With the global economy in the throes of a new crisis and with bad bank loans expected to pile up, previous crises could still serve as a good guide as to how bad the damage will be even though this crisis is somewhat unique.
Capital
US negative interest rates would hurt banks, warns Goldman Sachs
With the US economy facing its worst crisis since the Great Depression, the US Federal Reserve has discussed imposing negative interest rates, a move Goldman Sachs says would damage the banking sector
Response to Covid-19 pandemic shows European banks can act quickly
The Covid-19 pandemic has shown European banks the “art of the possible” as they responded in record time to the fast evolving crisis, and consultancy McKinsey argues that this mindset is integral to these institutions reinventing themselves within the next three years.
FOMC reveals Fed worries about financial stability
Officials at the US Federal Reserve fear that the dramatic economic slump accompanied by the fastest pace of job losses in the country’s history due to measures to contain the Covid-19 pandemic could threaten financial stability.
Banks alarmed over the possibility of negative UK interest rates
Commercial banks have waded into the Bank of England policy-makers’ debate over the possibility of imposing negative interest rates, warning that it would crush their earnings and diminish their ability to absorb an expected avalanche of bad loans as a result of the coronavirus crisis.
Covid-19: European bank trading books pose financial stability risks
Though a decade of global financial reforms has made banks safer, the unusual nature of the Covid-19 pandemic nonetheless exposes European banks to greater than appreciated risks due to the opaque nature of their Level 2 and 3 assets
Credit risk management under Basel IV and beyond
Under Basel IV, credit risk can no longer be addressed in isolation – but banks can take a holistic view, enabling them to better assess the impact of future scenarios on their activities. By Xavier Dubois, director of risk and finance at Wolters Kluwer Finance, Risk & Reporting.
Most Basel members not yet factoring climate change into prudential capital frameworks
In a survey, the Basel Committee on Banking Supervision found that most of its members prefer to address climate-related financial risks within their existing regulatory and supervisory frameworks, but there is still much work to be done.
Supervisors urge IFRS-9 forward provisioning flexibility to save capital
The Covid-19 pandemic is not only taking monetary and fiscal policy into new territory, but is also having an impact on how banks provision for bad loans under IFRS-9 accounting standards
EBA agrees with changes to risk weight standards for specialised lending
Amendments to standards on risk weights for specialised lending exposures made by the European Commission have found approval with the European Banking Authority (EBA), which will endorse them.
Most Viewed
- EMIR REFIT has potential to trigger unintended consequences
- The return of geopolitics will cause global banks considerable headaches
- Post-Covid-19 new normal could see banks having to rethink resilience measures
- MLRO’s have key role to play in protecting banks from money laundering risks
- Covid–19: exit strategies and their practical implications
@RiskRegulator
