Jason Cobine’s Post

What does the Bank of England do? Further detail on the Bank’s objectives, as well as a full list of the operations considered in this report, can be found in the Bank’s Market Operations Guide. https://lnkd.in/ei8r5KxG

Nordic niche banks experienced decline in credit losses, reaching a two-year low, and improvements in risk-adjusted earnings and cost efficiency in the third quarter, Nordic Credit Rating (NCR) said in a report published today. The agency said most of a sample of eight niche banks maintained capital ratios and strong earnings, which offset elevated loan-loss provisions in the period. "Further reductions in policy rates and clear signals that rates will continue to fall, combined with increased risk appetite, have created positive momentum in the capital markets. The banks in our sample have issued senior unsecured bonds and Tier 2 capital instruments multiple times since September," said NCR credit analyst Sean Cotten. " This access could prove important given the Swedish regulator's revised guidance for calculating regulatory funding and liquidity metrics, which has caused a stir among banks using deposit distribution platforms." The full report is available here: https://lnkd.in/d-pdHnA2 Norwegian here: https://lnkd.in/dnjKKaXW Swedish here: https://lnkd.in/dwtWy25c

Our latest report on Nordic niche banks out now! We discussed the change in funding metrics in a report earlier this autumn: https://lnkd.in/dnuD4zJs

🎉 The euro short-term rate (€STR) is five years old this month! 🎉   It’s the euro’s overnight interest rate benchmark. Benchmark rates play a key role in the financial system, the banking system and the economy overall.   The €STR was first published in October 2019, following meticulous preparation and consultation on its calculation method and legal framework. 🔹It kickstarted a new era of benchmark rates by replacing the euro overnight index average (EONIA) as the benchmark overnight rate for the euro. 🔹 The €STR Oversight Committee regularly scrutinises the integrity of the rate’s methodology, determination process and control framework. 🔹 Since its introduction, the €STR has been published on each TARGET2 business day, and its reliability is underpinned by the transaction‑by‑transaction data collected through the money market statistical reporting.   Find out more about the €STR here https://lnkd.in/ddyWuaf

#cfra #independentresearch #financialsector #cfrawebinar CFRA differentiated lenses provide our clients with many insights. On March 6th, Senior Analysts; Ken Leon, Zander Yokum (Fundamentals) and Hugo Dante (Washington Analysis) will discuss the State of Affairs in the US banking sector. Register Below

From Forbes Advisor Canada 🇨🇦: motusbank is another in a long line of digital-only banks providing higher interest on savings and investments than the Big Six Banks and a full suite of products and services. Still, how do they compare to other branchless banks? Forbes Advisor Canada gives you the rundown.

Many market participants have been asking Fitch's analysts questions around asset quality for banks in APAC. The team's latest report summarises and addresses the most common questions/themes.

Fitch Ratings has revised the outlook on the ‘aa-’ operating environment score for domestic UK banks to stable from negative, following the revision of the Outlook on the UK’s ‘AA-’ sovereign rating to Stable. The sovereign Outlook revision and the change in the outlook for the operating environment score have no immediate impact on UK bank ratings. Risks to UK banks’ rating headroom have eased with the revision of the operating environment score outlook. Under Fitch’s Bank Rating Criteria, banks operating in weaker environments need stronger metrics to achieve the same implied scores for the key rating drivers on which their Viability Ratings are based. However, the UK sovereign rating action does not trigger any bank rating actions as the vast majority of UK bank ratings have Stable Outlooks, reflecting good rating headroom and generally strong capital, liquidity and loss-absorption buffers. #ukbanks Analysis by Huseyin Sevinc LEARN MORE: https://lnkd.in/epQ6GdGE

The way banks carry out valuations is having "knock-on" effects on the commercial property market, an analysis has suggested. #valuations #analysis #realestate #inspections #facilitiesmanagement

📢 Our latest paper, joint with Abdullah KAZDAL and Yavuz Kılıç, is published in Central Bank Review. 📃 Financial Market Discipline on Bank Risk: Implications of State Ownership 🗝️ This study investigates the link between capital market discipline and bank-level credit risk with a special emphasis on the role of bank ownership structure. Focusing on a large emerging market, Türkiye, characterized by a prominent state bank presence, our baseline regression results indicate that banks' stock price volatility elevates in response to the increases in non-performing loan ratio for the period 2008–2021. More importantly, the extent of capital market discipline on credit risk is amplified for state-owned banks. This finding remains similar against a myriad of robustness checks. To analyze the implications on alternative financial markets, we further extract high-frequency implied volatility measures from options contracts recently traded on individual bank stocks. By utilizing the Covid-19 outbreak as an exogenous shock to local banks’ loan portfolio quality, we perform difference-in-differences estimations for the interval of October 2019–June 2020. Our findings show that the implied volatility for non-private banks increases more in the post-shock phase compared to other bank ownership types. Open Access: https://lnkd.in/djmDAQcU