BOE reveals tough stance on CRD IV rules for holdings in banks and insurers

This week the BOE published a consultation paper on changes to its rules regarding EU’s CRD IV. In it the BOE fills in any blanks left by the CRD IV. Clearly noticeable is BOE’s stance on a bank’s holdings in other banks and insurers. It’s tough! Where some continental supervisors support the arcane bank-assurance model, BOE… Read More BOE reveals tough stance on CRD IV rules for holdings in banks and insurers

Spot the differences: Tier 1 versus Equity for U.S. Bank Holding Companies

I embarked on a nice research result that may feed into the Basel discussion on the risk-based solvency framework (clik here for the DP). One would think that Tier 1 capital serves a solvency purpose, and therefore it would present a more conservative picture of a bank’s solvency. For U.S. Bank Holding Companies over 2001-2012,… Read More Spot the differences: Tier 1 versus Equity for U.S. Bank Holding Companies

EBA leans against Basel III in excluding unrealized gains from Regulatory Capital

EBA yesterday published a Discussion Paper (DP) on the exclusion of unrealized gains from regulatory capital. As an advice to the European Commission it basically supports  the current European system of prudential filters – that is, only the unrealized gains part (banks will have to include unrealized losses into capital). EBA’s departure from Basel III… Read More EBA leans against Basel III in excluding unrealized gains from Regulatory Capital

ESA’s tough final Regulatory Standards on conglomerate capital are out.

This is complicated material. But … looking at Article 9 of this standard, the bar for recognition of supplementary capital looks high. Even though it applies after the entry into force of Regulation (EU) No 575/2013 (CRR) and only when both CRR and Solvency (2009/138/EC) apply. The requirements are stacked up high! Article 9 says basically this:  a solvency… Read More ESA’s tough final Regulatory Standards on conglomerate capital are out.

Jay! EBA publishes first final draft technical standards on own funds.

The EBA published the first final draft technical standards on own funds. Its actually a bundle that complements CRR IV, the new European regulation on capital. Haven’t had the time to digest fthe final versions, but there are four pieces, according to the EBA website: The RTS on own funds part I specify elements of… Read More Jay! EBA publishes first final draft technical standards on own funds.