Financing & Bank regulation
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After you read this, you will care about Basel III

After you read this, you will care about Basel III | Financing & Bank regulation | Scoop.it
The Federal Reserve just approved final regulations to implement Basel III financial rules in the U.S. You should care.
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“I actually don’t think that banks are going to take less risk,” says Truman. “They’re going to have more capital to absorb that risk, so when they make mistakes it’ll impact their capital rather than force them into bankruptcy.”

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Stop encouraging banks to buy government debt - FT.com

Stop encouraging banks to buy government debt - FT.com | Financing & Bank regulation | Scoop.it
It appears to be another case of the “principle of unripe time” – the notion coined by the late English classicist F.M.
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Ink barely dry, EU aides fret new rules crimp investment

Ink barely dry, EU aides fret new rules crimp investment | Financing & Bank regulation | Scoop.it
* Basel III, Solvency II to crimp bank funding of SMEs* Capital rules on securitisation hit company fundingBy Paul TaylorPARIS, Nov 26 (Reuters) - With the ink barely dry on newcapital rules for banks,...
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Asset-backed securities are tools to re-sell bundle of loans made to companies. Solvency II and Basel III strict rules tighten this market and make credit costlier for small and medium companies. In Europe, Banks provide about 80% of SME finance but they are nowadays chilly to lend and do it at a higher cost than cheap central bank money

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Too-Big-to-Fail Banks Go Ultra Safe - MoneyBeat - WSJ

Too-Big-to-Fail Banks Go Ultra Safe - MoneyBeat - WSJ | Financing & Bank regulation | Scoop.it
Changes to the global framework for regulating banks appear to have pushed them into lending more to governments and less to businesses since they were introduced three years ago, ratings agency Fitch said in a study published Monday.
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Too big to fail banks encourage banks to be more conservative through higher levels of capital and liquidity ratio. They cut their exposures to corporates by 440 billion in the two years after the Basel III accords took shape.

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Italy faces a corporate-funding challenge

Italy faces a corporate-funding challenge | Financing & Bank regulation | Scoop.it
Telecom Italia has become the first major incumbent European telecom operator with a "junk" credit rating. But the financing challenges faced by corporate Italy go much further.
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The bad performance of Italian economy and downgrades of Italy's sovereign rating are weightin on corporate credit quality. Italian companies rely more than never on High Yield Market. In addition 94% of Italy's companies are classed as "micro" enterprises and rely on expensive bank loans.

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U.S. corporate bond issuance surges past $1 tln

U.S. corporate bond issuance surges past $1 tln | Financing & Bank regulation | Scoop.it
NEW YORK (MarketWatch) -- In the latest sign that companies are rushing to issue debt at low rates, U.S. marketed investment-grade corporate bond issuance this year surpassed $1 trillion this week, according to data released by Dealogic Thursday.
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Corporate Bonds to Get an Extra Boost As Regulators Relax Rules on Lenders

Corporate Bonds to Get an Extra Boost As Regulators Relax Rules on Lenders | Financing & Bank regulation | Scoop.it
A change of rules allowing corporate debt to count toward funds that banks must hold to guard against potential financial stress may push bond prices even higher as demand continues to outstrip supply, analysts say.
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After much criticism corporate debt from BB- to higher rate must be hold by banks as "liquid assets". It's a real investment incentive toward corporate bond market

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European banks cut corporate lending - FT.com

European banks cut corporate lending - FT.com | Financing & Bank regulation | Scoop.it
Europe's largest banks have ramped up their investment into sovereign debt by more than a quarter in the past two years while cutting back corporate lending as they prepare for stricter global capital rules.
mspi's insight:

According to a Fitch study, banks have reduced their risk exposure to corporate credit by 9% while The Europe's 16 largest banks have increased their risk exposure to sovereign debt by 26%. Indeed, Basel rule-book force banks to hold more liquid assets to secure their balance sheet.

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RPT-Fitch: Basel III Spurs Rise in European G-SIB Sovereign Exposure; Corporates, Interbank Lending Drop

RPT-Fitch: Basel III Spurs Rise in European G-SIB Sovereign Exposure; Corporates, Interbank Lending Drop | Financing & Bank regulation | Scoop.it
Nov 4 (Reuters) - (The following statement was released by the rating agency)A new Fitch Ratings study assesses the effects of Basel III on the credit and capital allocation of the European global systemically-important...
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According to Fitch, while Basel III is intended to strengthen banks' capital & liquidity, it could also reduce credit availability  to certain sectors.

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