No surprise here: the RBNZ decided to render two cocos ineligible for regulatory capital purposes. This is what Kiwibank reported yesterday. The holders of the instruments likely will keep their coupon, at the expense of the cash flows accruing to Kiwibank. The reason for derecognising the instruments remains a bit of a puzzle: RBNZ “has […]
Category Archives: Basel III
Kiwibank’s capital cock-up took an unexpected turn this week when the bank made another extraordinary announcement. On Friday, the bank let us know that its parents will bail out the bank with an infusion of $247 million of common equity. Sheesh, I thought only Italy did bail-outs! Infusing equity capital is the last thing a […]
On 15 March, New Zealand Kiwibank issued two odd statements regarding their Basel III compliant (or is it compliant) capital instruments. The announcements raised the prospect of disqualification of two capital instruments: the Tier 2 convertible subordinated bond issued on 6 June 2014 (Tier 2 Bond); and the Additional Tier 1 perpetual bond issued on 27 May […]
The EBA just published the results of the 2016 transparency exercise. Yay! The EBA decided to deliver on its promise to present more detailed data of individual banks. (I hope the EBA now forgives me for posting a critical note on their bank disclosure plans earlier this year.) I toyed a bit with the data […]
This week we saw some evidence that may point to a rift between the Dutch finance minister Jeroen Dijsselbloem and the Dutch central bank (DNB). It has to do with Basel IV. This is an important regulatory push to harmonise bank supervision rules. About a year ago, the European Commission and European Bank supervisors started a […]
The European Banking Authority (EBA) published today its detailed annual work programme for 2017, describing the specific activities and tasks of the Authority for the coming year, as well as a multiannual work programme, highlighting the key strategic areas of work in the coming years (from 2017 to 2020). As a researcher, I am interested […]
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 […]
