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Latest on Regulation
Europe’s regulators grope for value of software
In the US, the cost of software is not taken out of capital. Europe is fumbling for something similar
Esma proposal may limit short-selling
Reporting requirement would bar securities without LEIs from being used in financing transactions
Uniform? Op risk capital rules go their own ways
Europe and Canada set to include historical losses in new standardised approach; Australia probably not
Latest
Quotes
Last year, a Nigerian long-dated government bond was liquid, it had the same transparency treatment as a German 10-year bund
Regulatory expert, global investment bank
Because of this excessive focus on risk sensitivity, we may have sacrificed simplicity and comparability. I think there are elements of the framework that we could have made simpler
William Coen, Basel Committee on Banking Supervision
If we are building up countercyclical resiliency in banks through CCAR, what is the societal benefit of the countercyclical… buffer?
US government relations executive, global bank
Editor's Choice
The Fed doesn’t like narrow banks, but asset managers do
Narrow banks would funnel cash to the Fed to get its rate – money managers are intrigued
Big Figure
Leaving a loan
US collateralised loan obligations (CLOs) offer banks a yield pick-up in Japan’s zero rates environment. But now the Japan Financial Services authority plans to impose heavy capital charges on exposures to CLOs that don’t provide enough transparency to investors, and will ban holdings outright if the originator doesn’t retain some of the risk.
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Comment
Sovereign spreads and Target2 anomalies
How to adapt a bank for MPE resolution strategy
Our Take
Fixing the roof while the sun – wait, is that rain?
The BoE leverage ratio: welcome relief or regulatory arbitrage?