Economy

Commerzbank secures German crypto custody bank license

Published

1 year ago

November 19, 2023

Commerzbank secures German crypto custody bank license

FRANKFURT – Commerzbank (ETR:) has obtained regulatory approval to operate as Germany’s first full-service bank offering cryptocurrency custody services. The bank announced today its licensing under the German Banking Act, marking a significant step in integrating digital assets into traditional banking services.

The license allows Commerzbank to expand its financial offerings, providing institutional clients with a secure platform for managing digital assets. This new service aligns with the bank’s strategy to adopt cutting-edge technology and meet the evolving needs of its customers in the realm of digital finance.

Dr. Jörg Oliveri del Castillo-Schulz, COO of Commerzbank, highlighted the importance of this milestone on Wednesday, stating that the initiative reinforces the bank’s commitment to technological innovation within the financial sector. The bank aims to build a blockchain-based system tailored for institutional clients, addressing the growing demand for sophisticated digital asset management solutions.

Regulatory authorities are keeping a close watch on these developments to ensure consumer protection and compliance with stringent oversight measures. Andrea Enria, a key regulatory figure, has emphasized the necessity for crypto ventures like Commerzbank to adhere to strict regulations.

Looking ahead, broader regulatory frameworks such as the Markets in Crypto-Assets (MiCA) regulation are garnering support from European officials, including the French Finance Minister. MiCA mandates licensing for crypto firms and requires asset disclosures, alongside setting transaction limits for stablecoins. Additionally, the European Banking Authority (EBA) is drafting guidelines for periodic liquidity stress tests for these firms.

Commerzbank’s licensure represents a significant advancement for the integration of cryptocurrencies within institutional banking in Germany and sets a precedent for other banks considering similar ventures in digital asset services.

InvestingPro Insights

With Commerzbank’s recent approval to operate as Germany’s first full-service bank offering cryptocurrency custody services, it’s essential to consider the bank’s financial performance and outlook.

InvestingPro Tips highlight that Commerzbank has consistently increased its earnings per share and that three analysts have revised their earnings upwards for the upcoming period. These are promising signs for investors, indicating a positive sentiment towards the bank’s financial performance.

InvestingPro’s real-time data provides further insights. As of Q3 2023, Commerzbank had a market cap of $15,128.71M and a P/E ratio of 6.01, indicating a low earnings multiple, which suggests the stock could be undervalued. The bank also achieved a revenue growth of 18.55% over the last twelve months as of Q3 2023, illustrating strong financial performance.

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In conclusion, Commerzbank’s new venture into cryptocurrency services, combined with its promising financial performance and positive analyst sentiment, make it a company to watch in the evolving digital finance landscape.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Economy

Russian central bank says it needs months to make sure CPI falling before rate cuts -RBC

Published

12 months ago

December 26, 2023

Russian central bank says it needs months to make sure CPI falling before rate cuts -RBC

MOSCOW (Reuters) – Russia’s central bank will need two to three months to make sure that inflation is steadily declining before taking any decision on interest rate cuts, the bank’s governor Elvira Nabiullina told RBC media on Sunday.

The central bank raised its key interest rate by 100 basis points to 16% earlier in December, hiking for the fifth consecutive meeting in response to stubborn inflation, and suggested that its tightening cycle was nearly over.

Nabiullina said it was not yet clear when exactly the regulator would start cutting rates, however.

“We really need to make sure that inflation is steadily decreasing, that these are not one-off factors that can affect the rate of price growth in a particular month,” she said.

Nabiullina said the bank was taking into account a wide range of indicators but primarily those that “characterize the stability of inflation”.

“This will take two or three months or more – it depends on how much the wide range of indicators that characterize sustainable inflation declines,” she said.

The bank will next convene to set its benchmark rate on Feb. 16.

The governor also said the bank should have started monetary policy tightening earlier than in July, when it embarked on the rate-hiking cycle.

Economy

China identifies second set of projects in $140 billion spending plan

Published

12 months ago

December 25, 2023

China identifies second set of projects in $140 billion spending plan

© Reuters. FILE PHOTO: Workers walk past an under-construction area with completed office towers in the background, in Shenzhen’s Qianhai new district, Guangdong province, China August 25, 2023. REUTERS/David Kirton/File Photo

SHANGHAI (Reuters) – China’s top planning body said on Saturday it had identified a second batch of public investment projects, including flood control and disaster relief programmes, under a bond issuance and investment plan announced in October to boost the economy.

With the latest tranche, China has now earmarked more than 800 billion yuan of its 1 trillion yuan ($140 billion) in additional government bond issuance in the fourth quarter, as it focuses on fiscal steps to shore up the flagging economy.

The National Development and Reform Commission (NDRC) said in a statement on Saturday it had identified 9,600 projects with planned investment of more than 560 billion yuan.

China’s economy, the world’s second largest, is struggling to regain its footing post-COVID-19 as policymakers grapple with tepid consumer demand, weak exports, falling foreign investment and a deepening real estate crisis.

The 1 trillion yuan in additional bond issuance will widen China’s 2023 budget deficit ratio to around 3.8 percent from 3 percent, the state-run Xinhua news agency has said.

“Construction of the projects will improve China’s flood control system, emergency response mechanism and disaster relief capabilities, and better protect people’s lives and property, so it is very significant,” the NDRC said.

The agency said it will coordinate with other government bodies to make sure that funds are allocated speedily for investment and that high standards of quality are maintained in project construction.

($1 = 7.1315 renminbi)

Economy

Russian central bank says it needs months to make sure CPI falling before rate cuts -RBC

Published

12 months ago

December 25, 2023

Nabiullina said it was not yet clear when exactly the regulator would start cutting rates, however.

“We really need to make sure that inflation is steadily decreasing, that these are not one-off factors that can affect the rate of price growth in a particular month,” she said.

Nabiullina said the bank was taking into account a wide range of indicators but primarily those that “characterize the stability of inflation”.

“This will take two or three months or more – it depends on how much the wide range of indicators that characterize sustainable inflation declines,” she said.

The bank will next convene to set its benchmark rate on Feb. 16.

The governor also said the bank should have started monetary policy tightening earlier than in July, when it embarked on the rate-hiking cycle.