Joshua Walker

London

Reporter at Risk.net

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Articles

Australian banks' leverage exposures surge to new highs

1 week ago | risk.net | Joshua Walker

All of the 'big four' Australian banks reported all-time high leverage exposures in the fourth quarter of 2024, causing leverage ratios at three to drop to their lowest in at least six years. ANZ had the most exposure at A$1.43 trillion (US$896.4 billion) at the end of the calendar year, having risen the most over the quarter at 6.6% and 14.6% over the previous six months.
CCP default funds 35% larger than on eve of pandemic

1 week ago | risk.net | Joshua Walker

Most top central counterparties (CCPs) entered 2025 with substantially increased default resources compared to the eve of the coronavirus pandemic, Risk Quantum analysis of the latest publicly available disclosures shows. Across 25 clearing services, total default funds were 35% larger at the end of 2024, providing a much-needed buffer ahead of recent market disruptions. On aggregate, default funds reached $78.2 billion as of December 31, 2024, compared to $57.8 billion five years earlier.
Bond rout puts pressure on UST holdings at US banks

2 weeks ago | risk.net | Joshua Walker

US banks held a record $2.27 trillion in US Treasuries at the end of 2024, exposing them to mounting losses as bond prices fell in the wake of US President Donald Trump's tariffs announcement on April 2. Risk Quantum analysis of the latest publicly available disclosures shows the total includes $1.03 trillion in available-for-sale (AFS) securities, $507 billion held-to-maturity (HTM) and $731.7 billion in the trading book.
JPM leads record STWF surge at US G-Sibs

2 weeks ago | risk.net | Joshua Walker

Short-term wholesale funding (STWF) at the eight US global systemically important banks (G-Sibs) grew by a record $94.1 billion in the fourth quarter of 2024, marking the fifth consecutive quarter-end high. As of December 31, the eight banks collectively reported $3.02 trillion in STWF, up 3.2% from three months earlier and 11.6% higher than at the end of 2023.
BMO US posts lowest LCR among IHCs

3 weeks ago | risk.net | Joshua Walker

In the fourth quarter of 2024, the US subsidiary of Bank of Montreal published its first liquidity coverage ratio (LCR) figures since becoming a category III bank in 2023. BMO US's adjusted LCR stood at 108% - the lowest among the six intermediate holding companies (IHCs) subject to the rule. It also ranked 10th out of 12 non-global systemically important banks (G-Sibs) and 16th among the 20 US banks subject to the requirement.
Liquidity risk spikes at CME and OCC

3 weeks ago | risk.net | Joshua Walker

The Options Clearing Corporation and CME Clearing's futures and options division revised upwards their estimates of the largest payment obligation that would be caused by the default of any of their participants and their affiliates, with both reaching all-time highs. The OCC's projected largest same-day payment obligation was set at $13.3 billion in the fourth quarter of 2024, a 32.3% increase from the prior quarter, surpassing its previous record of $12 billion.
Singaporean banks see surge in systemic risk indicators

4 weeks ago | risk.net | Joshua Walker

Two Singaporean banks saw their systemic risk indicators surge over the course of 2024, increasing the likelihood that when the Financial Stability Board sample releases the full results in November the banks will experience a jump in their global systemically important bank (G-Sib) scores. DBS Bank saw all of its 14 systemic risk indicators rise in 2024, for only the second time in 11 years.
Santander's operational, securitisation RWAs hit new highs

1 month ago | risk.net | Joshua Walker

Operational and securitisation risks at Santander shot up to all-time highs in the fourth quarter of 2024, due to higher revenues and increased market activity. The bank's operational risk-weighted assets (RWAs) climbed 11.7% to €72.4 billion ($78.9 billion), the largest quarter-on-quarter increase since at least 2016.
AmEx derivatives book grows on interest rate swap surge

1 month ago | risk.net | Joshua Walker

American Express swelled its derivatives book over the 18 months ending last year to levels not seen in seven years, with the portion cleared by a central counterparty climbing to its highest since 2018. The credit card group quadrupled its notional holdings of interest rate swaps from $4.6 billion in Q2 2023 to $19 billion at the end of 2024, while FX forwards grew 18.1% over the same period to $43.1 billion.
JSCC, DTCC government bond units see default fund surge

1 month ago | risk.net | Joshua Walker

Two clearing services specialising in government bonds saw their default funds swell in the final quarter of 2024, driven by increased member contributions. Clearing member contributions to the default fund at the Japanese government bond (JGB) futures and options unit of the Japan Securities Clearing Corporation (JSCC) increased 52.4% to ¥64.7 billion ($435.2 million) at the end of Q4, the most since Q1 2019.