Latest news with #capitalrequirements
Reuters
15 hours ago
- Business
- Reuters
France to drop extra capital demand for banks exposed to indebted companies
PARIS, June 2 (Reuters) - France will not renew a two-year measure that required its biggest banks including BNP Paribas ( opens new tab and Societe Generale ( opens new tab to hold extra capital against their exposure to highly indebted companies, the financial stability council said on Monday. The measure, put in place in August 2023, requires the French lenders, which also includes Credit Agricole ( opens new tab and BPCE, to hold more capital when their exposure to a single large company with high debt levels exceeds 5% of their core capital, or CET1. In such cases, banks must set aside an extra 3% of that exposure in top-tier capital. The year 2023 was marked by heavy debt restructurings in France, including high-profile cases like retail group Casino. The need to simplify macroprudential rules and lower debt levels today at the affected companies justifies dropping the measure, an official at the finance ministry said. The council, which is chaired by Finance Minister Eric Lombard and includes the central bank governor, also said it would maintain the so-called countercyclical capital buffer at 1.0%, as it did not see the measure negatively affecting new loan production.
Bloomberg
23-05-2025
- Business
- Bloomberg
EU Will Delay Capital Rules for Bank Trading Desks by One Year
The European Union has decided to delay the application of tougher capital requirements for banks' trading businesses as the bloc is concerned about the industry's competitiveness. The standards known as the Fundamental Review of the Trading Book will be pushed back by one year to the start of 2027, a European Commission spokesperson said in response to questions from Bloomberg. It's the second such delay.
Bloomberg
22-05-2025
- Business
- Bloomberg
Bundesbank Backs Delay to Trading Rules for European Lenders
Germany's Bundesbank said Europe should delay new global capital requirements for banks' trading businesses and could eventually consider permanent changes to them. 'It's certainly sensible to wait until it's clear what the US will do,' Bundesbank executive board member Michael Theurer said in a speech on Thursday in Frankfurt. That would provide time to 'conduct a fact check' in the interest of preserving 'the level playing field' between banks on either side of the Atlantic, he said.
Reuters
20-05-2025
- Business
- Reuters
UBS shares drop 3% after report that it faces Swiss capital setback
LONDON, May 20 (Reuters) - Shares in Swiss bank UBS (UBSG.S), opens new tab dropped more than 3% on Tuesday, with traders citing a media report that the lender was set to lose the first leg of a battle with the government over proposals to make it hold more capital. Bloomberg, citing sources, reported late on Monday that the Swiss government was expected in June to unveil proposals that require UBS to increase its ability to cover losses in foreign subsidiaries to 100% of the capital held in those units. UBS has been mounting a campaign to push back on the government's proposals, arguing that requiring it to hold more capital would harm its competitiveness versus rivals elsewhere. Shares in the company were down 3% at 27.16 francs by 0756 GMT, against a 0.68% rise in a European banking index (.SX7P), opens new tab. UBS stock has underperformed in 2025, dogged by uncertainty over the capital question, and is down more than 4% for the year, compared with a 30% rise in the broader banking index.
Reuters
20-05-2025
- Business
- Reuters
UBS set to face setback in Swiss capital hike, Bloomberg News reports
May 19 (Reuters) - UBS Group (UBSG.S), opens new tab is expected to face setbacks in its endeavor to dilute proposed Swiss legislation that would require maintaining up to $25 billion in additional capital, Bloomberg News reported on Monday, citing sources familiar with the matter. The Swiss government is expected to publish a draft bill in June that could mandate the Swiss bank to strengthen its loss-absorption capacity, requiring it to cover losses up to 100% of the capital at its foreign units, the report added. UBS declined to comment, while the Swiss government did not immediately respond to request for comment. Since its 2023 emergency takeover of Credit Suisse, which left it as Switzerland's only globally systematically important bank, UBS has faced growing pressure. The government and regulators are now considering tougher capital rules to safeguard the financial system and increase the bank's robustness. UBS executives, however, say that excessive capital requirements could hamper its competitiveness and undermine the attractiveness of Switzerland's financial sector. The draft legislation is not final, as the Swiss Federal Council may still suggest changes, the report noted. Earlier on Monday, UBS CEO Sergio Ermotti warned that stricter regulation in the Swiss banking sector could ultimately benefit foreign competitors.
