Basel 3.1 reforms will lead banks to apply high haircuts to unsustainably high property values and adjust mortgage risk weights to better differentiate between low-risk and high-risk loans.

Speakers: Alexander Zeidler, VP-Sr Credit Officer at Moody's Ratings; Guillaume Lucien-Baugas, VP-Senior Analyst at Moody's Ratings

Hosts: Aaron Johnson, VP-Senior Research Writer at Moody's Ratings; Danielle Reed, VP-Senior Research Writer at Moody's Ratings

Related Research:

• Basel 3.1 will reduce risk of boom and bust property cycles, boost private credit market
• Rising interest rates will weaken commercial property values and raise refinancing risk
• Explanatory comment – Haircuts smooth CRE values through the property market cycle

As cyberattacks rise and AI poses new dangers, Moody’s analysts discuss banks’ own views of their cybersecurity defenses and explain the EU’s plan to rein in risks from third-party tech providers. 

Speakers: Lucas Viegas, VP-Senior Analyst, Moody’s Ratings; Brandon O’Halloran, AVP-Analyst, Moody’s Ratings

Host: Danielle Reed, VP – Senior Research Writer, Moody’s Ratings

Related Research: 

• Financial Institutions – Europe: Stringent new tech rules for banks and their IT providers will improve cybersecurity
• Financial Institutions – Global: 2023 Cyber Survey - Escalating cyberthreats drive up budgets as banks fortify defenses
• Cybersecurity – Cross Region: Generative AI may increase cyber risk rather than lessen it
• Financial Institutions – Global: Ransomware attack on ICBC FS highlights cyber risks to the financial system

Our 2024 Banking System Outlooks show more European systems joining the US on negative as economies slow and loan performance weakens. China stays negative, while India is positive.

Speakers: Warren Kornfeld, Senior Vice President, Moody’s Ratings; Effie Tsotsani, VP-Senior Analyst, Moody’s Ratings; Juwon Lee, VP-Senior Analyst, Moody’s Ratings

Hosts: Carolyn Henson, VP – Senior Research Writer, Myles Neligan, VP- Senior Research Writer, Moody’s Ratings

Swedish lender Klarna’s AI assistant is driving material credit improvement this year. In the US, disclosures from Wells Fargo point to what’s ahead for banks’ commercial real estate loan performance.

Speakers: Stephen Tu, VP-Senior Credit Officer, Moody’s Ratings; Allen Tischler, Senior Vice President, Moody’s Ratings

Host: Danielle Reed, VP – Senior Research Writer, Moody’s Ratings

Over the next several years private credit in Europe will grow, largely because of companies’ substantial refinancing needs. But banks are already fighting to gain back market share.

Speakers: Guillaume Lucien-Baugas, VP-Senior Analyst, Moody’s Ratings; Jeanine Arnold, Senior Vice President, Moody’s Ratings

Host: Danielle Reed, VP – Senior Research Writer, Moody’s Investors Service

Related Research:

• Private Credit – Europe: Europe's private credit market will accelerate, along with competition and risk

We discuss the severe thunderstorms' rising insured costs. Plus: Earnings weakness in the Medicare Advantage business and US commercial real estate exposure of German banks.

Speakers:  Bernhard Held, VP-Sr Credit Officer, Moody’s Investors Service; Dean Ungar, VP-Sr Credit Officer, Moody’s Investors Service; Evelyn Ocas Salazar, AVP-Analyst, Moody’s Investors Service; Juergen Grieser, Sr Dir Mgr-Analytics & Modeling, Moody’s RMS

Hosts: Danielle Reed, VP – Senior Research Writer, Moody’s Investors Service; Myles Neligan, VP – Senior Research Writer, Moody’s Investors Service

Related Research:

• Property & Casualty Insurance – US: Battered by convective storms, carriers seek higher prices, advanced models
• Health Insurance – US: Medicare Advantage continues to grow, but its profitability is weakening
• Banks – Europe: Most EU banks have limited direct exposure to US CRE, German banks are more exposed

Steve Tu, Farooq Khan and Petr Paklin of Moody's, with Joe Lyons of Bitsight, on how AI will change banks; On Fast Finance, we discuss Evergrande's liquidation and upcoming FHLBank reforms.

Speakers:  David Yin, VP – Senior Credit Officer, Moody’s Investors Service; Allen Tischler, Senior Vice President, Moody’s Investors Service; Stephen Tu, VP – Senior Credit Officer, Moody’s Investors Service; Farooq Khan, VP – Senior Analyst, Moody’s Investors Service; Petr Paklin, AVP – Analyst, Moody’s Investors Service; Joe Lyons, Senior Director Cyber Risk Quantification & Ratings Research, Bitsight 

Hosts: Danielle Reed, VP – Senior Research Writer, Moody’s Investors Service; Carolyn Henson, VP – Senior Research Writer, Moody’s Investors Service

Related Research:

• Property – China: Court order to liquidate China Evergrande will weaken fragile market sentiment
• Banks – US: FAQ: Initial impact of FHFA reforms of FHLBanks will be less emergency liquidity for troubled banks
• Banks – Global: Banks are well-placed for substantial efficiency gains with deep AI adoption

Cristiano Ventricelli explains how recent improvements to digital finance systems could help them gain scale. Plus, we discuss BlackRock’s recent acquisition and the SEC’s approval of spot Bitcoin ETFs.

Speakers:  Abhi Srivastava, AVP – Analyst, Moody’s Investors Service; Neal Epstein, VP-Senior Credit Officer, Moody’s Investors Service; Cristiano Ventricelli, VP-Senior Analyst

Hosts: Danielle Reed, VP – Senior Research Writer, Moody’s Investors Service; Myles Neligan, VP – Senior Research Writer, Moody’s Investors Service

Related Research:

• Decentralized Finance and Digital Assets – Cross Region: SEC approves spot Bitcoin ETFs, advancing cryptocurrency institutionalization
• BlackRock, Inc.: Acquisition of Global Infrastructure Partners is credit positive
• Decentralized Finance and Digital Assets – Global - 2024 Outlook: Digital finance slowly, steadily moves toward interoperability, standardization

Our global outlook for the sector remains negative for 2024, but the picture for non-bank finance companies is more varied than a year ago, with easing conditions in some markets and businesses.

Speakers: Bruno Baretta, AVP – Analyst, Moody’s Investors Service

Host: Michael Porta, VP – Senior Research Writer, Moody’s Investors Service

Weak results in personal lines drive the negative outlook for property and casualty insurance, while life insurance benefits from higher interest rates.

Speakers: Bruce Ballentine, VP – Senior Credit Officer, Moody’s Investors Service; Christian Badorff, VP – Senior Credit Officer, Moody’s Investors Service

Hosts: Danielle Reed, VP – Senior Research Writer, Moody’s Investors Service; Myles Neligan, VP – Senior Research Writer, Moody’s Investors Service