CapitalRSS

Clearer rules could boost stablecoin issuers

Clearer regulation could boost stablecoin adoption and market opportunities as uncertainty has deterred many potential users from getting involved, said Fitch Ratings in a note published on December 21, 2021. 

CBDCs could be ruinous for banks, particularly under stressed conditions - BPI

The introduction of central bank digital currencies (CBDCs) would be ruinous for banks and potentially the economy as well, particularly in times of economic stress, argues a blog post on the Bank Policy Institute (BPI) website.

Adam Glapiński

Poland’s central bank concerned by ‘restrictive’ EU proposals

EU proposals for transcribing Basel III into the bloc’s banking rules would impinge on some member state macroprudential freedoms, potentially undermining their ability to maintain financial stability, warns Adam Glapiński, governor of the National Bank of Poland.

Constance Usherwood

EU divergence from Basel III could hinder global level playing field

European Commission proposals for embedding Basel III in EU regulatory texts has on balance been good for banks, but it does contain some deviations from the original framework, potentially encouraging other justifications to follow. 

EBA

Pan-EU deposit insurance scheme remains stuck in limbo

The European Commission wants to spring-clean the bloc’s bank crisis management and deposit insurance framework, but without the final pillar of the banking union in place — the pan-EU deposit insurance scheme — it is stuck in limbo. Can Germany’s new coalition government get things moving?

G-SIB list remains unchanged; methodology tweaked

The list of global systemically important banks (G-SIBs) remains unchanged from last year at 30 for 2021, according to the Financial Stability Board, and incorporates a tweak to the ranking methodology. 

Banking agencies to give more clarity on crypto exposures in 2022

Next year should see greater clarity emerge over the regulatory treatment of bank crypto asset exposures following inter-agency “policy sprints” that were conducted by the three prudential federal regulators.

Iris Pang

Evergrande: a watershed moment for China’s regulators

China’s regulators have turned sour on the nation’s most high-profile — and the world’s most indebted — property developer, Evergrande. Experts predict its demise is unlikely to batter the banking sector, but are sceptical as to whether China can steer an orderly deflation of its property bubble. 

Sam Theodore-Scope Ratings

Eurozone banks potentially overstating their capital strength

There is some evidence to suggest that eurozone banks are watering down Basel Committee rules, to mask weaknesses leaving some commentators fretting that many of them are under-capitalised.  

Bank involvement in digital assets could impact their credit ratings

Digital assets, such as cryptocurrencies, are set to become embedded into the US financial landscape, according to Fitch Ratings, which warned of compliance, operational, fraud and security risks for banks involved in the sector with potential implications for their credit ratings.