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.

FCA asks lenders to exercise tailored forbearance towards struggling mortgage borrowers

The UK’s Financial Conduct Authority (FCA) has updated its guidance relating to lenders that have been granted mortgage payment deferrals urging them to exercise tailored forbearance towards borrowers that struggle to restart repayments. 

Andrew Bailey

Despite mounting loss provisioning UK banks can take more pain says Bank of England

The Bank of England estimates that the UK banking system is well capitalised enough to get through a severe recession, while it tries to reassure lenders to keep supporting the economy. By Justin Pugsley 

Russian banking

Russian bank reforms face Covid-19 setback

The Covid-19 pandemic has slowed the completion of Russia’s bank reforms as regulators focus on emergency measures to support the economy. 

Basel Committee members endorse temporary relaxation of capital buffers

Members of the Basel Committee on Banking Supervision have reaffirmed their commitment to implementing the Basel III standards while recognising that banks will need sufficient time to restore their capital buffers depending on the severity of the economic downturn.