The Fundamental Review of the Trading Book is a particularly challenging piece of text to implement, but banks trying to do so with the less capital-intensive Internal Model Approach are finding it particularly difficult as they face having to keep their models approved. Some are considering not bothering with it. By Farah Khalique.
Capital
JPMorgan warns clearing houses not well enough capitalised
Central counterparty clearing houses are not carrying enough capital and should be subject to tougher rules, says a JPMorgan white paper. Justin Pugsley reports
Mnuchin orders regulators to examine Volcker rule
US Treasury secretary Steven Mnuchin orders regulatory agencies to investigate a softening of the Volcker rule.
Basel III framework edging closer to finalisation
The Basel Committee on Banking Supervision looks closer to finalising the Basel III framework as discussions on technical issues are narrowing down
Financial reform likely to be in small steps
US financial reforms likely to be evolutionary rather than happening in a big bang moment
Basel III prompts strategic rethink for Middle East banks
Though Middle East banks are generally in a strong position from a capital perspective, the rigours of complying with Basel III are nevertheless making them revisit their corporate strategies. By Nick Kochan.
European banks could face €120bn gap on Basel requirements
McKinsey & Co has found that European banks face a massive capital shortfall if new Basel and accounting rules are implemented unchanged.
Infrastructure, green and risk finance to relaunch CMU
Infrastructure, green and risk finance targeted to underpin the launch of the EU’s capital markets union.
US universal banks should become smaller and more efficient
US regulators need to focus more on incentivising universal banks to become more efficient rather than driving capital requirements ever higher or ponder measures to break them up
An unhappy 60th birthday
In March the EU celebrated its 60th birthday while the UK served notice to leave the club. The European Commission is now in a rush to alleviate the EU’s dependence on the City of London, raising the prospect of fragmented capital markets.
