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… Read More EBA publishes leverage ratio disclosure templates

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… Read More Do Regulatory Bank Capital Adjustments actually work?

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