Basel III
IMF paper finds no link between efficiency and Basel compliance
Banks in jurisdictions that have adopted Basel ‘Core Principles’ for supervision are no more efficient than their peers elsewhere, working paper finds
Smaller China banks opt for internal credit risk modelling
Regulation and a rise in bad loans drive small and medium-sized banks to reassess their approach to credit risk management
Emerging markets close in on Basel III completion
Latest Basel Committee progress report shows most jurisdictions have moved significantly closer to full Basel III implementation, with emerging markets making particularly rapid progress
Kuwait breaks new ground with regulatory data release
Central Bank of Kuwait releases quarterly ‘financial soundness’ indicators including capital adequacy and regulatory liquidity; few central banks release similar data at such high frequencies
India to become netting friendly on bankruptcy law reform
Different treatment of public and private banks stymied netting - but this could now change
Paper examines role of capital in BHC lending decisions
Authors find an increase in capital requirements of bank holding companies is ‘likely’ to increase the interest rate charged on loans, resulting in a ‘significant’ reduction in lending
ESRB group wants treatment of sovereign debt reviewed
Report published by European Systemic Risk Board argues sovereign debt can no longer treated as risk-free, and outlines different ways the regulatory framework could be adapted
Yellen sees ‘room for improvement’ on risk management
Fed chair says banks have strengthened their risk management, internal controls and governance, but more can be done and supervisors will be ‘watching closely’
Largest banks clear Basel hurdle for first time
Latest monitoring report finds large internationally active banks all now meet minimum capital requirements; EBA sees capital falling under full implementation of European requirements
In qualified support of coco bonds
Europe’s supervisors need to develop a code of best practice to support the prudential issuance of contingent convertible bonds, argues Andreas Dombret
Basel Committee issues enhanced disclosure standards
Revised standards aim to improve the comparability of banks’ risk-weighted assets, shedding light on internal model-based approaches
HKMA to introduce 'maximum' countercyclical capital buffer next year
Hong Kong will introduce Basel III tool at 0.625% of CET1 capital in January to guard against property market fallout; could raise it further in coming years if risks do not subside
Chilean banks must plan for liquidity shortages
Chilean banks will adopt new liquidity management policies later this year while reporting their LCR and NSFR; Central Bank of Chile may impose further rules next year
Ingves: Europe facing peer pressure on Basel III
The chair of the Basel Committee is counting on peer pressure to bring Europe into line with Basel III, but regulatory experts are not convinced it will work
Basel Committee signals shift towards Basel III implementation
With Basel III standards largely finalised, the Basel Committee’s 2015-16 work programme indicates focus on implementation and efforts to shore up confidence in capital ratios
Basel III helps Russian banks handle economic turmoil, says Yudaeva
Russia’s adoption of international banking rules has given its banks partial protection from a plunging currency and soaring interest rates
EBA declares LCR 'not likely' to have negative impact
Impact assessment by European Banking Authority finds liquidity coverage ratio is unlikely to negatively impact bank lending or financial stability; some banks show shortfall
Bahrain governor defends capital ratios
Rasheed Mohammed Al Maraj argues capital requirements ‘are not arbitrary, or excessive or punitive’ as they are necessary to prevent excessive risk-taking
Poloz warns regulation could stifle credit to SMEs
Bank of Canada governor says new financial regulation likely to reduce the availability of credit to small companies by discouraging financial innovation
Basel Committee: US and EU capital rules still falling short
Basel Committee’s second assessment of compliance with Basel framework finds both EU and US are not complying in all areas, but both argue deviations are justified
Sweden's central bank and macro-prudential regulator clash over leverage ratio
Riksbank calls for stricter and earlier implementation of Basel III measure a day after Financial Supervisory Authority rejects proposals
Iceland introduces foreign currency funding rule based on Basel Committee's NSFR
Measure is intended to limit extent to which banks fund long-term lending in foreign currencies with unstable short-term funding; Three-year NSFR could be introduced in 2015
ECB research explores use of NSFR as macro-pru tool
Economists consider how the net stable funding ratio could be used to tackle the build-up of systemic liquidity risks; research is still at an early stage
Basel rate-risk project sets up scrap over deposit models
Attempts to set international capital rules for banking book interest rate exposures are hitting sensitive ground as banks warn lending will suffer if regulators cap deposit maturities