Banks
First BoE stress test uncovers capital shortfall
One UK bank failed the Bank of England's stress test scenario and two more have had to raise additional capital; Carney says future tests may be less forgiving
Basel Committee tightens securitisation standards despite bank protests
Final standards for securitisations impose tougher capital requirements despite banks’ complaints that the rules are ‘punitive’; reduces reliance on external ratings
Davis Report reveals extent of FCA communications blunder
Report uncovers misguided comms strategy, poor supervision by senior managers and sluggish response as FCA ‘taken by surprise’
IMF praises Central Bank of Kuwait’s ‘proactive’ approach
Central bank is ‘proactive’ in its liquidity management and macro-prudential supervision, IMF report says; publishing more timely information on oil sector would be ‘useful’
UK's FCA unveils reshuffle amid criticism
Conduct supervisor admits supervisory model for small firms has been "under strain" as three directors quit; critical report due to be published this week
BoE extends Funding for Lending Scheme
Scheme will continue for an additional year in a bid to boost credit provision to small businesses; Mark Carney admits lending to smaller firms is still problematic
BoE researchers posit dual model of interbank markets
Working paper separates exposures from funding to show the two parts of the interbank market have different structures; large ‘core’ banks present contagion risk
Bank of Portugal gets new powers to assess bank directors
Bankers’ current court cases and their personal business conduct are now also part of the Bank of Portugal's assessment of the banking system
Linde: Spanish banks have ‘solid solvency position’
Bank of Spain governor says performance of Spanish banks during ECB stress tests was ‘positive’; banks face the future in a ‘solid solvency position’
Central Bank of Brazil takes action to boost credit
Co-operative banks in Brazil to be granted as much as 760 million reais for new loans and allowed to issue bonds, in a move designed boost credit in the country
UK bank reforms may be ‘diluted’, warns parliamentary commission
Former members of the Parliamentary Commission on Banking Standards warn regulations are at risk of being misinterpreted, diluted by lobbying, or applied incorrectly
RBI wants foreign banks to offer commercial services
R Gandhi, deputy governor of the Reserve Bank of India, argues the local economy needs foreign banks to offer commercial services, ‘to ensure further penetration of banking activities’
UK launches probe into banking sector competition
Investigation will assess whether retail banking market is too concentrated, with barriers to entry and opacity under scrutiny
Central Bank of Kuwait highlights improving banking sector health
Banking sector saw improvements on ‘almost all fronts’ as Islamic banking continued to rise, according to annual financial stability report; income and return on equity see drop
Bulgaria hits back at EBA deposit insurance demands
Bulgarian National Bank says Bulgarian law does not give it the power to comply with EBA demands to release deposits at failed backs; EBA chair criticises apparent deceleration in process
FSB spotlight catches assets moving into the shadows
Shadow bank monitoring exercise shows assets stable inside the traditional banking sector but growing outside, as FSB publishes breakdown of data by jurisdiction for the first time
Productivity gains in the banking industry affect interest rates, study finds
More productive banks set lower interest rates on loans and higher rates on deposits, increasing their market share, according to a study by the Bank of Spain
Bank of England seeks global consensus on ‘fair and effective’ markets
Review aims to fix outstanding issues with market structure and conduct; Minouche Shafik says the central bank is working with others globally to build a consensus
Bank of Mauritius governor hails ‘rejuvenated’ staff
Rundheersing Bheenick says new hires and the creation of ‘director of technology’ position help the central bank keep abreast of rapid technological progress in the banking sector
Fed issues tougher and broader 2015 stress tests
Severely adverse scenario adds oil price shock and wider corporate bond spreads; list of stress-tested institutions grows
Fears surface over lack of trust among resolution authorities
Countries still do not trust one another enough to cooperate fully during the resolution of a globally systemic bank, participants at Chatham House event warn
Philippines central bank raises minimum capital requirements
The Central Bank of the Philippines has raised banks’ minimum capital level while unveiling new credit risk management rules that limit the collateral value of real estate mortgages
BoE’s Bailey slams European bonus caps
Deputy governor expresses ‘dismay’ at debate that misses what he sees as key points in designing appropriate incentives; points to flaws in Basel capital standards
European Banking Authority unveils framework for classifying high-quality securitisations
Consultation proposes system for classifying securitisations that are ‘simple, standard and transparent’ and therefore may benefit from more lenient regulation