With the EBA stress test out soon, here is a file that presents the “Other Templates.csv” sheet from last year’s EBA transparenc exercise in a neat Stata (version 12) file. Click here for the Stata file. Time and data permitting I will convert similar data form the stress test asap in one file so that […]
This week, Neel Kashkari, President of the Federal Reserve Bank of Minneapolis, updated us on his Ending Too Big to Fail (TBTF) initiative. Update or U-turn? The update is remarkable. Neel has dramatically lowered his ambitions. I now really wonder if Neel will push ahead. Neel’s first speech on ending TBTF, given on February 16, considers […]
This week, the EBA and BCBS published the Basel III monitoring results. They show a further improvement of European banks’ capital positions, largely fulfilling the future regulatory capital requirements, with only a very small number of banks suffering from potential capital shortfalls. I found Figure 9 of the EBA report interesting. It shows the evolution […]
The European Banking Authority (EBA) published today the periodical update to its Risk Dashboard summarizing the main risks and vulnerabilities in the banking sector on the basis of the evolution of a set of Risk Indicators (RI) across the EU. You really have to critically analyse this report, as it contains mixed messages on the capitalization […]
Deutsche bank intends to buy back a significant amount of debt, according to the FT. Interestingly, I wrote about these buybacks in a paper with Annelies Renders of Maastricht university. These buyback transactions are generally disappointing. The idea is to generate CET1 capital, but this goes at the expense of liquidity and solvency, thus not contributing […]
It spooked the markets for good reasons, but the leaked EC document on the merger of TLAC and MREL did not receive the attention that it deserves. Yes, Reuters reported on the leaked Information Note from the Commission Services for the European Commission Expert Group on Banking, Payments and Insurance. However I am not sure […]
Following up on an earlier post, the EC now published the answers on its consultation on long term finance. Thought the topic is hot, only 87 responses were submitted*, of which only two by academics. One by Martin Hellwig, the other by Martien Lubberink. The low public participation by academics is depressing, given that they called […]
My post on EU leverage ratios yesterday attracted some comments on twitter, which may haven been triggered by misunderstandings. The CRR offers a short and clear summary of the Leverage Ratio definition in Article 429.1: “The leverage ratio shall be calculated as an institution’s capital measure divided by that institution’s total exposure measure and shall […]
The EBA transparency exercise results offer a wealth of data. They will keep researchers busy for some months to come. The table below shows a couple of highlights, where all numbers are in %, and the data is sorted on 2015 Leverage ratio values: CET1 and Leverage Ratios are increasing. This is encouraging for sure. […]
Today, the EBA presented the 2015 EU-wide transparency exercise results. I am reading the data, which shows improvements in the resilience of the EU banking sector, covers around 70% of total EU banking assets for the reference dates of 31 December 2014 and 30 June 2015. (Some banks have not even published their capital positions […]
