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.
Capital
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.
US moving in wrong direction on regulation, says economist
The US is moving in the wrong direction by reducing financial regulation said Lawrence Ball, a Johns Hopkins University economics professor, adding that banks need robust rules.
EBA study reduces Basel III capital estimate, but concerns around CVA linger
Big European banks will be relieved that the EBA lowered its original estimates around the capital requirements arising from implementing the finalised Basel III framework, but will be concerned about its views on CVA exemptions
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Outdated business models, inefficient organisational structures and tougher regulation are seeing European banks falling further and further behind their US rivals
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.
China further opens banking market to foreign players
Measures have been put in place that remove total asset requirements for foreign banks establishing operations in China by the country’s banking regulator, which is also lowering rules around foreign shareholdings in joint venture lenders.
Germany paves way for completing European banking union
Germany has reinvigorated momentum towards completing the European Banking Union, but the conditions attached could turn out to be a bridge too far for some member states
Basel Committee consults on templates relating to market risk disclosure requirements
The Basel Committee on Banking Supervision is consulting on its revisions to market risk disclosure requirements relating to the profit and loss attribution (PLA) test for banks that use the internal models approach (IMA) to assess capital requirements for their trading books.
Basel Committee consults on templates detailing bank sovereign exposures
The Basel Committee on Banking Supervision has launched a consultation, which closes on February 12, 2020, on three Pillar 3 templates relating to bank sovereign exposures.
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