08 Apr. The European Banking Authority (EBA) agreed to adopt a benchmark of Core Tier 1 (CT1) against which to assess banks in the 2011 EU-wide stress test. The CT1 benchmark will be set at 5% of risk weighted assets. This CT1 definition will be used solely for the purpose of the EU-wide stress test [...]
08 Apr. Europe’s banks are jostling to get to the front of the queue to raise extra capital. Italy’s UBI Banca tapped markets for €1 billion ($1.4 billion) at the end of March. This week Intesa Sanpaolo, the country’s second-largest bank, said it would raise €5 billion. Germany’s Commerzbank has also joined the rush, announcing [...]
04 Apr. US officials are split on how many financial institutions should be branded systemically important, say people familiar with inter-agency talks, amid desperate lobbying by non-bank financial groups to avoid the designation. The Federal Deposit Insurance Corporation is arguing for a broad approach, pulling in large hedge funds, insurers and asset managers, while the [...]
The Basel Committee issued the Basel III rules text, which presents the details of global regulatory standards on bank capital adequacy and liquidity agreed by the Governors and Heads of Supervision, and endorsed by the G20 Leaders at their November Seoul summit. The Committee also published the results of its comprehensive quantitative impact study (QIS). [...]
28 Dec. Global regulators are expected to reach an agreement that would make a select group of megabanks hold higher levels of capital. That requirement will make them safer, while removing some of the benefit they get from being big. But eliminating the taxpayer guarantee enjoyed by large lenders will require more fundamental measures, which [...]
13 Nov. The Group of 20 endorsed new rules Friday that would sharply increase the amount of shock-absorbing capital that banks must hold in reserve, but left open numerous details including how to deal with institutions whose failure could rock the whole financial system. Meeting in Seoul, the G-20 leaders endorsed the so-called Basel III [...]
23 Sep. New rules on how much rainy-day capital banks must keep in reserve are more rigorous than they first seem and create “a road to a much safer banking system,” the chairman of the panel that is writing the regulations said Wednesday, implicitly answering criticism that the proposals are too lax. The new rules [...]
13 Sep. The world’s top bank regulators agreed Sunday on far-reaching new rules intended to make the global banking industry safer and protect international economies from future financial disasters. The new requirements will more than triple the amount of capital that banks must hold in reserve, an effort to move banks toward more conservative positions [...]
The Financial Stability Board (FSB) and Basel Committee on Banking Supervision (BCBS) published reports prepared as inputs to the calibration of the new bank capital and liquidity standards and to inform the transition arrangements for implementation of the new standards. The two reports are An assessment of the long-term economic impact of stronger capital and [...]