People & Markets - All Articles

  • BoE updates IFRS 9 guidance as UK extends payment holidays

    The Bank of England has reminded UK lenders to apply ‘sound risk management practices’ in the capital treatment of their mortgages amid Covid-19, after the Financial Conduct Authority extended its payment holiday scheme by another three months.

    • 22 May 2020
  • ECB suggests changes to Commission’s ‘quick fix’ for bank capital rules

    The European Central Bank said this week that policymakers should consider offering banks further relief on their leverage ratios during the coronavirus pandemic, building on legislative proposals put forward by the European Commission last month.

    • 21 May 2020
  • Rabo confirms appetite for ECB funding, IFRS 9 relief

    Rabobank said on Wednesday that it would take advantage of various EU schemes of funding and capital support, as it provided the market with an ad hoc update on its financial position during the coronavirus pandemic.

    • 20 May 2020
  • Banks going green: if you’re going to lead, lead

    Banks want to position themselves as ahead of the curve on sustainability. They are among the most sophisticated, well resourced, IT-savvy organisations in the world. Why can't they work out the carbon footprints of their portfolios?

    • 19 May 2020
  • Eiopa warns that Covid-19 could be a ‘double hit’ for insurers

    The European Insurance and Occupational Pensions Authority (Eiopa) said this week that risks were rising for the insurance industry amid the coronavirus pandemic. It warned of a ‘double hit’ to firms, which are facing pressure on their assets and liabilities at the same time.

    • 19 May 2020
  • BoE explores further measures to expand Covid support

    The Bank of England is mulling ways to support businesses left out of Covid-19 support schemes, with a focus on sub-investment grade corporates and encouraging lending into the real economy. A securitization structure is being comtemplated via the setting up of an intermediary bank.

    • 19 May 2020
  • Negative rates talk a problem for money market funds

    The pain that negative rates in dollars could cause money market funds hangs like an albatross around the US Federal Reserve’s neck. Talk of them has picked up over the last week as US Federal Funds Futures prices started to imply they were on their way, while president Donald Trump pushed the topic on Twitter, even though and Fed chair Jerome Powell appeared to rule them out.

    • 18 May 2020
  • Frantic few months at loss-making Commerzbank

    It was a busy first quarter at Commerzbank’s corporate clients division, as companies rushed to secure liquidity and access Germany’s support programmes. But that division and the group as a whole made a loss in the quarter, results released on Wednesday showed, as cost of risk rose and valuations of derivative positions fell.

    • 14 May 2020
  • Citigroup bond syndicate leader to leave industry

    One of Europe’s leading bond syndicate bankers has decided to leave Citigroup, and probably the capital markets.

    • 14 May 2020
  • UniCredit switches plan for ‘once in a century event’

    UniCredit began the year with a new template for growth but is now simply trying to help support clients through the crisis, while hoping that the deeper relationships being forged will endure, writes David Rothnie.

    • 14 May 2020
  • Libor transition deadline ‘challenging’ but unlikely to be extended, says senior lawyer

    The coronavirus crisis has severely disrupted the move away from Libor to the new recommended risk-free rates. But market participants will have to press on to meet the original deadline, with no extension on the horizon, according to a senior capital markets lawyer.

    • 12 May 2020
  • BoE reassures over bank credit losses

    Banks in the UK have built up large enough capital buffers to withstand the volume of credit losses expected to be triggered as a result of the economic shock of the Covid-19 pandemic, the Bank of England said.

    • 07 May 2020
  • Bank of England offers new relief on Pillar 2, MREL

    The Bank of England said on Thursday that it would be changing the way it looks at Pillar 2 capital targets, giving UK lenders more room to breathe during the coronavirus pandemic.

    • 07 May 2020
  • Will European banks be able to benefit from IFRS 9 relief?

    European lenders are debating whether it is worth them taking advantage of new IFRS 9 transitional rules, with some market participants suggesting they will largely ignore any capital benefit gained through these sorts of relief measures.

    • 06 May 2020
  • UniCredit set to adapt December’s strategy

    When revealing its first quarter results on Wednesday, UniCredit said it would be updating its freshly launched Team 23 plan in the wake of the coronavirus crisis, which has dented profitability.

    • 06 May 2020
  • Citi flashes European credentials in Covid-19 crisis

    Citigroup is determined to emerge as a winner from the Covid-19 crisis and conquer the summit of global investment banking, in the face of any pull to concentrate more on home markets, writes David Rothnie.

    • 06 May 2020
  • Crisis Talk — with Santander UK's Martin McKinney

    Martin McKinney, senior manager of medium-term funding at Santander UK, speaks to GlobalCapital about the impact the UK’s lockdown on the bank’s balance sheet, central bank liquidity, and the bank’s changing mix of regulatory and pure funding.

    • 06 May 2020
  • Danske diversifies MREL funding mix with pref senior

    Danske Bank was marketing a preferred senior bond on Tuesday, taking swift advantage of recent changes in Denmark that will allow banks to use these instruments to count towards their regulatory debt requirements.

    • 05 May 2020
  • Crisis Talk — VDP's Tolckmitt believes in strength of Pfandbrief bank liquidity

    A strong and growing deposit base, an active private placement market and sizeable proportion of prefunding has put the Pfandbrief banks in a strong liquidity position, the chief executive officer of the Association of German Pfandbrief Banks (VDP), Jens Tolckmitt, told GlobalCapital in an interview on Tuesday covering a wide range of other topics such as real estate values, the mortgage lending value and Basel III’s output floor.

    • 05 May 2020
  • Plenum looks to insurance sub debt for greater returns

    Plenum Investments, a catastrophe bond fund, is broadening its portfolio to include tier one and tier two debt issued by insurance companies. It is seeking to offer investors a higher risk-return option, and the announcement of the new fund comes at a time when spreads on subordinated insurance debt have widened.

    • 04 May 2020
  • ECB survey gives first direct read on virus credit squeeze

    Some banks in the eurozone tightened their lending standards in the first quarter of 2020 as the coronavirus pandemic spread across the globe, even as loan demand surged, according to a European Central Bank survey that provides the first systematic evidence on the subject.

    • 01 May 2020