On the Comprehensive Assement List: RBS N.V.

RBS N.V. features on the list of designated banks for the Comprehensive Assessment (CA). See the ECB CA document here. Though the name suggests Scottish origins, RBS N.V. is incorporated in the Netherlands; thus subject to direct Dutch supervision (and indirectly subjected to UK supervision via the Bank of England, which supervises RBS Group, the […]

Jay: the ECB comprehensive assessment is out!

While I digest, here is the pdf. A daunting task for sure, however, I really wonder … will 8% be sufficient to sort the men from the boys? We shall see next year. “Capital thresholds will be set as a benchmark for the outcomes of the exercise. The capital benchmark will be set at 8% […]

Brief comment on my post: EBA publishes standards on NPL, etc

Apparently EBA chose a relatively friendly route here, as it offers banks to report NPL and forbearance via FINREP, a reporting tool that is close to financial reporting. Bank also will have to report via COREP, and COREP determines the solvency calculations of banks directly. Here is EBA’s justification for not tampering with the solvency […]

Jay! EBA publishes standards on NPL, Forbearance, and AQR

The European Banking Authority (EBA) released today its final technical standards on supervisory reporting on Non-Performing Exposures and Forbearance, which will provide consistent indicators of asset quality of banks across the European Union. The EBA also issued recommendations on asset quality reviews (AQRs) aimed at supporting existing and/or planned reviews across the EU. See link […]

Basel III – watch your step at the entry!

Basel III will enter into force in the U.S. and in Europe in about 10 weeks from now. That is soon, and I will argue that banks are still poorly prepared, in particular regarding important securities that count towards regulatory capital. Many banks conveniently look at the Basel III end-state, to be reached in 2019. BNP for […]

Please bear with me

Just to let you know that I’m working on an academic paper on regulatory deductions from bank capital. How they don’t really work. May post it later this month. In the meanwhile also working on a new blog post on Basel III grandfathering rules (and the success of EBA), expect this Sunday.