Regulation of Financial Institutions
The latest developments in regulation and capital requirements for banks and insurers globally.
  • SUMMARY
  • REPORTS

  • SECTOR COMMENT
    13 Sep 2019|Moody's Investors Service
    On 12 September, the European Central Bank (ECB) announced that it will introduce a two tier system for banks’ reserve remuneratio The new two-tier remuneration of ECB reserves, will reduce by around €2 billion the annual charge paid by EU banks on their liquidity placed at the central bank.

    SECTOR COMMENT
    12 Sep 2019|Moody's Investors Service
    Inconsistent reporting of TLAC by the world’s largest banks means that investors may still lack important information about how losses might be allocated between creditors should they fail.

    SECTOR IN-DEPTH
    10 Sep 2019|Moody's Investors Service
    European banks have become financially stronger in recent years and their credit profiles have improved but the debt they issue has become more risky. This apparent paradox is due to European Union (EU) regulation governing bank failures, which requires banks to issue more junior forms of debt to protect senior liabilities from losses.

    SECTOR COMMENT
    04 Sep 2019|Moody's Investors Service
    On 15 August, the Financial Accounting Standards Board (FASB) issued an exposure draft that proposed postponing the  ffective dates for new accounting standards for leases, credit losses and hedging that apply to private companies, nonprofits and small reporting companies. Postponing implementation of the new standards would obstruct comparability and hinder credit analysis.

    SECTOR COMMENT
    23 Aug 2019|Moody's Investors Service
    The changes aim to streamline but also improve the efficacy of  the complex requirements first adopted in 2013. However, particularly when lower interest rates are putting pressure on bank net interest margins, the changes have the potential to encourage some banks to take greater risks, a credit negative.