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China coronavirus

Coronavirus resurrects China’s bank NPL concerns

To help offset the economic damage from the coronavirus outbreak, Chinese regulators said they will tolerate a rise in bad debt in the banking system, which is seen as suspiciously low by some. 

Loosening of Volcker rules is deregulation and a credit negative for banks - Fitch Ratings

The recent proposed loosening of some restrictions in the Volcker rule on banks investing in certain covered funds is proof of deregulation and is a credit negative, said Fitch Ratings in a note. 

Sixty-four banks take part in Switzerland’s small bank regime

Some 64 banks are taking part in Switzerland’s small bank regime, which aims to reduce the regulatory burden for these institutions, the Swiss Financial Market Supervisory Authority (FINMA) said in a statement. 

EBA

EBA flags ongoing European banking struggles with transformation

The outlook for European banks appears to be on the slide again, notwithstanding that most are well capitalised, but if left unchecked this trend could present major challenges for regulators

ECB found six eurozone banks fell short on capital requirements

Six eurozone banks were found to have inadequate levels of capital by the European Central Bank (ECB), which told them to remedy the situation.

EBA says variability in EU bank RWAs mainly due to fundamentals

Most of the variability in risk-weighted assets can be attributed to fundamentals, the European Banking Authority (EBA) said in two reports on the consistency of RWAs across EU institutions authorised to use internal approaches for the calculation of capital requirements. 

US regulators proposing easing Volcker Rule restrictions on venture capital funds

As part of an overhaul of the Volcker Rule, US banks could once again take stakes in venture capital funds, US federal regulators said.

RWA calculations for emerging market banks need harmonising

The way emerging market banks determine their risk weighted assets (RWA) needs to be harmonised as their differing approaches makes comparing them difficult, said Fitch Ratings.

Corporate debt bubble threatens financial stability

Increasing non-bank corporate debt against a backdrop of slowing earnings and very low interest rates could prove to be a toxic combination for financial stability, according to a UK-based asset manager. 

US moving in wrong direction on regulation, says economist

The US is moving in the wrong direction by reducing financial regulation said Lawrence Ball, a Johns Hopkins University economics professor, adding that banks need robust rules.