EBA study reduces Basel III capital estimate, but concerns around CVA linger

Big European banks will be relieved that the EBA lowered its original estimates around the capital requirements arising from implementing the finalised Basel III framework, but will be concerned about its views on CVA exemptions 

Wells Fargo

US banks pulling ahead of European counterparts as regulation bites

Outdated business models, inefficient organisational structures and tougher regulation are seeing European banks falling further and further behind their US rivals

Falling default rates on corporate debt mask potential time-bomb

Bank default ratios for corporate debt have dropped from 1.12% to 0.73% since 2016, according to Global Credit Data, which is concerned that this part of the debt market could be storing up problems for the future. 

China further opens banking market to foreign players

Measures have been put in place that remove total asset requirements for foreign banks establishing operations in China by the country’s banking regulator, which is also lowering rules around foreign shareholdings in joint venture lenders. 

Olaf Scholz and Merkel

Germany paves way for completing European banking union

Germany has reinvigorated momentum towards completing the European Banking Union, but the conditions attached could turn out to be a bridge too far for some member states 

Basel Committee consults on templates relating to market risk disclosure requirements

The Basel Committee on Banking Supervision is consulting on its revisions to market risk disclosure requirements relating to the profit and loss attribution (PLA) test for banks that use the internal models approach (IMA) to assess capital requirements for their trading books.

Basel Committee consults on templates detailing bank sovereign exposures

The Basel Committee on Banking Supervision has launched a consultation, which closes on February 12, 2020, on three Pillar 3 templates relating to bank sovereign exposures.

FSB’s G-SIB count rises by one bank to 30 institutions

Global standard setters have published the 2019 list of global systemically important banks (G-SIBS) which now number 30 financial institutions, one more than last year thanks to the addition of Toronto Dominion.

While Fed gives US banks thumbs up, OMFIF bemoans lack of detail

In its supervision and regulation report, the US Federal Reserve Board said US banks remain strong and well positioned for any downturn, though one think-tank thought the central bank did not dig deep enough into potential problem areas. 

US prudential agencies formally adopt SA-CCR for measuring counterparty risk

Large, internationally-active banks should replace the current exposure methodology with the standardised approach for measuring counterparty credit risk (SA-CCR), which smaller banks can voluntarily adopt, three federal agencies said in a statement.