78

resultat(er)

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Type af publikation
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The EU’s regulatory and supervisory response to addressing non-performing loans

12-02-2021

Building on earlier EGOV papers, this briefing addresses the evolution of non-performing loans (NPLs) over time, the EU regulatory and supervisory approaches to manage NPLs and highlights areas where gaps may still be observed. Renewed interest in asset management companies as a possible instrument to deal with NPLs is discussed in an annex. Concerns around NPLs are growing, as the impact of COVID-19 crisis related responses on banks’ balance sheets begin to be further scrutinised. This briefing ...

Building on earlier EGOV papers, this briefing addresses the evolution of non-performing loans (NPLs) over time, the EU regulatory and supervisory approaches to manage NPLs and highlights areas where gaps may still be observed. Renewed interest in asset management companies as a possible instrument to deal with NPLs is discussed in an annex. Concerns around NPLs are growing, as the impact of COVID-19 crisis related responses on banks’ balance sheets begin to be further scrutinised. This briefing will be updated in light of relevant developments.

Impact investing in the framework of business and human rights

31-07-2020

Impact investments are an emerging sustainable investment strategy and represent a small and medium enterprise-led approach to development. Impact investments are executed only when a positive financial return can be achieved alongside a measurable positive impact on an individual or societal level. Impact investors thus go beyond more established sustainable investment strategies such as exclusion or integration by explicitly aiming at impact, investing in business models that directly address social ...

Impact investments are an emerging sustainable investment strategy and represent a small and medium enterprise-led approach to development. Impact investments are executed only when a positive financial return can be achieved alongside a measurable positive impact on an individual or societal level. Impact investors thus go beyond more established sustainable investment strategies such as exclusion or integration by explicitly aiming at impact, investing in business models that directly address social issues. Most impact investment funds invest in areas such as healthcare, education or employment and thus improve the situation of the target group. At the same time, however, there is no explicit human rights perspective integrated into the investment process yet. Given the rather small scale of investments which is usually in the range of EUR 200 000 to EUR 5 million per transaction, unintended negative consequences can occur, if only to a very limited extent. This in-depth analysis discusses the impact investing industry in the context of sustainable finance and analyses central aspects of the concept such as financing instruments, the impact measurement process or the impact logic of the investors. The analysis also discusses the limitations impact investing faces such as commercial boundaries of business models, and illustrates modified concepts to mitigate these challenges which are summarised as social finance.

Ekstern forfatter

Dr. Barbara SCHECK, Dr. Wolfgang SPIESS-KNAFL.

Barriers to Competition through Joint Ownership by Institutional Investors

15-05-2020

In recent years, the phenomenon of common ownership by institutional investors has sparked considerable debate among scholars about its impact on competition and companies’ corporate governance. This study analyses some specific features of common ownership by institutional investors in the European banking sector. It also examines closely the tension between competition policy and corporate governance tools aimed at enhancing shareholder engagement. This document was provided by the Policy Department ...

In recent years, the phenomenon of common ownership by institutional investors has sparked considerable debate among scholars about its impact on competition and companies’ corporate governance. This study analyses some specific features of common ownership by institutional investors in the European banking sector. It also examines closely the tension between competition policy and corporate governance tools aimed at enhancing shareholder engagement. This document was provided by the Policy Department for Economic, Scientific and Quality of Life Policies at the request of the committee on Economic and Monetary Affairs (ECON).

Ekstern forfatter

S. FRAZZANI, K. NOTI, M. P. SCHINKEL, J. SELDESLACHTS, A. BANAL ESTAÑOL, N. BOOT, C. ANGELICI

Covered bonds – Issue and supervision, exposures

24-01-2020

Covered bonds are debt securities issued by credit institutions and secured by a pool of mortgage loans or credit towards the public sector. They are characterised further by the double protection offered to bondholders, the segregation of assets in their cover pool, over-collateralisation, and their strict supervisory frameworks. Currently, their issuance is concentrated in five Member States. National regulatory regimes vary widely in terms of supervision and composition of the cover pool. Lastly ...

Covered bonds are debt securities issued by credit institutions and secured by a pool of mortgage loans or credit towards the public sector. They are characterised further by the double protection offered to bondholders, the segregation of assets in their cover pool, over-collateralisation, and their strict supervisory frameworks. Currently, their issuance is concentrated in five Member States. National regulatory regimes vary widely in terms of supervision and composition of the cover pool. Lastly, despite benefiting from preferential treatment under the Capital Requirements Regulation (CRR), they share no common definition, which can lead to different securities benefiting from this treatment. To remedy this, the Commission has adopted proposals for, on the one hand, a directive, which would lay down investor protection rules and provide common definitions, and on the other, a regulation, which would amend the CRR with regard to covered bond exposures. Parliament voted in plenary on 18 April 2019 to adopt the texts agreed in trilogue. After linguistic corrections, Parliament approved corrigenda and the two acts were signed on 27 November 2019. Third edition. The 'EU Legislation in Progress' briefings are updated at key stages throughout the legislative procedure.

Prudential requirements and supervision of investment firms

15-01-2020

Investment firms play an important role in capital markets, facilitating savings and investment flows across the EU. However, the current EU rules are seen as fragmented, overly complex, inconsistently applied and often a poor fit for the actual risks taken by the various types of investment firms. The Commission proposed a new regulation on the prudential requirements of investment firms and a new directive on the prudential supervision of investment firms. These proposals update the framework for ...

Investment firms play an important role in capital markets, facilitating savings and investment flows across the EU. However, the current EU rules are seen as fragmented, overly complex, inconsistently applied and often a poor fit for the actual risks taken by the various types of investment firms. The Commission proposed a new regulation on the prudential requirements of investment firms and a new directive on the prudential supervision of investment firms. These proposals update the framework for investment firms, making it more effective and more closely calibrated to the size and nature of the various investment firms and their risks. Parliament's Committee on Economic and Monetary Affairs (ECON) agreed its report and negotiating mandate on 24 September 2018. On 20 March 2019, provisional agreements were reached by Parliament and Council negotiators. Parliament adopted the texts at first reading on 16 April 2019. Following linguistic corrections, corrigenda were endorsed by Parliament in October, and the regulation and directive were adopted by the Council then signed into law on 27 November. Both will apply in full from 26 June 2021. Second edition of a briefing originally drafted by David Eatock. The 'EU Legislation in Progress' briefings are updated at key stages throughout the legislative procedure.

Sustainable finance and disclosures: Bringing clarity to investors

15-01-2020

On 24 May 2018, the Commission published three proposals for regulations reflecting the EU's efforts to connect finance with its own sustainable development agenda. The proposals include measures to: create an EU sustainable finance taxonomy; make disclosures relating to sustainable investments and sustainability risks clearer; and establish low-carbon benchmarks. In particular, the proposal for a regulation on disclosures aims to integrate environmental, social and governance considerations into ...

On 24 May 2018, the Commission published three proposals for regulations reflecting the EU's efforts to connect finance with its own sustainable development agenda. The proposals include measures to: create an EU sustainable finance taxonomy; make disclosures relating to sustainable investments and sustainability risks clearer; and establish low-carbon benchmarks. In particular, the proposal for a regulation on disclosures aims to integrate environmental, social and governance considerations into the decision-making process of investors and asset managers. It also aims to increase the transparency duties of financial intermediaries towards final-investors, with regard to sustainability risks and sustainable investment targets. This should reduce investors' research costs as regards sustainable investments and enable easier comparison between sustainable financial products in the EU. Following agreement with the Council in trilogue, Parliament voted to adopt the agreed text at first reading on 18 April 2019. Because of the tight timeline for finalisation before the end of the parliamentary term, linguistic corrections to the voted text were needed. Under the corrigendum procedure, the ECON committee and subsequently the plenary endorsed the corrected text in October 2019, allowing the Council to adopt it at first reading. Signed on 27 November, the regulation entered into force on 29 December, and will become applicable as of March 2021. Second edition. The 'EU Legislation in Progress' briefings are updated at key stages throughout the legislative procedure.

Framework for a pan-European personal pension product (PEPP)

26-08-2019

Europe's population is ageing, due to people living longer and having fewer children, putting pressure on pension systems and leading to reforms to make public pensions more sustainable – and often less generous – in future. To support retirement incomes, the European Commission's 2012 pensions white paper called for more opportunities for citizens to save in safe and good-value complementary pensions. The aim of the proposed framework for a pan-European personal pension product (PEPP) was to encourage ...

Europe's population is ageing, due to people living longer and having fewer children, putting pressure on pension systems and leading to reforms to make public pensions more sustainable – and often less generous – in future. To support retirement incomes, the European Commission's 2012 pensions white paper called for more opportunities for citizens to save in safe and good-value complementary pensions. The aim of the proposed framework for a pan-European personal pension product (PEPP) was to encourage the development of personal (voluntary, individually funded) pensions in Europe, to support retirement saving and strengthen the single market for capital by making more funds available for investment. Generally the proposal was considered a welcome extra option to support retirement savings and investment. However differing national pension systems and tax treatments were noted as challenges, although the Commission also issued an accompanying tax recommendation. Following trilogue negotiations, an agreement was reached on the legislative proposal. It was subsequently approved by the Parliament on 4 April 2019 and by the Council on 14 June 2019. The final act was signed on 20 June 2019. Third edition of a briefing originally drafted by David Eatock. The ‘EU Legislation in Progress’ briefings are updated at key stages throughout the legislative procedure.