Mortgage default

Bank of England paper promotes ‘triple trigger’ theory for mortgage defaults

A Bank of England working paper further challenges the ‘option theory’ for mortgage defaults and finds the widely accepted ‘double trigger hypothesis’ to be potentially lacking as an explanation for non-payment

FDIC warns of risks to US banking system

The Federal Deposit Insurance Corp’s 2019 risk review has drawn attention to areas of concern in the US economy.

Ulrik Nødgaard

Doubts grow over EU implementation of Basel III

There are growing doubts over how faithfully the EU will transpose the finalised Basel framework into its regulatory regime as a potential recession looms over Europe.

Agencies announce major reforms to simplify Volcker rule

US agencies have made a series of modifications that come into effect early next year to help banks clarify what does and does not constitute proprietary trading under the Volcker rule. 

FSA warns Japan’s regional banks to change their business models more quickly

Amid speculation that the Bank of Japan (BoJ) is planning to increase its monetary stimulus programme, regulators are warning that it should carefully consider the impact on regional banks before doing so. 

Danish regulator warns that negative interest rates will transform banks

Banks in Europe may have to seriously reconsider their business models or contract in the face of persistently negative interest rates, a move that could threaten financial stability, a leading Danish regulator warned. 

European banks to rely more on markets for funding says EBA

European banks plan to increase debt issuance over the next three years, particularly via unsecured debt instruments, the European Banking Authority (EBA) said in a statement.

Eurozone banks get more time to tackle NPLs

Eurozone banks will get another three years to accumulate cash to deal with unsecured non-performing loans, nine years if backed by real estate and seven years for loans supported by other types of collateral, the European Central Bank (ECB) said.

BIS warns of debt-related risks with no obvious imminent danger

While there are no obvious risks to global financial stability as of yet, there are a number of vulnerabilities that are a cause for concern, such as high levels of debt in certain parts of the economy, said Agustín Carstens, general manager at the Bank for International Settlements (BIS).

No need to change TLAC, but FSB monitoring implementation

There currently is no need to modify the total loss absorbing capacity (TLAC) rule, but further efforts are needed to implement the standard effectively, the Financial Stability Board (FSB) said in a statement.