Europe’s leading banks look generally well-placed to meet global standards on leverage to be implemented at the start of 2018, according to data compiled by Standard & Poor’s (S&P) Global Market Intelligence.
However, the credit ratings agency (CRA) cautions that compliance could be tested should regulators implement buffers for the biggest banks.
S&P reports sample of European lenders with over €100bn in assets with available data showed that all had at least the 3% ratio of capital to total assets that the Basel III capital adequacy regime will require from 2018. All of the selected banks also posted double-digit common equity Tier 1 ratios, which measure capital as a share of risk-weighted assets.
Globally systemically important banks (G-SIBs) will have to go beyond the 3% Basel minimum, but the format and quantum of the additional requirement have yet to be finalized.
Among the questions is whether banks will be set a higher minimum requirement or a buffer that would allow supervisors to impose restrictions in the event of a breach, notes S&P.
The Basel Committee on Banking Supervision (BCBS) is also yet to determine whether the add-on will be uniform for all G-SIBs or scaled based on the “buckets” used to calculate similar surcharges for the Core Tier 1 (CET1) ratio.
The US money market fund reforms came into effect in 2016 and are already dramatically shaping US fund industry with investors flooding out of prime funds and into government securities. While the reforms are similar, they are not the same. GTNews interviews Yeng Bulter, global head of the cash business at State Street Global Advisors on the differences.
There are various ways for financial institutions to benefit from advanced technologies and business models provided by FinTech's. Whether a business' approach is radical or incremental, data management can help a company to increase their return on investment, argues André Casterman, INTIX.
Due to the low interest rate environment and Basel III regulation many corporate treasurers, who may have in the past been very reliant on the banking sector to provide them with cash management solutions, have been forced to explore alternative options as banks have been refusing short dated cash deposits.
Far and away, the largest financial market on the planet is the foreign exchange currencies market, where on average individuals and organisations trade more than $5 trillion daily. In the FX world, the ability to master the market isn't considered a luxury for treasury officers–it's a necessity.