FYI some documentation on the Leverage Ratio for EU banks

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… Read More FYI some documentation on the Leverage Ratio for EU banks

The European Commission consults on CRR and CRD IV and on bank financing

Just before the summer break, the EC published a consultation on the effects of higher bank capital requirements under the CRR. Time to pay back! This is an important consultation, as generally only interested parties (banks) contribute. Unfortunately, in particular academics stay away from these consultations. This is depressing. Given that European academics seldom work for private… Read More The European Commission consults on CRR and CRD IV and on bank financing

Bank capital on track

Today both the EBA and the Basel committee published their Basel III monitoring reports. These reports measure the progress banks make regarding the implementation of the new bank capital rules.   The results look encouraging, banks have added capital since the April 2009 G20, shortfalls are lower than before, and not near the voodoo stories… Read More Bank capital on track