Gfma : News on the global financial markets

Regulatory pressures prompt European banks to sell top assets
European regulators are pressuring banks to increase capital, prompting some to sell some of their fastest-growing operations. Investors and analysts warned that such sales could hinder long-term profits. "There's nothing wrong in theory about selling the crown jewels," said Christophe Nijdam, an analyst at AlphaValue. "It's always a question of price. European banks will be less profitable -- but less risky." Bloomberg Businessweek(13 Dec.)

Bankers are concerned about collateralised loan obligations
Bankers are voicing concerns about European collateralised loan obligations because 98% will have gone "static" by 2014, according to a Standard & Poor's report. Financial Times(tiered subscription model)(13 Dec.)

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Moody's warns of possible downgrades for Spanish banks
The Wall Street Journal (13 Dec.)

More public funds aren't on radar, Commerzbank says
Reuters (13 Dec.)

Regulatory Roundup

Italian group scrutinises EBA's capital demands
Giuseppe Mussari, chairman of Italy's Banking Association, said the group is concerned about demands by the European Banking Authority forcing banks to boost capital. "The European Banking Authority measures are a great mistake that may cause a credit crunch and hurt the economy," Mussari said. "We will use all instruments available under the Italian and European law to oppose them." Bloomberg(13 Dec.)

EBA warns lenders against being overly risk-averse
The European Banking Authority warned banks that they could trigger a credit crunch by being overly risk-averse. Chairman Andrea Enria said banks significantly altered their behaviour after the financial crisis. "At the moment, our concerns have gone to the other extreme: that we could now have the problem banks are too risk-averse, which could ultimately lead to a severe credit crunch," Enria said. Reuters(11 Dec.)

• Other News

Euro-zone banks deposit more money at ECB
Financial Times (tiered subscription model) (13 Dec.)

Spotlight on China

China reportedly delays capital-adequacy rules for banks
The China Banking Regulatory Commission had planned to implement tough capital and liquidity rules for banks starting 1 January. However, the regulator decided to postpone implementation, according to the Economic Information Daily. Reuters(13 Dec.)