A deputy governor of the Bank of England foresees some extreme circumstances where regulatory discretion could be useful to stem systemic risks in the event of a clearing house running into severe financial difficulties
Resolution and Recovery
FSB consults on key aspects of the TLAC standard for global banks
FSB seeks feedback on key areas of TLAC relating to global banks in a bid to refine the standard.
Fourteen firms get deadline extension on resolution plans
Fed and FDIC give 14 firms a one-year extension to file their resolution plans.
US committed to working with other jurisdictions over bank resolutions
The US remains committed to working with other jurisdictions over bail-in concepts for very large banks
Banks looking into more consistent modelling methodologies
An organisation called Global Credit Data has made big strides in providing sufficient loss given default data to banks for corporate loans. Its next step is to drive consistency around internal model outputs. By Justin Pugsley.
US banks are simpler, but growing tax haven presence a concern
The largest US banks may have simplified their organisational structures, often at the behest of regulators, but New York Fed researchers found the number of subsidiaries in secretive tax havens has risen. Justin Pugsley reports.
Eurozone emergency liquidity measures not fit for purpose
ECB vice president says eurozone’s emergency liquidity measures for failing banks is not fit for purpose
EU needs ‘big bang’ approach to NPLs
A committee of academics advocates for EU authorities taking quick and decisive action to clean up non-performing loans and to provide some debt relief to struggling member states
European Commission proposes measures to speed NPL clean-up
The European Commission recommends focusing on four policy areas to accelerate the clean-up of the continent’s non-performing loans to help develop the banking and capital markets unions. Justin Pugsley reports.
US Treasury advocates a more rules-based bank resolution process
In its fourth report on reforming the US financial system, the US Treasury has once again steered away from advocating radical action. It would make relatively little change to the current US infrastructure for resolving a large failing bank.
