Research Note
Resolution's missing liquidity: only four of 19 jurisdictions meet the FSB's backstop standard
Only 4 of 19 jurisdictions are fully compliant with the FSB's standard on public liquidity backstops, and 10 are rated materially non-compliant or non-compliant. The gaps lie mostly in the credibility of the funding mechanisms.
Banks become the lender behind private credit as US bank loans to non-banks pass USD 2 trillion
US bank loans to non-bank financial institutions rose 19.2% in a year to USD 2.03 trillion in August 2026, more than twice the pace of total lending, as EU supervisors warn that opaque private credit links could send stress back into banks.
Switzerland's 90% rule: the UBS vote puts parent-entity capital at the centre of G-SIB resilience
Switzerland's upper house voted 29–16 for 90% CET1 backing of UBS's foreign subsidiaries, about USD 16bn more capital by UBS's estimate, while US proposals would cut G-SIB CET1 requirements. What parent-entity capital means for cross-border banks.
The new bank resilience test: capital is strong, supervision is getting more granular
In a reverse stress test the ECB asked 110 banks to design scenarios cutting CET1 by 300bp, and found some mitigating actions overly optimistic, even with aggregate CET1 at 16.00%; the Fed is weighing making the tool routine.
The second shock: Europe’s rate hike turns energy inflation into a bank-credit test
The ECB lifted its deposit rate to 2.50% as euro area energy inflation reached 14.3% in August, and banks had already tightened standards for firms, mortgages and consumer credit while rejecting more loan applications before the second rate rise.
The bank consortium's stablecoin pivot: a payments rail, not a crypto bet
A 21-member bank-led group plans a US dollar stablecoin for cross-border payments and settlement by the first half of 2027, under US rules that require 1 to 1 reserves and bar interest, as Europe's 37-bank Qivalis readies a euro coin.
Materiality, not paperwork: the OCC–FDIC reset and the global test for risk-based bank supervision
A joint OCC–FDIC final rule ties MRAs and unsafe-practice findings to material financial harm, after 36 comments on the proposal; in Europe the ECB, with around 12,000 open measures at end-2025, is pruning low-severity findings too.
The new bank is a settlement network: what the OCC's 23-of-40 digital-asset signal means for stablecoin competition
The OCC says 23 of the 40 charter applications it received in about 18 months involve digital assets, and its approvals point to charters built for custody, settlement and stablecoin reserves before the GENIUS Act takes effect.
HSBC’s $4.9bn debt tender: capital recycling meets a more releasable buffer regime
HSBC agreed to repurchase senior notes for $4.9bn after upsizing its tender cap to $6.75bn, funded by new issuance due 2032 and 2037, as the Bank of England moves towards capital buffers that can be released in stress.
Cross-border bank credit is broadening: the BIS signal for EM funding, FX and NBFI risk
Cross-border bank credit rose $1.7 trillion in Q1 2026 to $39.5 trillion, up 11% year on year. Credit to non-bank financial institutions rose $651 billion and lending to emerging economies $148 billion, led by the Gulf and emerging Europe.
Q2 2026 bank earnings: capital is becoming a growth licence again
UniCredit built a 47.59% position in Commerzbank, Santander absorbed a 55bp CET1 hit from TSB and BBVA grew loans 17.7% at constant exchange rates, while buybacks continued: surplus capital is being spent on growth as well as returned.
From “stablecoin as fintech” to “stablecoin as FMI”: what the UK’s systemic stablecoin regime means for banks
Systemic sterling stablecoins must hold 30% of backing in unremunerated Bank of England deposits and 70% in short-term UK government debt, none in banks, and each coin is capped at £40 billion while banks adjust their funding models.