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Latest on Regulation
ECB grants post-Brexit reprieve on large exposures limit
Exemption for intra-group exposures to UK will be preserved pending a decision on equivalence
Brexit drives swaps trading to US platforms
Lack of equivalence forces dealers to shift euro and sterling swaps out of European and UK venues
BoE reassures foreign banks on post-Brexit booking models
EU banks that lost passporting rights after Brexit are unlikely to have to establish UK subsidiaries
Latest
Quotes
You guys should also be raising the question about why moving some securities to held-to-maturity reduces the stress capital buffer. Like, is that a rational thing?
Jamie Dimon, JP Morgan
The parallel stack changes the design of how the output floor calculation was envisaged. I still see that as inconsistent with the Basel framework
Lars Overby, European Banking Authority
Perfect data is not a panacea. If investors continue to have a very short horizon of six months to one year and don’t use this data, then it will not change anything
Pierre Monnin, International Network for Sustainable Financial Policy Insights, Research, and Exchange
Editor's Choice
Buffer stops? Why banks haven’t used Covid capital relief
Amid weak credit demand, banks haven’t availed themselves of capital buffers, but they still might
Big Figure
Who’s to blame?
EU regulators are fretting that banks are reluctant to eat into capital buffers during the Covid pandemic, for fear that they will breach thresholds that would prevent payments of dividends on equity and coupons on additional tier 1 bonds. But most banks have not tightened their loan underwriting standards, suggesting capital rules are not constraining balance sheet expansion.
Read the full articleRisk management
Union beckons for the three quant tribes
Studies may be deferred, but future for grads is bright, argues UBS’s Gordon Lee
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Comment
ECB certificates: a ready-made euro safe asset
Strengthening supervisory co-operation in derivatives markets
Our Take
Fed stress tests find critics on all sides
Never mind the buffers: Covid reveals deeper flaws in Basel III