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.
ExxonMobil is legally challenging a $2m fine from the US Treasury for allegedly violating sanctions against Russia in 2014 while US Secretary of State Rex Tillerson was still overseeing the company.
Morgan Stanley is moving staff to Frankfurt in time for the March 2019 Brexit deadline.
The US bank, which already has 350 employees based in the city, will transfer some trading activities currently undertaken in London and create a further 150 to 250 jobs according to reports.
BNP Paribas is the latest in a long line of financial service companies to be penalised for misconduct during the financial crisis on both sides of the Atlantic.