The European Central Bank (ECB) published a detailed manual providing guidelines for authorities and their third-party supporters in carrying out on-site inspection aimed at checking the quality of the biggest banks’ assets in the bloc. Click here for the manual. Or here if the first link does not work. Click here for the Comprehensive Assessment… Read More Jay! The ECB’s AQR manual is out
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 comments from my side yet: see here ECB’s note on the comprehensive assessment.
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.
Adding to my backlog of actions to comment on, EBA parcels out one interesting feature after the other. It just posted the results of the EU-wide transparency exercise. It provides updated information on the European banks that were part of the recapitalisation exercise in 2012. The information covers data on banks’ composition of capital, composition… Read More Even better: EBA presents its EU-wide Transparency Exercise Results
The Ecofin statement from last Friday (November 15, 2013) is here.
While I digest, here is the pdf. A daunting task for sure, however, I really wonder … will 8% be sufficient to sort the men from the boys? We shall see next year. “Capital thresholds will be set as a benchmark for the outcomes of the exercise. The capital benchmark will be set at 8%… Read More Jay: the ECB comprehensive assessment is out!
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
I updated this post, as discussions on the leverage ratio still suffer from a poor understanding of this solvency measure. See my post on this odd proposal by three Dutch professors, who basically want to turn back time to the Basel II (not III) era, and allow banks to borrow money to increase their capital… Read More Leverage Ratio Eye-openers, updated