The rating agency proposes to assign ratings to banks in Europe, the U.S., Hong Kong, New Zealand and Switzerland
Reducing banks’ reliance on internal models could boost public confidence in regulatory capital ratios
The report sets out best practices for banks to independently validate their models
Spanish banks have one of the highest percentages of forborne loans
The boost the likelihood of auto loan defaults and default losses, Moody’s warns
The proposed revisions would introduce a single, standard that methodology that would make calculations more comparable
Low oil prices could test the creditworthiness of some banks
Banks could face credit issues in their retail lending portfolios given high consumer indebtedness
Stress testing highlights challenges for CIBC, Scotiabank
However, the knock-on effects of the energy sector slowdown could have a bigger impact on banks’ loan books