The EU’s Parliament and Council compromised on the wording of a taxonomy or rule book governing the definitions of green finance after altering the language so as not to discriminate against nuclear or gas as a transition energy source. 

The latest stress tests from the Bank of England showed that the UK’s seven largest lenders could comfortably manage a deep domestic recession, a global downturn and a disorderly exit from the EU. 

Following the big re-election victory by the Conservative Party, the UK is almost certain to leave the EU on January 31, 2020, prompting the financial services sector to think about the country’s regulatory regime. 

Even as the pace of new regulation slows, banks will increasingly have to demonstrate their financial and operational resilience and that they are responding ably to social and political pressure, according to two reports by Deloitte. 

Bank default ratios for corporate debt have dropped from 1.12% to 0.73% since 2016, according to Global Credit Data, which is concerned that this part of the debt market could be storing up problems for the future. 

As part of ramping up the pressure on financial firms, US regulators are asking them to submit plans demonstrating that they are ready to cope with the likely end of the London interbank offered rate (Libor) in 2021.

A proposal by the Commonwealth of Massachusetts for broker-dealers and their representatives to have their fiduciary standards set at state level has received strong opposition from financial services trade associations. 

The Financial Stability Board (FSB) once again warned about the financial stability implications due to the ongoing reliance of the global economy on the London interbank offered rate (Libor) and pressed for greater effort to move to alternative benchmarks by the end of 2021.