Risk.net Regulation’s Post

Loss of transition period for P&L attribution test would hit EU banks. https://hubs.li/Q02M8-f60 Non-subscribers can get a snapshot of Risk’s coverage. Registration is free and allows you to read two articles a month: https://hubs.li/Q02M8Rz30

New shock scenarios designed by Basel Committee would cause more EU banks to fail net interest income test. https://hubs.li/Q02Bktsq0 Non-subscribers can get a snapshot of Risk’s coverage. Registration is free and allows you to read two articles a month: https://hubs.li/Q02Bkctj0

New shock scenarios designed by Basel Committee would cause more EU banks to fail net interest income test. https://hubs.li/Q02BkdWl0 Non-subscribers can get a snapshot of Risk’s coverage. Registration is free and allows you to read two articles a month: https://hubs.li/Q02BktHs0

EXCLUSIVE - the ECB is trying to make it easier for banks to use Significant Risk Transfers as a way to offload credit risk and free up balance sheet for more lending. The proposal is part of an EU drive to boost the market for securitizations and enhance the ability of lenders to fund the massive investments needed in defense and the green transition. with Nicholas Comfort and Esteban Duarte https://lnkd.in/ei9pa6_4

New shock scenarios designed by Basel Committee would cause more EU banks to fail net interest income test. https://hubs.li/Q02Bkd5L0 Non-subscribers can get a snapshot of Risk’s coverage. Registration is free and allows you to read two articles a month: https://hubs.li/Q02Bkcsz0

To face laxer regulatory requirements, some banks deliberately reduce balance sheet items around reporting dates. This behaviour, known as “window dressing”, is unacceptable: it undermines the objectives of bank regulation, risks disturbing the operations of financial markets and may lead to banks having insufficient resources in times of stress.   Two regulatory frameworks are particularly vulnerable to window dressing, those for global systemically important banks (G-SIBs) and for the leverage ratio. The ECB Blog looks at how regulators and supervisors are taking action: https://lnkd.in/gMSNXgU2

❓ End of "window dressing" in EU Banking ❓ After reading the ECB blog is clear, that regulators are not happy about this practice 🙂 and will find the solutions to reduce it. #bankingregulation #bankingindustry

🏦 🏦 🏦 THE THIRD RISK IS THE BIGGEST OF ALL (SAYS GEORGE) 3️⃣ ✂️GAMMON DISSECTS the first two risks, Credit and CRE, and correctly cites FRB stress test concerns. A Credit event is coming soon or already here. 3️⃣ BUT...THE THIRD CATEGORY is all-important Counterparty Risk. Weakest links of the banking ecosystem. Balance sheets are mostly interconnected. 👁️WHEN LOOKING AT safety ratings, I examine three aspects (specific banks): * who is the primary correspondent bank for cross border transactions? Derivative trades both nominal value and netted? * is the correspondent healthy? Any CRE or Credit issues? Political dislocations? * consumer banks NOT in the Global Finance Mag. top 20 require scrutiny 🤌 BAIL-IN LEGISLATION IS in place, few understand the implications. 🇫🇷 GEORGE'S TOUR DE FRANCE (PELOTON CRASH) analogy is quite à propos. Keep a very close eye on France banks and their counterparties. See below for a cautionary case study for counterparty risk. #CreditSuisse #CounterpartyRisk #banksafety #GFmag #RebelCapitalist

December 2023 update to the Fitness and Probity Standards (Code issued under Section 50 of the Central Bank Reform Act 2010) available to view here https://lnkd.in/eYHHVD9B This 2023 version sees the inclusion of holding companies and update of Section 4 #f&p #iaf

If you ever wondered why strong risl management is key for banks, the ECB put it clearly: « We need to have a razor-sharp analytical focus on risks, and we need to insist that the weaknesses we identify are remedied in good time. Ensuring timely remediation is more relevant than ever considering the fast-evolving environment that we live in ». #SREP Read the speech https://lnkd.in/e78X4BcJ