Sovereign Holdings by EU Banks

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 […]

EBA’s ongoing struggle with bank disclosures

Will EBA will ever get it right when it comes to banks disclosures? After last week’s publication of proposed disclosure guidelines for banks, I am afraid that European bank disclosures will remain the wallflower of bank regulation … for some time at least. In the year of the AQR and the stress test, one would expect the […]

EBA publishes leverage ratio disclosure templates

The European Banking Authority published its final draft Implementing Technical Standards (ITS) on disclosure for the leverage ratio. These draft ITS include all the items that are relevant for leverage ratio disclosure under EU bank rules, in line with the Basel disclosure framework. The disclosure framework offers four templates: a template reconciling the figures of the […]

Do Regulatory Bank Capital Adjustments actually work?

This recent social science research network paper (A primer on regulatory bank capital adjustments) examines regulatory adjustments. These are adjustments that banks apply to book equity to calculate Tier 1 regulatory capital. The paper, relying on U.S. data, documents a decreasing relation between regulatory adjustments and bank solvency. Specifically, low solvency banks benefit from regulatory […]

Jay, EBA publishes report on bank transparency

The European Banking Authority (EBA) published today a follow-up disclosure review for by 19 European banks. This is a Pillar 3 requirement, set out in the EU Capital Requirements Directive (CRD II). Even with the extensive Basel III disclosure requirements ahead, EBA notices that there is still room for improvement. In fact, there was no […]

Who’s (not) afraid of the Basel III disclosure requirements?

The answer is: Australia’s  Commonwealth bank. As I will demonstrate, this bank is unique in going the extra mile. It  shows that the Basel III disclosure requirements are not something to be afraid of. In fact, they are doable. But first, this entry explains the Basel III disclosure requirements. Though they are part and parcel […]