Connect with us

coronavirus

#EBA - Supervisor says the EU banking sector entered the crisis with solid capital positions and improved asset quality

EU Reporter Correspondent

Published

on

The European Banking Authority (EBA) published today (9 June) the seventh EU-wide transparency exercise. This additional data disclosure comes as a response to the outbreak of COVID-19 and provides market participants with bank-level data as of 31 December 2019, prior to the start of the crisis. The data confirms the EU banking sector entered the crisis with solid capital positions and improved asset quality, but also shows the significant dispersion across banks.

CET1 ratio

NPL ratio

Leverage ratio

(transitional)

(fully loaded)

(fully phased-in)

25th pct

13.9%

13.4%

1.2%

4.9%

Weighted average

15.1%

14.8%

2.7%

5.5%

75th pct

18.5%

18.4%

4.3%

8.4%

Commenting on the publication of the results, EBA Chairman Jose Manuel Campa (pictured) said: “The EBA considers that the provision to market participants of continuous information on banks’ exposures and asset quality is crucial, particularly in moments of increased uncertainty. The dissemination of banks’ data complements our ongoing monitoring of the risks and vulnerabilities in the banking sector and contributes to preserving financial stability in the Single Market.”

In the context of an unprecedented health crisis, EU-wide Transparency data confirms banks entered this challenging period in a stronger position than in previous crises in line with the EBA’s 'Thematic note on the first insights into the Covid-19 impacts'. Compared with the Global Financial Crisis in 2008-2009, banks now hold larger capital and liquidity buffers.

EU banks reported increasing capital ratios in 2019. The EU weighted average CET1 fully loaded capital ratio was at 14.8% as of Q4 2019, around 40bps higher than Q3 2019. The trend was supported by higher capital, but also contracting risk exposure amounts (REA). As of December 2019, 75% of the banks reported a CET1 fully loaded capital ratio above 13.4% and all banks reported a ratio above 11%, well above the regulatory requirements. Compared to the previous quarter, the interquartile range remained stable.

The EU weighted fully phased-in leverage ratio stood at 5.5% as of December 2019. The leverage ratio increased by 30bps compared to the previous quarter, driven by rising capital and declining exposures. The lowest reported leverage ratio was 4.7% at country level, and 1.6% at bank level.

The asset quality of EU banks has been on an improving trend over the last few years. As of Q4 2019 the EU weighted average NPL ratio declined to 2.7%, 20bps lower than in Q3 2019. The Q4 2019 ratio was the lowest since the EBA introduced a harmonized definition of NPLs across European countries. Dispersion in the NPL ratio across countries remained wide, with few banks still reporting double-digit ratios, although in the last quarter the interquartile range compressed by 80 bps, to 3.1%.

  • The EBA postponed the EU-wide stress test exercise to 2021 to allow banks to focus on and ensure continuity of their core operations, including support for their customers.
  • The EBA has been conducting transparency exercises at EU-wide level on an annual basis since 2011. The transparency exercise is part of the EBA’s ongoing efforts to foster transparency and market discipline in the EU financial market, and complements banks’ own Pillar 3 disclosures, as laid down in the EU’s capital requirements directive (CRD). Unlike stress tests, transparency exercises are purely disclosure exercises where only bank-by-bank data are published and no shocks are applied to the actual data.
  • The spring 2020 transparency exercise covers 127 banks from 27 EEA countries, and data is disclosed at the highest level of consolidation as of September 2019 and December 2019. The transparency exercise fully relies on supervisory reporting data.
  • Along with the dataset, the EBA also provides a document highlighting the key statistics derived from the dataset, and a wide range of interactive tools that allow users to compare and visualise data by using maps at a country and a bank-by-bank level.

 

coronavirus

Coronavirus: Health Security Committee updates the common list of COVID-19 rapid antigen tests

EU Reporter Correspondent

Published

on

The Health Security Committee (HSC) has agreed to update the common list of COVID-19 rapid antigen tests (RATs), including those whose results are mutually recognised by EU member states for public health measures. Following the update, 83 RATs are now included in the common list, of which the results of 35 tests are being mutually recognised. Commissioner for Health and Food Safety, Stella Kyriakides, said: “Rapid antigen tests play a crucial role to slow down the spread of COVID-19. Diagnostics are a central element for member states in their overall response to the pandemic. Having a wider list of recognised rapid antigen tests will also make it easier for citizens to benefit from Digital Green Certificates and to facilitate safe free movement inside the EU in the coming months.”

In addition, the Commission and the Joint Research Centre have agreed on a new procedure for updating the list of common and mutually recognised RATs in the future. From today onwards, RATs manufacturers will be able to submit data and information for certain tests that meet the criteria agreed by the Council on 21 January 2021. This includes only those rapid tests that are being carried out by a trained health professional or other trained operator and excludes rapid antigen self-tests.  Moreover, as part of the new procedure, the HSC is setting up a technical working group of national experts to review the data submitted by countries and manufacturers and to propose updates to the HSC.

They will also work with the JRC and the ECDC on a common procedure for carrying out independent validation studies to assess the clinical performance of RATs. The updated common list of COVID-19 RATs is available here. Manufacturers can submit data on rapid antigen tests available on the market here. The Council Recommendation on a common framework for the use and validation of RATs and the mutual recognition of COVID-19 test results in the EU can be found here.

Continue Reading

coronavirus

Europe dares to reopen as 200 millionth vaccine dose delivered

Reuters

Published

on

By

FILE PHOTO: People drink at the terrace of a bar, as the coronavirus disease (COVID-19) restrictions ease, in London, Britain, April 16, 2021. REUTERS/Henry Nicholls/File Photo/File Photo
People gather in a "macrobotellon" (drinking and dancing session) on a street, as the state of emergency decreed by the Spanish government to prevent the spread of the coronavirus disease (COVID-19) is lifted in Barcelona. Spain, May 10, 2021. REUTERS/Nacho Doce/File Photo

As its vaccination drive reaches a third of adults and COVID-19 infections ease, Europe is starting to reopen cities and beaches, raising hopes that this summer’s holiday season can be saved before it is too late, write Michael Gore and Estelle Shirbon.

Exhilarated Spaniards chanting “freedom” danced in the streets as a COVID-19 curfew ended in most of the country at the weekend, while Greece reopened public beaches - with deckchairs safely spaced.

With 200 million vaccine doses delivered, the European Union is on track to achieve its goal of inoculating 70% of its adult population by summer, Commission President Ursula von der Leyen tweeted on Sunday.

And, in Germany, a first weekend of summer sun lifted spirits after Health Minister Jens Spahn declared the third wave of the pandemic finally broken.

Yet, Spahn warned: "The mood is better than the reality."

The national seven-day incidence of COVID-19 cases remains high at 119 per 100,000 people, he said. "That makes it all the more important to keep up the speed of the vaccination campaign."

Across the EU, the seven-day incidence of COVID-19 is 185, according to Our World in Data. That is far higher than in countries such as Israel with 6, Britain (31), or the United States (123), all of which made quicker early progress in their vaccination drives.

In Britain, early orders and approval of vaccines and a decision to give first doses to as many people as possible have driven down infections and fatalities far more quickly.

Prime Minister Boris Johnson was expected to set out the next phase of lockdown easing in England, giving the green light to “cautious hugging” and allowing pubs to serve customers pints inside after months of strict measures.

"The data reflects what we already knew - we are not going to let this virus beat us," Johnson said ahead of an official announcement later on Monday.

Vaccine deliveries were slower initially in the EU under its centralised procurement strategy.

Now, with shots from BioNTech/Pfizer and Moderna relatively plentiful, vaccinations as a share of the population in Europe are growing while countries that made early advances see slowdowns as they encounter hesitancy among the unvaccinated.

Some 31.6% of adults in 30 European countries have received a first dose and 12% a full two-shot regime, the European Centre for Disease Prevention and Control's COVID-19 Vaccine Tracker showed.

France expects to give 20 million first injections by mid-May, and hit 30 million by mid-June.

With infection rates falling and occupancy in hospital intensive care units declining, France plans to start relaxing its curfew and allow cafes, bars and restaurants to offer outdoor service from 19 May.

Improving supply has given countries greater freedom to adapt their strategies following reports of very rare, but sometimes fatal, blood clotting in people who received shots from AstraZeneca (AZN.L) and Johnson & Johnson (JNJ.N).

Germany has decided to make the two vaccines available to anyone who wants them, as long as they have been advised by a doctor - an offer aimed at younger adults who would have to wait their turn otherwise.

Norway’s vaccine commission made a similar call on Monday (10 May), saying the AstraZeneca and J&J shots should be made available to volunteers. Some Italian regions are also offering both shots to people under 60.

With some governments shortening the gaps between doses, and plans for an EU digital “green pass” scheme in June for travellers to provide proof of vaccination or immunity, people cooped up for months are finally daring to make holiday plans.

"We're pinning our hopes on tourism," said Nikos Venieris, who manages a beach in Alimos, an Athens suburb.

Tourism accounts for about a fifth of Greece’s economy and jobs, and the country can ill afford another lost summer. Greece is lifting restrictions on vaccinated foreigners from 15 May.

Continue Reading

coronavirus

EU says willing to give AstraZeneca more time for vaccine deliveries

Reuters

Published

on

By

2 minute read

A medical worker prepares a dose of Oxford/AstraZeneca's COVID-19 vaccine at a vaccination centre in Antwerp, Belgium March 18, 2021. REUTERS/Yves Herman/File Photo

The European Union is willing to see its COVID-19 vaccine contract with AstraZeneca fulfilled three months later than agreed, providing the company delivers 120 million doses by the end of June, a lawyer representing the bloc said on Tuesday (11 May), writes Francesco Guarascio.

The lawyer was speaking in a Belgian court as proceedings in a second legal case brought by the European Commission against AstraZeneca over its delayed delivery of vaccines got underway.

Officials familiar with the case said the lawsuit is mostly procedural - pertaining to the merits of the issue - after a first case was launched in April, and would allow the European Union to seek possible financial penalties.

However, the EU asked in court on Tuesday for a symbolic compensation of 1 euro for what it deems a breach of contract by AstraZeneca.

A lawyer for AstraZeneca complained in court that the EU's executive had launched a second case given that one had already been opened.

AstraZeneca had originally agreed with the EU to deliver 300 million doses of its COVID-19 vaccine by the end of June, but has so far delivered only 50 million.

The EU's lawyer told the court that the bloc could accept the full contract of 300 million to be delivered only by the end of September, but the company should deliver 120 million doses by the end of June.

AstraZeneca's lawyer told the judge that it "hopes" to deliver 100 million by the end of June.

Continue Reading

Twitter

Facebook

Trending