Structural and cyclical drivers of Japanese mezzanine debt demand and supply

Save this PDF as:
 WORD  PNG  TXT  JPG

Size: px
Start display at page:

Download "Structural and cyclical drivers of Japanese mezzanine debt demand and supply"

Transcription

1 25 October 213 Structural and cyclical drivers of Japanese mezzanine debt demand and supply The impact of Basel III, combined with cyclical factors, on mezzanine financing opportunities Dr Hamish Macalister Head of Research, Maiora Asset Management, Research Fellow, Singapore Management University Bank loans have traditionally represented 85-9% of Japanese construction companies and real estate asset managers interest-bearing financing. However, loan supply to these sectors has been trending lower. Implementation of the Basel III accord may aggravate this by raising the opportunity costs associated with the allocation of bank capital, and resulting in greater difficulties for construction and real estate firms to obtain bank funding with higher loan-to-value [LTV] ratios. In addition, construction sector activity has been strengthening, firms require increased funding and firms have capacity for increased funding as a result of multi-year deleveraging of balance sheets. There is consequently evidence of a growing mismatch between loan supply and loan demand for Japanese construction and real estate firms. We believe this mismatch in turn results in attractive investment opportunities in Japanese mezzanine debt, offering significant yield premiums over senior debt, relative to investment risk. Introduction A combination of structural factors (with particular emphasis on Basel III implementation) and cyclical factors raise the prospect of a mismatch between loan supply and loan demand for mezzanine financing for Japanese construction projects and real estate funding. For the purposes of this paper we define mezzanine debt as subordinated debt with a LTV ratio in the range of 65-85% (more generally, mezzanine debt refers to any subordinated debt or preference share that is senior only to common equity). Basel III requirements likely increase both the cost and complexity for banks to provide mezzanine financing. New regulatory requirements also create a strong incentive for banks to de-lever existing positions, in turn creating demand for mezzanine financing as banks partition higher LTV ratio loans into a senior component and a subordinated component. Japanese banks have already been reducing lending to the construction and real estate sectors for many years, further tightening loan supply conditions.

2 Conversely, the construction industry is experiencing growth in activity and therefore requires increased loan supply. In addition, the financial position of Japanese construction and real estate firms has been improving and balance sheet gearing has been decreasing, signaling capacity for firms to increase borrowing. We believe these factors combined result in a mismatch between bank willingness to lend at higher LTV ratios and construction and real estate firm demand for funding. In turn, we believe this mismatch results in an attractive return premium over senior debt yields, relative to investment risk. The Maiora Asset Management team has identified a range of projects in the 65-85% LTV ratio range with expected returns in a range of 11-14%, compared with an expected senior debt yield of 1.5%. Maiora Asset Management has launched the MAIORA JAPAN STRUCTURED FINANCE FUND to invest in and manage these opportunities. In the remainder of this paper we provide an overview of Basel III requirements and implications for Japanese Banks, followed by an introduction to a selection of cyclical factors for loan supply and demand. Structural factors: A Basel III primer The Third Basel Accord provides a set of standards designed to mitigate banking industry risks, with particular emphasis on lowering the probability of bank failure and failure contagion in the wake of the global financial crisis of the late 2s. Basel III offers a more conservative approach than Basel I and Basel II with, for example, substantial increases in bank capital requirements and the introduction of asset liquidity requirements. It should be noted that the Basel Accords are voluntary, with countries regulatory authorities implementing the Accords through local regulation and in a manner best suited to that nation. Basel III requirements have a phasein period through to 219. While there are myriad details regarding the minutiae of standards in Basel III, which are beyond the scope of this paper, the key components can be summarised as a leverage ratio, enhanced capital requirements and minimums for asset liquidity. These are briefly outlined below (and summarised in Table 1, along with phase-in stages): Leverage ratio. Basel III sets a minimum ratio of Tier 1 capital to Table 1. Basel III key components and phase-in arrangements Dates as of 1 January Phases Leverage ratio Parallel run 1 Jan Jan 217. Disclosure starts 1 Jan 215 Migration to Pillar 1 Minimum common equity capital ratio 3.5% 4.% 4.5% 4.5% 4.5% 4.5% 4.5% Capital conservation buffer.625% 1.25% 1.875% 2.5% Countercyclical buffer.625% 1.25% 1.875% 2.5% Capital surcharge for systemically important institutions Minimum common equity plus capital conservation buffer.625% 1.25% 1.875% 2.5% 3.5% 4.% 4.5% 5.125% 5.75% 6.375% 7.% Phase-in deductions from CET1 2% 4% 6% 8% 1% 1% Minimum Tier 1 capital 4.5% 5.5% 6.% 6.% 6.% 6.% 6.% Minimum total capital 8.% 8.% 8.% 8.% 8.% 8.% 8.% Minimum total capital plus conservation buffer Capital instruments that no longer qualify as non-core tier 1 and tier 2 capital 8.% 8.% 8.% 8.625% 9.25% 9.875% 1.5% Phased out over 1 year horizon beginning 213 Liquidity coverage ratio minimum 6% 7% 8% 9% 1% Net stable funding ratio Introduce minimum standard Source: Basel Committee on Banking Supervision 2

3 total assets of 3% (the US Federal Reserve has announced it will set a higher minimum level for systemically important financial institutions). Capital requirements Basel III sets a minimum ratio of common equity to risk-weighted assets of 4.5%, to which is added a Capital Conservation buffer of 2.5% (simply, additional capital which if not available results in capital distribution restrictions), a Countercyclical Capital buffer of up to 2.5% (set by a country s regulatory authorities and designed to allow for macro-prudential management of macroeconomic cycle risk) and a capital surcharge for systemically important financial institutions of up to 2.5%. The minimum ratio of Tier 1 capital to riskweighted assets is 6% and the minimum ratio of total capital to risk-weighted assets is 8%. Combined, these requirements result in a possible minimum ratio of total capital to risk-weighted assets as high as 15.5%. It should also be noted that Tier 1 capital is more narrowly defined. Liquidity requirements Basel III introduces two liquidity requirements: a liquidity coverage ratio and a net stable funding ratio. These measures are designed to require bank funding to take into consideration both short -term outflow requirements and longer term asset/liability matching. The liquidity coverage ratio is calculated as the value of high quality liquid assets divided by total net liquidity outflows over the next 3 days, and is required to be greater than or equal to 1% (i.e. short-term outflows should be easily met by liquid asset holdings). The net stable funding ratio is defined as available stable funding over required stable funding (and is required to be 1% or higher). Basel III provides details on the definitions of these components and reporting requirements. The Japanese regulatory authorities intend to implement most aspects of Basel III a year head of each required implementation date. Currently the Japanese authorities only require internationally-active banks to meet Basel III requirements, but they have also introduced new requirements for domestic banks. Japan has received broadly positive assessments from the Bank of International Settlements regarding its compliance with Basel III requirements. Basel III and implications for mezzanine debt For our evaluation of the impact of the Basel III Accord on Japanese mezzanine debt, the more crucial components of the Accord are the new capital requirements and the new liquidity requirements. Mezzanine loans are unlikely to qualify as high quality liquid assets, with the liquidity aspect being most problematic. In addition, mezzanine loans are likely included in required stable funding. Hence, banks seeking to meet Basel III liquidity requirements will need other assets to cover short-term funding requirements and will also require stable funding for longer term assets (which include mezzanine loans, and these are included with a 1% weight in the denominator of the net stable funding ratio calculation). While this secondary factor is generally true of all loans, short-term liquidity requirements may cause some banks to regard new mezzanine loans with caution. The substantial increase in bank capital requirements may be particularly challenging for mezzanine borrowers looking for new funding. The Basel III Accord makes bank capital substantially more valuable, or at least raises the opportunity costs for capital usage. 1 Figure 1 illustrates the new capital requirements, their phasing in over time, and compares these with recent figures for Japanese bank capital adequacy. Data for Japanese bank capital ratios was obtained from the Bank of Japan. It indicates that Japanese banks are, on average, already meeting the higher Basel III capital requirements (although data for Japanese domestic banks is calculated based on Basel II requirements, so should be treated with some caution). For Japanese internationally-active banks the latest available capital adequacy ratio (calculated, according to the Bank of Japan, using Basel III requirements) is in excess of not only the total ratio including the capital conservation buffer, but also in excess of the total including the maximum surcharge for systemically important institutions and the maxi- 1 There are other requirements stipulated by Basel III which further raise the value of existing capital, beyond that indicated by the discussion of capital adequacy requirements presented here. For example, measures designed to manage counterparty credit risk including higher risk-weights on large financial institutions, capital charges for mark-to-market counterparty risk and capital charges for wrong way risk (when exposure to a counterparty is strongly positively correlated with the probability of default of that counterparty). 3

4 Figure 1. Basel III capital requirements, phase-in and current Japanese bank adequacy ratios 18% 16% 14% 12% 1% 8% 6% 4% 2% % Countercyclical buffer Capital surcharge for systemically important institutions Capital conservation buffer Tier 2 capital Additional Tier 1 Capital Common equity Tier 1 Capital Japanese internationally active banks capital adequacy ratio (Basel III requirements), March 213 Japanese domestic banks capital adequacy ratio (Basel II requirements), March 213 Source: Basel Committee on Banking Supervision, Bank of Japan, Maiora Asset Management mum countercyclical buffer (helped by new capital raisings in 21/11). However, some care is required evaluating this data. The IMF Financial Sector Assessment Program team has estimated Tier 1 capital ratios could be up to 2 percentage points lower and total capital adequacy ratios up to 6 percentage points lower in Japan under full and immediate implementation of Basel III capital definitions. Ratios could be pushed lower still with the application of new international standards for risk-weighting of assets. The IMF also notes that capital adequacy problems may be more acute for second tier regional banks. Aosaki (213) highlights the risk of reduced bank lending in Japan to bolster capital adequacy ratios. Aosaki also notes low Japanese bank profitability (for example, very low returns on assets and equity) suggests it is more challenging for Japanese banks to improve capital adequacy ratios via profit growth, rather than a reduction in risk-weighted assets. Similarly, a weak macroeconomic environment and overbanking in the Japanese market further reduce options for adequacy ratio improvement. Nonetheless, at face value Bank of Japan data for currency capital adequacy might suggest that there should be little concern for future bank funding of mezzanine loans. Japanese banks have indicated they see little problem meeting both capital requirements and liquidity requirements. However, higher LTV ratio loans incur large penalties in terms of risk weighting in the denominator of the capital adequacy calculation (risk-weighted assets), requiring substantial additional capital to meet adequacy needs. Unfortunately data on risk weights applied to assets is extremely difficult to come by. For illustrative purposes, Table 2 provides a summary of average risk weightings for a selection of banks surveyed by the Bank of International Settlements. Two approaches for the calculation of risk weights are compared: the advanced internal ratings-based approach [AIRB] and the foundation internal ratings-based approach [FIRB]. The average maximum risk weight for corporate assets across both methods is just under 19%. Under Basel II the Bank of International Settlement s standardised approach has a maximum risk weight for corporate assets rated B+ or lower of 15% and much higher weights for low rated securitization exposures. 4

5 Table 2. BIS survey of bank average risk weights All data is in percentage terms. Mean Median Min. Max. No. of banks A. Advanced internal ratings-based approach for risk [AIRB] All Corporate Sovereign Bank B. Foundation internal ratings-based approach for risk [FIRB] All Corporate Sovereign Bank Source: Bank for International Settlements Banks employ their own proprietary models to determine default probabilities (and other risks), to which risk weights are applied. These systems are in turn vetted by regulatory authorities and are not generally publicly available. 2 Hence, we cannot be definitive across the banking sector regarding the risk weights applied to mezzanine loans (nonetheless, we are aware of banks applying risk weights of 25% and some may apply higher weights). While it is not clear that risk weightings for such loans will increase, the greater value of bank capital in a Basel III world means that bank risk teams may be much more reluctant to allow lending desks to provide such loans. Indeed, we have considerable anecdotal evidence this is precisely the case today. We are, for example, seeing high LTV loans made in 27-8 maturing and being rolled into one year loans while banks seek ways to reduce their leverage exposure. In addition, the effect is aggravated if the loans fall within the definition of a resecuritisation exposure. In this case, when cash flows from a pool of exposures are employed to service two or more risk tranches, Basel III requires substantial increases in risk weights (levels up to 1,25%). Banks will also incur higher costs for more risky assets, given a wide range of requirements for detailed and complex modeling, including stress testing, and enhanced reporting requirements. We believe these structural factors likely signal tightening lending conditions for higher LTV ratio loans, including some combination of reduced loan Figure 2. Japan Bank Loans Yen hundreds of millions, current prices, non-seasonally adjusted A. Construction B. Real Estate 35, 3, 25, 2, 15, 1, 5, , 5, 4, 3, 2, 1, The subjectivity of risk weights can create additional problems. The Bank of International Settlements has in the past observed cases of banks raising their capital adequacy ratios by understating asset risk. This is an important reason behind the inclusion of the leverage ratio minimum requirement, which has total assets rather than risk-weighted assets as the denominator. See Revisiting Risk -Weighted Assets, IMF 213 for a detailed discussion of problematic issues for the calculation and comparison of risk-weighted assets. 5

6 Figure 3. Japan Loan Survey demand by construction and real estate firms %, non-seasonally adjusted A B C supply and/or higher loan costs. In the next section we introduce a range of cyclical factors which point to increased demand for such loans, just as supply may be tightening. Cyclical factors The expected impact of Basel III on the willingness of Japanese banks to provide mezzanine debt funding clashes with a range of cyclical factors that we believe contribute to a mismatch between mezzanine loan supply and mezzanine loan demand. Firstly, the total stock of Japanese bank loans to construction and real estate firms has been in decline since the mid to late 199s, falling 66% since a peak in late 1998 for construction and approximately 45% for real estate (see Figure 2). While it is debatable to what extent this phenomenon is a cyclical effect versus a structural effect, what is not debatable is it represents a massive reduction in the pool of construction loans. While loan supply has demonstrably shrunk, there is evidence of growing demand for loans by construction and real estate firms. The Bank of Japan s Loan Survey provides diffusion indices for a survey of senior loan officers at large Japanese banks by sector and firm size. They are asked how demand for loans has changed over the last three months. A positive reading indicates stronger loan demand. Over the last two to three years the indices for large, medium and small real estate and construction firms have all trended higher, recovering from post-global financial crisis levels (see Figure 3). A continuation of this trend (which wider cyclical factors would suggest is likely, including factors discussed below) would point to a growing divergence between construction loan supply and demand. Since the global financial crisis there has been a positive trend in building activity in Japan. Figure 4 provides both volumes (LHS) and total estimated costs (RHS) for building starts in Japan. Clear trends are evident in both. Further, Tankan survey data for both actual and forecast business conditions for both the real estate and construction sectors signals considerable optimism (see Figures 5 and 6). Most notably, business conditions indices for both actual and forecast activity for the construction sector turned positive earlier this year, for the first time since the late 199s. With evidence of strengthening business conditions for real estate and construction firms, expectations of further strengthening, increased construction activity 6

7 Figure 4. Building Construction Started, Japan A. Volume, non-seasonally adjusted B. Total estimated cost, Yen billions, current prices, season.-adj. 12, 1, 8, 6, 4, 2, ,5 3, 2,5 2, 1,5 1, Source: Japan Ministry of Land, Infrastructure, Transport & Tourism, Maiora Asset Maangement Figure 5. Tankan Business Conditions Real Estate Judgement of general business conditions of the responding enterprise, primarily in light of individual profits. A. Actual B. Forecast Figure 6. Tankan Business Conditions Construction Judgement of general business conditions of the responding enterprise, primarily in light of individual profits. A. Actual B. Forecast

8 Figure 7. Tankan Financial Position Construction Judgement of the general cash position of the responding enterprise, on account of the level of cash and cash equivalent, lending attitude of financial institutions, and payment and repayment terms (easy, not so tight or tight). A. Construction B. Real Estate Figure 8. Tankan Lending Attitude of Financial Institutions Construction Judgement of financial institutions' attitude towards lending as perceived by the responding enterprise (accommodative, not so severe or severe) Figure 9. Construction debt to debt plus equity and increased demand for loans by construction companies, but decreased loan supply, the data would indicate a need for alternative funding for construction and real estate projects. Importantly though, we need to identify the capacity of construction companies to take on board more funding. In Figure 7 we illustrate Tankan results for the construction and real estate sectors reporting of their respective financial positions calculated as easy responses less tight responses to the general cash position of the firm, payment/repayment terms and lending attitude of financial institutions. Both are now in positive territory (for the first time since the late 199s for the overall construction industry), indicating a strengthening cash flow environment. It is particularly positive for large and medium-sized construction firms. Interestingly, Figure 8 shows the Debt is estimated from Bank of Japan data for the sum of commercial paper, bonds and loans from financial institutions. Equity is estimated as the difference between total assets and total liabilities from Bank of Japan Tankan survey data. A. Construction B. Real Estate 7% 6% 5% 4% 3% 2% 1% % % 8% 6% 4% 2% %

9 Figure 1. Propn. of total debt represented by loans from financial institutions (construction) Debt is estimated from Bank of Japan data for the sum of commercial paper, bonds and loans from financial institutions. Figure 11. Tankan forecast change in interest rates on loans (construction sector) Judgement of changes in the interest rate on borrowings of the responding enterprise (rise, unchanged or fall). 1% 8% 6% 4% 2% % construction industry s view on the lending attitude of financial institutions has also improved (the same is true for real estate firms). While this at first glance may seem at odds with previous evidence of a long term downward trend in bank lending to the sector, it is likely indicative of lending conditions for the wider financial sector, rather than bank lending. It is also consistent with robust bank willingness to lend if lending is on the basis of a senior component and a separate mezzanine tranche, the latter provided by another counterparty. With regard to capacity to borrow, we have summed Tankan data for construction and real estate sector loans, bonds and commercial paper, and then divided this sum by the difference between total assets and total liabilities (plus the prior sum) to derive an estimate of the debt to debt plus equity ratio for the sectors (by firm size). Gearing levels have been trending down for both construction and real estate firms since the data series began in late 23 (Figure 9). The same dataset can be employed to demonstrate the dominance of financial institution lending as a source of funding. Figure 1 illustrates the proportion of funding provided by financial institution lending (relative to the sum of loans, bonds and commercial paper). roughly 9% of funding for the construction sector is provided by financial sector loans (higher for medium and small firms, and under 75% for large firms), indicating the critical importance of this funding source (the profile is very similar for real estate firms). Finally note that Tankan results show an expectation of higher interest rates for construction firms, going forward (Figure 11), albeit only slightly (again, the same is true for real estate firms). This is consistent with potential for tightening of bank lending to the sector. To sum up the cyclical factors presented here, we find evidence of: i. Decreasing bank lending to construction and real estate firms; ii. Increased loan demand by construction firms; iii. Increased construction and real estate activity; iv. Strengthening cash flow position of construction and real estate firms; and, v. Decreasing construction and real estate firm gearing. When combined with the potential structural impact on bank s willingness to lend for higher LTV projects as a result of Basel III implementation, we believe a mismatch between loan supply and loan demand for the construction and real estate sectors results in very attractive opportunities for investment in mezzanine debt funding. 3 3 In this brief overview of a range of cyclical characteristics of the construction sector we have made no mention of other major drivers, including Japanese Government stimulus packages and 211/12 earthquake damage. These, and other factors are also significant contributors to our positive overall view of opportunities in the Japanese mezzanine debt market. 9

10 Conclusions The structural impact of Basel III implementation on bank funding of high LTV debt, combined with strengthening cyclical demand for high LTV debt by the Japanese construction and real estate firms, suggests a growing mismatch between loan supply and loan demand. International Monetary Fund, 212, Japan: Basel core principles for effective banking supervision Detailed assessment of compliance, Financial Sector Assessment Program. International Monetary Fund, 212, Japan: Financial sector stability assessment update. Le Lesle, V. & S. Avramova, 212, Revisiting risk-weighted assets, IMF Working Paper, Monetary and Capital Markets Department. There is a consequent need for mezzanine financing for these sectors, and that need is growing. In addition, banks are increasingly exploring mezzanine funding structures as an option for restructuring their exposures to higher LTV loans. At Maiora Asset Management we believe these factors have resulted in attractive investment opportunities in Japanese mezzanine debt, and we have launched the MAIORA J APAN STRUCTURED F I- NANCE FUND to invest in and manage these opportunities. We are focusing on 65-85% LTV projects with expected returns in a range of 11-14%, compared with an expected senior debt yield of 1.5% (such low senior yields being at least partially attributable to over-banking in this segment in Japan). Our portfolio management team have identified a body of pro- References Aosaki, M., 213, Implementation of Basel III: Economic impacts and policy challenges in the United States, Japan, and the European Union, The Walter H. Shorenstein Asia-Pacific Research Center, Stanford University, Bank for International Settlements, 25, An explanatory note on the Basel III IRB risk weight functions, Basel Committee on Banking Supervision. Bank for International Settlements, 211, Basel III: A global regulatory framework for more resilient banks and banking systems, Basel Committee on Banking Supervision. Bank for International Settlements, 212, Basel III regulatory consistency assessment (Level 2): Japan, Basel Committee on Banking Supervision. Bank for International Settlements, 213, Regulatory Consistency Assessment Programme (RCAP): Analysis of risk-weighted assets for credit risk in the banking book, Basel Committee on Banking Supervision. Bank for International Settlements, 213, Regulatory consistency assessment programme (RCAP) - Analysis of risk-weighted assets for market risk, Basel Committee on Banking Supervision. Bank of Japan, 213, Financial results of Japan s banks for fiscal 212. Bank of Japan, 213, Financial system report.

11 Notes

12 This document and the information contained in it, is for informational and illustrative purposes only and does not constitute an offer or solicitation to sell shares or securities in any funds managed by Maiora Asset Management Pte Ltd (Maiora), or any related or associated company. Any such offer or solicitation will only be made by means of a fund Private Placement Memorandum and in accordance with applicable laws. This material is not intended to provide, nor does it constitute, any financial or investment advice to any individual or class of persons. Prior to any investment, you should make your own appraisal of risks from legal, tax and accounting perspectives and you are encouraged to seek independent advice from qualified experts taking into account your specific investment objectives, financial situation or particular needs. The accuracy, completeness or relevance of the information provided, and any research or analysis it is derived from, is not guaranteed although it has been drawn from sources which Maiora believe to be reliable for its own use. Whilst Maiora believes the information in this material is correct at the date of production, no warranty or representation (express or implied) to this effect is given and Maiora disclaims any liability for any errors or omissions. Information on past performance is not necessarily indicative of future performance. Any projections or other predictive statements regarding future events or performance of countries, markets or companies are not necessarily indicative of, and may differ from, actual events or results. The comments contained in this material are opinions only and should not be relied upon as authoritative, or without your own independent verification, or in substitution for the exercise of your own judgement. Over time, there may be changes to the information contained in this material. Maiora reserves the right to make changes and corrections to the information in this material, including any opinions or forecasts, at any time without notice. This material is confidential and solely for the private information and use of the intended recipient. You must not copy, distribute, disclose, publish or use it in whole or in part for any purpose without the prior written consent of Maiora. Maiora Asset Management Pte. Ltd. is a Singapore registered company, number K. Maiora Asset Management Pte.Ltd. 12

Risk & Capital Management under Basel III

Risk & Capital Management under Basel III www.pwc.com Risk & Capital Management under Basel III London, 15 Draft Agenda Basel III changes to capital rules - Definition of capital - Minimum capital ratios - Leverage ratio - Buffer requirements

More information

CONSULTATION PAPER P016-2006 October 2006. Proposed Regulatory Framework on Mortgage Insurance Business

CONSULTATION PAPER P016-2006 October 2006. Proposed Regulatory Framework on Mortgage Insurance Business CONSULTATION PAPER P016-2006 October 2006 Proposed Regulatory Framework on Mortgage Insurance Business PREFACE 1 Mortgage insurance protects residential mortgage lenders against losses on mortgage loans

More information

The Goldman Sachs Group, Inc. and Goldman Sachs Bank USA. 2015 Annual Dodd-Frank Act Stress Test Disclosure

The Goldman Sachs Group, Inc. and Goldman Sachs Bank USA. 2015 Annual Dodd-Frank Act Stress Test Disclosure The Goldman Sachs Group, Inc. and Goldman Sachs Bank USA 2015 Annual Dodd-Frank Act Stress Test Disclosure March 2015 2015 Annual Dodd-Frank Act Stress Test Disclosure for The Goldman Sachs Group, Inc.

More information

Bank Capital Adequacy under Basel III

Bank Capital Adequacy under Basel III Bank Capital Adequacy under Basel III Objectives The overall goal of this two-day workshop is to provide participants with an understanding of how capital is regulated under Basel II and III and appreciate

More information

Bank Liabilities Survey. Survey results 2013 Q3

Bank Liabilities Survey. Survey results 2013 Q3 Bank Liabilities Survey Survey results 13 Q3 Bank Liabilities Survey 13 Q3 Developments in banks balance sheets are of key interest to the Bank of England in its assessment of economic conditions. Changes

More information

Quarterly Credit Conditions Survey Report

Quarterly Credit Conditions Survey Report Quarterly Credit Conditions Survey Report Contents List of Charts 2 List of Tables 3 Background 4 Overview 5 Credit Market Conditions 8 Personal Lending 10 Micro Business Lending 13 Small Business Lending

More information

Capital Ratio Information (Consolidated) Sumitomo Mitsui Financial Group, Inc. and Subsidiaries

Capital Ratio Information (Consolidated) Sumitomo Mitsui Financial Group, Inc. and Subsidiaries SMFG Capital Ratio Information (Consolidated) Sumitomo Mitsui Financial Group, Inc. and Subsidiaries The consolidated capital ratio is calculated using the method stipulated in Standards for Bank Holding

More information

Bank of Ghana Monetary Policy Report. Financial Stability Report

Bank of Ghana Monetary Policy Report. Financial Stability Report BANK OF GHANA E S T. 1 9 5 7 Bank of Ghana Monetary Policy Report Financial Stability Report Volume 5: No.1/2013 February 2013 5.0 Introduction Conditions in global financial markets have improved significantly

More information

HSBC North America Holdings Inc. 2015 Comprehensive Capital Analysis and Review and Annual Company-Run Dodd-Frank Act Stress Test Results

HSBC North America Holdings Inc. 2015 Comprehensive Capital Analysis and Review and Annual Company-Run Dodd-Frank Act Stress Test Results 2015 Comprehensive Capital Analysis and Review and Annual Company-Run Dodd-Frank Act Stress Test Results Date: March 5, 2015 TABLE OF CONTENTS PAGE 1. Overview of the Comprehensive Capital Analysis and

More information

SBERBANK GROUP S IFRS RESULTS. March 2015

SBERBANK GROUP S IFRS RESULTS. March 2015 SBERBANK GROUP S IFRS RESULTS 2014 March 2015 SUMMARY OF PERFORMANCE FOR 2014 STATEMENT OF PROFIT OR LOSS Net profit reached RUB 290.3bn (or RUB 13.45 per ordinary share), compared to RUB 362.0bn (or RUB

More information

Basel II, Pillar 3 Disclosure for Sun Life Financial Trust Inc.

Basel II, Pillar 3 Disclosure for Sun Life Financial Trust Inc. Basel II, Pillar 3 Disclosure for Sun Life Financial Trust Inc. Introduction Basel II is an international framework on capital that applies to deposit taking institutions in many countries, including Canada.

More information

We also assign a D- bank financial strength rating (BFSR) to the bank. The rationale for this rating mirrors that for the BCA.

We also assign a D- bank financial strength rating (BFSR) to the bank. The rationale for this rating mirrors that for the BCA. Moody s Investors Service Ltd CREDIT OPINION MORTGAGE AND LAND BANK OF LATVIA Summary Rating Rationale In accordance with Moody s rating methodology for government-related issuers (GRIs), we assign A2/Prime-1

More information

General Bank of Canada. Pillar Three Disclosures

General Bank of Canada. Pillar Three Disclosures General Bank of Canada Pillar Three Disclosures The Basel Committee of Banking Supervision sets out expectations for the public qualitative disclosure of a bank s risk management objectives and policies,

More information

REMARKS ON THE BASEL CAPITAL FRAMEWORK AND TRADE FINANCE, 27 FEBRUARY 2014 SESSION 4. Mr. Andrew CORNFORD Research Fellow Financial Markets Center

REMARKS ON THE BASEL CAPITAL FRAMEWORK AND TRADE FINANCE, 27 FEBRUARY 2014 SESSION 4. Mr. Andrew CORNFORD Research Fellow Financial Markets Center REMARKS ON THE BASEL CAPITAL FRAMEWORK AND TRADE FINANCE, 27 FEBRUARY 2014 SESSION 4 Mr. Andrew CORNFORD Research Fellow Financial Markets Center 1 Webster2014.B3&TF Remarks on the Basel Capital Framework

More information

Sberbank Group s IFRS Results for 6 Months 2013. August 2013

Sberbank Group s IFRS Results for 6 Months 2013. August 2013 Sberbank Group s IFRS Results for 6 Months 2013 August 2013 Summary of 6 Months 2013 performance: Income Statement Net profit reached RUB 174.5 bn (or RUB 7.95 per ordinary share), a 0.5% decrease on RUB

More information

for Analysing Listed Private Equity Companies

for Analysing Listed Private Equity Companies 8 Steps for Analysing Listed Private Equity Companies Important Notice This document is for information only and does not constitute a recommendation or solicitation to subscribe or purchase any products.

More information

Revenues before loan loss provisions almost stable at EUR 2.3 bn despite seasonal effects

Revenues before loan loss provisions almost stable at EUR 2.3 bn despite seasonal effects Press release For business desks 7 November 2013 Commerzbank: operating profit of EUR 103 m in third quarter Revenues before loan loss provisions almost stable at EUR 2.3 bn despite seasonal effects Annual

More information

Press release Press enquiries: +41 61 280 8188 press@bis.org www.bis.org

Press release Press enquiries: +41 61 280 8188 press@bis.org www.bis.org Press release Press enquiries: +41 61 280 8188 press@bis.org www.bis.org Ref no: 35/2010 12 September 2010 Group of Governors and Heads of Supervision announces higher global minimum capital standards

More information

Australian Bank Capital and the Regulatory Framework

Australian Bank Capital and the Regulatory Framework Australian Bank Capital and the Regulatory Framework Adam Gorajek and Grant Turner* The amount and quality of the Australian banking sector s capital has increased considerably over the past couple of

More information

Rating Methodology by Sector. Non-life Insurance

Rating Methodology by Sector. Non-life Insurance Last updated: March 26, 2012 Rating Methodology by Sector Non-life Insurance *This rating methodology is a modification of the rating methodology made public on July 13, 2011, and modifications are made

More information

TD Bank Financial Group Q4/08 Guide to Basel II

TD Bank Financial Group Q4/08 Guide to Basel II TD Bank Financial Group Q4/08 Guide to Basel II 1. OVERVIEW General Information on Basel can be found on the Canadian Bankers Association website at www.cba.ca. Choose Issues, Standards, Rules and Guidelines

More information

Market Risk Capital Disclosures Report. For the Quarter Ended March 31, 2013

Market Risk Capital Disclosures Report. For the Quarter Ended March 31, 2013 MARKET RISK CAPITAL DISCLOSURES REPORT For the quarter ended March 31, 2013 Table of Contents Section Page 1 Morgan Stanley... 1 2 Risk-based Capital Guidelines: Market Risk... 1 3 Market Risk... 1 3.1

More information

The EMU and the debt crisis

The EMU and the debt crisis The EMU and the debt crisis MONETARY POLICY REPORT FEBRUARY 212 43 The debt crisis in Europe is not only of concern to the individual debt-ridden countries; it has also developed into a crisis for the

More information

Basel 3: A new perspective on portfolio risk management. Tamar JOULIA-PARIS October 2011

Basel 3: A new perspective on portfolio risk management. Tamar JOULIA-PARIS October 2011 Basel 3: A new perspective on portfolio risk management Tamar JOULIA-PARIS October 2011 1 Content 1. Basel 3 A complex regulatory framework With possible unintended consequences 2. Consequences on Main

More information

Update following the publication of the Bank of England Stress Test. 16 December 2014

Update following the publication of the Bank of England Stress Test. 16 December 2014 Update following the publication of the Bank of England Stress Test 16 December 2014 Background Top 8 Banks Resilience Stress Tested by PRA following FPC recommendation in March 2013 Guidance for stress

More information

Zurich, 13 December 2007. Introductory remarks by Philipp Hildebrand

Zurich, 13 December 2007. Introductory remarks by Philipp Hildebrand abcdefg News conference Zurich, 13 December 2007 Introductory remarks by Philipp Hildebrand Six months ago, when our Financial Stability Report was published, I stated that "the global financial system

More information

General Trading Companies

General Trading Companies Last upated: July 13, 2011 Rating Methodology by Sector General Trading Companies General trading companies operate in a broad array of industries, including metals, energy, machinery, food, chemicals,

More information

MORGAN STANLEY Financial Supplement - 4Q 2015 Table of Contents

MORGAN STANLEY Financial Supplement - 4Q 2015 Table of Contents Page # MORGAN STANLEY Financial Supplement - 4Q 2015 Table of Contents 1. Quarterly Consolidated Financial Summary 2. Quarterly Consolidated Income Statement Information 3. Quarterly Consolidated Financial

More information

What is new in Basel 3:

What is new in Basel 3: Camera dei Deputati 17 Indagine conoscitiva 4 ALLEGATO What is new in Basel 3: How it will influence market participants Krishnan Ramadurai Managing Director Camera dei Deputati 18 Indagine conoscitiva

More information

OTP Mortgage Bank Ltd. Facts & Figures. November 2012

OTP Mortgage Bank Ltd. Facts & Figures. November 2012 OTP Mortgage Bank Ltd. Facts & Figures November 212 Macroeconomic and legal background, company profile Macro background Legal environment Company profile After the annual GDP growth rate of 1.6% in 211

More information

Net Stable Funding Ratio

Net Stable Funding Ratio Net Stable Funding Ratio Aims to establish a minimum acceptable amount of stable funding based on the liquidity characteristics of an institution s assets and activities over a one year horizon. The amount

More information

2014 DFAST Mid-Cycle Stress Test Disclosure. September 2014

2014 DFAST Mid-Cycle Stress Test Disclosure. September 2014 2014 DFAST Mid-Cycle Stress Test Disclosure September 2014 Overview In accordance with the Dodd-Frank Wall Street Reform and Consumer Protection Act and implementing regulations issued by the Board of

More information

2016 Comprehensive Capital Analysis and Review

2016 Comprehensive Capital Analysis and Review BMO Financial Corp. and BMO Harris Bank N.A. 206 Comprehensive Capital Analysis and Review Dodd-Frank Act Company-Run Stress Test Supervisory Severely Adverse Scenario Results Disclosure June 23, 206 Overview

More information

Quarterly Credit Conditions Survey Report

Quarterly Credit Conditions Survey Report Quarterly Credit Conditions Survey Report Contents March 2014 Quarter Prepared by the Monetary Analysis & Programming Department Research & Economic Programming Division List of Tables and Charts 2 Background

More information

Commerzbank: Operating profit more than doubled to EUR 685 m in the first quarter of 2015

Commerzbank: Operating profit more than doubled to EUR 685 m in the first quarter of 2015 Press release For business desks 7 May 2015 Commerzbank: Operating profit more than doubled to EUR 685 m in the first quarter of 2015 Revenues before loan loss provisions in the Group increased year-on-year

More information

FACTORS AFFECTING THE LOAN SUPPLY OF BANKS

FACTORS AFFECTING THE LOAN SUPPLY OF BANKS FACTORS AFFECTING THE LOAN SUPPLY OF BANKS Funding resources The liabilities of banks operating in Estonia mainly consist of non-financial sector deposits, which totalled almost 11 billion euros as at

More information

Morgan Stanley Reports Fourth Quarter and Full Year 2015:

Morgan Stanley Reports Fourth Quarter and Full Year 2015: Media Relations: Michele Davis 212-761-9621 Investor Relations: Kathleen McCabe 212-761-4469 Morgan Stanley Reports Fourth Quarter and Full Year 2015: Fourth Quarter Net Revenues of $7.7 Billion and Earnings

More information

Financial Stability Report 2015/2016

Financial Stability Report 2015/2016 Financial Stability Report 2015/2016 Press Conference Presentation Miroslav Singer Governor Prague, 14 June 2016 Structure of presentation I. Overall assessment of risks and setting of countercyclical

More information

Chart 9.1 Non-performing loans ratio and structure of non-performing loans (right) 25% 80 06/08 03/11 03/09 12/07 12/08 06/09 09/09 12/09 09/08 06/11

Chart 9.1 Non-performing loans ratio and structure of non-performing loans (right) 25% 80 06/08 03/11 03/09 12/07 12/08 06/09 09/09 12/09 09/08 06/11 Financial Stability Report 21 H1 9. MONITORING BANKING SECTOR RISKS 9.1 CREDIT RISK (88) Loan portfolio quality improved and banks were more active in writingoff the loss loans from their balance sheets.

More information

Asset Liability Management and Investment Seminar May 2012. Session1: Asset Allocation for Insurance Company Liability Driven Investment.

Asset Liability Management and Investment Seminar May 2012. Session1: Asset Allocation for Insurance Company Liability Driven Investment. Asset Liability and Investment Seminar May 2012 Session1: Asset Allocation for Insurance Company Liability Driven Investment Genghui Wu Asset Liability Liability Driven Investment Genghui Wu FSA, CFA,

More information

The Northern Trust Company, Canada Basel III Pillar lll Disclosure as at December 31, 2015

The Northern Trust Company, Canada Basel III Pillar lll Disclosure as at December 31, 2015 The Northern Trust Company, Canada Basel III Pillar lll Disclosure as at December 31, 2015 Subject to Board Approval Posting date: January 29, 2016 Contents NORTHERN TRUST OVERVIEW AND SCOPE OF APPPLICATION.

More information

Charles Schwab Bank. 2015 Annual Dodd-Frank Act Stress Test Disclosure

Charles Schwab Bank. 2015 Annual Dodd-Frank Act Stress Test Disclosure Charles Schwab Bank 2015 Annual Dodd-Frank Act Stress Test Disclosure June 2015 I. Dodd-Frank Act Stress Test Results A. About Charles Schwab Bank Charles Schwab Bank (the Bank) is a wholly-owned subsidiary

More information

State Farm Bank, F.S.B.

State Farm Bank, F.S.B. State Farm Bank, F.S.B. 2015 Annual Stress Test Disclosure Dodd-Frank Act Company Run Stress Test Results Supervisory Severely Adverse Scenario June 25, 2015 1 Regulatory Requirement The 2015 Annual Stress

More information

CITIGROUP INC. BASEL II.5 MARKET RISK DISCLOSURES AS OF AND FOR THE PERIOD ENDED MARCH 31, 2013

CITIGROUP INC. BASEL II.5 MARKET RISK DISCLOSURES AS OF AND FOR THE PERIOD ENDED MARCH 31, 2013 CITIGROUP INC. BASEL II.5 MARKET RISK DISCLOSURES AS OF AND FOR THE PERIOD ENDED MARCH 31, 2013 DATED AS OF MAY 15, 2013 Table of Contents Qualitative Disclosures Basis of Preparation and Review... 3 Risk

More information

Basel Committee on Banking Supervision. Frequently Asked Questions on Basel III s January 2013 Liquidity Coverage Ratio framework

Basel Committee on Banking Supervision. Frequently Asked Questions on Basel III s January 2013 Liquidity Coverage Ratio framework Basel Committee on Banking Supervision Frequently Asked Questions on Basel III s January 2013 Liquidity Coverage Ratio framework April 2014 This publication is available on the BIS website (www.bis.org).

More information

Division 9 Specific requirements for certain portfolios of exposures

Division 9 Specific requirements for certain portfolios of exposures L. S. NO. 2 TO GAZETTE NO. 43/2006 L.N. 228 of 2006 B3157 Division 9 Specific requirements for certain portfolios of exposures 197. Purchased receivables An authorized institution shall classify its purchased

More information

RISK MANAGEMENT REPORT (for the Financial Year Ended 31 March 2012)

RISK MANAGEMENT REPORT (for the Financial Year Ended 31 March 2012) RISK MANAGEMENT REPORT (for the Financial Year Ended 31 March 2012) Integrated Risk Management Framework The Group s Integrated Risk Management Framework (IRMF) sets the fundamental elements to manage

More information

View Point. What are the implications for your business? Abstract

View Point. What are the implications for your business? Abstract View Point Basel III Is Here Introduced to strengthen the banking system, Basel III regulations require greater cooperation and transparency from financial institutions What are the implications for your

More information

CANADIAN TIRE BANK. BASEL PILLAR 3 DISCLOSURES December 31, 2014 (unaudited)

CANADIAN TIRE BANK. BASEL PILLAR 3 DISCLOSURES December 31, 2014 (unaudited) (unaudited) 1. SCOPE OF APPLICATION Basis of preparation This document represents the Basel Pillar 3 disclosures for Canadian Tire Bank ( the Bank ) and is unaudited. The Basel Pillar 3 disclosures included

More information

Basel Committee on Banking Supervision. Ninth progress report on adoption of the Basel regulatory framework

Basel Committee on Banking Supervision. Ninth progress report on adoption of the Basel regulatory framework Basel Committee on Banking Supervision Ninth progress report on adoption of the Basel regulatory framework October 2015 This publication is available on the BIS website (www.bis.org). Bank for International

More information

2014 Survey of Credit Underwriting Practices

2014 Survey of Credit Underwriting Practices 2014 Survey of Credit Underwriting Practices Office of the Comptroller of the Currency Washington, D.C. December 2014 Contents Introduction... 1 Part I: Overall Results... 3 Primary Findings... 3 Commentary

More information

Quarterly Credit Conditions Survey Report

Quarterly Credit Conditions Survey Report Quarterly Credit Conditions Report Contents List of Figures & Tables... 2 Background... 3 Overview... 4 Personal Lending... 7 Micro Business Lending... 10 Small Business Lending... 12 Medium-Sized Business

More information

Standard Chartered today releases its Interim Management Statement for the third quarter of 2015.

Standard Chartered today releases its Interim Management Statement for the third quarter of 2015. Standard Chartered PLC Interim Management Statement 3 November 2015 Standard Chartered today releases its Interim Management Statement for the third quarter of 2015. Bill Winters, Group Chief Executive,

More information

OneWest Bank N. A. Dodd-Frank Act Stress Test Disclosure

OneWest Bank N. A. Dodd-Frank Act Stress Test Disclosure OneWest Bank N. A. Dodd-Frank Act Stress Test Disclosure Capital Stress Testing Results Covering the Time Period October 1, through December 31, for OneWest Bank N.A. under a Hypothetical Severely Adverse

More information

Basel Committee on Banking Supervision

Basel Committee on Banking Supervision Basel Committee on Banking Supervision Reducing excessive variability in banks regulatory capital ratios A report to the G20 November 2014 This publication is available on the BIS website (www.bis.org).

More information

Office of the Comptroller of the Currency Board of Governors of the Federal Reserve System Federal Deposit Insurance Corporation

Office of the Comptroller of the Currency Board of Governors of the Federal Reserve System Federal Deposit Insurance Corporation Office of the Comptroller of the Currency Board of Governors of the Federal Reserve System Federal Deposit Insurance Corporation Concentrations in Commercial Real Estate Lending, Sound Risk Management

More information

Quarterly Credit Conditions Survey Report Contents

Quarterly Credit Conditions Survey Report Contents Quarterly Credit Conditions Report Contents List of Figures & Tables... 2 Background... 3 Overview... 4 Personal Lending... 7 Micro Business Lending... 9 Small Business Lending... 12 Medium-Sized Business

More information

Commerzbank: Strategy successful net profit of over 1 billion euros and dividend

Commerzbank: Strategy successful net profit of over 1 billion euros and dividend IR release 12 February 2016 Commerzbank: Strategy successful net profit of over 1 billion euros and dividend Operating profit in 2015 more than doubled to EUR 1,909 m (2014: EUR 689 m) Operating profit

More information

Basel Committee on Banking Supervision. Frequently asked questions on the Basel III Countercyclical Capital Buffer

Basel Committee on Banking Supervision. Frequently asked questions on the Basel III Countercyclical Capital Buffer Basel Committee on Banking Supervision Frequently asked questions on the Basel III Countercyclical Capital Buffer October 2015 This publication is available on the BIS website (www.bis.org). Bank for International

More information

We believe there are arguments in favour of the inclusion within this section of bonds issued by financial institutions and guaranteed by the State:

We believe there are arguments in favour of the inclusion within this section of bonds issued by financial institutions and guaranteed by the State: Basel Committee on Banking Supervision Consultative Document: International framwork for liquidity risk measurement, standards and monitoring December 2009 Issued for comment by 16 April 2010 Paragraph

More information

18 ECB STYLISED FACTS OF MONEY AND CREDIT OVER THE BUSINESS CYCLE

18 ECB STYLISED FACTS OF MONEY AND CREDIT OVER THE BUSINESS CYCLE Box 1 STYLISED FACTS OF MONEY AND CREDIT OVER THE BUSINESS CYCLE Over the past three decades, the growth rates of MFI loans to the private sector and the narrow monetary aggregate M1 have displayed relatively

More information

Bank Regulatory Capital Quick Reference. Very simply: to limit risk and reduce our potential, unexpected losses.

Bank Regulatory Capital Quick Reference. Very simply: to limit risk and reduce our potential, unexpected losses. Bank Regulatory Capital: Why We Need It Very simply: to limit risk and reduce our potential, unexpected losses. Unlike normal companies, banks are in the business of issuing loans to individuals and businesses

More information

INTERIM REPORT. Q1 2015 (unaudited)

INTERIM REPORT. Q1 2015 (unaudited) INTERIM REPORT Q1 2015 (unaudited) Key figures FIGURES IN NOK 000s INCOME STATEMENT Profit/loss after taxation 29 446 32 079 112 243 Net interest margin 1,53 % 1,81 % 1,64 % Profit/loss after tax as a

More information

The challenge of liquidity and collateral management in the new regulatory landscape

The challenge of liquidity and collateral management in the new regulatory landscape The challenge of liquidity and collateral management in the new regulatory landscape ICMA Professional Repo and Collateral Management Course 2012 Agenda 1. Background: The repo product under pressure 2.

More information

Comments on the Basel Committee on Banking Supervision s Consultative Document: Supervisory framework for measuring and controlling large exposures

Comments on the Basel Committee on Banking Supervision s Consultative Document: Supervisory framework for measuring and controlling large exposures June 28, 2013 Comments on the Basel Committee on Banking Supervision s Consultative Document: Supervisory framework for measuring and controlling large exposures Japanese Bankers Association We, the Japanese

More information

TD Bank Financial Group Q1/08 Guide to Basel II

TD Bank Financial Group Q1/08 Guide to Basel II TD Bank Financial Group Q1/08 Guide to Basel II 1. OVERVIEW General Information on Basel can be found on the Canadian Bankers Association website at www.cba.ca. Choose Issues, Standards, Rules and Guidelines

More information

YE08 Consolidated Financial Results. February 13, 2009

YE08 Consolidated Financial Results. February 13, 2009 YE08 Consolidated Financial Results February 13, 2009 1 We support our strategy with strong risk management Proven risk management track record and the highest credit ratings given to a bank in Turkey

More information

Business and Financial Highlights Nine Months Ended December 31, 2014. Shinsei Bank, Limited January 2015

Business and Financial Highlights Nine Months Ended December 31, 2014. Shinsei Bank, Limited January 2015 Business and Financial Highlights Nine Months Ended December 31, 214 Shinsei Bank, Limited January 215 Table of Contents Q3 FY214 Results: Key Points ------------------------------------------ Q3 FY214

More information

Banco Sabadell Stress test results. 15 th July 2011

Banco Sabadell Stress test results. 15 th July 2011 Banco Sabadell Stress test results 15 th July 2011 1 Disclaimer Banco Sabadell cautions that this presentation may contain forward looking statements with respect to the business. financial condition.

More information

Basel Committee on Banking Supervision

Basel Committee on Banking Supervision Basel Committee on Banking Supervision Liquidity coverage ratio disclosure standards January 2014 (rev. March 2014) This publication is available on the BIS website (www.bis.org). Bank for International

More information

IW Monetary Outlook December 2015

IW Monetary Outlook December 2015 IW policy paper 37/2015 Contributions to the political debate by the Cologne Institute for Economic Research IW Monetary Outlook December 2015 Weak Credit Growth Hinders Eurozone Inflation to Increase

More information

III. Treasury, Risk, Balance sheet and Off-balance sheet. 94 Liquidity and funding management. 101 Capital management. 115 Risk management

III. Treasury, Risk, Balance sheet and Off-balance sheet. 94 Liquidity and funding management. 101 Capital management. 115 Risk management 93 III Treasury, Risk, Balance sheet and Off-balance sheet 94 Liquidity and funding management 101 Capital management 115 Risk management 141 Balance sheet, off-balance sheet and other contractual obligations

More information

SACRS Fall Conference 2013

SACRS Fall Conference 2013 SACRS Fall Conference 2013 Bank Loans November 14, 2013 Allan Martin, Partner What Are Floating Rate Bank Loans? Senior secured floating rate debt: Current Typical Terms: Spread: LIBOR + 5.00%-6.00% LIBOR

More information

Financial Results of Japan's Banks for Fiscal 2012

Financial Results of Japan's Banks for Fiscal 2012 July 13 Financial Results of Japan's Banks for Fiscal 1 Financial System and Bank Examination Department Please contact the department below in advance to request permission when reproducing or copying

More information

Quarterly Financial Supplement - 1Q 2016

Quarterly Financial Supplement - 1Q 2016 Quarterly Financial Supplement - 1Q 2016 Page # Consolidated Financial Summary... 1 Consolidated Income Statement Information... 2 Consolidated Financial Information and Statistical Data... 3 Consolidated

More information

Peer-to-Peer Commercial Property Lending

Peer-to-Peer Commercial Property Lending Peer-to-Peer Commercial Property Lending Why Commercial Real Estate Debt is the Perfect Partner for P2P Lending Retail Industrial Office INTRODUCTION Peer-to-Peer Lending, also known as Loan Based Crowdfunding,

More information

STANDARDS OF BEST PRACTICE ON COUNTRY AND TRANSFER RISK

STANDARDS OF BEST PRACTICE ON COUNTRY AND TRANSFER RISK STANDARDS OF SOUND BUSINESS PRACTICES COUNTRY AND TRANSFER RISK 2005 The. All rights reserved 1 STANDARDS OF BEST PRACTICE ON COUNTRY AND TRANSFER RISK A. PURPOSE/OBJECTIVE This document sets out the minimum

More information

FSB invites feedback on residential mortgage underwriting practices

FSB invites feedback on residential mortgage underwriting practices Press release Press enquiries: Basel +41 76 350 8430 Press.service@bis.org Ref no: 38/2010 20 September 2010 FSB invites feedback on residential mortgage underwriting practices The Financial Stability

More information

Preliminary Financial Results of Alpha Bank Cyprus Ltd for the year 2015 Please find attached the relevant announcement.

Preliminary Financial Results of Alpha Bank Cyprus Ltd for the year 2015 Please find attached the relevant announcement. 0114/00014990/en Indicative Results Alpha Bank Ltd Preliminary Financial Results of Alpha Bank Cyprus Ltd for the year 2015 Please find attached the relevant announcement. ABCY Attachment: 1. Preliminary

More information

Morgan Stanley Reports Third Quarter 2015:

Morgan Stanley Reports Third Quarter 2015: Media Relations: Michele Davis 212-761-9621 Investor Relations: Kathleen McCabe 212-761-4469 Morgan Stanley Reports Third Quarter 2015: Net Revenues of $7.8 Billion and Earnings per Diluted Share of $0.48

More information

COMPUTERSHARE TRUST COMPANY OF CANADA BASEL III PILLAR 3 DISCLOSURES

COMPUTERSHARE TRUST COMPANY OF CANADA BASEL III PILLAR 3 DISCLOSURES COMPUTERSHARE TRUST COMPANY OF CANADA BASEL III PILLAR 3 DISCLOSURES December 31, 2013 Table of Contents Scope of Application... 3 Capital Structure... 3 Capital Adequacy... 3 Credit Risk... 4 Market Risk...

More information

DG FISMA CONSULTATION PAPER ON FURTHER CONSIDERATIONS FOR THE IMPLEMENTATION OF THE NSFR IN THE EU

DG FISMA CONSULTATION PAPER ON FURTHER CONSIDERATIONS FOR THE IMPLEMENTATION OF THE NSFR IN THE EU EUROPEAN COMMISSION Directorate-General for Financial Stability, Financial Services and Capital Markets Union DG FISMA CONSULTATION PAPER ON FURTHER CONSIDERATIONS FOR THE IMPLEMENTATION OF THE NSFR IN

More information

Securitized-Product Investment: Risk Management Perspectives *

Securitized-Product Investment: Risk Management Perspectives * - March 2008 Paper Series of Risk Management in Financial Institutions Securitized-Product Investment: Risk Management Perspectives * Financial Systems and Bank Examination Department Bank of Japan Please

More information

DISCLOSURE ON CAPITAL ADEQUACY & MARKET DISCIPLINE (CAMD)

DISCLOSURE ON CAPITAL ADEQUACY & MARKET DISCIPLINE (CAMD) DISCLOSURE ON CAPITAL ADEQUACY & MARKET DISCIPLINE (CAMD) A) Scope of Application : (a) This guidelines applies to Delta Brac Housing Finance Corporation Ltd. (b) (c) DBH has no subsidiary companies. Not

More information

As of July 1, 2013. Risk Management and Administration

As of July 1, 2013. Risk Management and Administration Risk Management Risk Control The ORIX Group allocates management resources by taking into account Group-wide risk preference based on management strategies and the strategy of individual business units.

More information

Standard Chartered Bank (Thai) PCL & its Financial Business Group Pillar 3 Disclosures 30 June 2015

Standard Chartered Bank (Thai) PCL & its Financial Business Group Pillar 3 Disclosures 30 June 2015 Standard Chartered Bank (Thai) PCL & its Financial Business Group Registered Office: 90 North Sathorn Road, Silom Bangkok, 10500, Thailand Overview During 2013, the Bank of Thailand ( BOT ) published the

More information

Basel II. Tamer Bakiciol Nicolas Cojocaru-Durand Dongxu Lu

Basel II. Tamer Bakiciol Nicolas Cojocaru-Durand Dongxu Lu Basel II Tamer Bakiciol Nicolas Cojocaru-Durand Dongxu Lu Roadmap Background of Banking Regulation and Basel Accord Basel II: features and problems The Future of Banking regulations Background of Banking

More information

SUB: STANDARD CHARTERED PLC (THE "COMPANY") STOCK EXCHANGE ANNOUNCEMENT

SUB: STANDARD CHARTERED PLC (THE COMPANY) STOCK EXCHANGE ANNOUNCEMENT April 26, 2016 To, Ms. D'souza AVP, Listing Department National Stock Exchange of India Exchange Plaza Bandra Complex Bandra (East) 400 001 Limited SUB: STANDARD CHARTERED PLC (THE "COMPANY") STOCK EXCHANGE

More information

Rating Methodology by Sector. Life Insurance

Rating Methodology by Sector. Life Insurance Last Updated: March 26, 2012 Rating Methodology by Sector Life Insurance *This rating methodology is a modification of the rating methodology made public on July 13, 2011, and modifications are made to

More information

The Basel Committee trading book proposals

The Basel Committee trading book proposals The Basel Committee trading book proposals Our initial analysis of the Basel Committee s 3-May-12 consultative document suggests that the most stringent application of all proposals could increase risk-weighted

More information

Share Capital Increase

Share Capital Increase Share Capital Increase Additional Information Pack Part 2 July 2014 Table of contents Margins and profitability - Interest earning assets decomposition 3 Asset quality - Recovery analysis 4 Capital - Q2

More information

SOA Annual Symposium Shanghai. November 5-6, 2012. Shanghai, China. Session 2a: Capital Market Drives Investment Strategy.

SOA Annual Symposium Shanghai. November 5-6, 2012. Shanghai, China. Session 2a: Capital Market Drives Investment Strategy. SOA Annual Symposium Shanghai November 5-6, 2012 Shanghai, China Session 2a: Capital Market Drives Investment Strategy Genghui Wu Capital Market Drives Investment Strategy Genghui Wu FSA, CFA, FRM, MAAA

More information

The Effects of Funding Costs and Risk on Banks Lending Rates

The Effects of Funding Costs and Risk on Banks Lending Rates The Effects of Funding Costs and Risk on Banks Lending Rates Daniel Fabbro and Mark Hack* After falling for over a decade, the major banks net interest margins appear to have stabilised in a relatively

More information

To G20 Finance Ministers and Central Bank Governors

To G20 Finance Ministers and Central Bank Governors THE CHAIRMAN 22 February 2016 To G20 Finance Ministers and Central Bank Governors The more difficult economic and financial conditions since the start of this year reflect in part downward revisions to

More information

Bank lending Survey Results for Portugal January 2016

Bank lending Survey Results for Portugal January 2016 Bank lending Survey Results for Portugal January 2016 I. Overall assessment According to the results of the January 2016 survey to the five Portuguese banking groups, the credit standards applied to the

More information

The Mortgage Market Review and Non-bank mortgage lenders is enhanced Prudential Supervision on the way?

The Mortgage Market Review and Non-bank mortgage lenders is enhanced Prudential Supervision on the way? JULY 2010 The Mortgage Market Review and Non-bank mortgage lenders is enhanced Prudential Supervision on the way? Introduction Since the publication of the FSA's latest Mortgage Market Review consultation

More information

18,343 18,308 3 Accumulated other comprehensive income (and other reserves)

18,343 18,308 3 Accumulated other comprehensive income (and other reserves) The information in this report is prepared quarterly based on the ADI financial records. The financial records are not audited for the Quarters ended 30 September, 31 December and 31 March. The report

More information

House Committee on Financial Services. November 29, 2012

House Committee on Financial Services. November 29, 2012 House Committee on Financial Services Joint Hearing Before the Subcommittee on Financial Institutions and Consumer Credit and the Subcommittee on Insurance, Housing and Community Opportunity Entitled Examining

More information

Rating Methodology for Domestic Life Insurance Companies

Rating Methodology for Domestic Life Insurance Companies Rating Methodology for Domestic Life Insurance Companies Introduction ICRA Lanka s Claim Paying Ability Ratings (CPRs) are opinions on the ability of life insurance companies to pay claims and policyholder

More information

Close Brothers Group plc

Close Brothers Group plc Close Brothers Group plc Pillar 3 disclosures for the year ended 31 July 2008 Close Brothers Group plc Pillar 3 disclosures for the year ended 31 July 2008 Contents 1. Overview 2. Risk management objectives

More information