The market for collateralised loan obligations (CLOs) could be about to face havoc due to an unprecedented number of credit downgrades sweeping through the leveraged loan market.
IMF warns about vulnerable banking systems
As a result of the economic turmoil unleashed by the Covid-19 pandemic, the banking systems of some countries may have to be recapitalised or restructured, the IMF warned.
Massive surge in US unemployment is a threat to consumer banks
Due to the population lockdowns to stop the spread of the Covid-19 pandemic, US unemployment soared by a record 6.64m in the week ending March 28 leading to Moody’s Investors Service to issue a credit warning on US consumer banks.
Deadline for Volcker Rule consultation extended by one month
In view of the disruption caused by the Covid-19 pandemic, the five Federal agencies have extended the deadline for feedback on modifying the covered funds measure in the Volcker rule to May 1 from April 1.
UK banking system enters Covid-19 pandemic well capitalised
In the three months to the fourth quarter of 2019, the Bank of England said the common equity Tier 1 (CET1) capital ratio for the UK banking sector increased by 0.3 percentage points to 15.6%.
Trust is a key determinant of interbank activity, says ECB paper
The level of trust is a key driver of activity in the interbank market along with the stability of the country’s banking sector, its counterparties and its history of managing banking crises and failures, according to a working paper by the ECB.
Coronavirus resurrects China’s bank NPL concerns
To help offset the economic damage from the coronavirus outbreak, Chinese regulators said they will tolerate a rise in bad debt in the banking system, which is seen as suspiciously low by some.
Slavishly following EU rules ‘would threaten UK financial stability’
Simply passing EU rules into UK law could threaten financial stability and undermine the competitiveness of the City of London, the UK parliament’s upper house was told by senior regulators.
ESMA consults over reporting standards for equivalence firms
A consultation has been launched by the European Securities and Markets Authority (ESMA) on the technical standards and reporting requirements for third-country firms providing investment services and activities in the EU.
Swiss banks living wills approved, but some need improvement
The recovery and resolution plans or living wills of the two largest Swiss banks have been given the green light by the Swiss Financial Market Supervisory Authority (FINMA), but some of the smaller institutions need to make improvements.
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