The Central Bank of Russia is forging ahead with reforming the country’s banking system, but faces a number of headwinds which could make the task harder. By Justin Pugsley.
Resolution and Recovery
Living will deadlines extended for two categories of financial firms
Four foreign banks and one designated non-bank have been given extra time by the Fed and FDIC to file their living will plans
Inadequate risk management leaves banks vulnerable to geopolitical shocks
Though the world is riddled with potential geopolitical hotspots, any one of which could develop into a full blown international crisis, the risk management approach taken by global banks remains worryingly inadequate, according to a risk expert
BoE’s Cunliffe sees scope for deeper intervention for extreme CCP failures
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
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
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