RBNZ decides on Kiwibank cocos – uh oh
No surprise here: the RBNZ decided to render two cocos ineligible for regulatory capital purposes. This is what Kiwibank reported yesterday. The holders of the instruments likely will keep their coupon, at the expense of…
Kiwibank puts its money where its mouth should be
Kiwibank’s capital cock-up took an unexpected turn this week when the bank made another extraordinary announcement. On Friday, the bank let us know that its parents will bail out the bank with an infusion of…
Free rider problems and tax bills? The Kiwibank capital cock-up
On 15 March, New Zealand Kiwibank issued two odd statements regarding their Basel III compliant (or is it compliant) capital instruments. The announcements raised the prospect of disqualification of two capital instruments: the Tier 2 convertible subordinated…
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…
Dutch Supervision Culture and Basel IV
This week we saw some evidence that may point to a rift between the Dutch finance minister Jeroen Dijsselbloem and the Dutch central bank (DNB). It has to do with Basel IV. This is an…
EBA lowers its bank data sharing ambitions – dramatically
The European Banking Authority (EBA) published today its detailed annual work programme for 2017, describing the specific activities and tasks of the Authority for the coming year, as well as a multiannual work programme, highlighting…
My contribution to the EBA Guidelines on disclosure requirements consultation
The European Banking Authority (EBA) launched a consultation on a set of Guidelines on regulatory disclosure requirements following an update of the Pillar 3 requirements by the Basel Committee in January 2015. These Guidelines are…
Questions on bank regulation: Area 51 on StackExchange.
Of course there is the EBA Single Rulebook, an important site that offers answers to questions on bank regulation. However, to me the site looks top-down and may offer only legal answers with sparse context. Hence my…
Are the EU bank capital shortfalls really that bad?
Shortly after the publication of the 2016 EBA stress test results, Viral Acharya, Diane Pierret, and Sascha Steffen (APS) presented a paper that identifies capital shortfalls that are significantly larger than EBA’s shortfall calculations reveal….
The EBA Stress Test Data in Handy Format
Please find here the EBA 2016 stress test data in a handy format that allows quick comparison with data of the 2015 Transparency exercise. This allows you to compare data from December 2014 to December…
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