Credit Risk
Climate risks narrowly concentrated among EU banks, report finds
Only 25 EU banks bear most exposure to physical risks of climate change, ECB-ESRB report says
Technology can support comprehensive credit risk management – panellists
The expansion of balance sheets since the crisis has created new challenges for central banks
Public debt in low-income countries rising to risky levels – IMF
The fund recommends official creditors co-ordinate their response to debt crises
IMF explores ways to reform US mortgage finance
The research questions whether the US model of homeownership through government-backed fixed rate mortgages is sustainable in an increasingly unequal society
Argentina expands collateral for farmers
The central bank aims to expand credit for the key agricultural sector
Assessing credit risk post-crisis at a central bank
Eric Wolfe explains how the Bank of Canada has developed its own credit assessment processes to avoid mechanistic reliance on credit rating agencies.
NALM Americas 2013: Central banks should take more credit risk, says Flar CRO
An allocation to investment-grade corporate bonds could increase diversification and provide a cushion against rising interest rates, says Latin American Reserves Fund CRO
Central Bank of Barbados challenges rating downgrade
S&P lowers Barbados’s sovereign credit rating triggering angry response from central bank; says it is ‘manifestly’ not the case that debt risk has increased
ECB relaxes collateral eligibility rules
Broader range of lower quality assets now acceptable under ECB collateral rules; move should help Spanish banks after results of stress test reveal a potential €62 billion capital shortfall
New CRD IV draft exempts sovereign trades from CVA capital charge
The latest council draft adds a CVA capital charge exemption for sovereign derivatives transactions – potentially removing one of the big unintended consequences of CRD IV, participants say
BIS working paper studies collateral requirements
Research estimates collateral requirements for mandatory central clearing of over-the-counter derivatives; finds major dealers already have ample assets to meet initial margin requirements
Moody’s alters sovereign debt ratings of nine EU countries
Austria, France and the UK see outlooks on Aaa ratings changed to negative; Spain and five other countries’ ratings are downgraded
Fitch issues stern warning to the US
Affirms AAA rating but says failure to agree on deficit-reduction measures would ‘likely result in negative rating action’
Credit rating agencies slam sovereign warning proposal
EU Commission proposal for credit rating agencies to give sovereigns three days’ notice of a rating change causes “grave concerns”
S&P lowers Greece rating
Credit rating agency lowers Greece sovereign ratings; believes eurozone official creditors “may see a restructuring of official and commercial debt as the best way forward”
Bulgaria ordered capital hikes, report released
Bulgarian National Bank publishes 2010 Annual Report; asked three banks to increase capital
SNB bans Tepco debt as collateral
Swiss National Bank places Tepco debt on its list of collateral excluded from use in open market operations
S&P lifts China rating one notch
Ratings agency Standard & Poor’s upgrades Chinese long-term rating; move follows similar step by Moody’s in November, places Chinese debt three marks short of prime rating
Bank of Spain denies Spanish banks are delaying losses by acquiring NPAs
The Bank of Spain defends Spanish banks' hands-on risk management of non-performing assets related to the property sector