Weekly Global News Wrap: Tech issues hamper US banks' bid for $310m small firms aid; EU floats relief to support extra lending

And Allianz inks bancassurance deal with BBVA.

From Reuters:

US banks wanting a share of the $310b in fresh small-business aid released by the government on Monday were hamstrung after 11th-hour changes to the first-come-first-served program caused technology issues for many lenders.

The changes that the Small Business Association made on Sunday to the way it accepted loan submissions appeared to cause technology problems for some bankers using its “E-Tran” application processing website, which was not designed to handle huge volumes of traffic.

With the nation’s lenders already sitting on hundreds of thousands of back-logged applications, the fresh funds are expected to be burned through in days—leaving swaths of mom-and-pop enterprises out in the cold again, banking groups said.

From Reuters:

Banks should rein in bonuses to boost their capacity to help businesses and households hit by the coronavirus crisis, the European Union’s executive said on Tuesday.

The European Commission set out a package of temporary “quick fixes” offering capital relief that would support extra lending potentially worth up to 450 billion euros ($490 billion) to companies struggling as a deep recession looms.

The EU executive backed statements from regulators that banks should refrain from paying dividends or making share buybacks at a time they are getting capital relief.

From Reuters:

German insurer Allianz has struck a deal to invest in the bancassurance business of Spanish lender BBVA, the companies said on Monday.

The venture will give Allianz a platform to revive its Spanish distribution network for its property-casualty insurance products after a previous agreement with Banco Popular came to an end following Popular’s sale to Santander in 2017.

Allianz will acquire 50% plus one share of the joint venture for an initial $299.94m (EUR277m). It will pay up to an additional 100 million euros depending on the achievement of certain business and operational goals.

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