Capital requirements
ECB cuts top banks’ required capital by over €350bn
Capital conservation requirement and Pillar 2 guidance amounts relaxed, countercyclical capital buffers encouraged to fall
Countercyclical buffer relief to save top UK banks £7bn in capital
BoE expects £190 billion of lending to be supported by CCyB cut
The open data revolution in banking falls short
Lax Pillar 3 rules are leading to inconsistent data being collected
EU banks face near €18bn capital shortfall through output floor
Twenty-one out of 51 banking groups surveyed would be constrained by the output floor
Splits emerge over EBA’s stress test 2.0
Experts question utility of separate bank leg that won’t feed into capital requirements
Over two years, top US banks’ capital fell 5%
Stress capital buffer could reduce CET1 a further $40 billion
Barclays used securitisations as credit risk shield in 2019
Risk-weighted assets for these exposures increased 44%
Citi shed over $32bn of counterparty exposures in Q4
Risk-weighted assets for CCR exposures dropped -12%
Top 10 op risks 2020: theft and fraud
From mega loan fraud to canteen theft, the danger is ever present
Top 10 op risks 2020: conduct risk
Root-and-branch reform of bank culture remains a work in progress
Low risk assets pile up at systemic US banks
Sub-100% risk-weighted assets increased by $157.9 billion
UK bank market RWAs ebbed in 2019
HSBC shed $5.9 billion of market RWAs in 2019
Fund securitisation makes capital vanish – and watchdog growl
Probe into possible “abuses” of CFO structure could hit wider investments, experts say
TD Bank’s US unit incurred eight VAR breaches in 2019
Number of backtesting exceptions pushed the bank’s VAR capital multiplier to 3.75
Capital buffers edge lower at systemic US banks in 2019
CET1 excess above institution-specific amounts slid 228bp at median G-Sib
New Mifid equivalence rules leave UK firms in limbo
Revised market access rules won’t kick in until six months after UK leaves single market
EU banks rue SA-CCR mismatch with US
European clearers are stuck with CEM until 2021, but some US banks are reluctant to switch early
Systemic EU banks’ bail-in requirements vary
One G-Sib resolution group has an MREL requirement of 32.8% of RWAs
Tax windfall at Crédit Agricole to fund capital shake-up
Relief for Emporiki sale bolstered CET1 capital ratio +40bp
RBS takes axe to NatWest Markets
Bank plans to slim trading operation to 10% of total RWAs
Fed could postpone stress buffer beyond CCAR – experts
Delays prompt speculation that new rules will only be known after stress-test results in June
Op RWAs tumble €3bn at Commerzbank in Q4
Op risk capital requirement the lowest for at least nine years
Credit Suisse may slip leverage capital bind
Swiss bank has risk density of 32%
Barclays to shrink capital buffer
Bank targets excess capital over regulatory minimum of 100 basis points by year-end