CapitalRSS

Restrictions on shareholder payouts to end on June 30 for most banks

Temporary restrictions on bank holding companies making shareholder payouts will end for most firms on June 30, following the outcome of the upcoming stress tests, the Federal Reserve Board said in a statement on March 25. 

European Commission HQ

Pandemic highlights EU bank resolution framework weaknesses

The EU’s much-criticised bank failure rules are up for re-evaluation. Experts insist the rules are currently unworkable and change is overdue, especially as Europe is poorly prepared for a Covid-19-related banking crisis.

Fed ends SLR exemptions despite bank calls for it to be extended

A temporary change, which allowed banks to exclude holdings of US Treasuries and cash deposits at the US Federal Reserve from the supplementary leverage ratio (SLR) was allowed by regulators to expire on March 31 as scheduled despite industry calls to prolong the exemptions.

BCBS

Polls suggest some banks will struggle to meet Basel III deadlines

Two surveys reveal mixed progress among banks in meeting deadlines to implement the revised Basel III framework suggesting that some may struggle to be ready on time with FRTB proving to be particularly taxing. By Justin Pugsley

Alex Dorfmann

Basel III reforms: why it’s heads in the cloud time for banks

Banks must keep cool and not be intimidated by the approach of the next revision to Basel. 

Banks target watering down of UK ring fencing rules in Treasury review

A review of the ring fencing rules by the UK Treasury has triggered a concerted effort by the industry to have them watered down or even scrapped. 

Bank of England warns that banks are yet to face real losses from Covid-19

UK banks have been protected from the full economic brunt of the Covid-19 pandemic, said Bank of England deputy governor Sam Woods, warning that tougher times are ahead. 

BPI calls on Fed to extend leverage ratio exclusions

The Bank Policy Institute (BPI) is calling for the enhanced supplementary leverage ratio (eSLR) applied to the eight global systemically important banks, adopted in 2014 by the US Federal Reserve Board, to be recalibrated so it acts more as a backstop for risk-based capital requirements and less of a binding capital constraint. 

BLM-National Bank of Rwanda 231127182

Credit risk and operational resilience named as National Bank of Rwanda’s top supervisory priorities

Gaining more insight into the credit risk profiles, the capital strength and operational resilience of Rwanda’s banks are among the top supervisory priorities for the nation’s central bank, as the sector adapts to remote working to help curb the spread of the Covid-19 pandemic.

BLM-ECB 351570299

Not all doom and gloom for eurozone banks according to ECB's SREP

Credit risk, poor profitability and internal governance issues at eurozone banks were prominent themes in the European Central Bank’s (ECB) 2020 Supervisory Review and Evaluation Process (SREP), but some positive trends were also highlighted.