Interested in financial debt recent development? Look at Relative Value Analysis…
Financial Debt Monitor – April 2020
Interested in financial debt recent development? Look at Relative Value… Analysis…
Newsletter – April 2020
Topics: COMB – Fixed Income Security Monitor, Relative Value Analysis, Earnings season, Swiss banks bow to pressure, Fed eases some bank leverage rules, Bad bank idea.
EU banks sail through the Corona crisis with sound capital ratios
The European Banking Authority (EBA) published its quarterly Risk Dashboard covering Q4 2019 data and summarising the main risks and vulnerabilities in the EU banking sector. Ahead of the Corona crisis, EU banks’ capital ratios and asset quality have improved. However, return on equity (RoE) has further worsened.
EBA updates impact of the Basel III reforms
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. Overall, the EBA estimates that the Basel III reforms, once fully implemented in 2028 after the additional delay of one year agreed by the Basel Committee, would determine an average increase by 16.1% of EU banks’ Tier 1 minimum required capital. The liquidity coverage ratio (LCR) of EU banks, which was fully implemented in January 2018, stood at around 147% on average in June 2019.
ESRB Risk Dashboard
The ESRB risk dashboard is a set of quantitative and qualitative indicators of systemic risk in the EU financial system. The risk dashboard should not be considered to be a policy statement on systemic risks. Additional indicators that support systemic risk assessment in the EU financial system are available in the Macro-prudential database maintained by the ECB.
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.
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.
Basel III Monitoring Report
This report presents the results of the Basel Committee’s latest Basel III monitoring exercise, based on data as of 30 June 2018. Through a rigorous reporting process, the Committee regularly reviews the implications of the Basel III standards for banks, and has been publishing the results of such exercises since 2012.