Featured Product

    EBA Publishes Risk Dashboard for the Second Quarter of 2018

    October 08, 2018

    EBA published the periodical update to its risk dashboard for the Second Quarter of 2018. The dashboard summarizes the main risks and vulnerabilities in the EU banking sector using quantitative risk indicators. In the second quarter of 2018, the updated risk dashboard showed sustained improvements in the management of nonperforming loans (NPLs) across EU, with bank profitability remaining a key challenge.

    The dashboard showed that capital ratios of European banks remained high, in line with the first quarter of 2018. The common equity tier 1 (CET1) ratio remained at 14.5%, with a slight increase in the value of CET1 capital, accompanied by an increase in total risk exposures. CET1 ratios remained above 12% for all countries in the sample. Additionally, EU banks continued to improve the overall quality of their loan portfolio. The ratio of NPLs to total loans kept the downward trend and achieved a level of 3.6%, the lowest since the NPL definition was harmonized across European countries. The leverage ratio (fully phased-in) remained at 5.1% when compared to the first quarter of 2018. The asset encumbrance ratio decreased from 28.4% in the first quarter of 2018 to 28% in the second quarter of 2018. The liquidity coverage ratio rose to 148.2% from 147% in the first quarter of 2018, remaining well above the 100% requirement.

    The data in the risk dashboard are based on a sample of 150 banks, covering more than 80% of the EU banking sector (by total assets), at the highest level of consolidation, while country aggregates may also include large. IFRS 9, which entered into force on January 01, 2018, may have had an impact on some of the ratios included in the dashboard.

     

    Related Links

     

    Keywords: Europe, EU, Banking, Basel III, Risk Dashboard, NPLs, IFRS 9, EBA

    Featured Experts
    Related Articles
    News

    FDIC Releases Economic Scenarios for Stress Testing in 2020

    FDIC released the hypothetical economic scenarios for use in the upcoming stress tests for covered institutions with total consolidated assets of more than USD 250 billion.

    February 14, 2020 WebPage Regulatory News
    News

    EBA Acknowledges EC Adoption of Amended Supervisory Reporting Standard

    EBA acknowledged the adoption, by EC, of an Implementing Act with regard to the common reporting (COREP) and financial reporting (FINREP) changes, in accordance with the Capital Requirements Regulation or CRR.

    February 14, 2020 WebPage Regulatory News
    News

    APRA and ASIC Welcome Proposed Reforms for Superannuation Sector

    APRA and the Australian Securities and Investments Commission (ASIC) have jointly welcomed the proposed legislative reforms increasing the role of ASIC in the superannuation sector.

    February 14, 2020 WebPage Regulatory News
    News

    ESMA Responds to EC Consultation on Review of Benchmarks Regulation

    ESMA published its response to EC consultation on review of the Benchmarks Regulation in EU.

    February 14, 2020 WebPage Regulatory News
    News

    ISDA Guide on Smart Contracts for Equity and Interest Rate Derivatives

    ISDA has published the fourth and fifth installments in a series of legal guidelines for smart derivatives contracts.

    February 13, 2020 WebPage Regulatory News
    News

    FED Paper Describes FLARE, A Top-Down Model for Stress Testing

    FED published a technical paper that describes the Forward-Looking Analysis of Risk Events (FLARE) model.

    February 13, 2020 WebPage Regulatory News
    News

    EC Rule Updates Data for Calculations Under Solvency II Reporting

    EC published the Implementing Regulation 2020/193, which lays down technical information for the calculation of technical provisions and basic own funds for reporting with reference dates from December 31, 2019 to March 30, 2020, in accordance with the Solvency II Directive (2009/138/EC).

    February 13, 2020 WebPage Regulatory News
    News

    EIOPA Publishes Supervisory Convergence Plan and Suptech Strategy

    EIOPA published the strategies for cyber underwriting and supervisory technology (suptech), in response to the evolving insurance landscape.

    February 12, 2020 WebPage Regulatory News
    News

    EBA Proposes Guide on Sectoral Exposures to Apply Systemic Risk Buffer

    EBA launched a consultation on the guidelines on appropriate subsets of sectoral exposures to which competent or designated authorities may apply a systemic risk buffer (SyRB), in accordance with the Capital Requirements Directive (CRD).

    February 12, 2020 WebPage Regulatory News
    News

    ISDA Paper Outlines Developments on Risk-Free Rate Adoption in 2020

    ISDA published a research paper that examines several major upcoming developments on the adoption of risk-free rates in 2020.

    February 12, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 4676