Large volumes of deferrals on debt repayments granted by banks to borrowers is masking the true credit quality of these institutions, Moody’s Investors Service said in a report, warning that it expects delinquencies to increase rapidly as these measures and government support schemes wind down.
Americas
SEC sets up emerging risks detection unit
The US Securities and Exchange Commission (SEC) has put together a new unit called the Event and Emerging Risks Examination Team (EERT) tasked with detecting emerging threats.
CFTC votes to reduce its international oversight
Commissioners at the US Commodity Futures Trading Commission (CFTC) voted on July 22 to reduce oversight of derivatives trades to mostly US entities and passed a second vote on capital requirements for traders involved in bilateral swaps transactions.
SEC allows companies to raise capital on NYSE through direct listings
Companies will be allowed to raise capital through direct listings on the New York Stock Exchange (NYSE) following a ruling by the US Securities and Exchange Commission (SEC).
US Fed stress tests criticised for being confusing and inadequate
In recent years, stress tests by the US Federal Reserve have been relatively incident free, but this year’s exercise has run into sharp criticism in some quarters including from a former Fed member
Covid-19 serves as catalyst for US deregulation of financial services
The economically devastating impact of the Covid-19 pandemic seems to have acted as a catalyst for US regulators to loosen prudential rules further and faster ahead of the presidential election in November.
Banks score significant victory with relaxation of Volcker Rule
Five US regulators have loosened the Volcker Rule, making it easier for banks to make bigger investments in so-called ‘covered funds’, such as venture capital funds, and have relaxed capital requirements on intra-company derivatives trades.
FDIC ponders dropping quarterly reporting by banks
Banks could be relieved of having to make long-standing quarterly regulatory reports to the Federal Deposit Insurance Corp (FDIC) in favour of a more technology-driven approach.
Banks told to incorporate Covid-19 ‘lessons’ in their resolution planning
The 2021 resolution plans filed by the eight largest and most complex US banks will have to detail how they integrated lessons learned from the coronavirus pandemic on top of the usual core elements, two prudential regulators have said.
New York Fed audit finds it is compliant with IOSCO benchmark principles
The interest rate benchmarks administered by the Federal Reserve Bank of New York were found to be in compliance with the principles set out by the International Organization of Securities Commissions (IOSCO) following an annual audit.
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- ECB dials up pressure on banks to manage climate and environmental risks
- The aftermath of Covid-19 is likely to result in greater regulatory oversight
- MLRO’s have key role to play in protecting banks from money laundering risks
- FCA likely to go after participants involved in cum-ex trading strategies
- The return of geopolitics will cause global banks considerable headaches
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