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European policymakers are now waking up to the need for a European solution to non-performing loans, prompted by a push from the European Banking Authority to create a European-wide state-backed asset management company. But the right time for this solution was half a decade ago.
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The Bank of England’s new biennial ‘exploratory’ scenario (BES) suggests stress testing has entered an improved and more mature phase, putting the spotlight on business models as well as capital adequacy. -
It is all very well pressing to harmonise bank resolution frameworks across Europe, but the market has to get on with harmonising the terminology as well.
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If there was ever an idea whose time has come, it is green securitization. Action to green the economy is super-urgent, and progress so far has been worryingly slow.
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Tighter trading levels for bank tier two in the dollar market could shed light on the future of the equivalent market in Europe. Stand by for spread tightening.
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The ECB’s bank supervision unit has revealed more details about its ‘TRIM’ exercise, which, if successful, could be another nail in the coffin for Basel IV.
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Many are looking for it, but no bank has found it — does the point of non-viability even exist?
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Proponents of “green mortgage loans”, lent against energy efficient homes, argue they are less likely to default and deserve a lower risk weighting than conventional mortgage lending. But it’s a long shot, and there are plenty of other ways to promote the market.
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The skies look dark as you head off for a walk on the beach, so you buy an umbrella. If it turns out sunny, you’ll get a few smirks from people you meet. But you’re unlikely to be abused as an idiot.
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The supply of high quality liquid assets (HQLA) needed for capital regulations is insufficient. This has created an imbalance which, at times, grows so critical it poses a systemic risk. Regulators and the European Central Bank must shoulder responsibility for fixing the problem soon.
