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IFR Bank Capital Roundtable 2015

The Great Bank Capital Debate rumbles on. IFR’s latest event on this evolving topic was held as the TLAC and MREL initiatives wend their way closer to final versions at the same time as banks are – to the extent the rules have been finalised or where the direction of travel is otherwise clear – fine-tuning resolution plans, working towards assumed leverage ratio minimums, and dealing with funding, liquidity and a host of other issues in a world that has become increasingly convoluted.

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IFR Bank Capital Roundtable 2015: Participants

Laurent Frings Aberdeen Asset Management Laurent Frings is co-head of EMEA credit research at Aberdeen Asset Management, responsible for overseeing credit research for EMEA portfolios. He joined Aberdeen following the SWIP acquisition in April 2014. At SWIP, Frings was head of credit research in the fixed-income team and covered the banking sector. He joined SWIP from Morley Fund Management, where he worked as a credit analyst for more than five years. Steven Penketh Barclays Steven Penketh is head of the capital markets execution and...

IFR Bank Capital Roundtable 2015: Part 1

IFR: Welcome to this IFR Roundtable. There are a number of issues around where we’re headed on this great debate on bank capital. Blueprints for TLAC, MREL and related initiatives have been published and commented on. How will they impact the banks? What is the total capital requirement going to be? How will it be met? What are the ratings impacts? What’s the issuer perspective, and of course what’s the investor perspective? It’s been an interesting year-to-date for the structural elements that have emerged, around HoldCo and OpCo issues, local...

IFR Bank Capital Roundtable 2015: Part 2

IFR: Just on the pricing point, there are risks that you can see, risks that you can’t see, risks that you can extrapolate, risks you can interpolate, that you can evaluate or model in some way. But given where we are in the capital debate, where it’s very clear what the expectations are going to be but we haven’t seen the final term sheet yet, how do you price those risks in – particularly given that we’re in a fairly artificial market environment as well, with QE and so on? Laurent Frings, Aberdeen Asset Management: Yes, you’re absolutely...

IFR Bank Capital Roundtable 2015: Part 3

IFR: Taking that G-SIB/D-SIB point and the differences between them; and thinking beyond that broadly about banks’ strategy efforts, there seems to be a lot of high-level strategic conversation out there about whether banks can and should change their strategies or the shape of their groups to create ratings uplift or to change capital and resolution requirements by shrinking below, for example, the G-SIB barrier. Not to single anyone out per se but I’m thinking about the differences between the likes of, say, UniCredit and Banca Intesa here...