Of Special Interest
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- Newslink Trends-The Global Strategic Perspective
- Juniper Research says digital wallet users to exceed 4.4 billion by 2025, as mobile drives digital payments’ revolution
- Criminals exploit COVID-19 pandemic with rise in scams targeting victims online
- Equifax says Open Banking proving pivotal to pandemic lending
- Consumer confidence in banks, credit card providers and investments remain stable as demand supercharges digital finance says Toluna research
- Mintos says Europeans are starting to embrace investing
- US banks see IT modernisation as a way to improve customer experience
- Risk mitigation in global trade depends on digitisation-Andrew Raymond, CEO, Bolero International comments
- Juniper Research new study says the volume of B2B payments facilitated by non-banks will exceed 53 billion in 2022, from a COVID-related low of 38 billion in 2020
- CMA issues fifth publication over 3 years of the service quality league table of personal and business current account providers
- Barclays says scammers take advantage of COVID-19, cashing in on nations’ uncertainty
- S&P Global report says financial market infrastructure sector's earnings likely to cool off In second half
- Global banking market capitalisation slumps by over 30% amid pandemic says Buyshares research
- Digital wallet spend in Europe & North America to increase by 40% in 2019, finds study
- Juniper forecasts mobile money transactions will exceed 200 billion by 2024
- Banks can save the world from climate change, says former UN climate chief
- Research by NatWest reveals gender divide over attitudes to saving
- Europe’s big bank problem: too much capital is trapped in the US, says Scope
- Later-Life lending market set to almost double in the next 10 years, finds report
- Barclays/Cebr report challenges nation to think differently about wealth
- Fifth of UK investors looking to debt investment, new research reveals
- Regtech will play a more important role in PSD2, says Mitek
- Banks turn to Fintech partnerships to improve customer experience, finds Fraedom
- New industry code to tackle fraud must deliver, says Which?
- New TTF report highlights loss of trust in financial services
- Arxan highlights financial app vulnerability epidemic
- SAS asks whether banks really need to choose between operations and innovation
- Which? raises alarm as almost 1,700 free ATMs become fee-charging
- Financial wellness affects half of peoples’ mental or physical health, finds report
- Study finds traditional financial institutions embrace Fintech disruption
- Grass is greener for environmentally friendly businesses, finds Barclays
- Prospective homeowners would consider a 40-year mortgage to escape renting, finds Santander
- Millennials’ needs are changing the face of banking industry, says new report
- FS is putting consumer data at risk by failing to protect mobile apps, says Arxan
- A lack of belief in their ability holds 28% women back in work, says Cambridge & Counties
- ‘Which?’ reveals Scotland has lost over a third of its bank branches in eight years
- Next downturn unlikely to be as bad as 2008, according to S&P
- FCA reveals findings from first cryptoassets consumer research
- US consumers favour single mobile app for banking and payments
- Banks suffering major IT shutdowns every day, ‘Which?’ reveals
- The US will be a key offshore centre in 2019, says GlobalData
- Debit industry changes markedly in 10 years of the Debit Issuer Study
- UK's ‘Big Five’ face ‘too big to compete’ as small challengers secure stellar returns
- Banks as vulnerable now as before crash, says new study
- Leverage ratio a constant conundrum for European and US banks, says SNL
12th July 2011
Friday night is European stress test result night
The European Banking Authority and national regulators are to release the results of the European stress tests on Friday after markets close. The EBA is determined to learn from the dissemination shambles that occurred last years under the management of its predecessor and has a carefully planned schedule - though one showing the usual European political wrangling
At 6pm CEST/ 5pm BST Summary information on banks to be published by the EBA. The Banks themselves to publish their individual results but must use the EBA template from 6pm. Precisely one minute later National supervisors to publish summary results for banks under their jurisdiction. At 6.30pm / 5.30pm National supervisors to publish individual bank full details. Followed precisely one minute later by the EBA publishing the individual bank details. At 7pm / 6pm the EBA press conference will start.
One consequence of the timetable is that the dissemination will occur whilst US markets remain open. The reaction from the US markets then likely to be carried forward to the Asian markets next Monday. There had been calls for the data to be released after US markets close.
Another European compromise is at which point of time at which the bank's strength - or not - is measured. At its core is the now rather historic 2010 year end however "The impact of existing mitigating measures which will strengthen the capital base at 2012 as a result of committed equity raisings, and mandatory restructuring plans announced and fully committed by 30 April 2011" will also be included.
The top 91 banks in Europe which account for 65% of total banking assets. Regarding the problems encountered within this year's stress test the EBA comments:
"A quality assurance and peer review process (was) carried out by EBA staff assisted by a team of experts from national supervisory authorities, the European Central Bank and the European Systemic Risk Board. During this process, additional guidance was sent out to banks early in June to address shortcomings and over-optimism of some banks' preliminary estimates."
The presentation of the results will also include clear disclosure of credit and sovereign exposures.
It was previously agreed that banks who fail the stress test will be given until September of this year to come up with corrective plans. Banks unable to come up with credible market plans may have to accept state aid. As with past rounds of state aids this would come with consequences forcing the banks to sell of businesses and downsize as remedies for the distortion to the free trade market caused by the state aid. The basic pass / fail measurement is 5% Core Tier 1. To the annoyance of some countries the definition is (close to) that proposed under Basel III.
Analysts mainly expect the failures in Southern Europe with attention on the larger second tier banks in Spain, Italy and Greece. Whilst there had been concerns over some second level German banks most analysts now think they should scrape through. One of the issues especially affecting Germany was over the definition of acceptable capital with the strict CT1 definition causing some issues for certain banks.