The stress tests of Europe’s banks were deemed by many to have been a success demonstrating that the sector is now in better health than two years ago. However, concerns remain over the banks that were omitted from the exercise and whether the tests were stringent enough.
Pushing Europe’s securitisation market up a gear is proving challenging and the European Parliament may have made it more difficult with new proposals leaving many industry participants concerned about the asset class’s revival
Changes in capital requirements were supposed to make clearing OTC derivatives through central counter-parties a no-brainer. However, research by the US’s Office of Financial Research has found that the case for centralised clearing on a cost basis is somewhat more ambiguous.
Regulators look to toughen up clearing houses so they don’t become a weak link in global markets in the event of another financial crisis
The shadow banking sector poses a dilemma for policy-makers concerned about its increasing size and potential systemic implementations. Staff at the European Central Bank feel they have an answer to that challenge.
The growth of the green bond market is taking place amid numerous initiatives to define this new asset class, but at some point the market could be well served by having a set of globally recognised standards to guide investors and issuers.