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