The EU’s updated Capital Requirements Regulation is going live at the end of June, imposing stricter standards on banks and asset managers. Experts warn financial services firms of tough penalties for non-compliance.
Capital
Climate change could influence bank capital levels warns OCC
US banks face the prospect of eventually having to live with capital rules, which reflect climate change risks, said the acting comptroller of the currency Michael Hsu.
Stress capital buffer proved effective during Covid-19 crisis
One of the key lessons of the Covid-19 crisis was that the US’s forward-looking capital framework, which includes the stress capital buffer, works very effectively, said Randal Quarles, vice chair for supervision at the US Federal Reserve Board.
UK, US and Australian banks see declining loan-loss provisions, with NPLs to rise
Stronger economic recoveries is resulting in falling loan-loss provisions by UK, US and Australian banks, said Moody’s investors service, though non-performing loans (NPLs) are likely to rise as government support measures end.
Central banks plot pivot towards net-zero
Central banks have signalled a new phase in tackling climate change by placing a net-zero carbon strategy at the core of their monetary policy and oversight of financial institutions.
Eurozone held in check by ‘paradox of strengthening’
Predictions that euro-area Covid NPL numbers would eclipse 2007-9 global financial crisis levels look premature, but the final figure and the correct policy response are still unclear.
FCA consults on new prudential regime for investment funds
The Financial Conduct Authority (FCA) is consulting on changes to the UK Investment Firm Prudential Regime (IFPR) for investment firms subject to the Markets in Financial Instruments Directive (MiFID) II and aims to create a single, proportionate regime that reflects firms’ size and business.
PRA proposes 'strong and simple' regulatory framework for smaller lenders
A proposal for a ‘strong and simple’ regulatory framework for the UK’s smaller non-systemic and domestically-focused lenders has been put forward by the Prudential Regulatory Authority (PRA), potentially marking a significant departure with the EU’s approach.
Archegos fallout raises troubling questions over bank risk controls
Credit Suisse’s removal of several senior executives, including its top risk and compliance officer, as a result of reported $4.7bn losses incurred by trades with Archegos Capital Management raises serious questions as to whether banks have learned sufficient lessons from the global financial crisis
Restoring SLR sees big US banks fret over cash deposits
Some large US banks, which have piled up very large cash deposits from their clients during the Covid-19 pandemic, have been advising corporate depositors to place their cash elsewhere such as in money market funds.
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