Non-bank financials continue to drive global credit growth, says BIS

Whereas cross-border bank credit continues to shrink, overall credit growth continues to be supported by non-bank financial institutions.

Basel Committee slams ‘window dressing’ behaviour by banks

Basel Committee warns that it is considering further measures to drive compliance with the leverage ratio following spats of market volatility related to bank 'window dressing'

Former Fed chief Yellen warns over huge deterioration in some lending standards

Former Fed chair Janet Yellen voices concern over huge deterioration in lending standards to corporates and over the deregulation agenda being pursued by US president Donald Trump

Charlie Browne

Basel Committee proposes new ways for leverage ratio treatment of client cleared derivatives

Basel Committee proposes two possible ways for offsetting margin for client cleared derivatives for the leverage ratio, but says it is up to the industry to come up with compelling evidence to justify a change

US agencies consult on use of SA-CCR approach for measuring derivatives exposures

US agencies consult over the use of SA-CCR for calculating derivatives exposures

Fed proposes placing banks into four risk categories

US Federal Reserve proposes classifying big US bank into one of four risk categories resulting in significant regulatory relief for the lowest risk banks while G-Sibs would see little change.

For sale sign

A rise in NPLs is not necessarily just down to fast credit growth

Rapid loan growth has turned out to be a good indicator regarding non-performing loans later on and is a warning for countries that have experienced fast credit expansion recently. But this relationship doesn’t have to hold true, as Justin Pugsley reports. 

European Central Bank

ECB paper finds negative interest rates may undermine financial stability

ECB paper finds that negative interest rates are particularly penalising for banks heavily reliant on deposits and could potentially create financial stability risks

EBA launches fifth annual EU transparency tests

EBA starts fifth annual transparency exercise gathering detailed data on the capital positions and exposures of around 130 EU banks

Scope Ratings challenges view that European banks are structurally under-capitalised

Europe’s larger banks are not under-capitalised versus other developed country peers as is popularly thought said Scope Ratings in a report