Countercyclicality
Shinhan, Kookmin set aside record reserves amid real estate worries
Kookmin provisions account for 38% of income; 23% for Shinhan
Countercyclical buffer relief to save top UK banks £7bn in capital
BoE expects £190 billion of lending to be supported by CCyB cut
ECB favours higher countercyclical buffers
Releasable buffers only make up fraction of required capital
Denmark, Slovakia hike countercyclical buffers
Eight countries have increased their CCyB year-to-date
Double jeopardy: CCAR and the countercyclical buffer
Some US regulators want to hike capital while times are good; banks say Fed’s stress test already does
Czech National Bank raises countercyclical buffer to 2%
Increase takes effect from July 2020
Germany plans countercyclical buffer hike
Iceland, Bulgaria and France have also increased add-ons year-to-date
Nordic, UK banks have highest countercyclical buffers
Nordea, Lloyds and RBS had the largest add-ons of banks surveyed
Luxembourg is latest EU state to hike countercyclical buffer
In total, EU states hiked CCyB rates 13 times last year, up from six in 2017
EU countries accelerate countercyclical buffer increases
Eleven EU members currently apply CCyBs, with Bulgaria the most recent country to join the club
CECL fans and foes cross swords on Capitol Hill
Dispute over economic impact rages on despite agreement on capital relief
Denmark, Sweden hike countercyclical buffers
Swedish banks now subject to highest add-ons among European Union lenders
Crédit Agricole and Groupe BPCE hardest hit by countercyclical buffer
Minimum capital requirement will rise around 20 basis points at BPCE; 16 at Crédit Agricole
French countercyclical buffer lowest in EU
0.25% surcharge the lowest of nine CCyBs across member states
CCP margining not procyclical, research suggests
Excess collateral acts as buffer in 10 years of data at unnamed CCP
New BoE stress tests will be tougher during economic upturns
Stress tests designed to move counter-cyclically with financial cycle
Haldane dismisses talk of monetary and macro-prudential tensions
Bank of England’s Andrew Haldane says it is a virtue that different tools can be used to meet conflicting objectives
Solvency II volatility balancer ‘will fail to immunise insurers’
Calls for new dampener on capital requirements amid disagreement over Eiopa’s figures
Long-term guarantees assessment threatens to open more divisions in Omnibus II talks
Long-term guarantees assessment threatens to open more divisions in Omnibus II talks
Long-term guarantees test specifications to be published on test launch day
Fears that delay in releasing specifications will lead to inaccurate results
Lack of clarity on calculation parameters jeopardises long-term guarantees test
Concerns that technical specifications may be released only days before assessment is launched