This post may be purely speculative. However, I noticed two important figureheads of EU bank supervision (Sabine Lautenschläger and Danièle Nouy) went public on two, apparently separate, issues. However, combined, they may show how EU bank supervision may develop. In the FT of February 24, Nouy showed a dramatic, but surely sensible, U-turn on the… Read More How Sabine and Danièle coordinate
This week, the government of the Netherlands will decide about floating ABN Amro. This after a perilous and turbulent recent past. Apparently, the float will be compromised: a management-friendly foundation will be the new owner. That foundation then will issue certificates to investors. This protects ABN Amro against a hostile take-over. The structure raises two… Read More ABN AMRO, direct issuance, and CRD IV
Last November, the Financial Stability Board (FSB) presented its consultation document on Total Loss Absorbency Capacity (TLAC). The document is a response to the request of G20 leaders to enhance the loss-absorbing capacity of global systemically important banks (G-SIBs) in resolution. It presents a term-sheet with requirements for TLAC. The document looks heavy-handed because of… Read More Good, bad, and ugly questions about TLAC
Here’s the document.
Perhaps responding to Bill English, (“No asset price can go up at over 10 per cent a year forever, sometime it’ll stop”) the New Zealand Reserve Bank decided to consult on a new asset class treatment for mortgage loans to residential property investors within its capital adequacy requirements. Be prepared From a financial stability point… Read More New Zealand Reserve Bank consults on regulating buy-to-let
Leafing through the BCBS Basel III monitoring report, I noticed this graph on page 21. It shows the interaction between the Basel III Tier 1 leverage ratio (horizontal axis) and the Tier 1 risk-weighted capital ratio (vertical axis). Ratios of Group 1 banks are marked with red dots and those of Group 2 banks with… Read More An intriguing graph in the BCBS Basel III monitoring report
The EBA and the Basel committee just published the Basel III monitoring results. Click here to view the results of the EBA monitoring exercise. Click here to view the results of the BCBS monitoring exercise. Best is to describe the results using graphs, in this case from the EBA report. Note, these are results of… Read More Jay, the EBA and BCBS Basel III monitoring results are out