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The European Central Bank is preparing to issue its first-ever fines on several banks for failing to adequately address the impacts of climate change. As reported by Bloomberg, citing anonymous sources, up to four banks will face penalties for not meeting ECB deadlines to assess their exposure to climate risks.
The fines, which can accumulate daily and reach up to 5 per cent of a bank’s daily average revenue, are intended to pressure banks into compliance. However, Bloomberg’s sources said the exact amounts of the fines are not yet finalised and may be largely symbolic.
The move comes after years of ECB warnings that banks are not adequately preparing for the financial fallout from extreme weather events or the risk of clients with significant carbon footprints going out of business. The ECB previously disclosed in March that it had threatened 18 banks with penalties.
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The UK’s competition regulator announced on Friday that it has launched an investigation into Nationwide Building Society’s proposed £2.9bn acquisition of Virgin Money.
The Competition and Markets Authority is examining whether the acquisition could lead to a “substantial lessening of competition” within the UK. A notice has been sent to both parties, with a 40-day deadline set for the CMA’s “phase 1” decision. The CMA has also invited comments from interested parties, with a deadline of June 14.
The deal, which is expected to close in the fourth quarter of this year, aims to create the country’s second-largest savings and mortgage provider, following Lloyds Banking Group.
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BBVA has scheduled a shareholder meeting on July 5 to vote on a proposed capital raise connected to its $12bn hostile takeover bid for Banco de Sabadell.
The Spanish bank announced on Friday its plan to issue up to 1.13bn new shares to support the takeover offer. Based on Thursday’s closing price, these shares are valued at €11.23bn. The newly issued shares will be distributed to Sabadell shareholders who accept the offer, with the final amount contingent on the level of acceptance, BBVA stated.
Its initial all-share bid was rejected by Sabadell’s board earlier this month, leading BBVA to directly approach Sabadell’s shareholders.
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The UK government has sold nearly 4mn shares in NatWest Group, raising £1.24bn. The sale involved Natwest buying back 392.4mn shares from the government at 316.2 pence each, as part of its existing contract with the state. The transaction reduces the government’s ownership in NatWest to 22.50 per cent, down from 25.98 per cent.
The government's stake in NatWest stems from the 2008 bailout of the Royal Bank of Scotland, which acquired NatWest in 2000 and rebranded as NatWest Group in 2020. At the height of the bailout, the government invested £45.5bn of UK taxpayer money and held 84 per cent of the bank.
UK chancellor Jeremy Hunt had intended to launch a retail sale to further reduce the government’s stake this summer, as announced in his Spring Budget. However, the sale is likely to be postponed due to the upcoming UK elections scheduled for July 4.
