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

UPDATE: The EBA’s laudable effort to tame Additional Tier 1 issuances

Today, the EBA held a public hearing on the 4 May report on AT1 issuances, see my previous post on this. Click here for the PowerPoint that the EBA prepared. Apparently no surprises. On the hot topic of Contingent Clauses, the EBA reports that it “confirms its previous reserves, and recommends disallowing contingent clauses”. A… Read More UPDATE: The EBA’s laudable effort to tame Additional Tier 1 issuances

Basel’s damning report about EU’s definition of bank capital

Here is the Basel III RCAP report. On first sight, it looks bad: “In view of this, the prudential regulatory framework in the EU and the nine Member States was evaluated to be materially non-compliant with the minimum standards prescribed under the Basel framework.” However, how bad is it? Having skimmed trough the report with… Read More Basel’s damning report about EU’s definition of bank capital

The Italian DTAs

Today the Wall Street Journal reported on an alleged loophole in EU bank capital rules. The loophole pertains to deferred tax assets (DTAs), a regulatory area where tax rules and accounting rules meet. Apparently some countries exploit a DTA loophole: Italy, Spain, Portugal and Greece. Uh oh, these countries, the usual suspects. There is something really wrong here.… Read More The Italian DTAs