CapitalRSS
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. 

David Shone

Basel Committee draws line under G-SIB methodology

Global banks will be disappointed that the Basel Committee on Banking Supervision appears to be ruling out making any major revisions to the methodology that decides which institutions are classified as global systemically important banks.

SA-reserve-bank

South African banks brace for FRTB

South Africa’s prudential regulator is bringing the fundamental review of the trading book back to life after Covid-19-related delays, with a firm go-live date for banks of January 1, 2024. Despite concerns that this could hammer local markets, banks remain upbeat. 

Banks' losses fell last year despite pandemic

Despite the negative impact of Covid-19-enforced healthcare measures on the economy, banks nonetheless saw lower loss reporting figures in 2020 than in the year before, said the Operational Riskdata eXchange (ORX) in a note.