Central bank

Turkiye Garanti Bankasi A.S.: Announcement Regarding the Operating Permit from the Central Bank of the Republic of Türkiye for Garanti Ödeme ve Elektronik Para Hizmetleri Anonim Şirketi , a subsidiary

Retrieved on: 
Friday, February 16, 2024

Central Bank of the Republic of Türkiye , as per its decision published in the Official Gazette dated 15.02.2024, has granted Garanti Ödeme ve Elektronik Para Hizmetleri Anonim Şirketi,

Key Points: 
  • Central Bank of the Republic of Türkiye , as per its decision published in the Official Gazette dated 15.02.2024, has granted Garanti Ödeme ve Elektronik Para Hizmetleri Anonim Şirketi,
    a subsidiary of our bank, with a permit to operate as a payment and electronic money institution to provide the payment services specified in subparagraphs (a), (b), (c), and (e) of the first paragraph of Article 12, as well as the electronic money issuance service specified in the second paragraph of Article 18 of Law on Payment and Securities Settlement Systems, Payment Services, and Electronic Money Institutions No.
  • 6493.
  • *In contradiction between the Turkish and English versions of this public disclosure, the Turkish version shall prevail.
  • Contact Garanti BBVA Investor Relations:

Verofax facilitates Egyptian EU Export with CBAM Compliance and Lifecycle Assessment Solutions

Retrieved on: 
Thursday, February 15, 2024

The Egyptian Businessmen's Association (EBA) convened to discuss the importance of technology in keeping exporters compliant with the requirementsof the EU.

Key Points: 
  • The Egyptian Businessmen's Association (EBA) convened to discuss the importance of technology in keeping exporters compliant with the requirementsof the EU.
  • Wassim Merheby of Verofax explains the opportunity for Egyptian exporters to achieve greater profits and seize greater market share in the EU.
  • The discussion emphasized the imperative for Egyptian exports to adhere to green economy principles outlined in the CBAM law.
  • source: Symposium on Carbon Tax - Egyptian Businessmen's Association discusses the importance of technology in factory compatibility with EU export requirements; Elmahrousa News, February 9th, 2024.

Commerzbank increases net profit for 2023 to €2.2 billion – Strategy is delivering

Retrieved on: 
Thursday, February 15, 2024

On this basis, we will achieve a further increase in net profit for the current year”, said CEO Manfred Knof.

Key Points: 
  • On this basis, we will achieve a further increase in net profit for the current year”, said CEO Manfred Knof.
  • Net interest income rose by a third to €8.368 billion (2022: €6.459 billion), while net commission income was slightly down at €3.386 billion (2022: €3.519 billion).
  • Net profit also rose accordingly: compared to the previous year, net profit after taxes and minority interests increased by 55% to €2.224 billion (2022: €1.435 billion).
  • Revenues amounted to €1.106 billion (Q3 2023: €1.171 billion); the operating result totalled €508 million (Q3 2023: €644 million).

EQS-News: Commerzbank increases net profit for 2023 to €2.2 billion – Strategy is delivering

Retrieved on: 
Thursday, February 15, 2024

On this basis, we will achieve a further increase in net profit for the current year”, said CEO Manfred Knof.

Key Points: 
  • On this basis, we will achieve a further increase in net profit for the current year”, said CEO Manfred Knof.
  • Net interest income rose by a third to €8.368 billion (2022: €6.459 billion), while net commission income was slightly down at €3.386 billion (2022: €3.519 billion).
  • Net profit also rose accordingly: compared to the previous year, net profit after taxes and minority interests increased by 55% to €2.224 billion (2022: €1.435 billion).
  • Revenues amounted to €1.106 billion (Q3 2023: €1.171 billion); the operating result totalled €508 million (Q3 2023: €644 million).

Verofax, Bridging exports to EU with compliance solutions for Egyptian exporters

Retrieved on: 
Thursday, February 15, 2024

Discussions at the symposium centered on the requirements outlined in the Carbon Border Adjustment Mechanism (CBAM) law, emphasizing the urgent need for Egyptian exports to align with green economy principles.

Key Points: 
  • Discussions at the symposium centered on the requirements outlined in the Carbon Border Adjustment Mechanism (CBAM) law, emphasizing the urgent need for Egyptian exports to align with green economy principles.
  • He urged Egyptian factories to swiftly adapt to the new international legislation to avoid export bans and 35% hefty tariffs.
  • The symposium also shed light on the importance of automating compliance processes for exporting factories to meet carbon footprint standards efficiently, giving Egyptian exporters the confidence to deliver high-quality and validated data ensuring long-term partnerships with the EU.
  • Its size is 268 million euros, and a period of allowance of one to two years, and repayment over 5 years.

Verofax, Briding exports to EU with compliance solutions for Egyptian exporters

Retrieved on: 
Wednesday, February 14, 2024

Discussions at the symposium centered on the requirements outlined in the Carbon Border Adjustment Mechanism (CBAM) law, emphasizing the urgent need for Egyptian exports to align with green economy principles.

Key Points: 
  • Discussions at the symposium centered on the requirements outlined in the Carbon Border Adjustment Mechanism (CBAM) law, emphasizing the urgent need for Egyptian exports to align with green economy principles.
  • He urged Egyptian factories to swiftly adapt to the new international legislation to avoid export bans and 35% hefty tariffs.
  • The symposium also shed light on the importance of automating compliance processes for exporting factories to meet carbon footprint standards efficiently, giving Egyptian exporters the confidence to deliver high-quality and validated data ensuring long-term partnerships with the EU.
  • Its size is 268 million euros, and a period of allowance of one to two years, and repayment over 5 years.

Piero Cipollone: Preserving people’s freedom to use a public means of payment: insights into the digital euro preparation phase

Retrieved on: 
Thursday, February 15, 2024

Our approach relies on a term structure model of traded headline inflation-linked swap rates, which we assume span core inflation.

Key Points: 
  • Our approach relies on a term structure model of traded headline inflation-linked swap rates, which we assume span core inflation.
  • The model provides estimates of market-based expectations for core inflation, as well as core inflation risk premia, at daily frequency, whereas core inflation expectations from surveys or macroeconomic projections are typically only available monthly or quarterly.

Measuring market-based core inflation expectations

Retrieved on: 
Thursday, February 15, 2024

Abstract

Key Points: 
    • Abstract
      We build a novel term structure model for pricing synthetic euro area core inflation-linked
      swaps, a hypothetical swap contract indexed to core inflation.
    • The model provides estimates of market-based expectations for core inflation, as
      well as core inflation risk premia, at daily frequency, whereas core inflation expectations from
      surveys or macroeconomic projections are typically only available monthly or quarterly.
    • We
      find that core inflation-linked swap rates are generally less volatile than headline inflationlinked swap rates and that market participants expected core inflation to be substantially
      more persistent than headline inflation following the 2022 energy price spike.
    • In this paper, we aim to infer market-based core inflation expectations, which are otherwise
      not directly observable because no financial asset directly tied to core inflation exists.
    • We deem this second assumption reasonable because HICP inflation itself is a linear combination
      of core as well as energy and food inflation.
    • The level of 2 percent and relatively low volatility of
      long-term inflation expectations suggests that inflation expectations are firmly anchored at the
      ECB?s 2 percent inflation target.
    • This assumption appears reasonably uncontroversial,
      as core inflation is a sub-component of headline inflation, which the observable headline ILS
      rates are tied to.
    • Our estimates of core ILS rates reflect both market participants? genuine core
      inflation expectations and a core inflation risk premium, but our model explicitly allows for
      this decomposition.
    • The model-implied estimates of core ILS rates appear reasonable along several dimensions:
      (i) like realized core inflation is less volatile than headline inflation, the core ILS rates are less
      volatile than headline ILS rates, (ii) core ILS rates comove less with oil prices than headline
      ILS rates, (iii) the core inflation expectations, as reflected in core ILS rates, typically evolve
      similarly as the core inflation projections by Eurosystem staff, and (iv) consistent with market
      commentary at the time, core ILS rates suggest that market participants expected core inflation
      to be substantially more persistent than headline inflation following the 2022 energy price spike.
    • To the best of our knowledge, we are the first to price core ILS rates and decompose them into
      market-based expectations for and risks around the core inflation outlook.
    • Our approach to inferring core ILS
      rates from headline ILS rates, realized headline and core inflation as well as survey expectations
      for headline and core inflation is also related to Ang et al.
    • Relative
      to their study, we separately measure core inflation expectations and risk premia, we provide
      core inflation expectations at a higher-frequency, and we provide evidence on the causal effects

      ECB Working Paper Series No 2908

      6

      of monetary policy shocks on core inflation expectations and risk premia.

    • Specifically, we decompose the synthetic core ILS rates
      into average expected core inflation over the lifetime of the swap contract and a core inflation
      risk premium that compensates investors for core inflation risk.
    • In
      our model below, this term is constant over time and relatively small, so we will simply refer
      to the core inflation risk premium as the difference between the core ILS rate and the average
      expected core inflation over the lifetime of the swap contract.
    • 3.2

      Core ILS rates

      To have a joint model for headline and core ILS rates, we need one further assumption on the
      dynamics of realized core inflation.

    • The assumption that core inflation is driven by the same set of factors as headline inflation
      should be relatively uncontroversial: since headline inflation is a weighted average of core and
      food and energy inflation, it should reflect any factors driving core inflation.
    • If there are factors
      driving food and energy inflation, which do not show up in core inflation, then those factors
      should still show up in headline inflation.
    • In step two, to be able to infer the factor
      loadings of core inflation, we would regress realized core inflation onto the estimated latent
      factors to identify the additional parameters in equation (12).
    • Before the fourth
      quarter of 2016, the SPF did not ask respondents for their core inflation expectations, so we
      are not able to use survey-based information about core inflation before then.
    • Before
      2016, the fitted core inflation series is somewhat above the realized one, potentially reflecting
      that the model has limited information about core inflation over this early period due to the
      lack of information about core inflation from surveys.
    • This could have been the
      case if one of the factors moved core inflation and energy and food inflation in exactly offsetting
      direction, so the overall impact on headline inflation was exactly zero.
    • During 2021, for example, there were

      ECB Working Paper Series No 2908

      25

      Figure 7: Decomposition of synthetic core ILS rates
      2y core ILS

      5y core ILS

      5
      4

      5
      ILS

      premia

      exp

      4

      ILS

      premia

      exp

      3

      3

      2

      2

      1

      1

      0

      0

      -1

      -1

      -2
      2017 2018 2019 2020 2021 2022 2023

      -2
      2017 2018 2019 2020 2021 2022 2023

      10y core ILS

      5y5y core ILS

      5
      4

      5
      ILS

      premia

      exp

      4

      ILS

      premia

      exp

      3

      3

      2

      2

      1

      1

      0

      0

      -1

      -1

      -2
      2017 2018 2019 2020 2021 2022 2023

      -2
      2017 2018 2019 2020 2021 2022 2023

      Note: Synthetic core ILS rates decomposed into genuine core inflation expectations and core inflation risk
      premia.

    • ECB Working Paper Series No 2908

      26

      Figure 8: Decomposition of ILS rates
      2y ILS

      5y ILS

      5
      4

      5
      ILS

      premia

      exp

      4

      3

      3

      2

      2

      1

      1

      0

      0

      -1

      -1

      -2
      2006

      2010

      2014

      2018

      2022

      -2
      2006

      ILS

      2010

      10y ILS

      2018

      2022

      5
      ILS

      premia

      exp

      4

      3

      3

      2

      2

      1

      1

      0

      0

      -1

      -1

      -2
      2006

      2014

      exp

      5y5y ILS

      5
      4

      premia

      2010

      2014

      2018

      2022

      -2
      2006

      ILS

      2010

      premia

      2014

      2018

      exp

      2022

      Note: ILS rates decomposed into genuine core inflation expectations and core inflation risk premia.

    • We find that the headline inflation risk premium
      indeed does responds more strongly than the core inflation risk premium.
    • The key
      assumption underlying our approach is that traded headline ILS rates span core inflation, which

      ECB Working Paper Series No 2908

      35

      should be reasonably uncontroversial as core inflation is a sub-component of headline inflation.

    • We fit the model to euro area headline ILS rates, realized headline and core inflation, and
      both headline and core inflation expectations reported in the SPF.
    • Decomposing our core ILS rates into genuine core inflation expectations and core
      inflation risk premia shows that shorter maturities mainly reflect core inflation expectations,
      while the core inflation risk premium matters relatively more for longer maturities.
    • Our results suggest that a monetary policy tightening surprise significantly lowers
      near-term core inflation expectations, although less so than it lowers headline inflation expectations.