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Latest on Regulation
EU banks seek FRTB delay, citing ‘strain’ of virus
Firms want leeway to fight market mayhem, minus burden of new reporting rules
Regulatory lenience over Covid-19 must be carefully judged
Former ECB supervisory board member says unwinding regulatory relief later will take courage
US banks still fret about cutting liquidity buffers
Fed instructions to banks to run down LCR undermined by governance rules, other liquidity metrics
Latest
Quotes
Monitoring leverage… requires a deeper understanding of the links between banks with a global footprint and their reliance on off-balance sheet funding from non-bank sources
Manmohan Singh, International Monetary Fund
Perhaps the most dangerous scenario is a stress test bank leg where some constraints are applied and others are not
Juan Carlos García Céspedes, BBVA
If we clearing members or clients were to suffer some losses during variation margin gains haircutting and then if the CCP comes back onto a balanced position, I think it’s fair for us to request some form of compensation
Cecile Barthelemy, BNP Paribas
Editor's Choice
New Mifid equivalence rules leave UK firms in limbo
Revised market access rules won’t kick in until six months after UK leaves single market
Big Figure
A close shave
Clearing members and their clients expressed alarm at the prospect that a new European regulation might allowing the haircutting of initial margin if a central counterparty entered into resolution, but now it looks as if the Council of the EU has put a halt to the plan.
Read the full article7 days in 60 seconds
RBS, dividend curves and system failures
The week on Risk.net, March 28-April 3, 2020
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Regulatory lenience over Covid-19 must be carefully judged
‘Ostrich approach’ to financial stability is a mistake
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