bankers. There is a shortage of housing for newcomers and those seats to the 13 international schools in the region are occupied.
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When we want to save no strict recommendations regarding the time and money we want to put money aside. The choice of each person is influenced by the purpose for which saves yields offered by banks on deposits in the currency gets its income and exchange rate developments.
If you wish to purchase products whose price is denominated in other currency than euro, then it is recommended savings in the national currency. The situation changes if we are interested in purchasing some goods priced in euros, such as a car or a house, a deposit is recommended in the euro.
Depending on what criteria it is recommended to choose deposit?
No doubt that when someone wants a deposit look at the interest that both will receive product features and savings (term deposit, withdrawal fees, penalties for eventual liquidation ahead of schedule etc.).
In this regard, the client should take into account the period in which it saves. If he estimates some unexpected expenses, then it is advisable to save the short term. Otherwise, if the client closes deposit ahead of schedule, according to the bank will charge interest only for the current account and will be charged a cash withdrawal fee before maturity.
Ideally, savings instruments should be more diversified, both in terms of deadlines, and in terms of currencies in which it saves. This mix will enable customers to face all contingencies.
Costs for deposit
Usually, banks do not apply cash withdrawal fees for liquidating the deposit at maturity, but there are situations that do not prove the rule. Instead, cash withdrawals before maturity may be fees. In case of liquidation before maturity, the interest due for the entire period is calculated by applying the current account interest rate.
In addition, do not forget that savers receive a net interest calculated after tax of 16% is paid by the state. Also, banks may charge a management fee for current account behind the warehouse, which can amount to a few dollars per month.
However, customers who receive their salary in a bank account and want to save and benefit from free current account management and zero commission on cash withdrawals no matter when the stored liquid.
Deposit benefits
First it has mentioned the coverage provided by the Guarantee Fund of Deposits of up to 100,000 euros. Secondly, deposits have a level higher interest than savings account type instruments, interest which most often is fixed throughout the term of the deposit, regardless of market developments. Also concerning the additional benefits fall wide variety of deadlines and payment of interest.
These benefits can add zero cash withdrawal fee at maturity for deposits matured automatic extension of the deposit at maturity with interest capitalization or pay its current account and establishment or extension of term deposits through internet banking.
Issues to be considered so that the final amount of the deposit is not less than the initial
For the final sum to be greater than the initial customers must comply with due date and eventually to withdraw money at maturity.
However, there may be some exceptions in this direction, and some banks to fee cash withdrawals of deposits on maturity. Currently, in most of the banks, cash withdrawal fee is zero when the deposit reaches maturity.
Furthermore, they must ensure, where were deposited in a bank that does not receive salary or other income, as net interest on the amount you deposited is higher than the current account management fee.
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In case you want to deposit a certain sum of money, you can appeal to a current account, a term deposit or a savings account.
Current account, called demand deposit, is one of the most used accounts availability. Interest rates on current accounts are small, usually zero.
Savings are the best known and used savings products that allow individuals to obtain attractive interest rates for amounts invested. Most commercial banks' deposits both in lei and the euro and other currencies for maturities from one month to one year and even more.
Interest on deposits is directly dependent on the chosen term. As the period is extended, the interest rate is higher.
Term deposits benefits, usually to guarantee the Deposit Guarantee Fund in the Banking System.
Deposit interest is calculated daily, but paid in advance, monthly, quarterly, annually or on expiry of storage. Deposits with capitalization, the interest rate is calculated every month not only to the deposit amount, but also the already accrued interest.
How term deposits work?
Term deposits are classified as follows:
a) depending on the method of payment of interest:
- Deposits with capitalization: periodic interest is added to your initial deposit.
- Term deposits without capitalization: monthly interest constitutes a current account holder provide them access to it; if the client withdraws the deposit before maturity of the deposit, the interest rate applied will be lower (interest on current accounts).
b) depending on the option to renew the deposit on the same term as the original:
- If you opt for automatic renewal at the end of the deposit, the deposit extends automatically. In addition, if the deposit has the option of capitalization of interest, the interest is added to your initial deposit. For the next period, the interest rate will apply to the original amount plus interest rate obtained on the previous period.
- If you do not want automatic renewal, the deposit will be due only, ie maturity deposit amount will be transferred into the current account (which will calculate the interest on demand) or the amount will remain in the same account, but without interest.
c) depending on interest:
- Term deposits with variable interest: the bank can change the interest rate on the deposit period, depending on market developments.
- Term deposits with fixed interest: the bank provides a fixed interest rate on the deposit period regardless of market developments.
Accumulation account (or savings) is a repository that provides permanent access to money from the account, deposits and withdrawals frequently repeated without being affected interest.
If a term deposit if you withdraw money before maturity, you will be penalties and you lose the accrued interest, as it is stipulated in the contract.
In general, interest rates for term deposits interest rates are higher than for the accumulation accounts.
The phone number can replace IBAN from next year. European Central Bank (ECB) announced that 2018 wants to launch a system that will link the bank account number of phone users, so that people can pay just by entering the phone number of the recipient.
For the business world, could be a new impetus towards disintermediation since people can make payments and transfers without resorting to the services of connection, for example Paypal.
However, the payments made by telephone are neither we nor revolutionary - even built a similar service PayPal and Square are close to the Americans to come up with their own version in Europe.
But the great concern of central bankers from the ECB is that agglomeration of these services will fracture payment market in the EU and in the end instead that all countries have a single standard would reach more incompatible systems, although perhaps it would have been the best way to preserve competition between them.
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The three biggest US banks on Friday announced big profits for 2016, spurred by the boom in financial markets after the surprise victory of Donald Trump on November 8.
JPMorgan Chase, the country's largest bank, posted a record profit of $ 27.73 billion, including $ 6.73 billion in the fourth quarter.
Bank of America earned $ 16.2 billion, including $ 4.34 billion in the last three months of the year (+ 46.8%).
US economy is booming since the US presidential election
"The US economy is gaining momentum," said Jamie Dimon, CEO of JPMorgan, adding that the future presents opportunities to put in place measures to stimulate growth and create jobs.
The banking sector has been booming since the US presidential election, on hopes of easing financial regulation, which would augur a golden age for speculation, heavily framed by the outgoing administration via the Dodd-Frank law.
This optimism resulted in a surge in revenues generated by the brokerage of treasury bills and other bonds, commodities and currencies (FICC), whose turnover jumped 31% at JPMorgan and 11% At Bank of America.
"Since the US election, we've seen an increase in investor confidence," said Marianne Lake, JPMorgan's chief financial officer.
Donald Trump, who will take power on Jan. 20, has promised to dismantle the Dodd-Frank law, lower taxes altogether and have appointed Wall Street figures to key positions in the US economy including Steven Mnuchin, "Goldman Boy" to head the Treasury.
The KBW, index stock market banking on Wall Street, has gained 23% since November 8.
"It is still too early to determine the impact that the change of administration in Washington will have on the regulatory environment," Paul Donofrio, chief financial officer of Bank of America, With journalists.
The US financial sector also received a boost from the central bank (Fed), which raised its key interest rate in December and suggested additional movements this year.
High interest rates are positive for banks because they can pass on to consumers by increasing the cost of their products (consumer loans and real estate loans, bank card and deposit fees ... ).
"If the recent rate hike came too late to boost fourth-quarter results, we expect higher earnings growth in the first quarter of 2017," said Donofrio.
In the meantime, profit margins have begun to improve, in this case the net interest margin - the net differential between the borrowing rate and the investment rate of the money.
It increased to 2.87% in the fourth quarter against 2.82% three months earlier at the California bank Wells Fargo, which provides one in five mortgage lending in the United States.
These results show that "the future is bright" for banks, say analysts Evercore.
Banking scandals
The page of the scandals is far from being turned as evidenced by the 4.2% decline to $ 21.94 billion of Wells Fargo 's 2016 profits, mainly due to the fines and costs of the measures taken to settle the " Fictitious accounts created in the name, but without the knowledge of its clients.
The institution, whose largest shareholder is the billionaire Warren Buffett, opened two million fictitious accounts between 2011 and 2016 that allowed its employees to earn premiums related to the sale of products to customers.
The scandal that broke out in September highlighted the disrespectful practice of cross-selling, which means that if a customer has a current account, he has to open a savings account, a mortgage, a car loan, Insurance, investment products, etc.
The Department of Justice (DoJ) and the stock exchange gendarme, the SEC, each opened an investigation.
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Banks are finding it increasingly difficult to realize when rigged because not differentiate between a legitimate and fraudulent transaction, it said in a study of Kaspersky Lab. However, according to experts at Bitdefender, in Romania, the most vulnerable point in the bank's ATM and this is because many banks still use them and XP operating systems. It does not receive support from Microsoft for several years.
Over a third (38%) of organizations say it is increasingly more difficult to realize if a transaction is fraudulent or genuine. As companies are increasingly present in digital environments, ensuring business continuity and protect them from cyber threats will become crucial. The level of online fraud increases with the number of online transactions, 50% of financial services organizations surveyed believing that online financial fraud is increasing. Therefore, financial institutions should make every effort to protect themselves and their customers by cybercriminals.
Banks do not face risks
The study showed that 41% of companies have implemented cyber security solution in-house, and 45% is based on a solution from their bank to cope with risks. Meanwhile, 46% of companies have implemented or only partially a solution against financial fraud or have not implemented anything. Among financial organizations, only 57% have a security solution specialized anti-fraud.
Banks do not tell customers they have lost their money
In the United States there is a law that says if you work with personal data of clients and suffer a security breach are obliged within 48 hours to report the NSA and clients. We do not have such a law. And in our security systems are vulnerable even banks.
ATMs are the most vulnerable point between the bank and the user. There is a case where they managed to plant a virus in a bank and went to an ATM using cards, drew a limit on the card and no malware in bank ATM transaction record. They could draw the same amount of money in unlimited restrageri up emptying the ATM.
The problem of cloned cards
In our country there are many cases of cloned cards, because there are well-developed network of criminals who have cards from the United States. We do not have instead of cyber crime cases, directly into the system, and if we do not report the banks anyway. There were two banks that have suffered from us.
Either way, though banks take their measures can not only increase the costs of trying to rob them and where this money because there will be fraud attempts.
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