The Financial Stability Board (FSB) has recently published the 2024 list of global systemically important banks (G-SIBs) using end-2023 data and applying the assessment methodology designed by the Basel Committee on Banking Supervision (BCBS). The number of banks identified as G-SIBs remains at 29; there were no additions or removals from the list. However, compared with the list of G-SIBs published in 2023, Groupe Crédit Agricole has moved from bucket 1 to bucket 2 (corresponding to a higher capital requirement), while Bank of America has moved from bucket 3 to bucket 2 (corresponding to a lower capital requirement). 

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The latest Eurobarometer has recently released reveals the highest level of trust in the European Union since 2007 and the highest-ever support for the euro. The survey also shows that Europeans have a more optimistic view about the future. They would like to see a stronger and more independent EU, especially in the face of the current global challenges. Continue reading…

The Governing Council of the European Central Bank (ECB) has on 29 November decided on measures that aim to enhance the harmonisation, flexibility and risk efficiency of the collateral framework. Since the global financial crisis, the Eurosystem has operated two collateral frameworks: the general framework, which is permanent, and a temporary one, which comprised crisis-related collateral easing measures. These adjustments contribute to returning to a harmonised single list of collateral available to all counterparties, irrespective of their location in the euro area. Continue reading…

The European Banking Authority (EBA) has on 29 November published the autumn edition of its risk assessment report (RAR). The Report is accompanied by the publication of the 2024 EU-wide transparency exercise, which provides detailed information, in a comparable and accessible format, for 123 banks from 26 countries across the European Union (EU) and the European Economic Area (EEA). Continue reading…

The FCA has fined Barclays £40 million in total for its failure to disclose certain arrangements with Qatari entities in 2008. This follows Barclays’ decision to withdraw its referral of the FCA’s planned action to the Upper Tribunal. The action was based on findings which included that Barclays’ conduct in its October 2008 capital raising was reckless and lacked integrity – the FCA’s earlier press release is linked in the notes below. The FCA notes Barclays’ statement on this matter. Continue reading…

by Ajay Katara

Large financial institutions (LFI), defined as firms with $100 billion or more in assets, are supervised to enhance their resilience and reduce the likelihood of failure. This oversight also aims to limit the broader economic and financial system impact if such a firm experiences failure or significant weakness. Large banking organisations are classified into four categories, each with distinct regulatory requirements. Continue reading…

The Financial Stability Board (FSB) Regional Consultative Group for Europe (RCG Europe) met on 14 and 15 November in Munich, Germany. The meeting was hosted by the Deutsche Bundesbank and Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin). On the first day, members participated in a workshop on the financial stability implications of private credit. Members discussed the drivers of growth of this form of credit and the benefits it brings to the broader economy. They also discussed the need to enhance understanding of potential risks, given limited data on the market, as well as existing regulations. Continue reading…

IBM (NYSE: IBM) and Pasqal have on 21 November announced an update to their intended collaboration to build new, integrated frameworks for quantum-centric supercomputing with Qiskit, the world’s most performant quantum software. The two companies will soon begin developing a unified programming model to facilitate seamless interoperability across different types of quantum computing hardware. This integrated architecture will work across IBM’s next-generation and utility-scale quantum computers, Pasqal’s neutral atom-based quantum devices, and classical high-performance computing (HPC) resources such as CPUs and GPUs. Continue reading…

The European Banking Authority (EBA) has appointed Kamil Liberadzki as new Director of its Economic & Risk Analysis Department. Kamil Liberadzki, who will be responsible for assessing and monitoring financial stability and the risks and vulnerabilities in the EU banking and financial sector, has taken up his new role on 18 November 2024. Continue reading…