L-R: Mark Carney; Sheila Bair; Michel
Barnier; Mary Schapiro; Jamie Dimon; Charles Dallara
"I had a discussion with a very senior regulator recently
who told me: 'Look, I know we’ve gone too far too
fast on some of this and that we’ve made some
errors, but I’m afraid I don’t know
how to stop this process’.
Now that’s quite scary."
Volcker rule: special focus
Circuit breakers: Does FX need a kill switch?
Foreign-exchange broker FXCM’s CEO calls
for wider adoption of circuit breakers on FX platforms to
prevent another Swiss franc shocker as seen on Black Thursday,
but critics question whether it is the right solution and even
suitable for an over-the-counter (OTC) market such as FX.
FEMR consultation highlights scale of regulatory challenge in
In its fair and effective markets review, the Bank of England
has acknowledged end-users are largely ill-suited to the task
of combating market misconduct in FICC markets. But opinion
remains deeply divided over how best to strengthen oversight in
wholesale markets, and which regulatory body should lead the
Capital Markets Union: Make do and mend
Jonathan Hill has eschewed grand ambition for practical reality
in his CMU green paper.
Regulation: Philippines remains a tough nut to crack
The country’s banking industry is growing fast.
New laws designed to encourage foreign investment make it
easier for offshore firms to wholly purchase local lenders. But
there are plenty of barriers to entry aside from
Does Europe need its own private placement market?
Private placements have usurped securitization as
Europe’s great SME financing hope. The financial
markets support EU commissioner Jonathan Hill’s
Capital Markets Union initiative to promote it. But the
thriving US market will be hard to compete with, let alone
replicate. Which leaves two questions: Can the EU build it?
And, even if it can, will issuers and investors come?
Brazil's education still smart despite regulatory
Tarpon takes control of Abril for R$1.3 billion; new regulation
might limit numbers of higher students.
Regulatory capital: Banks spread the search for tier-2
Rabo and BPCE pioneer samurai deals; Japanese investors see big
risks at euro banks.
Bank regulation: 'Basel IV’ sparks banker
Basel wants end to use of credit ratings; further regulatory
Treasurers voice fears over EU MMF regulation
Yield-hungry treasurers are keeping a close eye on the progress
of the European Commission’s proposed changes to
money market funds rules, and fear changes to net asset
valuations and the role of credit agencies.
Banking clubs extend global reach
International banking alliances offer a number of benefits to
treasurers – from FX hedging to cash pooling
– while Sepa and the rise of non-bank payment
providers have yet to diminish their allure.
Fragmented payments landscape undermines Asean
While corporates are gearing up for southeast Asian trade
integration, a balkanized regime for processing cross-border
payments is undermining the intra-regional push.
New FX trading standard sees slow adoption
Despite its extension to FX last
year, market participants acknowledge it is likely to be some
time before they feel the full impact of the
liquidity-enhancing trading enablement standardization
Turkey: New rules prompt Vakifbank tier-2 move
Basel III law opens up funding; investors bring $1 billion
Australia: More questions than answers in the Murray
Everyone was a little nervous at the contents of the first
inquiry into the nation’s financial services
industry in over 25 years. It isn’t as traumatic
as most feared, but it leaves some important issues
Banks urged to improve compliance-burden cooperation
Onerous KYC regulations are imperilling trade financing and the
flow of credit to emerging markets. It is high time banks boost
cooperation, aided by technology, to address the challenge, as
industry efforts are found wanting, say treasurers.
Thomas Hoenig interview: Battle against too-big-to-fail
Haunted by the global crisis, policymakers from the US to the
UK are erecting national barriers and waging a war against
too-big-to-fail banking. Vice-chairman of the Federal Deposit
Insurance Corp Thomas Hoenig defends the drive toward
Regulation: Banking's next big hits
Regulation now utterly dominates the banking industry and will
have an even bigger impact in 2015, not just on bank capital
and returns but on the entire legal structure of the
Banks struggle to find the right business model
Banks need new sources of revenue or will remain chained to the
wheel of endless cost cutting as they face continuing
uncertainty about how to best allocate their capital.
Regulators still calling the shots
If systemic risk in the banking system really has been reduced
as much as chief executives say, why are regulators set to have
an even greater impact in 2015?
Litigation: From exceptional items to a cost of doing
The uncertainty for investors over bank litigation extends
beyond hits to bank profits and so, potentially, their ability
to pay dividends and service coupons on capital instruments and
Regulation: EU-US tensions remain over leverage ratio
US officials are waging a war to promote the leverage ratio as
a binding constraint on banks’ capital frameworks,
further imperilling strategic planning for cross-border
Clearing: European banks weigh up US dollar clearing
US fines provoke re-assessment; dollar clearing in Europe
The next regulatory battle: bank structures
From the Volcker Rule to the EU’s proposed
ring-fencing, inconsistent rules on bank structures, both
within the EU and between the US and Europe, are the latest
threat to the global banking model.
Macaskill on markets: Sunset approaches for the Sun
JPMorgan CEO Jamie Dimon made a crucial intervention in a move
to roll back part of the US Dodd-Frank legal reforms to tighten
regulation of banks.
2014: a year in data – SEPA
For years, discussion in the transaction services industry has
tended to default to the impending introduction of the Single
Euro Payments Area, or Sepa. This year, it finally came into
TLAC: Fears for tiers
As 2015 dawns, senior bankers are still poring over the
implications of the Financial Stability Board’s
proposals to boost their total loss absorbing capacity (TLAC)
to ensure that beyond common equity, Additional Tier 1 capital
and Tier 2 subordinated debt, banks still have enough
liabilities on which losses can be imposed in the event of a
failure so that taxpayers never again have to bail them
Sepa provides force for change in transaction banking
The single euro payments area (Sepa) initiative was something
so burdensome it took longer than planned to implement, but
after delays transaction banks and their corporate clients
stand to benefit from this payments regulation.
TLAC and bank M&A: Europe needs consolidation, not
Debt service costs will hit profits; regulators see M&A as
TLAC: what you should know
All about the proposed total loss-absorbing capacity
EC green paper poised to kick-start debate over Capital Markets
Capital Markets Union should be about what investors want to
buy, not just about what investment banks want to sell.
FX regulations doing more harm than good, reveals
New market regulations governing the FX industry have done more
harm than good for FX trading desks, according to an October
survey by TradeTech FX.
Regulation puts global banking in peril
Don’t believe the G20 hype. In interviews with
Euromoney, the world’s top financial policymakers
admit regulatory tensions are tight. What’s more,
the collateral damage of the focus on too-big-to-fail, capital
rules and bankruptcy resolution risk rolling back financial
globalization. Is it time to change the terms of the
Bank relationships: The risk of de-risking
Global banks may feel that purging their correspondent banking
relationships will help them de-risk, but they should beware
the unintended consequences.
Banking: AQR aftermath throws up more questions for
Investors greeted the European Central Bank’s
asset quality review with little more than a shrug. They view
it as merely the first step on a journey to enhanced and
uniform bank supervision that might take a decade to complete.
They are much more worried about the sustainability of
banks’ business models and whether or not they can
even earn enough to service their growing capital stack.
Bank M&A: Europe needs consolidation, not
Debt service costs will hit profits; regulators see M&A as
Banks search for certainty on liquidity rules
The deadline is approaching for the Basel intraday liquidity
rules. But without a defined set of procedures, and concerns
around costs, banks are moving forward reluctantly.
'Super-systemic' CCPs need a TLAC of their own
If forthcoming regulation fails to guarantee robust
loss-absorbing capacity at central clearing counterparties
(CCPs), their increasing systemic importance could usher in a
new generation of organizations that are too big to fail.
Setting the foundations of
There is much discussion around moving towards a standardized
form of banking, but who is setting the standard?
Collaboration could ease KYC burden
Meeting KYC requirements is an irksome and expensive task for
banks to contend with. But there are a slew of offerings from
financial-services companies to ease the compliance
Industry divided as regulators mull NDF clearing
European proposals for mandatory clearing of non-deliverable
forwards (NDFs) published in October seemed to be a decisive
step toward a new framework for FX derivatives trading.
However, responses to the consultation reveal deep divisions
among FX market participants over the way forward.
Bundesbank’s Dombret says trust restored in
European banking system
In an interview with Euromoney, Bundesbank board member Andreas
Dombret sounds an upbeat note on the rigour of the
ECB’s asset-quality review (AQR) and the
eurozone’s resolution arrangements, but issues a
sharp warning over banks’ risk-free treatment of
Banking: Asia-Pacific’s regulation