Bank of England looking to bank capital buffers to supplement monetary policy

Given the very low interest rate environment, capital buffers may need to become the main monetary policy instrument to counter swings in economic activity, according to the Bank of England.

European Commission consults on implementing Basel III into EU rules

The European Commission published a consultation on October 11 asking for views on the implementation of the finalised Basel III rules into EU rules, namely the capital requirements regulation (CRR) and directive (CRD)

Five agencies finalise changes to the Volcker rule

Changes to the Volcker rule, which is designed to stop banks engaging in certain types of proprietary trading, have been finalised by the five regulatory agencies responsible for its oversight.

Banks to be classified into four risk categories

Banks will be classified into four categories reflecting factors such as risk profiles as part of the US Federal Reserve Board’s framework for tailoring enhanced prudential standards for firms with $100bn or more in assets. 

Wind and solar

Banks need to curb their enthusiasm over ‘green’ supporting factors

The prospect of green supporting factors for RWAs being introduced in the EU to support the move towards a sustainable economy has created excitement among some bankers, however, they probably should not get their hopes too high

Basel Committee lines up busy schedule for November

At its meeting on October 30-31, the Basel Committee on Banking Supervision agreed to hold consultations on the credit valuation adjustment risk framework, disclosure requirements and guidelines to enhance co-operation between prudential regulatory authorities.

Quarles hopes stress capital buffer to be ready for 2020

In a speech, US Federal Reserve Board vice chair Randal Quarles said he hoped that come the 2020 stress tests, the stress capital buffer (SCB) framework would be in place with some tweaks following consultations.

ECB stimulus package likely to exacerbate eurozone bank problems

The European Central Bank’s (ECB) -0.10% reduction in its deposit facility to -0.5%, the resumption of quantitative easing and its forward guidance on interest rates are likely to pile more pressure on already struggling euro-area banks, according to credit rating agencies.

Despite stronger credit ratings, European bank debt is riskier

A paradox of financial reforms is that European banks have become more robust over the last five years, but the debt they issue has become more risky, said Moody’s Investors Service in a report. 

New green bond fund launched for central banks by BIS

Central banks will be able to invest in an open-end green bond fund launched by the Bank for International Settlements (BIS).