Today’s need-to-know storiesECB eases rules on bank credit risk model changes
The European Central Bank has said it would streamline approvals for changes to banks’ internal credit risk models, easing a supervisory regime that has often delayed the capital relief banks can obtain from using updated models and required extensive on-site inspections.
Under new rules effective from October 1, banks will be allowed to implement material changes to their internal models shortly after submitting their application, and fewer of these changes will trigger an on-site review.
The ECB said this would make approvals faster and more predictable, while removing the need to run old and new models in parallel.
Banks using revised models that lower risk weights will receive early approval, although any capital relief will be capped by a floor until supervisors complete a targeted on site assessment.
The ECB said it would retain the standard approval process for more sensitive cases.
“Material model changes will no longer automatically trigger an on site investigation,” the central bank said, adding reviews would focus “primarily where higher risks warrant closer scrutiny”.
The ECB conducted 74 model investigations in 2025, most linked to such requests.
Bomb plot targets BofA Paris amid suspected Iran links
French anti-terrorism prosecutors have opened an investigation into a suspected attack on Bank of America’s Paris headquarters after police arrested three people over the weekend in connection with a plot to detonate an improvised explosive device outside the premises.
An initial suspect was detained at the scene after placing a device containing five litres of liquid, believed to be fuel, along with an ignition system near the bank, a police source told Agence France-Presse.
A spokesperson for BofA told AFP they were “aware of the situation” and “communicating with the authorities”.
On Sunday, French security services said two additional individuals had been arrested in connection with the incident, which occurred at around 03:30 local time on Saturday.
Interior minister Laurent Nunez said the attempted attack could be linked to the US-Israel war on Iran, adding there was “a significant suspicion” of involvement by proxy actors, although he stressed the investigation would determine any connection.
“In this type of conflict, you have a number of Iranian services that are likely to carry out actions such as these through proxies,” he said.
Bank of America to pay $72.5mn to settle Epstein victim lawsuit
Bank of America has agreed to pay $72.5mn to settle a civil lawsuit brought by women who accused the lender of enabling sexual abuse by Jeffrey Epstein, according to a New York federal court filing on Friday evening.
The proposed class action alleged the US bank ignored suspicious transactions linked to Epstein despite a “plethora” of information about his activities, prioritising profit over safeguarding victims.
The settlement, which requires approval from a Manhattan federal judge, follows an earlier “settlement in principle” disclosed this month.
The settlement would pay “all women who were sexually abused or trafficked by Jeffrey Epstein, or by any person who is connected to or otherwise associated with Jeffrey Epstein or any Jeffrey Epstein sex-trafficking venture, between June 30, 2008 and July 6, 2019, inclusive”, according to the filing.
Lawyers in the case are “aware that there are at least 60 women who were victimised by Epstein between” those dates, it added.
“While we stand by our prior statements made in the filings in this case, including that Bank of America did not facilitate sex trafficking crimes, this resolution allows us to put this matter behind us and provides further closure for the plaintiffs,” a BofA spokesperson said in a statement.
The settlement follows similar agreements by other major banks. JPMorgan agreed in June 2023 to pay $290mn to Epstein’s victims, while Deutsche Bank reached a $75mn settlement a month earlier.
Raiffeisen to buy Garanti BBVA’s Romanian unit for €591mn
Austria’s Raiffeisen Bank has agreed to purchase Garanti BBVA’s Romanian business for €591mn, in its first major acquisition in several years.
The lender said the deal would make it the third largest bank in Romania by total assets once completed.
The transaction is expected to close in the fourth quarter of 2026, after which Garanti BBVA’s Romanian business will be integrated into Raiffeisen’s existing operations in the country.
Garanti BBVA, listed in Istanbul and majority owned by Spain’s BBVA, said the deal would add around 10 basis points to its common equity Tier 1 capital ratio and contribute €112mn to earnings.
Raiffeisen said the acquisition would lower its CET1 ratio by about 60 basis points.
Raiffeisen “has a strong capital position and is pursuing growth organically and through acquisitions in its core markets”, its outgoing chief executive Johann Strobl said.
Barclays advised Raiffeisen on the deal.