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Basel

25 May 2016

What has Basel meant for global risk?

Brad Carr | Director, Institute of International Finance

Since the financial crisis of 2008, global banking regulators based in Basel with the Financial Stability Board and Bank for International Settlements have worked on ways to improve the financial sector’s measurement of risk.

10 Nov 2015

Full capacity at the regulation factories

Andrew Cornell | Managing Editor bluenotes

The global financial system regulators released a package of materials Monday night in the lead up to the forthcoming G20 summit in Turkey but it hardly allayed concerns the regulatory agenda was no closer to settling down.

04 Nov 2015

Are banks too profitable

Andrew Cornell | Managing Editor bluenotes

The Financial Times' highly respected Lex column has delivered a slap to (northern hemisphere) bank executives, telling them to stop making promises they never keep.

27 Oct 2015

Cultivating risk

Andrew Cornell | Managing Editor bluenotes

The first law of thermodynamics is energy cannot be created or destroyed, just transformed from one state to another. That pretty much sums up the first law of risk as well.

20 Oct 2015

Leverage, risk, culture and Australian bank capital

Andrew Cornell | Managing Editor bluenotes

Westpac Banking Corp's decision to raise $A3.5 billion in new capital immediately raised investor questions about a new round of equity raisings even though the other three Australian majors had already raised comparable amounts.

07 Oct 2015

The future of capital in the age of regulation

Andrew Palmer & Kevin Wong | Head of FIG Australia & Director Client Insights & Solutions, ANZ

Investors, long term supporters of bank stocks because of their relative stability and dividend yields, are showing signs of wariness. Bank shares in Australia are off their peak by around a third. And underlying the anxiety are two main factors: concerns about the credit cycle and the ongoing demand for more regulatory capital.

02 Sep 2015

Murray Inquiry member welcomes decision on bank deposit levy

Kevin Davis | Research Director, Australian Centre for Financial Studies & Member, Financial System (Murray) Inquiry

The Australian government's decision to not impose an upfront fee on banks, based on insured deposits, to fund the Financial Claims Scheme is correct on both logical and practical grounds.

21 Jul 2015

Banks finally have capital certainty

Paul Edwards | Manager Operations Strategy, ANZ

The Australian Prudential Regulation Authority's latest recommendations give the country's biggest banks much of the clarity around capital they have been waiting for, ANZ chief financial officer Shayne Elliott says, and the lender has a number of options available to ensure it meets the new requirements.

14 Jul 2015

APRA to banks: be chaste but not yet

Andrew Cornell | Managing Editor bluenotes

Two things are clear about the future capital requirements for Australian banks following Monday's international capital comparison study by the Australian Prudential Regulation Authority.

29 Jun 2015

Intended, unintended and unexpected consequences of regulation

Andrew Cornell | Managing Editor bluenotes

There are two ways of reading these lines from the new Bank for International Settlements (BIS) annual report: “Despite substantial efforts to strengthen their capital and liquidity positions, advanced economy banks still face market scepticism. As a result, they have lost some of their traditional funding advantage relative to potential customers.”

06 May 2015

A deposit is no longer just a deposit

Phil Carmont & Kevin Wong | Head of Funds and Insurance & Insights Director, ANZ

At the start of this year, the Australian Prudential Regulation Authority (APRA) implemented its version of the Basel III short-term liquidity reforms. Aimed at ensuring banks hold greater amounts of highly liquid assets (that is, those that are or can quickly become cash) and reduce their reliance on short-term funding, the Liquidity Coverage Ratio (LCR) framework tests the run-off characteristics of banks' funding liabilities over a 30-day stress period.