GlobalRSS

RWA calculations for emerging market banks need harmonising

The way emerging market banks determine their risk weighted assets (RWA) needs to be harmonised as their differing approaches makes comparing them difficult, said Fitch Ratings.

Corporate debt bubble threatens financial stability

Increasing non-bank corporate debt against a backdrop of slowing earnings and very low interest rates could prove to be a toxic combination for financial stability, according to a UK-based asset manager. 

Big tech firms may need to share data with banks

To create a level playing field, big tech firms may have to share their data on financial services customers with traditional banks, the Financial Stability Board (FSB) said in a report. 

Wells Fargo

US banks pulling ahead of European counterparts as regulation bites

Outdated business models, inefficient organisational structures and tougher regulation are seeing European banks falling further and further behind their US rivals

Supervisory focus for banks shifting from new rules to resilience and adaptability

Even as the pace of new regulation slows, banks will increasingly have to demonstrate their financial and operational resilience and that they are responding ably to social and political pressure, according to two reports by Deloitte. 

Falling default rates on corporate debt mask potential time-bomb

Bank default ratios for corporate debt have dropped from 1.12% to 0.73% since 2016, according to Global Credit Data, which is concerned that this part of the debt market could be storing up problems for the future. 

Subharun Mukherjee

Preparing for a testing 2020

The growing involvement of third parties along with cyber risk not to mention the reputational repercussions if something goes wrong, are all good reasons for financial firms to prepare for worst 

FSB sounds further warnings on Libor’s threat to financial stability

The Financial Stability Board (FSB) once again warned about the financial stability implications due to the ongoing reliance of the global economy on the London interbank offered rate (Libor) and pressed for greater effort to move to alternative benchmarks by the end of 2021.

FSB finds concentrated holdings of leveraged loans and CLOs

The Financial Stability Board (FSB) said in a report that most leveraged loans are originated and held by banks, and they have the largest exposure to the sector and note the increasing role of non-bank financial institutions.

Scott O'Malia

Derivatives industry needs tech revolution as it struggles with ageing infrastructure

ISDA is trying to renew the infrastructure supporting the derivatives market in an effort to support more standardisation and digitisation so as to increase efficiency