Newsletter – March

Topics: U.S. bank results underwhelm so far; The U.S. Federal Reserve Board rules for foreign banks; Trump sues Deutsche Bank, Capital One; Deutsche Bank profit surges but full-year revenue target cut; IMF – Global Financial Stability Report; EBA publishes updated impact of the final Basel III reforms.

IMF – Global Financial Stability Report

The April 2019 Global Financial Stability Report (GFSR) finds that despite significant variability over the past two quarters, financial conditions remain accommodative. As a result, financial vulnerabilities have continued to build in the sovereign, corporate, and nonbank financial sectors in several systemically important countries, leading to elevated medium-term risks. The report attempts to provide a comprehensive assessment of these vulnerabilities while focusing specifically on corporate sector debt in advanced economies, the sovereign–financial sector nexus in the euro area.

Full Report

EBA publishes updated impact of the final Basel III reforms on EU banks

The European Banking Authority (EBA) published two reports, which measure the impact of implementing the final Basel III reforms and monitor the current implementation of liquidity measures in the EU. The EBA Basel III capital monitoring report includes a preliminary assessment of the impact of the Basel reform package on EU banks, assuming its full implementation.

Full Report