EBA Releases Supervisory Disclosure on the Implementation and Transposition of the CRD IV Package
The European Banking Authority released a Supervisory Disclosure, which provides an overview on the implementation and transposition of the Capital Requirements Directive and Capital Requirements Regulation across the EU, as well as the use of options and national discretions by each EU member state. The Supervisory Disclosure also provides aggregate statistical data on the EU banking sector.
Supervisory Disclosure | Press Release
EBA Releases Risk Dashboard on EU Banking Sector
The European Banking Authority released its Risk Dashboard for Q3 2014. This edition of the risk dashboard is the first to have own funds' positions and requirements data that is based on the supervisory reporting standards from COREP, the Common Reporting framework for financial institutions across the EU, and includes an annex on aggregate risk parameters that brings enhanced transparency on EU banks' and allows comparison across countries and geographical areas.
Risk Dashboard | Press Release
EBA Releases Technical Advice on Intervention on Structured Deposits Under MiFIR
he European Banking Authority (EBA) published its final technical advice to the Commission laying out criteria and factors for exercising intervention powers on structured deposits. This final technical advice, which has been developed in accordance with the Markets in Financial Instruments Regulation (MiFIR) requiring the EBA to monitor the market for structured deposits, takes into consideration, where appropriate, comments received during a public consultation earlier this year.
Technical Advice | Press Release
EC Adopts Proposal for Management Candidates on Single Resolution Board
The European Commission announced the adoption of a proposal for the appointment of the Chair, the Vice-Chair and the Board Members of the Single Resolution Board, the European Resolution Authority for the Banking Union. Once the European Parliament has given its approval on the Commission's proposal for each of the functions, the Council (acting by qualified majority) shall adopt implementing decisions to appoint the Chair, the Vice-Chair and the Board Members.
EC Adopts Implementing Regulation Extending Transitional Period for Capital Requirements for Exposures to CCPs
The European Commission has today adopted an implementing act that will extend the transitional period for capital requirements for EU banking groups’ exposures to central counterparties (CCPs) under the Capital Requirements Regulation (CRR). Since the process of authorization and recognition takes time, the CRR provides a transitional period during which these higher requirements will not be applied, to ensure a Mlevel playing field for EU CCPs. This transitional period was set to expire on 15 December
Implementing Regulation | Press Release
Council of the European Union Announces Conclusions of Finance for Growth of the European Economy
The Council of the European Union has met and adopted conclusions on finance for growth and the long-term financing of the European economy on, among the other matter, Securitization, Private Placement and Crowdfunding. The Council noted the Commission’s intention to consult with a view to an action plan on capital markets union by summer 2015.
Council of the European Union Announces Agreement on Single Resolution Fund
The Council of the European Union issued a press release announcing that it has reached political agreement on regulation determining the contributions banks must make to the EU's Single Resolution Fund (SRF). The fund will be set up under a single resolution mechanism (SRM) that is being established to ensure the orderly resolution of failing banks.
Council of the European Union Publishes Provisional Compromise Text for Regulation of European Long-Term Investment Funds
A provisional compromise text on Regulation on European Long-term Investment Funds (ELTIFs) has now been published. As a result, the General Secretariat of the Council requests that the Permanent Representatives Committee approves the compromise text and confirms that the Council Presidency can indicate that should the Parliament adopt the compromise text at first reading, the Council would approve the Parliament’s position.
ESMA Releases Peer Review of Supervisory Practices on MiFID
The European Securities and Markets Authority (ESMA) has conducted a peer review of how national regulators (national competent authorities or NCAs) supervise MiFID conduct of business rules on providing fair, clear and not misleading information to clients. The Report found that there was overall a high degree of compliance amongst NCAs with the good practices identified in these key areas. However, a variety of approaches were observed, leading to different intensity of supervision.
Peer Review | Press Release
ESM Direct Bank Recapitalisation Instrument Adopted
The European Stability Mechanism (ESM) has adopted a direct recapitalization instrument for euro area financial institutions. Pursuant to this instrument, the ESM may recapitalize a systemic and viable financial institution located in the euro area directly, although only as a measure of last resort. To preserve the ESM’s high creditworthiness and lending capacity for other instruments, the maximum available funds from the ESM under the new instrument is capped at €60 billion.
Members of the European Parliament Question Candidates for Single Resolution Board
Members of the European Parliament's Economic and Monetary Affairs Committee questioned candidate for Chair of the Single Resolution Board Elke König and five other nominees at a public hearing. The committee is to vote on the candidates on Monday, December 15, at a special meeting in Strasbourg. The vote in plenary session is scheduled for Wednesday, December 17.
BoE Releases Quarterly Bulletin
The Bank of England released its Quarterly Bulletin for Q4 2014. Included is an article on the size of the UK banking system that presents some empirical evidence on the relationship between banking system size and financial stability which suggests that while financial sector size can be important, it is the resilience of the banking system that is key for determining financial stability.
Quarterly Bulletin | Press Release
FCA Releases Draft Consultation on Changes to Handbook
The Financial Conduct Authority released a Quarterly Consultation Paper on proposed amendments to its Handbook. Comments are due by February 5, 2015, except for comments on Chapter 5, which are due by January 5, 2015.
Consultation Paper | Press Release
FCA Issues Press Release on Enforcement Conference
The Financial Conduct Authority issued a press release on the Enforcement Conference held on December 2, 2014, which used enforcement actions as lessons to foster better conduct and a stronger regulatory regime. The day opened with an address from Martin Wheatley, Chief Executive and a keynote speech from Tracey McDermott, Director of Enforcement and Financial Crime, followed by panel discussions and breakout sessions.
FCA Announces New Strategic Approach and Organizational Changes
The Financial Conduct Authority announced a new strategy to meet regulatory challenges as well as changes to its organizational structure, including the departure of several members of its Executive Committee. The strategic approach recognizes the differences in approach required across the industry given its size and variety, based on emphasizing sector and market-wide work and reflecting the FCA’s competition duties.
Strategy | Organizational Structure | Press Release
Pentti Hakkarainen Speaks on SSM and SRM
Bank of Finland Deputy Governor Pentti Hakkarainen delivered a speech entitled "Banking Union - the 'Game-Changer' in the European Financial Markets" before Ambassadors and Representatives of the EU countries in Helsinki, Finland. Hakkarainen said that by giving up a small part of the national sovereignty, the countries belonging to the Banking Union have gained an access to the European level decision making on key areas of supervision, crisis prevention and management as well as regulation of European banks.
Luis Linde Speaks on Challenges of the Single Supervisory Mechanism
Bank of Spain Governor Luis M. Linde delivered a speech entitled "Situation of and Challenges Facing the European and Spanish Banking Industry Following the Start-Up of the Single Supervisory Mechanism" at the 10th Banking Industry/IESE Meeting in Madrid, Spain. Linde said challenges include excessive risk-taking, low profitability, and the sustainability of sovereign debt.