EC Public Hearing on the leverage ratio, March 10

For those interested in bank leverage, the European Commission announced a Public Hearing on liquidity coverage requirement and the leverage ratio. The EC “will be hosting a public hearing on 10th March 2014 on the delegated acts on liquidity coverage requirement and leverage ratio under Regulation (EU) No 575/2013 (the CRR). The hearing will be open to representatives […]

Federal Reserve Board approves final rule for foreign banks & large U.S. banks

From the FED’s web-site: “The Federal Reserve Board on Tuesday approved a final rule strengthening supervision and regulation of large U.S. bank holding companies and foreign banking organizations. The final rule establishes a number of enhanced prudential standards for large U.S. bank holding companies and foreign banking organizations to help increase the resiliency of their […]

Paul Pfleiderer on Chameleon Models and the misuse of theory in finance research

On a lighter side, this presentation is really worth a read: Paul Pfleiderer demonstrates the weaknesses of some established bank finance papers, click here for an informative and entertaining read.

If deleveraging were to be obvious, then why do banks resist?

This is not a post that intends to empathize with banks. However, it responds to recent comments after the publication of the Basel III leverage ratio rules. Most of us agree that banks should be less levered, but this is not happening at a fast pace. This begs the question: if deleveraging were to be […]

EBA announces key features of the 2014 EU-wide Stress Test

With no analysis from my own yet: The European Banking Authority (EBA) announced today the key components of the forthcoming 2014 EU-wide stress test that will be conducted on a wide sample of EU banks. The objective of the EU-wide stress tests is to help supervisors assess the resilience of financial institutions in the European […]