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BLM-ECB 366746987

ECB’s aim of encouraging cross-border eurozone bank mergers faces hurdles

Fitch Ratings sees significant obstacles to the European Central bank’s (ECB) desire for cross-border consolidation in the eurozone banking sector to improve resilience.

European banks are robust, but EBA warns over deterioration in assets

The European Banking Authority is concerned about the quality and structurally low profitability of European banks’ assets, despite their solid capital and liquidity positions.

Fed gives US banks greenlight to resume share buybacks

The most profitable US banks have been given the green light by the US Federal Reserve to resume share buybacks this year following a six-month ban relating to the economic effects of the Covid-19 pandemic.

ISDA calls for better calibration on clearing house margins

Although the International Swaps and Derivatives Association has praised clearing houses for withstanding the extreme pandemic-induced market volatility, it is concerned about the significant increase in initial margin seen last year

UK banks allowed to restart dividends as vaccine is rolled out

The UK’s Prudential Regulation Authority (PRA) is allowing UK banks to resume dividend payments after finding that they had shown resilience during the Covid-19 pandemic and could withstand even more extreme economic conditions. 

Large banks were narrowing capital shortfalls pre-Covid says Basel Committee

As of December 2019, which was before the Covid-19 pandemic struck, the Basel Committee on Banking Supervision found that capital shortfalls were €10.7bn for group 1 banks compared with €16.6bn at end-June 2019. 

Biden administration could impact credit ratings related to housing exposures

The incoming Democrat administration of president-elect Joe Biden has the potential to influence credit conditions relating to US housing finance, according to a note from Moody’s Investors Service. 

UK banks in good shape to face more economic pain says FPC

The UK’s banking system remains resilient and can cope with even more severe economic conditions while supporting businesses and households, the Bank of England’s Financial Policy Committee said in a statement. 

FSB warns of potentially disruptive climate change impact on financial stability

In a report, the Financial Stability Board (FSB) warned that climate change could lead to sharp falls in asset prices, increase uncertainty and trigger amplification mechanisms and negative cross-border effects. 

FSB warns G20 that risks to financial stability remain elevated

In a report to the G20, the Financial Stability Board (FSB) warned that risks to financial stability resulting from emergency measures to contain the Covid-19 pandemic remain elevated.