KAS BANK and dwpbank End Service Partnership Except in Germany

KAS BANK and securities settlement services provider Deutsche WertpapierService Bank (dwpbank) will end their international relationship and only work together in Germany, due to dwpbank's decision to focus on its German home market.
By Jake Safane(2147484770)
KAS BANK and securities settlement services provider Deutsche WertpapierService Bank (dwpbank) will end their international relationship and only work together in Germany, due to dwpbank’s decision to focus on its German home market.

As a result, the banks will terminate their service agreement for dwpbank processing some of KAS BANK’s volumes and services. KAS BANK wil provide the processing services in-house, and thus there will be no changes for its customers. The firms’ joint cooperation in offering retail securities processing to the Dutch banking sector will also end, and KAS BANK will acquire dwpbank’s 50% share in the joint venture. KAS BANK says it will then look into how it will promote retail processing services to financial institutions in The Netherlands.

At the end of June, dwpbank will pay KAS BANK a lump sum of approximately €20 million as compensation for the loss of the anticipated annual savinga that KAS BANK would have realized from 2016 onwards, had the relationship not been terminated. KAS BANK says it will use the compensation within the company to try improve its offerings to institutional
investors.

In Germany, KAS BANK and dwpbank will continue their cooperation in the field of global network management services, which they have been doing since 2013.KAS BANK also says it remains fully committed to its custody and depository banking activities in Germany, and dwpbank remains committed to offering securities services within the country. Both institutions will continue to support each other through exchanging information and a joint approach to customer
service.

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