Regulation
ECB changes largest eurozone banks’ leverage ratios
Latest emergency response to Covid-19 should raise banks’ leverage ratios by about 0.3%, ECB says
Bank investors still don’t think bail-in will happen, FSB told
Questions over bailing in bank bondholders mean problem of too big to fail persists, experts warn
Knot warns deviations from global standards must be temporary
“If the US starts distancing itself from international standards, that is quite something,” says Dutch central bank chief
Experiment finds bonus caps can reduce risk-taking
BoE paper says bonus caps can work, in contrast to earlier work
UK’s ‘Big Four’ told to separate audit practices
Major shake-up of accounting firms comes in wake of the Wirecard scandal
FSB flags ‘gaps’ in too-big-to-fail reforms
Report highlights evidence reforms are working, but resolution remains imperfect and data limited
ECB to integrate climate risks into supervision
Climate change pushing banks to adapt risk management, disclosure, governance and business strategies
BIS paper flags ‘barren patches’ in post-crisis reforms
Reforms have boosted “shock-absorbing capacity” but some problems persist, authors say
Basel III reforms pushed back to buy time for coronavirus response
Basel Committee chief says banks and supervisors need operational capacity to cope with virus shock
PBoC takes on regulation of key financial infrastructure
Chinese central bank to take bigger role in regulation as China seeks to improve financial infrastructure
Basel III implementation creating fragmentation, warns FSI paper
Authors say some variation is good, but more could be done to cut fragmentation
Watch out for Brexit cliff edge 2.0, experts warn
Measures to mitigate a sharp rupture for financial services could be less likely at end-2020
Brainard lending proposal gets boost in Congressional hearing
Participants applaud Fed proposal, while strongly criticising plan by OCC’s Otting
Fed’s Brainard criticises other US regulators over lending proposals
Fed governor warns proposed reforms from FDIC and OCC could harm poorer areas
EU central bankers urge UK to stay close on regulation
Klaas Knot and Luis de Guindos warn UK could lose out, but Mark Carney says UK needs autonomy
Risk weight tweak could fix IFRS 9 capital clash – research
Practitioner suggests way to cancel out double-counting of Basel credit loss provisions
BoE and FCA move to tackle systemic risks in open-ended funds
Mark Carney says issues are “increasingly appreciated” in global discussions
‘Consolidated’ Basel framework finalised
New version is somewhat simpler and easier to navigate, Basel Committee says
Basel Committee proposes illustrative prudential framework for crypto assets
Holdings of crypto assets would be split between banking book and trading book
RBNZ to impose 18% capital ratio on big banks
Central bank finalises plans for substantial increase in minimum capital requirements
‘More effort’ needed to protect financial stability – RBNZ’s Orr
Central bank determined to raise capital requirements and improve behaviour in finance
BoE hits Citi with fine over reporting failures
Penalty marks first time PRA has sanctioned a systemic firm for regulatory reporting breaches
FSB’s G-Sib list increases by one
One joins the list and one major bank drops to a lower bucket
FSB warns gaps remain in resolution frameworks
Issues remain for central counterparties, global banks and insurers, report finds