BlocksInform
Today the Basel Committee on Banking Supervision published its latest monitoring report on banking risk exposures, including a section on crypto-assets that shows major regional differences. At the end of June 2022, the cumulative crypto exposures of 17 banks amounted to 2.9 billion euros, an increase of 30% and assets held at 1 billion euros. The two numbers show the minuscule crypto penetration of the banks.
Whereas the retention figures seemed to decrease by 3 billion euros at the end of 2021, €800 million because two small European banks abandoned reporting and were dedicated crypto banks.
The majority of banks have negligible exposures, with only five banks representing 97% of the €2.9 billion, and one of them accounts for 62% of the figure. 85% of risk exposures go to U.S. banks.
Most banks have negligible exposures, with only five banks representing 97 per cent of the €2.9 billion, and one of them accounts for 62 per cent of the figure.
85% of risk exposures are attributed to U.S. banks. When disaggregated by region, the two "rest of the world" banks posted the strongest exposure growth on a very small base, followed by the Americas. Europe has seen a large contraction.
This is probably due to the fact that both cryptobanks are not included anymore.
Custodial assets were down significantly in all regions. Asset exposure types also vary depending on the region. The two banks considered the "rest of the world" are probably in Asia because the principal assets were two symbolic financial instruments – bonds symbolized for the singtel and sembcorp group, both emitted through uob and addx from Singapore. Europe has shown exhibitions at Bitcoin, Ether and products related to both cryptocurrencies.
US assets were related commodities for bitcoin, COINBASE and aether.
In December 2022 the Committee finalized its rules for crypto-assets, which are expected to be implemented by January 1, 2025. Europe is working on legislation to ensure partial interim compliance, but the European Central Bank said it expects banks to comply now. Banks are pushing back that the rules put them at a disadvantage compared to startups.
