The Swiss financial market regulator Finma has announced it has updated its circular regarding local banks’ risk diversification in line with the revised Basel III standards. The amended version aims to adjust Swiss banks’ current large exposure rules with improved requirements for measuring and controlling large loans. The circular will be subject to a consultation ending […]
Vontobel Asset Management has announced the launch of a new Global Bond fund, aimed at offering investors facing the new Basel III liquidity coverage requirements(LCR) a profitable investment opportunity for liquidity reserves. Domiciled in Luxembourg, the new Euro denominated fund will be managed by Anna Holzgang, head of the Global & Swiss Bonds team at […]
Additional Tier 1 bonds are not the ‘canary in the coal mine’ instruments envisaged by regulators, but complex financial products that expose the financial markets to significant risk. Additional Tier 1 bonds, a type of contingent convertible (CoCo) bond, hit the headlines in February after a tranche issued by Deutsche Bank plummeted in the wake […]
China will remove the loan to deposit ratio (LDR) for commercial banks, which currently stands at 75%. LDR will be replaced by other liquidity monitoring measures. LDR averaged 67.8% as of May but it’s likely not a true reflection of bank’s liquidity conditions as banks tend to reduce loans and hoard deposits towards month end […]
Lyxor’s reorganised absolute return team has launched an active smart beta strategy for European debt. Lyxor reshuffled its absolute return team in November 2014. Five years after its launch, changes come naturally according to Guillaume Lasserre, head of Absolute Return and Solutions at Lyxor, as absolute return has “emerged as a strong expertise” of the […]
Vincent Papa, director of financial reporting at the CFA Institute, argues that investors should not underestimate the importance of comprehensive income when assessing bank performance and risk levels. With banks’ earnings season in full swing and the looming threat of rising interest rates, a pertinent question remains: How effectively are investors monitoring the performance and […]
Swiss group Lombard Odier has announced that its total client assets stood at CHF215bn as at 31 December 2014, of which AUM were CHF 161bn (€150.5bn), up CHF 8.6bn (€8bn). The consolidated net profit for 2014 was CHF120m (€112.2m). Private clients business accounted for CHF116bn (€108.5bn) of the assets while asset management clients have invested CHF49bn (€45.8bn) […]
Colombia‘s Ministry of Finance earlier this week released a framework for new bank capital securities that will open the door for local banks to issue new loss absorbing securities, according to Fitch Ratings. The Colombian Financial Superintendence still needs to issue the regulations for implementation and would need to review any new issue request to […]
Deutsche Bank, Europe’s largest investment bank, has released its profit figures, reporting a 30% decline of income before tax compared to the previous year, net income dropped by 34% to €1.08 bn. Nevertheless, shares rose as the report outperformed predictions.
A combination of strong economic growth and the requirements of Basel III could leave Asian banks facing a $1trn capital shortfall within five years, according to Piyush Gupta, chief executive of Singapore-based lender DBS.
Bond investors have attacked the template laid out for new regulatory capital instruments in Europe’s version of Basel III, arguing potential purchasers will shun so-called additional Tier I (AT1) products when they realise how risky they are.
Charles Plosser, the Federal Reserve Bank of Philadelphia president, last week criticised US efforts to end the too-big-to-fail problem and advocated a more rules-based approach to bank resolution.