Posts tagged 'European Bank Deleveraging'

European bank deleveraging: Basel III edition

Kate is FT AV’s Asia Correspondent. She joined FT Alphaville in mid-2011 after carrying out various roles in the FT’s London office since 2005: interactive editor, companies reporter, and founding editor of the FT’s Energy Source blog.

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| Oct 24 2012 11:40 | Comment |

What happened with all that European bank deleveraging?

Some of it is over with, says Barclays — leaving, by our estimates of their estimates, about €650bn* of deleveraging yet to be carried out among the major European banks they cover**. Quite big, but much less than the €1.5tn – €2.5tn being discussed late last year. Read more

Sweet deals in European bank deleveraging

| Dec 08 2011 17:30 | Comment |

What links Hershey to the eurozone debt crisis? Well, aside from making a product that cracks under pressure, the confectioner has recently renewed a syndicated lending deal that Nomura’s analysts say augurs further European bank deleveraging.

Although European banks can now post lower rated collateral to access ECB funds, continuing funding pressures, EBA requirements and Basel regulations will ensure further sell-offs. We’ll know more later on Thursday, when EBA stress test results are disclosed. Thus far, European banks have announced around €1,200bn worth of planned sales and run-offs, as this chart from Nomura depicts: Read more

When the deleveraging meets the real economy

Lisa joined FT Alphaville in September 2011 after a tour of duty through the guts of the financial industry, having worked as an analyst at a bank and for a financial data company. She's now the Head of New Projects for FT.com.

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| Dec 07 2011 12:35 | Comment |

Looking forward to the new year yet?

After a likely outright contraction in GDP in 2012, in the creditless recovery that we envisage the pick-up in GDP growth is likely to be slow and shallow. Read more

It’s a capital ratio of two halves

Lisa joined FT Alphaville in September 2011 after a tour of duty through the guts of the financial industry, having worked as an analyst at a bank and for a financial data company. She's now the Head of New Projects for FT.com.

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| Nov 15 2011 13:30 | Comment |

Or, how crunchy a credit crunch from European banks might we get?

We know European banks have until the end of June 2012 to get their core capital ratios up to 9 per cent. The European Banking Authority is going to detail individual bank targets on Friday, Reuters reports. Read more

Here comes the (cross-border) bank deleveraging

Cardiff writes mostly about US macroeconomic issues, with daily excursions into other topics about which he claim no expertise. Before Alphaville, Cardiff spent a little more than two years as a reporter at Dow Jones Financial News covering investment banking, asset management, and private equity. Along the way he has written freelance pieces on a variety of other topics from behavioural psychology to Muay Thai, the latter also being a personal interest that involves frequently getting kicked in the shins (and torso, and head).

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| Nov 08 2011 21:26 | Comment |

In our history lesson after the eurozone summit ended, we cited the European Banking Authority’s Q&A on its requirement that banks raise €106bn as part of the bank recapitalisation plan.

The language was tough and tried to ease concerns that banks would excessively deleverage to meet capital requirements. But it was also (necessarily) vague, and there were no details on the extent to which the banks would be permitted to shed risk-weighted assets as they go about meeting those requirements. Read more