Streamlined SRT process aims to optimize capital management while ensuring resilience The European Central Bank (ECB) is set to accelerate the approval process for Significant Risk Transfers (SRTs) , a move designed to improve capital efficiency for banks while maintaining financial stability. The ECB’s pilot program, scheduled to begin in early 2025 , will simplify procedures and reduce approval timelines, aligning with the growing demand for efficient capital allocation across European lenders. What’s Changing? The ECB, in collaboration with the European Banking Federation , is introducing a pilot program to shorten the SRT approval process. The notification period for SRT transactions will be reduced from three months to two weeks before deal finalization. The information submission requirements will be streamlined to ease regulatory burdens for banks. These changes are expected to make SRT transactions more attractive , all...
$BlackBerry (BB.US)$ stock soared 18% on Monday after the company announced the sale of its Cylance cybersecurity division to Arctic Wolf, a U.S.-based cybersecurity firm.
Key Details of the Deal:
- Transaction Value: BlackBerry will receive $160 million, including:
- $80 million in cash at closing
- $40 million in cash one year after closing
- 5.5 million Arctic Wolf shares, marking BlackBerry's stake in the privately held firm.
- Original Cost: BlackBerry had acquired Cylance in 2019 for $1.4 billion, making the sale price a steep markdown.
Why the Sale?
- Intensified Competition: Cylance, known for its AI-driven endpoint protection solutions, has faced growing challenges in retaining customers.
- Revenue Struggles: Despite broader growth in the cybersecurity market, Cylance's performance lagged due to customer churn and increased competition.
- Strategic Review: In October, BlackBerry indicated that it was exploring strategic options for Cylance, ultimately leading to this divestiture.
BlackBerry's Strategic Focus:
The company emphasized that this transaction will not affect its secure communications portfolio, which remains a key pillar of BlackBerry's business strategy.
Market Reaction:
The market welcomed the move, sending BlackBerry shares up 18% to $3.18 during Monday trading. Investors appear optimistic about BlackBerry’s ability to refocus on its core businesses and monetize non-performing assets.
This strategic shift marks a critical step for BlackBerry as it navigates the competitive cybersecurity landscape and works to solidify its position in secure communications.
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