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Latest on Regulation
Basel closes in on IM offset for leverage ratio
US seen as obstacle to consensus; committee expected to allow netting of margin against PFE only
On foreign banks and CCAR, Fed tries something new
Fed is using risk factors, not just size, to decide which overseas firms to test
Final rules on securitisation due by year-end, EBA says
European issuers forced to work with incomplete legislation for another six months at least
Latest
Quotes
If the internationally agreed regulations are not implemented completely and consistently across countries, it will lead to uncertainty and market fragmentation
Toshio Tsuiki, Basel Committee on Banking Supervision
We need to fine-tune the regulation after Brexit, especially the derivatives trading obligation, to avoid market participants facing two sets of different regulations for the same transactions
Robert Ophèle, Autorité des Marchés Financiers
I feel what is missing is: where is the actual threshold? Where is the line drawn? What actually constitutes a tier two CCP?
Farida El-Gammal, JP Morgan
Editor's Choice
Fund-linked structured products face extinction under FRTB
Global market risk capital standards carry sky-high charges for fund derivatives
Big Figure
Home discomforts
The European Banking Authority has found that more than one-third of European banks hold at least 75% of their sovereign debt portfolios concentrated in bonds issued by their home government. In his first hearing before the European Parliament, the new head of the European Central Bank’s single supervisory mechanism Andrea Enria hit out at the accounting practices used to book government bonds held in liquidity portfolios.
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Comment
Sovereign risk weights cannot wait
We need a different approach to supervisory stress-testing
Our Take
Can European banks crack the capital allocation code?
Can bankers stop the trading book killer?