In March 2009, the International Accounting Standards Board started an ambitious plan to make accounting for banks easier to understand. In no less than 97 pages, the IABS laid out its plan to reduce complexity in the reporting of financial instruments.* At the time, the IASB did the right thing. The standard in force was too complex.… Read More No battle plan survives first contact with the enemy
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… Read More Yay! EBA presents the 2015 EU-wide transparency exercise results
This week, the EBA issued its preliminary report on the monitoring of Additional Tier 1 (AT1) instruments of EU. It is a great document for outsiders to obtain a feel for what these instruments are like and how they behave in their regulated habitat. For example, an important critique pertains to the complexity of these… Read More The EBA’s laudable effort to tame Additional Tier 1 issuances
Same for the ECB data, the source data looks fancy, but here is one file with pivots and matching LEI-codes, so you can match with the EBA data.
Last week, the three European financial regulators warned financial institutions that they should tread carefully when it comes to marketing CoCos: capital securities that may convert or be written off when a bank gets into trouble. The warning may have been prompted by the failure of UK’s Co-operative bank or Dutch bank SNS. These failures bailed-in… Read More Caveat emptor? We should probably do more than tell banks how to sell CoCos.
Cetier is happy today, knowing that the three EU financial market regulators read his post on Convertible Capital (CoCo hurdles). They read it many times and concluded he was right. Or maybe they read the post on Matt Kimball’s site, or the post on Pieria. Whichever post they read, they all originated from my keyboard,… Read More Told you so! EU regulators warn against selling coco’s to retail investors.
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
From the FED’s web-site: “The Federal Reserve Board on Tuesday approved a final rule strengthening supervision and regulation of large U.S. bank holding companies and foreign banking organizations. The final rule establishes a number of enhanced prudential standards for large U.S. bank holding companies and foreign banking organizations to help increase the resiliency of their… Read More Federal Reserve Board approves final rule for foreign banks & large U.S. banks
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!