Finance and regulation experts are startled at how much the EU is deviating from Basel guidelines in its latest banking reforms, raising fears of non-compliance with international banking standards.
Capital
To fuel sustainable growth in Europe, we must rethink the banking regulatory framework
A review of the current capital requirements and supervisory processes for EU banks could provide capacity for around €4tn in additional bank lending to finance the green and digital transitions, and strengthen the competitiveness of the EU economy.
Basel III capital ratios for largest global banks fall to pre-pandemic levels
Ratios fell from their H2 2021 record highs to pre-pandemic levels in the latest Basel Committee on Banking Supervision Basel III Monitoring Report
EU banks update their SREP requirements
A sample of 17 of the EU’s largest banks by rating agency Scope Ratings found that six had to increase their Pillar 2 Capital requirements following the annual Supervisory Review and Evaluation Process (SREP) undertaken by supervisors.
European AT1 borrowing costs reach highest level in a decade
Coupon rates for newly issued contingent convertible bonds (CoCos) from European banks reached an average of 7.8% during the third quarter of 2022 and 9.8% during the fourth quarter – the highest level since the third quarter of 2011, according to a report from the Association for Financial Markets in Europe (AFME).
ESMA advises use of DTIs as part of its digital asset reporting pilot
Market participants are being advised to use digital token identifiers (DTIs) by the European Securities and Markets Authority (ESMA) in relation to its reporting pilot for digital assets.
A digital euro would not be a lurch towards a dystopian future, says ECB official
The digital euro would never be programmable nor undermine personal privacy, a European Central Bank (ECB) official told the European Parliament in a bid to defuse fears that it could represent a slippery slide towards a dystopian society.
Crypto's advance already threatening some developing countries
Emerging market countries face growing financial threats to their banking systems and monetary sovereignty from the crypto-isation of their economies.
European Parliament adopts position on Basel III reforms
The European Parliament’s Economic and Monetary Affairs (ECON) Committee voted on January 24 to adopt several changes to the Capital Requirements Regulation and the Capital Requirements Directive.
Basel III implementation delays create challenges and opportunities for APAC banks
For smaller Asia-Pacific economies Basel III implementation is proving less complex than for international peers, while its bigger players must pay close heed to regulatory approaches in key markets such as the EU, UK and US. By James King
@RiskRegulator
