The European Banking Authority is concerned about the quality and structurally low profitability of European banks’ assets, despite their solid capital and liquidity positions.

The most profitable US banks have been given the green light by the US Federal Reserve to resume share buybacks this year following a six-month ban relating to the economic effects of the Covid-19 pandemic.

Although the International Swaps and Derivatives Association has praised clearing houses for withstanding the extreme pandemic-induced market volatility, it is concerned about the significant increase in initial margin seen last year

The UK’s Prudential Regulation Authority (PRA) is allowing UK banks to resume dividend payments after finding that they had shown resilience during the Covid-19 pandemic and could withstand even more extreme economic conditions. 

As of December 2019, which was before the Covid-19 pandemic struck, the Basel Committee on Banking Supervision found that capital shortfalls were €10.7bn for group 1 banks compared with €16.6bn at end-June 2019. 

The incoming Democrat administration of president-elect Joe Biden has the potential to influence credit conditions relating to US housing finance, according to a note from Moody’s Investors Service. 

The UK’s banking system remains resilient and can cope with even more severe economic conditions while supporting businesses and households, the Bank of England’s Financial Policy Committee said in a statement. 

In a report, the Financial Stability Board (FSB) warned that climate change could lead to sharp falls in asset prices, increase uncertainty and trigger amplification mechanisms and negative cross-border effects. 

In a report to the G20, the Financial Stability Board (FSB) warned that risks to financial stability resulting from emergency measures to contain the Covid-19 pandemic remain elevated.