The European Banking Authority (EBA) launched a consultation on a set of Guidelines on regulatory disclosure requirements following an update of the Pillar 3 requirements by the Basel Committee in January 2015. These Guidelines are part of the EBA’s work to improve and enhance the consistency and comparability of institutions’ disclosures and aim to ensure […]
Of course there is the EBA Single Rulebook, an important site that offers answers to questions on bank regulation. However, to me the site looks top-down and may offer only legal answers with sparse context. Hence my initiative to start a more interactive site on bank regulation. One that can offer context where regulators cannot offer that. […]
Shortly after the publication of the 2016 EBA stress test results, Viral Acharya, Diane Pierret, and Sascha Steffen (APS) presented a paper that identifies capital shortfalls that are significantly larger than EBA’s shortfall calculations reveal. Reuters quickly picked up the highlight of the paper: “Using the Fed’s approach, the 51 European banks showed a total […]
Please find here the EBA 2016 stress test data in a handy format that allows quick comparison with data of the 2015 Transparency exercise. This allows you to compare data from December 2014 to December 2015. I stuck to only the data from the “Other” template, but it does cover all scenarios. I replaced variable […]
With the EBA stress test out soon, here is a file that presents the “Other Templates.csv” sheet from last year’s EBA transparenc exercise in a neat Stata (version 12) file. Click here for the Stata file. Time and data permitting I will convert similar data form the stress test asap in one file so that […]
This week, Neel Kashkari, President of the Federal Reserve Bank of Minneapolis, updated us on his Ending Too Big to Fail (TBTF) initiative. Update or U-turn? The update is remarkable. Neel has dramatically lowered his ambitions. I now really wonder if Neel will push ahead. Neel’s first speech on ending TBTF, given on February 16, considers […]
This week, the EBA and BCBS published the Basel III monitoring results. They show a further improvement of European banks’ capital positions, largely fulfilling the future regulatory capital requirements, with only a very small number of banks suffering from potential capital shortfalls. I found Figure 9 of the EBA report interesting. It shows the evolution […]
The European Banking Authority (EBA) published today the periodical update to its Risk Dashboard summarizing the main risks and vulnerabilities in the banking sector on the basis of the evolution of a set of Risk Indicators (RI) across the EU. You really have to critically analyse this report, as it contains mixed messages on the capitalization […]
Deutsche bank intends to buy back a significant amount of debt, according to the FT. Interestingly, I wrote about these buybacks in a paper with Annelies Renders of Maastricht university. These buyback transactions are generally disappointing. The idea is to generate CET1 capital, but this goes at the expense of liquidity and solvency, thus not contributing […]
It spooked the markets for good reasons, but the leaked EC document on the merger of TLAC and MREL did not receive the attention that it deserves. Yes, Reuters reported on the leaked Information Note from the Commission Services for the European Commission Expert Group on Banking, Payments and Insurance. However I am not sure […]
