Newsletter – January 2020

Topics: Monthly Report available in second decade of February. Earnings season preview. ECB launches review of its monetary policy strategy. Repo interventions continued in January. The Bank of England on Libor scandal. EBA released Risk Dashboard and announced public consultation on EU-wide stress tests.

EBA – Risk Dashboard

The EBA Risk Dashboard is part of the regular risk assessment conducted by the EBA and complements the Risk Assessment Report. The EBA Risk Dashboard summarises the main risks and vulnerabilities in the banking sector in the European Union (EU) by looking at the evolution of Risk Indicators (RI) among a sample of banks across the EU.

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Newsletter – May

Topics: New version of COMB 2.5.22; Shares in the embattled German lender Deutsche Bank hit a record low; Euronext has won approval from Norway’s finance ministry; BlackRock’s (NYSE:BLK) withdrawal from the proposed deal; HSBC reported banner first quarter results; The ESRB risk dashboard; The ESRB Review of Macroprudential Policy.

ESRB Review of Macroprudential Policy

The ESRB Review of Macroprudential Policy provides an overview of the measures of macroprudential interest that were adopted in the European Union (EU) in 2018. As there are indications that the financial cycle is turning in some countries, more Member States tightened the CCyB. Financial stability risks in the real estate sector continued to be an important area of macroprudential policy in 2018.

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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.

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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.

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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.

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