Both the sell-off of equities and the very limited and slight inversion of the Treasury yield curve at the three- and five-year maturities hint of a possible pause for the latest series of Fed rate hikes. Since September 26's last hiking of fed funds to 2.125%, the 10-year Treasury yield has dropped from 3.05% to a recent 2.87%, and the five-year Treasury yield has sunk from 2.95% to 2.74%.
With the economy now facing its most vulnerable window of growth since the global financial crisis, it appears the latter is again more of a priority.
In this paper, we provide empirical support for the conclusion that the CECL standard will be less procyclical than the incurred loss standard.
PRA published the policy statement PS30/18, which contains the final policy following a consultation (CP16/18) on certain amendments to regulatory reporting.
EIOPA published new sets of questions and answers (Q&A) on guidelines, implementing regulations, and delegated regulations applicable to insurers in Europe.
ESMA, the direct supervisor of credit rating agencies (CRAs) in EU, has registered A.M. Best (EU) Rating Services B.V. as a CRA under the CRA Regulation, with effect from December 03, 2018.
ECB published the final cyber resilience oversight expectations for financial market infrastructures (FMIs).
ESAs (EBA, EIOPA, and ESMA) published a statement in response to the industry concerns about severe operational challenges in meeting the transitional provisions of the Securitization Regulation disclosure requirements.
OSFI released a revised Minimum Capital Test (MCT) Guideline for federally regulated property and casualty (P&C) insurers.
Profitability will have the final say regarding the future direction of the corporate credit cycle. Each of the five deep and extended contractions by profits since 1982 helped to lift the high-yield default rate well above 5%. Moreover, three of the five pronounced downturns by profits overlapped each of the recessions since 1982. For now, the outlook for corporate earnings benefits from the surprising containment of employee compensation notwithstanding the lowest unemployment rate in 49 years.
The Group of Central Bank Governors and Heads of Supervision (GHOS) met, on November 26–27, in Abu Dhabi to discuss a range of policy and supervisory topics. GHOS represents nearly 80 jurisdictions and is the governing body of BCBS.
FED proposed a rule that would establish risk-based categories for determining prudential standards for large U.S. banking organizations, consistent with section 401 of the Economic Growth, Regulatory Relief, and Consumer Protection Act (EGRRCP Act).
DNB issued the banking and insurance newsletters for November 2018.
We asked attendees of the 2018 Moody's Analytics Summit their thoughts on four key questions in preparation for the new standard.
The Financial Policy Committee (FPC) of BoE published the financial stability report for 2018, including the results of its 2018 stress test for the banking sector in the UK.
EIOPA published the draft technical advice on possible amendments to the delegated acts under Solvency II and the Insurance Distribution Directive (IDD) with respect to the integration of sustainability risks and factors.
FSB published its fourth annual report on the implementation and effects of the G20 financial regulatory reforms.
ECB published results of the financial stability review in November 2018. The financial stability review assesses developments relevant for financial stability, including identifying and prioritizing the main sources of systemic risk and vulnerabilities for the euro area financial system.
IAIS published the updated timeline on the development of Common Framework for the Supervision of Internationally Active Insurance Groups (ComFrame) and on the revision of Insurance Core Principles (ICPs).
European Council reached an agreement on the stance on a harmonized EU framework for covered bonds.
APRA is consulting on revisions to the prudential standard on capital adequacy (APS 110) and on the new reporting standard on leverage ratio (ARS 110.1).
FSI published a paper that presents the findings of a comparative analysis on the system-wide stress tests for banks in the euro area, Japan, Switzerland, and the United States.
PBC, CBIRC, and CSRC jointly issued the "Guiding Opinions on Improving the Supervision of Systemically Important Financial Institutions (SIFIs)."
FASB proposed taxonomy improvements for the Accounting Standards Update on financial instruments. The comment period for the proposed taxonomy improvements ends on December 26, 2018.
BDF updated the supporting information for AnaCredit reporting in the form of documents related to the “Framework for Financial Institutions and Public Administrations."
IMF published its staff report and selected issues report under the 2018 Article IV Consultation with Japan.
OSFI published the updated final guideline (Guideline B-5) and impact analysis statement on asset securitization for insurance companies. Also published was the OSFI response to the comments received to the consultation on amendments to this guideline.
EC published the Implementing Regulation (EU) 2018/1844 regarding the templates for submission of information to the supervisory authorities, in accordance with the Solvency II Directive (2009/138/EC).
The Plenary of FSB appointed Randal K. Quarles (Governor and Vice Chairman for Supervision at the U.S. Federal Reserve) as its new Chair and Klaas Knot (President of De Nederlandsche Bank) as the Vice Chair, for a three-year term starting on December 02, 2018.
ECB published Regulation (EU) 2018/1845 on the materiality threshold for credit obligations past due for all significant institutions within the Single Supervisory Mechanism (SSM); this threshold is for both retail and non-retail exposures, irrespective of the method used for the calculation of capital requirements.