Societe Generale had the smallest buffer above TLAC requirements across 23 G-Sibs in Q2, @RiskQuantum analysis shows. https://hubs.li/Q02RsNZg0
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One of the main impact of EMIR is that most NBFIs have in effect swapped unsecured counterparty exposures to banks with increased liquidity risk. This has led to a number of market events in recent times and now the FSB is looking to set out a framework for increasing the liquidity resilience of NBFIs. Once finalised and approved at the political level these recommendations eventually turn up as regulation and depending on your jurisdiction they may get copied, watered down or gold-plated! I would certainly encourage all my treasury friends in NBFIs to have a quick read to see what is coming down the pipe and decide whether they want to respond to the consultation at this stage/ #liquidityrisk #regulation #fsb #nbfi
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A tale of two markets: regional #banks and global systemically important banks (GSIBs) are not the same. As regional banks continue to reel in the wake of recent earnings, our #GSIB #etf offers a relatively more targeted play on global banks and forgoes exposure to regional banks, holding only the largest banks that are classified as “systemically important,” the first fund of its kind to do so. Access important risk disclosures and learn more at: https://lnkd.in/egkxDyAP
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The U.S. Commodity Futures Trading Commission (CFTC) has imposed a substantial $30 million penalty on the Canadian Imperial Bank of Commerce (CIBC) for failing to maintain required records and adequately supervise communications. From September 2018 to the present, CIBC did not ensure its employees followed internal policies, allowing unapproved communication methods like personal texts to proliferate. This breach violates CFTC requirements and raises concerns about oversight at senior levels. CIBC has admitted to these violations and will undertake remedial actions to prevent future issues. This case is part of a broader crackdown, with the CFTC imposing over $1.2 billion in penalties on financial institutions for similar infractions since December 2021. Stay tuned for further developments in this significant case! #CIBC #CFTC #Compliance #FinancialNews #BankingRegulations
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As smaller banks continue to face solvency risks, GSIBs remain well insulated given their relatively low exposure to commercial real estate. With #GSIB, you can target exposure exclusively to large global #banks. Learn more/access important risk disclosures at: https://lnkd.in/egkxDyAP
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#FRTB_IMA #RFET #Market_Risk In the recent study by ISDA on FRTB IMA adoption by banks, ISDA observed that the Risk factor eligibility test (RFET) is one of the major disincentive for banks to adopt IMA. Their view is that RFET which assesses the liquidity of risk factors and whether they should be capitalized using ES or the very punitive NMRF framework overlaps with elements of the PruVal framework(Prudential valuation framework from EU) , which already applies a capital charge for these positions when there is perceived model risk, illiquidity and/or uncertainty. There is double counting which has significant capital impact and hence is a major disincentive for IMA adoption.
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Domestic Systemically Important Bank (D-SIB) Framework - Review of the Assessment Methodology: Dated:- 29-12-2023 - The Reserve Bank had issued the framework for dealing with Domestic Systemically Important Banks (D-SIBs) on July 22, 2014 . In terms of this framework, the Bank is required to identify and disclose the names of banks designated as D-SIBs annually. Further, in terms of the framework, the assessment methodology, for assessing the systemic importance of banks and identification of the D-SIBs, is required to be reviewed on a periodic basis. Accordingly, a review of the... ... ... http://dlvr.it/T0kC7b #TaxLaws #News #TaxTMI
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Senior Vice President.(Executive Director) Balance Sheet Management ( Capital, Liquidity and ALCO reporting)
As I analyze the annual reports and presentations of major European banks, there is a definitive indication that RWA is not just a binding constraint (as many of us would have thought) but a key metric in driving the returns to shareholders? The focus on ROTE and the fact that banks are equally concentrating on the denominator states that RWAs that drive Regulatory Capital should be optimised. All major banks have undertaken a buy back campaign..Buy backs are possible only if Regulatory Capital is optimum which in turn warrants RWAs to be kept on check.. And the interesting fact is banks are projecting to achieve enhanced ROTE over a two to three year period, by when, adverse (may be) day 1 impact of Basel 3.1 would have kicked in already. So optimisation of RWAs by multiple ways and means becomes important to deliver the ROTE promise. Time has come to restructure limits, aggressively exit sub optimal portfolios and carefully manage asset momentum...
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The Office of the Comptroller of the Currency (OCC) today announced a $250 million civil money penalty against JPMorgan Chase Bank, N.A. (JPMC) related to deficiencies in its trade surveillance program. The OCC found that JPMC operated with gaps in trading venue coverage and without adequate data controls required to maintain an effective trade surveillance program. Generally, trading venues are systems or electronic platforms, operated by investment firms or market operators, that bring together multiple third party buying or selling interests in financial instruments to perform a transaction. The OCC expects banks to perform trade surveillance to monitor the market conduct of its traders and clients as part of its market conduct risk control framework. The OCC found that JPMC failed to surveil billions of instances of trading activity on at least 30 global trading venues. These gaps and deficiencies in JPMC’s trade surveillance program constitute unsafe or unsound banking practices. The OCC also issued a cease and desist order requiring JPMC to take broad and comprehensive corrective actions to improve its trade surveillance program. The order requires the bank to correct the deficiencies, to seek the OCC’s non-objection before onboarding new trading venues, and to obtain an independent third party to conduct a trade surveillance program assessment. The OCC’s enforcement actions are separate from, but coordinated with, the Board of Governors of the Federal Reserve System which announced a related enforcement action today against JPMorgan Chase & Co.
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Our Risk Quantum team has noticed the switch to the FRTB's standardised approach has led to a drop in risk-weighted assets for some banks compared to the old IMA. Where's all the risk gone? #BaselIII #FRTB #marketrisk https://lnkd.in/eUyfR89z
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Auronova Consulting | Ex-PwC | Financial Risk Consulting | Post Graduation in Risk Management | M.Com (Finance)
● G-SIB ● A bank that gets categorised as g-sib (Global Systemically Important Bank) is the one whose systemic risk profile is considered to be of utmost importance because this financial institution’s failure would give rise to a global economic and financial collapse. Basel Committee has prescribed certain formulations for the assessment of g-sibs. The aftermath of the financial crisis required Regulators frame directives that the larger banks needed to hold more capital and oblige to stringent stress tests as compared to their smaller peers. Financial Stability Board (FSB) along with discussion with Basel Committee Banking Supervision (BCBS) has identified 29 banks for the year 2023 that are classified under the category of Global Systemically Important Banks. The criteria set by FSB for categorizing the banks are - higher capital buffer requirements, total loss absorbing capacity (to be maintained along with regulatory capital), resolvability (group-wide resolution planning), higher supervisory expectations (governance and internal controls). When a g-sib score improves then it is moved on to a higher bucket the condition being to meet additional requirements within 12 months. Some examples of g-sibs from the latest published list of 5 buckets are - Bucket 5 - Empty bucket Bucket 4 - JP Morgan Chase Bucket 3 - Citigroup, HSBC Bucket 2 - Bank of China, Agricultural Bank of China, UBS Bucket 1 - State Street, Royal Bank of Canada, Mizuho FG If you know how g-sibs differ from sifi (Systemically Important Financial Institution), share them in the comments below. Stay connected to explore more on risk management. #banks #crisis #financialinstitutions #basel #riskmanagement
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