European Central Bank (ECB)
EU banks eye bad loan relief from state guarantees
ECB move should prevent rickety loans counting as NPLs
Countercyclical buffer releases may free €6bn at top EU banks
Banco Santander and BNP Paribas could free €1.1 billion each
Banks rush to tap new dollar liquidity facilities
ECB saw strongest demand: $75.8 billion out of the new 12-week programme
Six countries slash countercyclical buffers
Sweden reduces its buffer the most, to zero from 2.5%
Central banks activate contingency plans amid pandemic
Rotating and remote team working aims to reduce contagion risk
ECB cuts top banks’ required capital by over €350bn
Capital conservation requirement and Pillar 2 guidance amounts relaxed, countercyclical capital buffers encouraged to fall
Splits emerge over EBA’s stress test 2.0
Experts question utility of separate bank leg that won’t feed into capital requirements
SOFR drought, CB accounts for CCPs, and the Top 10 Op Risks
The week on Risk.net, February 29–March 6, 2020
ECB mulls wider clearing house access to account facilities
Including CCPs in the Eurosystem may remove the need for them to seek a banking licence
ICAAP/ILAAP – Unlocking business value from capital and liquidity assessment
Regulators consider banks’ internal capital adequacy and assessment process (ICAAP) and internal liquidity adequacy assessment process (ILAAP) important tools in managing risk. The European Central Bank’s (ECB’s) updated guidance – which came into effect…
Eurozone real estate funds build equity holdings
Net purchases of equity hit €18.2 billion
Equity gains bolster EU hedge funds’ portfolios
Funds were net sellers of equities, but market gains added +10% to balance sheet values
EU funds loaded up on US debt in 2019
Net purchases of US debt up +962% in 2019
Model flaws continue to dog ABN Amro
Trim added €10 billion of risk-weighted assets in 2019
EU bank clients pressed for better trade terms in 2019
Hedge funds saw price and non-price conditions tighten in Q4
UniCredit to liberate capital on Pillar 2 change
Bank targets 50% payout ratio
Model review adds €13bn to ING’s RWAs
Trim effects projected to raise CET1 requirement by at least €600m
Frustrated authorities resort to BCBS 239 ‘fire drills’
ECB and Finma lob impromptu data requests at banks, as BCBS 239 quietly permeates everyday supervision
EU banks failing on op risk and governance – ECB
Central bank raises concerns on board management, risk controls and data aggregation
ECB risk ratings find banks wanting
Fewer banks scored highly in SREP assessment than in 2017 and 2018
EU Pillar 2 charges hold steady in 2020
Capital add-ons range between 0.75% and 3.5% of RWAs in size
People moves: NatWest Markets in senior shake-up, and more
Latest job changes across the industry
Own-country risk makes up 42% of EU bank sovereign exposures
Polish, Estonian and Romanian banks most exposed to home governments
EU banks eye savings following Pillar 2 update
ECB estimates CET1 relief of 90 basis points