News

EBA UPDATES RISK ASSESSMENT INDICATORS

The European Banking Authority (EBA) published an updated list of indicators for risk assessment and risk analysis tools, together with the accompanying methodological guide. Without adding any reporting burden neither on reporting institutions nor on competent authorities, this guidance describes how risk indicators are computed in EBA publications and allows competent authorities and users of EBA data to interpret key bank figures in a consistent fashion when conducting their risk assessments and analyses.

ECB PUBLISHES SUPERVISORY BANKING STATISTICS FOR THE SECOND QUARTER OF 2021

Aggregate Common Equity Tier 1 ratio stood at 15.60% in second quarter of 2021. Aggregate non-performing loans ratio fell further to 2.32%, with stock of non-performing loans declining to €422 billion. Aggregated annualised return on equity stood at 6.92%. The aggregate loan-to-deposit ratio decreased further to 104.74% in second quarter of 2021.

Read the full article here.

THE EBA PUBLISHES ITS REGULAR MONITORING REPORT ON BASEL III FULL IMPLEMENTATION IN THE EU

The European Banking Authority (EBA) published its regular monitoring Report of the full implementation, in 2028, of the final Basel III reforms in the EU. According to this assessment, the full Basel III implementation would result in an average increase of 13.7% on the current Tier 1 minimum required capital of EU banks. To comply with the new framework, EU banks would need EUR 3.1 billion of additional Tier 1 capital. The overall impact reflects the economic impact of the Covid-19 pandemic on participating banks that materialised up to December 2020, the reference date of this Report.

SUPERVISORY STRESS TESTS OF SELECTED BANKS 2021

The aggregate results of supervisory stress tests of domestic banks subject to CNB supervision confirmed their sufficient resilience to possible hypothetical adverse economic developments.

THESIS DYNAMIC SCORE-DRIVEN MODELS WAS SUCCESSFULLY DEFENDED

Our talented colleague Petra Tomanová defended a very complex and unique dissertation at the University of Economics.

WORLD MTB ORIENTEERING CHAMPIONSHIPS

Finland hosted the World Mountainbike Orienteering Championships in Kuortane on June 10 – 18, 2021 in which our colleague Kateřina Nováková participated. She finished 15th in the sprint, 17th in the middle distance and 5th in the relay. Congratulations!

IFRS 9 AND ITS BEHAVIOUR IN THE CYCLE

The new research paper of Oľga Pastiranová and Jiří Witzany investigates the procyclical behavior of IAS 39 and IFRS 9 provisioning rules during the economic cycle.

IFRS FOUNDATION TRUSTEES ANNOUNCE STRATEGIC DIRECTION AND FURTHER STEPS BASED ON FEEDBACK TO SUSTAINABILITY REPORTING CONSULTATION

The Trustees of the IFRS Foundation met 2-4 March 2021 to continue their analysis and discussions of the feedback received to their Consultation Paper on Sustainability Reporting (2020 Consultation).

INTERVIEW WITH ANDREA ENRIA, CHAIR OF THE SUPERVISORY BOARD OF THE ECB: CREDIT RISK NEEDS TO BE WATCHED CLOSELY

Banks are in a position to absorb losses and continue supporting the real economy through these difficult times, says Supervisory Board Chair Andrea Enria in the interview. But they must pay attention to credit risk as defaults are likely to increase once support measures are lifted.

EBA LAUNCHES 2021 EU-WIDE STRESS TEST EXERCISE

The European Banking Authority (EBA) launched the 2021 EU-wide stress test and released the macroeconomic scenarios. Following the postponement of the 2020 exercise, due to the COVID-19 pandemic, this year’s EU-wide stress test will provide valuable input for assessing the resilience of the European banking sector. Accordingly, the adverse scenario is based on a narrative of a prolonged COVID-19 scenario in a ‘lower for longer’ interest rate environment, in which negative confidence shocks would prolong the economic contraction. The EBA expects to publish the results of the exercise by 31 July 2021.

BIG DATA: DEFINITION, BENEFITS, CHALLENGES

Learn more about what big data is and what the benefits and challenges are for people, businesses and the environment.