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 which were meant to be chopped. See this interview with a very confident Ignazio Angeloni some weeks ago. But the… Read More ECB goes soft on capital requirement harmonisation
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
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!
Basel III will enter into force in the U.S. and in Europe in about 10 weeks from now. That is soon, and I will argue that banks are still poorly prepared, in particular regarding important securities that count towards regulatory capital. Many banks conveniently look at the Basel III end-state, to be reached in 2019. BNP for… Read More Basel III – watch your step at the entry!
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