Risk Quantum/Standard Chartered
Legal fines dent StanChart profits
The bank put aside $900 million last year to cover penalties related to a series of investigations
Many EU banks’ sovereign portfolios highly concentrated
Forty-eight lenders have more than three-quarters of sovereign risk allocated to home country
EU G-Sibs outpace rivals in growing repo books
Large European banks' increase exposures by €230 billion
StanChart CVA charge jumps 161% in Q3
Charge rises to $99 million in three months to end-September
UK bank misconduct charges dwindle
Six of seven stress-tested banks report 50% fall in legal and regulatory reserves
Cross-border risks drive European G-Sib scores
Basel method shows cross-jurisdictional activity makes up 30.8% of banks’ total G-Sib scores
Barclays and Lloyds improve resilience to stress tests, HSBC falls back
Capital headroom above pass/fail thresholds increases to 250bp at lenders
IFRS 9 transition eases UK banks’ path through stress tests
Aggregate CET1 ratio 130bp lower without transitional relief
LCRs show US banks run more risk than European peers
The gap between the two averages has widened over the past three quarters to 250bp from 212bp
UK and EU bank leverage ratios edge lower
Average European G-Sib ratio down 27bp year to date
EU G-Sibs cut $14 billion in op risk
Banco Santander posted the largest decline – at 7% – with op RWAs falling to $70 billion
StanChart slashes $6.6 billion of RWAs
Two-thirds of reduction achieved through RWA efficiencies