07 Oct 2020|Moody's Investors Service
As policy rates continue to decline globally, Banking team member Laurie Mayers examines the effect on UK banks, while Shunsaku Sato does so for Japanese banks and Farooq Khan for Brazilian banks. Plus, Olivier Panis of the Banking team and Stefan Kahandaliyanage of the Asset Management team update financial institutions’ readiness for the transition away from Libor in 2021.
Financial Institutions – United Kingdom: Bank of England publishes new daily Sonia compounded index, helping market participants transition from Libor
04 Aug 2020|Moody's Investors Service
Given the importance of Libor as a reference in financial contracts globally, and the risks associated with the transition to new risk-free benchmarks globally, authorities' steps to accelerate and facilitate the adoption of new benchmarks such as Sonia are credit positive.
29 Jul 2020|Moody's Investors Service
On 28 July, the European Central Bank (ECB) published the results of a vulnerability analysis to assess the effect of two coronavirus-related scenarios (central and severe) on 86 large banks over a three-year period that ends in 2022.
Banking – United Kingdom: Regulator confirms UK bank distribution suspensions until at least January 2021, a credit positive
29 Jul 2020
On 28 July, the UK Prudential Regulation Authority (PRA) said it would review in the fourth quarter UK banks' planned dividend payments and share buybacks for payment after 2020. The possibility of continued restrictions beyond 2020, market and economic conditions warranting, is credit positive for the UK banking sector.
Banking – Europe: EU solvency rule amendments will improve banks’ capital ratios and support economy
16 Jun 2020|Moody's Investors Service
The EU amendments to the Capital Requirement Regulation will mitigate any short-term decline in EU banks’ capital and allow them to deploy their capital to business loans.
04 May 2020|Moody's Investors Service
Deteriorating profitability and weakening asset quality will begin to erode the capital of at least some banks as the global economic shock broadens and lengthens. Lower capital would materially increase the credit vulnerability of these banks.
02 Apr 2020|Moody's Investors Service
Regulators' recommendations aim to increase banks' core capitalization in order to improve their loss resiliency and support new lending amid the coronavirus' adverse effects.
30 Mar 2020
On 20 March the European Central Bank (ECB) published a text answering frequently asked questions regarding measures it has taken in response to the coronavirus crisis. Regulators provide guidance for banks on meeting their regulatory requirements at a time of crisis.