Banks
SEC chief sees potential in UK’s senior managers regime
Mary Jo White says she is ‘very interested’ in the UK's accountability regime, as part of a panel discussing the many pitfalls in changing bank culture; Martin Wheatley warns reform could take 10 years
CCP wrangling sparks new frontloading fears
Dealers fear trades could be booked at central counterparties they are not able to use
Irish banks have returned to profitability but still need repairs, report finds
Central Bank of Ireland’s macro-financial review notes improvements in the banking sector, but high levels of non-performing loans are holding them back
Bank of England's Rule says reigniting securitisation market will take time
Executive director cautions against rushing to restart securitisation market, as a return to pre-crisis ‘fragile’ market would be counterproductive
Basel Committee lays out two tracks for banking book capital requirements
Consultation offers standardised option for greater transparency and comparability or tailored option to better account for regional characteristics – or a hybrid of the two
Riksbank calls for ‘urgent' clarification of FSA’s powers
Financial stability report says FSA needs clearer powers to cope with rising risks in the financial system; wants major banks to strengthen capital and liquidity positions
Outlook brightens for eurozone SME financing, ECB reports
Report shows access to financing improved over the most recent period surveyed, but the very smallest firms are still struggling and outcomes are diverse across countries
Banks are de-risking due to lack of regulatory direction
Banks are struggling to balance growing compliance costs with the need for a risk-based approach to individual client accounts. Regulatory guidance isn’t helping, a London conference hears
FCA’s Wheatley highlights complexity of banking cultural reform
As banks are hit with yet more record-breaking fines, the head of the UK’s financial watchdog argues they are trying to change their ways, but the job is not a straightforward one
ECB paper highlights stability and growth benefits of market-based finance
Researchers suggest high bank leverage may be amplifying booms and busts, damaging both financial stability and economic growth, with one solution being more market-based finance
Banks find huge capital jump in study of new standardised approach to market risk
Impact study shows five-times increase under revised standardised approach to market risk
FSB peer review: home-host divide still looming large
Despite progress on supervising systemically important banks, relationships between supervisors across borders are still lukewarm
BoE outlines capital markets union proposals
Central bank sets out policy recommendations designed to deliver better functioning capital markets in Europe; argues institutional change, such as greater centralisation, is not necessary
Bundesbank paper finds misbehaving banks increase volatility
Model of imperfect information shows output becomes more volatile when depositors cannot fully hold bankers to account
RBA paper builds new model of banks’ credit losses
Model draws on new dataset and focuses on interactions between portfolio-level and macro variables in attempt to explain historical bank credit losses in Australia
‘Climate of greater optimism’ prevails in Spain
Financial stability report identifies many signs the economy has turned a corner and financial markets are beginning to recover, although credit to the private sector continues to fall
EU risks have intensified, supervisory authorities warn
Risks have worsened since mid-2014, European supervisory authorities say; report recommends including costs arising from misconduct sanctions in future stress tests
Stevens cautious on bail-in efficacy
Reserve Bank of Australia governor says bail-in is subject to a ‘host’ of complexities that could mean it goes less smoothly in practice than regulators would like to believe
Cross-border claims end upward rise, BIS data shows
Latest international banking statistics show global cross-border claims in slight decline after three consecutive quarters on the rise; claims on non-banks rise strongly however
Fed’s Claessens challenges banking Balkanisation theories
Theories emphasising the collapse in cross-border credit since the financial crisis fail to capture a ‘secular trend’ towards emerging markets, says Fed senior adviser
Economists split on reality of cross-border co-operation
Panelists at an event in London see continued obstacles to countries working together effectively during a crisis, although regional co-operation could be a partial solution
Former Bulgarian deputy charged with ‘abuse of office’
Rumen Simeonov accused by prosecutor of not taking action on failed Corporate Commercial Bank despite knowing the institution was in trouble
Balkanisation of bank lending has made recipient countries safer, says IMF
Analytical chapter from upcoming financial stability report highlights benefits of reduction in certain cross-border credit flows
BoE stress tests to gauge deflation impact
Stress-test scenario revamped for 2015 to take account of the effects of falling prices on the banking system, while adding a leverage ratio threshold and greater focus on global risks