Basel Committee proposes change to capital rules for NPL securitisations

The treatment for securitisations of non-performing loans (NPLs) is to receive a technical amendment from the Basel Committee on Banking Supervision, which is the result of work carried out before the Covid-19 pandemic struck. 

Josh Galper

Covid-19 serves as catalyst for US deregulation of financial services

The economically devastating impact of the Covid-19 pandemic seems to have acted as a catalyst for US regulators to loosen prudential rules further and faster ahead of the presidential election in November.

Banks score significant victory with relaxation of Volcker Rule

Five US regulators have loosened the Volcker Rule, making it easier for banks to make bigger investments in so-called ‘covered funds’, such as venture capital funds, and have relaxed capital requirements on intra-company derivatives trades. 

Big European banks revealed by Fed as having weak US franchises

Simulations by the US Federal Reserve Board as part of its latest stress tests potentially sees European banks suffering the sharpest losses from the fallout of the Covid-19 pandemic. 

CRR Covid-19 quick fix package gets passed

European Commission proposals for a ‘quick fix’ package to the capital requirements regulation (CRR) to help mitigate the capital impact on banks from the economic slump caused by the Covid-19 pandemic were approved by the European Parliament and Council. 

Richard Crecel

Experiences of previous crises could give clues to the scale of bank losses

With the global economy in the throes of a new crisis and with bad bank loans expected to pile up,  previous crises could still serve as a good guide as to how bad the damage will be even though this crisis is somewhat unique. 

US negative interest rates would hurt banks, warns Goldman Sachs

With the US economy facing its worst crisis since the Great Depression, the US Federal Reserve has discussed imposing negative interest rates, a move Goldman Sachs says would damage the banking sector

Response to Covid-19 pandemic shows European banks can act quickly

The Covid-19 pandemic has shown European banks the “art of the possible” as they responded in record time to the fast evolving crisis, and consultancy McKinsey argues that this mindset is integral to these institutions reinventing themselves within the next three years. 

FOMC reveals Fed worries about financial stability

Officials at the US Federal Reserve fear that the dramatic economic slump accompanied by the fastest pace of job losses in the country’s history due to measures to contain the Covid-19 pandemic could threaten financial stability. 

Banks alarmed over the possibility of negative UK interest rates

Commercial banks have waded into the Bank of England policy-makers’ debate over the possibility of imposing negative interest rates, warning that it would crush their earnings and diminish their ability to absorb an expected avalanche of bad loans as a result of the coronavirus crisis.