Risk Quantum/European Banking Authority (EBA)
EBA data reveals disparities in LCR deposit-bucketing
Regulatory arbitrage concerns surface over classification of non-operational deposits
EU stress tests not as tough as financial crisis
Projected GDP decline for Spain, Ireland and Italy milder than during the credit crunch
IFRS 9: peripheral EU banks hold most impaired assets
Stage three assets make up 3.6% of all EU bank loans and advances
EU banks’ credit risk estimates continue to fall
Mean average weighted corporate PD down to 2.24% from 2.61% in Q1 2018
Fewer banks to sell MREL debt – EBA
Lenders plan to attain more retail deposits and Tier 2 and AT1 instruments instead
Insurers’ CLO exposures are small, but growing
US insurer holdings hit $122 billion in Q4 2018
CVA exemption in Basel III could save EU banks more than €18bn
Tweaks to op risk framework might reduce capital shortfall by €12.3 billion
Big banks to bear brunt of Basel III reforms in EU
G-Sibs short €82.8 billion of Basel III capital
EU banks cut €56bn of toxic loans
The region’s NPL ratio stood at 3.2%, down 20bp on the previous quarter
EU insurers show bias to own sovereigns
Forty-two percent of median EU country insurance sector's sovereign bond portfolio allocated to domestic government
Four Greek banks in breach of LCR
Alpha Bank, Eurobank Ergasias, National Bank of Greece and Piraeus Bank short €22.5 billion of HQLA
Op risk capital to jump 45% for European banks under Basel III
Some banks could see capital increases of more than 60%
Intesa Sanpaolo slashed bad loans 26% last year
NPL ratio plummets to 4.2% from 6.2% in 2017