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Concerns over non-bank leverage may derail push to include haircuts in bank capital rules Print this page
European Commission officials are still debating whether to include minimum haircuts for securities financing transactions in the bloc’s new capital requirements regulation, which is due to be published in less than three months.
The European Banking Authority is pushing for the rules to be incorporated into financial markets regulation instead – for instance, through a ban on transactions with insufficient haircuts. The regulator warned in 2019 that enforcing the minimum haircuts via bank
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Deposits boosted top US banks’ short-term funds in 2020 Print this page
Deposits made up a larger portion of the eight US global systemically important banks’ (G-Sibs) short-term wholesale funding (STWF) at end-2020 then the year prior, reflecting an influx of cash from financial and non-financial clients in the wake of the coronavirus crisis.
As of Q4 2020, the G-Sibs reported an aggregate $5.69 trillion of STWF, up 7% on Q4 2019. However, borrowings classified as ‘retail brokered deposits and sweeps’ surged 29% over this period, to $800 billion. These now
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Banks worldwide have built up liquidity buffers post-Covid
Of the 47 lenders covered by
Risk Quantum that disclosed LCR data as of Q3, 34 (72%) reported higher LCRs at end-September than nine months prior. The average LCR sample-wide was 152%, up from 143%.
Banks in Japan had the highest LCRs of the sample as of end-September. The five banks from the country surveyed had an average LCR of 207% as of end-September, up from 200% nine months prior
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