China’s regulators have turned sour on the nation’s most high-profile — and the world’s most indebted — property developer, Evergrande. Experts predict its demise is unlikely to batter the banking sector, but are sceptical as to whether China can steer an orderly deflation of its property bubble.
Capital
Eurozone banks potentially overstating their capital strength
There is some evidence to suggest that eurozone banks are watering down Basel Committee rules, to mask weaknesses leaving some commentators fretting that many of them are under-capitalised.
Bank involvement in digital assets could impact their credit ratings
Digital assets, such as cryptocurrencies, are set to become embedded into the US financial landscape, according to Fitch Ratings, which warned of compliance, operational, fraud and security risks for banks involved in the sector with potential implications for their credit ratings.
Basel Committee draws line under G-SIB methodology
Global banks will be disappointed that the Basel Committee on Banking Supervision appears to be ruling out making any major revisions to the methodology that decides which institutions are classified as global systemically important banks.
South African banks brace for FRTB
South Africa’s prudential regulator is bringing the fundamental review of the trading book back to life after Covid-19-related delays, with a firm go-live date for banks of January 1, 2024. Despite concerns that this could hammer local markets, banks remain upbeat.
Banks' losses fell last year despite pandemic
Despite the negative impact of Covid-19-enforced healthcare measures on the economy, banks nonetheless saw lower loss reporting figures in 2020 than in the year before, said the Operational Riskdata eXchange (ORX) in a note.
Will Canada remain unique in its FRTB data pooling approach?
Banks pooling their data to gain lower capital requirements for exposures in their trading books seems like a no brainer, but so far only Canada is doing it on an industry-wide basis. By Justin Pugsley
European banks face stigma abroad if EU does not faithfully implement Basel III
For the EU to faithfully implement the remaining Basel III rules is not only a matter of meeting an international commitment, but is important so that the bloc’s banks are not stigmatised abroad. Nonetheless, it could see some adaptations to European bank business models.
Basel framework was not fully tested by Covid-19 pandemic
Though global banks withstood the Covid-19 pandemic, the reformed prudential framework was not fully tested, the Basel Committee on Banking Supervision said on July 6 as most institutions maintained significant capital headroom above their regulatory minimum requirements.
Basel Committee proposals could crimp bank involvement in crypto
The Basel Committee proposals on the prudential treatment of crypto-assets are controversial to some participants while others believe they pave the way towards mainstream adoption.
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