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Nov 13, 2024 | 
think.ing.com | Suvi Platerink Kosonen
The ECB shifts to rate cuts to support bank loan quality European bank fundamentals have been supported by the positive effect of high interest rates and the (for the most part) relatively benign loan quality conditions. While we have seen a clear shift higher in non-performing loans in some specific sectors such as real estate and construction, the substantial revenue boost from high rates has largely offset these impacts on a net basis so far.
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Nov 8, 2024 | 
think.ing.com | Rebecca Byrne |Timothy Rahill |Suvi Platerink Kosonen |Jesse Norcross
Credit markets reacted positively to the outcome of the US election, with spreads narrowing across the board. But the longer-term implications are more complicated. ING's Global Head of Sector Research Jeroen van den Broek and Credit Strategist Tim Rahill predict a difficult year ahead for credit, with a Trump presidency one of 25 reasons to be cautious in 2025.
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Nov 1, 2024 | 
think.ing.com | Timothy Rahill |Suvi Platerink Kosonen |Jesse Norcross
Date: 7 November 2024Time: 10:00 GMT/11:00 CETThe event will last for 45 minutes, with Q&A at the end. Speakers:Jeroen van den Broek, Global Head of Sector ResearchTimothy Rahill, Credit StrategistSuvi Platerink Kosonen, Senior Sector Strategist, FinancialsJesse Norcross, Senior Sector Strategist, Real EstateRebecca Byrne, Senior Editor/Supervisory Analyst (moderator)ING Outlook: Other events in this webinar series (All times CET)13 November (16:30) FX markets after the US election.
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Mar 13, 2024 | 
think.ing.com | Carsten Brzeski |Benjamin Schroeder |Michiel Tukker |Suvi Platerink Kosonen
The European Central Bank initiated the review of its operational framework in December 2022. It took slightly longer than expected to conclude, but today, we finally got the results. Remember that 25 years ago, the ECB started operating a so-called “corridor” system. That system ensured banks were provided with a given amount of central bank reserves sufficient to fulfil their minimum reserves requirements and the demand from so-called 'autonomous factors'.
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Mar 12, 2024 | 
think.ing.com | Suvi Platerink Kosonen
The level of MRR in focus in the review ECB President Christine Lagarde confirmed in a press conference last week that the central bank aims to reach a consensus to complete the review of the operational framework on 13 March and publish it thereafter. She also confirmed that the Minimum Reserve Requirements (MRR) would form part of the review and the announcement. ECB speakers have discussed the level of the MRR on several occasions.
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Oct 24, 2023 | 
think.ing.com | Suvi Platerink Kosonen
Bank funding needs are likely to remain substantially impacted by the runoff of European Central Bank funding. Another €450bn in Targeted Longer-Term Refinancing Operations mature in 2024. A substantial share of the excess Liquidity Coverage Ratio liquidity buffers have already been exhausted. While there is still further headroom to absorb the additional impact, we see a higher risk for refinancing maturing LTROs, in particular for banks in Italy and Germany.
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Oct 18, 2023 | 
think.ing.com | Suvi Platerink Kosonen
Eurozone banks see their liquidity coverage ratios drop in 2Q The liquidity position of eurozone banks weakened in the second quarter. The liquidity coverage ratio (LCR) of banks declined by 3ppt to 158% in 2Q, down from 161% in 1Q. The minimum requirement is set at 100%. The numbers are based on the ECB’s supervisory banking statistics for the second quarter, covering 110 significant institutions in the eurozone that are supervised by the ECB.
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Sep 25, 2023 | 
think.ing.com | Suvi Platerink Kosonen
ECB looks for ways to curb excess liquidity Among potential ways to reduce the excess liquidity in the banking system, the ECB is reportedly considering increasing the minimum reserve requirements (MRR). Several ECB policymakers are said to be in favour of a move higher in MRRs to 3% or even to 4%.
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Jul 31, 2023 | 
think.ing.com | Suvi Platerink Kosonen
No "official" pass or fail in the stress tests, but some banks come out with very limited capital gaps The European Banking Authority published the results of the European bank stress tests on Friday evening. The majority of banks weathered the adverse conditions well with only three banks falling short of the risk-weighted assets-based minimum capital requirements in the adverse scenario. Another four banks would fall short of the minimum leverage ratio-based requirements.
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May 12, 2023 | 
think.ing.com | Suvi Platerink Kosonen
In case of liquidity outflows, banks rely on their liquidity buffers. Cash can be easily deployed. Debt securities may be used as collateral for central bank funding or in repo markets. Selling down securities portfolios may instead have an impact on earnings and capital metrics if the bonds were not being marked to market. The bulk of liquidity buffers in countries such as Germany, the Netherlands and France rely on cash and reserves.
