LONDON / MILAN / MADRID (Reuters) – European banks are expected to set aside billions for potential loan losses as well as taking profits from the coronavirus crisis when they start reporting results in the next two weeks. FILE PHOTO: The Deutsche Bank logo is pictured on a company’s officeRead More →
LONDON (Reuters) – Banks call on EU regulators to align with the US Federal Reserve’s plan to relax a rule that measures a bank’s capital reserves to promote cash flow to businesses affected by the coronavirus crisis. Earlier this month, the Fed proposed a temporary relaxation of an additional leverageRead More →
Jonathan Ford points to banks’ low price-to-book ratios and argues that if one uses market values rather than book values for banks’ capital, they are undercapitalized (“Pandemic exposes ‘bulletproof’ banks to real-life stress tests”, Inside Business, April 6). He acknowledges that low price-to-book ratios can reflect two things: concerns aboutRead More →