A bank capital proposal that hardly bites

Last Saturday, Professors Benink (Tilburg), Sanders (Utrecht), and Kool (Utrecht) of the Sustainable Finance Lab (a research outfit initiated by former Rabobank board of directors chair Herman Wijffels) presented a proposal for strengthening capital for banks in the Netherlands. The professors respond to the 4% leverage ratio proposal of the Dutch government. Instead of 4%,… Read More A bank capital proposal that hardly bites

Brief comment on my post: EBA publishes standards on NPL, etc

Apparently EBA chose a relatively friendly route here, as it offers banks to report NPL and forbearance via FINREP, a reporting tool that is close to financial reporting. Bank also will have to report via COREP, and COREP determines the solvency calculations of banks directly. Here is EBA’s justification for not tampering with the solvency… Read More Brief comment on my post: EBA publishes standards on NPL, etc

Basel III monitoring results published by the Basel Committee

And a quick follow-up from Basel on capital shortfalls. (Click here for the report.) From the press release: “Data as of 31 December 2012 show that shortfalls in the risk-based capital of large internationally active banks continue to shrink. The aggregate shortfall of Common Equity Tier 1 (CET1) capital with respect to the 4.5% minimum… Read More Basel III monitoring results published by the Basel Committee

EBA publishes results of the Basel III monitoring exercise as of end 2012

Just a quicky – from EBA: it publishes today its fourth report of the Basel III monitoring exercise on the European banking system. Click here for the full report. “The exercise monitors the impact of the implementation of the Basel III requirements in the EU, based on the assumption of a full implementation of the… Read More EBA publishes results of the Basel III monitoring exercise as of end 2012

Are deductions from bank capital always deductions?

This week Bloomberg’s Charles Penty and Angeline Benoit reported on Banco de España’s efforts to apply a waiver for capital deductions originating from Deferred Tax assets. Now, discussions on deductions from regulatory capital are often passionate – they consume lots of resources. This post argues that elaborate and detailed discussions on capital deductions are probably… Read More Are deductions from bank capital always deductions?