And BOE follows with details of UK stress test

Shortly after EBA, the  BOE published its own stress test definition. From the announcement: “A key threshold for the UK variant test will be set at 4.5% of Risk Weighted Assets (RWAs), to be met with Common Equity Tier 1 (CET1) capital in the stress – using a CRD IV end-point definition of CET1 in line […]

Jay! EBA publishes the 2014 EU-banks stress test methodology

The European Banking Authority (EBA) released today its methodology and macroeconomic scenarios for the 2014 EU-wide stress test. While the extensive process of banks’ balance sheet repair is already underway, the test, designed to assess banks’ resilience to hypothetical external shocks, will identify remaining vulnerabilities in the EU banking sector and will provide a high […]

Tight new rules for EU conglomerate solvency calculations are official

Following on from an earlier post on conglomerate capital rules, the EU now made the conglomerate rules official. This is EU’s answer to criticism on its watered down implementation of Basel III. But it may never become clear why the EU uses conglomerate rules to compensate for weaknesses in bank rules. It looks like a costly […]

Great! Agencies Adopt Enhanced Supplementary Leverage Ratio Final Rule

… and Issue Supplementary Leverage Ratio Notice of Proposed Rulemaking. Without further comments of my own, this of course is pleasant from a prudential point of view. The FDIC announcement: “The Federal Reserve Board, the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC) on Tuesday adopted a final rule […]