this post was submitted on 03 Aug 2023
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[–] autotldr@lemmings.world 3 points 1 year ago

This is the best summary I could come up with:


The need for credible options was reinforced after the Swiss central bank stepped in with a liquidity backstop for Credit Suisse in March, before it was taken over by rival UBS (UBSG.S).

The European Banking Authority (EBA) said on Thursday that it will begin checking next year whether national regulators are testing the assumptions banks have on finding liquidity after a collapse, particularly in light of the "potential speed of deposit withdrawals, a crucial element that emerged in the context of the recent crisis event in the US and Switzerland".

Liquidity refers to readily available cash or short-term debt with a ready buyer to fund a bank's day-to-day operations without having to sell assets.

The EBA on Thursday published findings from its first report looking at how regulators across the 27-country EU apply 'resolution' rules introduced after the global financial crisis to avoid taxpayer bailouts of banks.

"Strategies and actions suggested by institutions to support liquidity in resolution remained limited and mostly focused on accessing central bank facilities," EBA said in its report.


I'm a bot and I'm open source!

[–] UniquesNotUseful@lemmy.world 2 points 1 year ago

Banking sector regulations require financial reserves that can be used to cover emergencies.

The EU revised the rules recently that meant banks could count the cost of its software as part of its cash reserves, increasing them by € billions each year.

You try and sell your copy of windows 10 and Norton anti virus to make ends meet.