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
Under the umbrella of the Single Rulebook, the European Banking Authority (EBA) launched the interactive Single Rulebook, an on-line tool designed to facilitate navigation through the single set of harmonised prudential rules in the EU banking sector. This is a neat initiative, as it combines presentation of the rules with the Q&A’s and the technical… Read More EBA publishes an interactive, comprehensive, version of EU bank regulation
What surprised me this week about the capital calculation cock-up of Bank of America Meryll Linch were the reactions of the press. The financial press responded to this gaffe by highlighting the difficulties of calculating capital. Reuters, for example wrote: “The announcement illustrates how difficult it is to determine appropriate capital levels for the biggest banks.” Capital… Read More Bank of America, nothing complex, it’s noblesse oblige!
The European Banking Authority (EBA) released today its methodology and macroeconomic scenarios for the 2014 EU-wide stress test. While the extensive process of banks’ balance sheet repair is already underway, the test, designed to assess banks’ resilience to hypothetical external shocks, will identify remaining vulnerabilities in the EU banking sector and will provide a high… Read More Jay! EBA publishes the 2014 EU-banks stress test methodology
With the new EU banks rules stacking up rapidly, the demand for road-maps on regulation increases. The EU offers a neat one: the overview and state of play of RTS relating to CRR / CRD IV. It shows that progress has been made. However, still Europe has plans for many new standards. Gleaning from the chart, the EC and… Read More EU publishes a neat overview of progress on technical standards for banks.
Both Basel and EBA published the mid-year 2013 Basel III monitoring results. The monitoring rounds show how banks are converging toward the Basel III end-state. EBA’s main findings show that the Common Equity Tier 1 capital ratio (CET1) of the largest internationally-active European banks (Group 1 banks) would be on average 9.1% compared to a ratio of 12%… Read More EBA and BCBS publish Basel III monitoring results
Without any comments from me yet. But yes, it is a rainy day, and this is probably worth spending some time on: the ECB public consultation on the draft ECB SSM Framework Regulation.
With no analysis from my own yet: The European Banking Authority (EBA) announced today the key components of the forthcoming 2014 EU-wide stress test that will be conducted on a wide sample of EU banks. The objective of the EU-wide stress tests is to help supervisors assess the resilience of financial institutions in the European… Read More EBA announces key features of the 2014 EU-wide Stress Test
My post “The Greatest Hoax on European Bank Capital Shortfalls ever?”, a pastiche on a similarly titled paper by researchers Viral Acharya and Sascha Steffen just appeared on Pieria. Capital shortfall papers, with such a wide range of results are a reason to worry about the correct definition of solvency, or the lack thereof.
The Ecofin statement from last Friday (November 15, 2013) is here.