US banks face threats that barely existed or were not even thought of five to 10 years ago, said Michael Barr, vice-chair for supervision at the US Federal Reserve, who is nonetheless confident that banks are well capitalised enough to withstand the current challenges.
Capital
Credit Suisse ups forecast for UK bank bad debts as economy deteriorates
The UK’s leading banks face racking up to £47bn in bad debts, warned Credit Suisse in a report, as the economy is expected to sink into a protracted recession.
Eurozone financial stability under “severe” threat
Alarm bells are ringing in the upper echelons of the EU that the bloc’s financial system is on a shaky footing, thanks to the energy shock, the war in Ukraine, inflation and rising interest rates.
Banks lobby against Basel Committee’s proposed capital treatment of crypto-assets
Banks are lobbying the Basel Committee on Banking Supervision to raise caps on unbacked crypto-assets, such as bitcoin, to 5% from 1% of bank Tier 1 capital, a clear indication of the industry’s interest in the sector.
EBA endorses extension extra prudential measures on Dutch housing loan portfolios
Plans by the De Nederlandsche Bank (DNB) to extend macro-prudential measures on Dutch housing loan portfolios have been endorsed by the European Banking Authority (EBA).
ESAs warn banks and supervisors to prepare for ‘bad times’
Deteriorating economic conditions, high energy prices and soaring inflation have increased financial sector vulnerabilities, said the joint Autumn risk report by the three European Supervisory Authorities (ESAs) which advised firms and supervisors to plan for a challenging environment.
Banking agencies said implementing remainder of Basel III is 'a priority'
US banking agencies have reaffirmed their commitment to finalising and applying the remaining outstanding parts of the Basel III standards saying it will strengthen the country’s banking system.
OFR highlights under-appreciated risks around interconnectedness
Risks relating to bank connectedness to non-banks, a regulatory focus on direct counterparty bank exposures and issues in uncleared derivatives markets could be hiding threats to the financial system, said the Office of Financial Research (OFR).
European Parliament leans towards tough macro-prudential rules on bank climate exposures
Momentum is building behind European Parliament plans to impose tough capital adequacy requirements on banks backing new fossil fuels projects, say supporters, but resistance is becoming fiercer too.
Barr outlines tougher Fed approach to supervising big banks
Banks in the US face potentially tougher rules or at least a more stringent interpretation of existing frameworks, according to the Federal Reserve Board’s new head of regulation.
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