With a possible recession on the horizon, Europe’s banks are in a stronger position than they were in the run-up to the 2007-9 global financial crisis. Nonetheless, there are still worries about too many weak banks, doubts over stress tests and the failure to complete Europe’s banking union. By Farah Khalique.
Resolution and Recovery
ECB places Italy’s Banca Carige into temporary administration
ECB places small Italian bank into temporary administration after it fails to gain shareholder support for a recapitalisation.
Dealers versus clearers: a battle of living wills
A recent consultation by the Financial Stability Board has further highlighted a deep schism in the industry over the procedures for resolving a failing clearing house
Four foreign banks’ resolution plans deemed to have weaknesses
The Fed and FDIC have judged the resolution plans of four foreign banks operating in the US as having weaknesses, but that they are not glaring enough to warrant extra prudential measures
FSB says most jurisdictions hosting G-SIBs have resolution regimes
The FSB said that most jurisdictions hosting too-big-to fail banks largely have resolution regimes in place for them, but is concerned that more work needs to be done on the resolvability of clearing houses and insurers
US agencies pondering refinements to living wills for banks
Speaking at a recent banking conference, FDIC chairwoman said the FDIC and Fed are looking at ways to simplify bank resolution planning and to make it more proportionate to a banks size and complexity
Prudential Financial removed from too big to fail list
Prudential Financial becomes last US insurer to shake off the ‘too big to fail’ designation, with critics seeing it as a significant roll back of the Dodd-Frank Act
FDIC chair says international cooperation essential for resolution planning
In a speech, the FDIC chair said the US regulators are committed to redoubling efforts to foster international regulatory cooperation with regards to resolution planning for G-SIBs
Struggling eurozone states should get debt relief as part of reform package
ESFRC calls for struggling eurozone members states to receive debt relief and a recapitalisation of banks with high levels of non-performing loans in exchange for reforms
Singapore resolution regime maintains narrow scope of bail-in instruments
Following a recent consultation, Singapore’s regulators are in the process of putting in the finishing touches to their bank resolution regime, and while it follows international guidelines closely, it does make one important deviation. By Justin Pugsley.
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