Will the European Central Bank’s asset quality review spot all the problem banks? Asset quality is a risk factor in the European Banking Authority (EBA) Comprehensive Assessment, but regulators may be missing a key underlying pattern in failure. Banco Espirito Santo has highlighted the issue of inter-related lending: loans to shareholders, affiliates and related parties. […]
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8 years on, has Lehman cut global bank risks?
The Great Financial Crisis still casts a shadow in the industry, eight years on. The fear remains that it might not be the main event, but simply advance warning of something bigger. After two decades of accumulated bank leverage and a few years of irresponsible lending, the remedy has mainly been sticking plasters. Regulation has […]
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