EBA updates its Risk Dashboard
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…
ECB goes soft on capital requirement harmonisation
The ECB just published their plans to harmonise Options and Discretions in the CCR available to Euro-zone banks. Initially, the ECB set promising expectations. It had identified a whopping 160 Options and Discretions, many of…
Five years after the first Basel III coco issuance, the Netherlands “gets” CoCos.
Uh oh, Jeroen Dijsselbloem form the Netherlands got into rough water this week: Dutch newspaper NRC had a nice scoop that showed how he relied on ING word smiths for writing a tax rule that…
In defence of bank DTAs
Over the last weeks, the issue of bank Deferred Tax Assets (DTAs) came up again. What does not really help ending this story is the confusion on the subject of DTAs. Let me make a…
Greek Banks and Article 92 CRR
Silvia Merler published a great post on the solvency of Greek banks. Though she focuses on CET1 ratios, I just realised that Article 92 of the CRR requires this: 1. Subject to Articles 93 and…
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…
The EBA’s laudable effort to tame Additional Tier 1 issuances
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…
Homework for the upcoming week: EU bank capital rules.
With the EBA and the ECB announcing results of the stress test and the AQR next week, and with feeble banks shivering, you may consider setting aside a couple of hours this week to read…
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…
The market for hybrids is open for business!
BPCE (A2/A/A) announced a benchmark USD RegS/144A dated Tier 2 transaction with IPTs of UST+230bps area. HSBC Bank Plc (Aa3/AA-/AA-) is expected to issue its inaugural multi-currency AT1 transaction this week following a global investor…
Latest Comment