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Bcbs Risk-Weights-Hattip Bland Unsight


sancho panza

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spyguy

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  On 30/05/2016 at 11:39, Ah-so said:

The capital requirements are largely in place, but various bits of implementation will take until 2019.

They systems are in place.

It's the classification of loans that'll cause problems in the UK.

AFAIK no other country has allowed individual to borrow and buy nonOOO property.

Most countries insist on chunky deposits and OOO homes only.

UK is exceptional in allowing low deposits and loaning huge amounts.

A lot of UK loans will be reclassified as commercial, high risk and capital charge adjusted.

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Posted in 2016, when the future looked bright for Metrobank.

Its one thing to be taking the piss out of the likes of fat cunt fergus and the 1000s of 'i know property me' btlers.

But when a rank amateur like me can work thru the basel3 n rwa text and suss out metrobank, nationwide n Covbs have a *huge* fucking problem...

Since 2016, the term funding scheme slush fund has been removed, whacking up banjs borrowing costs.

The Clause24 cgsnges will feed on btl loans - more will fail, pushing up rwa, so more will fail, etc.

 

 

 

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8 minutes ago, spygirl said:

Posted in 2016, when the future looked bright for Metrobank.

Its one thing to be taking the piss out of the likes of fat cunt fergus and the 1000s of 'i know property me' btlers.

But when a rank amateur like me can work thru the basel3 n rwa text and suss out metrobank, nationwide n Covbs have a *huge* fucking problem...

Since 2016, the term funding scheme slush fund has been removed, whacking up banjs borrowing costs.

The Clause24 cgsnges will feed on btl loans - more will fail, pushing up rwa, so more will fail, etc.

 

 

 

It's funny how long these issues have been running.I remember selling RBS-and taking a loss back in 07/08-because Northern Rock had made me udnerstand far more about the bankign sytem than Id ever known.Issues like credit creation ahd never featured on my horizons before then .....seriously,previosu to 07 I hadn't got much of a clue about FRB.

 

I jsut thought these changes would have kicked in a bit sooner but this is where the old IRB/SA thing allows the bigger banks more leeway with their balance sheets

 

have a butchers at the landlord survey.loads of these people are levered up outside of limited liability companies.I know a lot of my acqauntance aren't even aware that their main home is one th line if things go tits up.

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according to wiki implenetation been extended on some issues to 2022.Any idea why the timeline got pushed  to the right so much

https://en.wikipedia.org/wiki/Basel_III

Basel III was agreed upon by the members of the Basel Committee on Banking Supervision in November 2010, and was scheduled to be introduced from 2013 until 2015; however, implementation was extended repeatedly to 31 March 2019 and then again until 1 January 2022.[1][2][3]

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Thing move slowly in banking.

Its takes ages for significant regulation to work its way thru the system.

Just take clause 24 - the BTL mortgage tax things.

Gidiot did that correctly - 1 year consultation then 5 years to deploy.

Andthats just a national rule.

Basel 3 is international regulation, so will take even longer.

The core of basel 3 is that banks loan less to housing - due to having to hold more capital. Banks dont have a choice of raw loans - the regulators does that.

And even with all these slowly n steady pace Metrobank *still* managed to fuck up massively, to the point where its blown itself up.

Theres a post in the link where they look at how much money a bank could lend and how much they can lend, post basel3 - falls massively. And thats in aiddtio to MMR, which belts n braces much lower lending.

Going back to the slow time frame.

When you look at lending, which is easy to see thru HPI i nthe north, you can see that it only took ~5 years for ~90% of the UK to blow themselves up after Brown adjusted the ruls in 200ish.

You see prices basically double 2000-2004ish, then plateau and transaction fall. Then IO BTL kicks off as the banks had run out of road for OO/regulated lending. Then the rumours and issues happen in 2006/2007 then bang - 2007-2009 as they all start falling.

There really has not been anything like Browns fuckup in modern economies. Sure, you get one or two banks blow up in countries like Italy or Agentina. But to have ~90% of a countries banks by lending blow up, in ~5 years - off the scale insanity.

Again, back to MetroBank - once a countries banks have gone, it takes a logn time for new ones to scale up - just see how hard it is for the challenger banks to scale up.

 

 

 

 

 

 

 

 

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I didnt fully grasp how banks n central banks worked in 2008.

Which, as im not a banker, isnt a huge problem.

Sadly neither did Brown n Balls , nor most uk banks boards n ceos - now that was a problem.

On ToS ive posted a reply to tge usual post about Rics up n up spring boost - youll need wages n employment to go up for house prices to go.

Uk housing, on average, is about 30% than youd expect with wages/employment. That average masks some huge ranges in affordability  - North in most places is not too bad, most not seeing any nominal increase since 2004ish.

London/south is doubly fucked due to loss of finsec jobs.

I pozted about my mums,whis been out n about on the bus, looking st houses as she goes by.

Oh, <shitholes> on the way up, be the place to be....

I laughed at her. I grab the LR data and tell her the nominal prices are the same as 2000, so a real fall in the last 20 years. Then, when you look and see it took til 2000 for nominal prices to recover from mid 90s fall, from late 80s boom, you realise theyve not gone up in 40 years i.e never.

I asked her if she knew how banks lend money. She didnt, just like 90% of ukpop.

 

 

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