Capital ratios
Stress-test results reinforce need for capital review – RBNZ
Under very severe scenario, banks need significant capital injections
ECB changes largest eurozone banks’ leverage ratios
Latest emergency response to Covid-19 should raise banks’ leverage ratios by about 0.3%, ECB says
Malta’s banking sector should withstand pandemic – central bank
Central bank says some lenders may struggle, but results of stress tests show most banks are secure
Stress test results affect consumer credit – Philadelphia Fed paper
Banks reduce credit supply after worse-than-expected stress test results, researchers find
BoE runs ‘reverse stress test’ to prepare for renewed Covid crisis
Banks may have to take drastic “defensive actions” if UK suffers another major shock, BoE says
Fed paper looks at effects of negative rates on banks
Banks with large holdings of liquid assets could be hurt by negative rates, researcher says
Flight to safety was not enough to fund credit line draws – Fed research
Many banks had to turn to non-deposit forms of borrowing, researchers find
Bank of Jamaica weighs up CCyB
Central bank outlines proposals to tackle “excessive pro-cyclicality”
Fed caps dividends after stress tests show big potential losses
Brainard says decision not enough as tests show loan losses could exceed those during financial crisis
Fears rise over breakdown in Basel and IFRS standards
Bretton Woods institutions worried about growing divergence in capital and accounting standards as credit impairment tsunami looms; US and many emerging economies skirting the rules
US banks should prepare for uneven recovery – Patrick Harker
Banks “shouldn’t be issuing large dividends at the moment”, Philadelphia Fed chief says
Fed eases capital restriction on large US banks
US repo rates stray into negative territory as investors make massive flight to safety
New Zealand banks agree dividend suspension with RBNZ
Central bank launches new funding facility and asks banks to stop redeeming non-CET1 instruments
Accounting for losses during a pandemic
US banks get green light from senators to use loan loss accounting methods widely criticised following 2008 crisis
Sarb consults on Covid-19 regulatory easing
Central bank mulls lowering Pillar 2A capital requirements
RBNZ lowers banks’ core funding ratios
Central bank reduces ratio to 50% to support government’s crisis lending scheme
The dawn of a safer and sounder European banking sector
Implementation of two pillars of banking union has led to significant improvements in the safety and soundness of the European banking system
RBNZ delays new capital rules
Central bank defers start date until 2021 and slows down other regulatory reviews
Fed unveils new capital regime to criticism from Brainard
Federal Reserve says new rules will maintain capital levels, but senior official calls them “imprudent”
Stress test capital buffer ‘on track’ for 2020 testing – Powell
Plans were floated nearly 22 months ago, but Fed yet to offer final rule
ECB monetary policy was weakened by regulation – Bundesbank paper
Tighter regulation reduced lending by weakly-capitalised banks from 2008 to 2018 – researchers
ECB reveals large banks’ individual capital requirements
Enria warns banks to improve profitability, saying “challenging environment” will not change soon
Brookings paper examines impact of governance structures on use of CCyBs
Countries with strong governance mechanisms are more likely to use the macro-prudential tool, researchers find
EBA’s Campa: reduce Pillar 2 charges to offset output floor
Bankers plead for smaller capital hit and more predictability on implementation of Basel III