Basel Committee ready to pursue more Covid-related measures if needed

Banks could get more regulatory relief should the Covid-19 pandemic prove particularly damaging over the winter period with many employees having to work from home again, the Basel Committee on Banking Supervision said. 

FSOC warns over Fannie Mae and Freddie Mac financial stability threat

The government sponsored enterprises (GSE) Fannie Mae and Freddie Mac could threaten financial stability and may need more capital according to the Financial Stability Oversight Council (FSOC). 

Olivia Perney

Banks can weather the pandemic storm

Analysts are confident that most banks can cope with the economic impact of a second wave of the Covid-19 pandemic, but they warn that losses could nonetheless pile up

Fed extends capital conservation measures for banks

For the fourth quarter of this year, banks with more than $100bn in total assets will be prohibited from making share repurchases, the US Federal Reserve said in a statement.

FSB extends SFT implementation deadlines by one year

An extension to deadlines for minimum haircut standards for non-centrally cleared securities financing transactions has been announced by the Financial Stability Board to ease pressure on market participants and authorities struggling with the fallout from the Covid-19 pandemic. 

European banks face slow recovery from Covid-19 pandemic

The profitability of big European banks is likely to remain under pressure in the third quarter as banks continue to notch up expected credit loss provisions due to the negative economic impact of the Covid-19 pandemic, according to Fitch Ratings

Capital requirements will eventually be influenced by climate stress tests

Prudential capital requirements for European banks will eventually be influenced by climate change stress tests said Fitch Ratings in a report as supervisors increasingly see the phenomenon as a looming threat

ECB takes further steps to conserve bank capital

Banks have been urged to pause shareholder payouts for longer by the European Central Bank (ECB), which added that it would also not compel them to meet their Pillar 2 requirements, concerning capital assessments, until the end of 2022 at the earliest. 

APRA gives green light for banks and insurers to resume dividend payments

Banks and insurers can resume dividend payments to shareholders provided payouts are limited to 50% of profits, the Australian Prudential Regulation Authority (APRA) said on July 29. 

Piers Haben

Regulators firefight Covid-19 with “Quick Fix” hose

Though EU regulators have moved swiftly to ease compliance and capital burdens on banks, they nonetheless still face challenges, particularly when the non-performing loans start to pile up.