Large EU banks hold $239bn in fossil fuel exposures according to the non-government organisation (NGO) Finance Watch, which is warning that they pose a financial stability risk if they become stranded assets.
Europe
Finance Watch calls for higher capital requirements as EU banks hold $239bn in fossil fuel exposures
AFME recommends setting up taskforce to study moving to T+1 settlements
European fixed income and equities markets could benefit from shorter settlement times as it would reduce counterparty and credit risk, but on the downside it could see more settlement ‘fails’ and complexity.
EBA endorses extension extra prudential measures on Dutch housing loan portfolios
Plans by the De Nederlandsche Bank (DNB) to extend macro-prudential measures on Dutch housing loan portfolios have been endorsed by the European Banking Authority (EBA).
ESAs warn banks and supervisors to prepare for ‘bad times’
Deteriorating economic conditions, high energy prices and soaring inflation have increased financial sector vulnerabilities, said the joint Autumn risk report by the three European Supervisory Authorities (ESAs) which advised firms and supervisors to plan for a challenging environment.
UK to investigate cloud operators over market dominance
The leading cloud providers are to be investigated in the UK over their marketing practices as their market share in the country, which has risen to 81% from 70% in 2018.
Bank of England revives annual cyclical scenario stress tests
Rising global interest rates, deep recession and crashing asset prices are highlights of the Bank of England’s (BoE’s) annual cyclical scenario stress test on banks after a two-year absence following the Covid-19 pandemic and Russia’s invasion of Ukraine.
Exchanges deepen their focus on ESG matters
Significant advances have been made in the depth and scope of environmental, social and corporate governance (ESG) by exchanges and central counterparty clearing parties with more focus on the transition to carbon neutrality, according to a survey.
UK’s renewed dash for financial regulatory reforms risks stalling
The accelerated rush to slash red tape on the City of London by new UK prime minister Liz Truss could deliver big benefits to banks, but such is the ambition of the reforms that it risks getting bogged down in complexity. A simpler approach might be more effective.
Banks fear digital euro becoming a ‘liquidity vampire’
The ECB is investigating launching a digital euro to future-proof the single currency and to defend its sovereignty. But creating a new form of money that is poorly calibrated poses substantial risks to the liquidity of deposit-takers.
Pressure grows on EU to relax rules on third-country benchmarks
ESMA has taken a swipe at the EU’s third country benchmark rules, branding them “detrimental” to financial markets. The EU may cave and water down the rules.
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