42

resultat

Ord
Publikationstyp
Politikområde
Författare
Sökord
Datum

CRR/CRD: The delegated act on Market Risk under CRR and other forthcoming delegated act in banking

19-02-2020

This first ECON scrutiny session continues the ECON’s discussions on CRD/CRR during the previous legislature and covers in particular the delegated act on market risk (C(2019) 9068). In addition, two forthcoming regulatory technical standards (RTS) are discussed, namely the RTS on mapping of derivative transactions on which the EBA has finalised its draft (EBA-RTS-2019-02), and the RTS on criteria to define managerial responsibility and control functions on which the EBA has started a consultation ...

This first ECON scrutiny session continues the ECON’s discussions on CRD/CRR during the previous legislature and covers in particular the delegated act on market risk (C(2019) 9068). In addition, two forthcoming regulatory technical standards (RTS) are discussed, namely the RTS on mapping of derivative transactions on which the EBA has finalised its draft (EBA-RTS-2019-02), and the RTS on criteria to define managerial responsibility and control functions on which the EBA has started a consultation (EBA/CP/2019/16).

Banking Union: Completing the Single Rule Book

18-07-2019

This briefing provides an insight into where banking legislation stands in terms of providing a ‘single rule book’ for the purposes of supervising banks in the Banking Union It also identifies the key areas where further harmonisation would facilitate both supervision and resolution.

This briefing provides an insight into where banking legislation stands in terms of providing a ‘single rule book’ for the purposes of supervising banks in the Banking Union It also identifies the key areas where further harmonisation would facilitate both supervision and resolution.

Banking Union: What next?

18-07-2019

This briefing summarises the key areas of possible regulatory initiatives with a view to further completing the Banking Union: (1) EDIS, (2) Further harmonisation of banking law (“single rule book’), (3) Home/host issues, (4) Resolution financing, (5) Further harmonisation of insolvency law, (6) safe assets and regulatory treatment of sovereign exposures and (7) AML supervision. These issues are further explained in additional thematic briefings.

This briefing summarises the key areas of possible regulatory initiatives with a view to further completing the Banking Union: (1) EDIS, (2) Further harmonisation of banking law (“single rule book’), (3) Home/host issues, (4) Resolution financing, (5) Further harmonisation of insolvency law, (6) safe assets and regulatory treatment of sovereign exposures and (7) AML supervision. These issues are further explained in additional thematic briefings.

Banking Union: Defusing the “home/host” debate

16-07-2019

While a banking group located in the Banking Union is supervised by a single supervisor (SSM) and no longer by home and host supervisors, subsidiaries are subject to individual requirements with remaining national powers over legal entities of a group. Further integration of banking groups’ risk management has been identified by the Chair of the Single Supervisory Mechanism (SSM) as one of the remaining steps to completing the Banking Union. For the Chair of the SSM, there are “still obstacles to ...

While a banking group located in the Banking Union is supervised by a single supervisor (SSM) and no longer by home and host supervisors, subsidiaries are subject to individual requirements with remaining national powers over legal entities of a group. Further integration of banking groups’ risk management has been identified by the Chair of the Single Supervisory Mechanism (SSM) as one of the remaining steps to completing the Banking Union. For the Chair of the SSM, there are “still obstacles to the integrated management of bank capital and liquidity within cross-border groups operating in the banking union”. As the SSM put it “the fences should be removed; they are out of place within a banking union where the concept of home and host supervisors has disappeared”.

Valuation reports in the context of banking resolution: What are the challenges?

05-07-2018

The paper discusses the problem of valuation in bank resolution. In an overview over the most relevant principles of valuation theory, the paper notes the difficulties inherent in valuing risks and illiquidity in holding non-traded assets. Subsequently, the paper briefly reviews the resolution of Banco Popular Español, and then discusses the need for clarification of the no-investor-worse-off principle, the relation between the price in a sale of business and the presumed outcome in an insolvency ...

The paper discusses the problem of valuation in bank resolution. In an overview over the most relevant principles of valuation theory, the paper notes the difficulties inherent in valuing risks and illiquidity in holding non-traded assets. Subsequently, the paper briefly reviews the resolution of Banco Popular Español, and then discusses the need for clarification of the no-investor-worse-off principle, the relation between the price in a sale of business and the presumed outcome in an insolvency procedure, and the difficulties attached to assessing the value of an illiquid asset that is held. The paper concludes with a discussion of the need for time, for valuation and in resolution, warns against a moratorium on withdrawals and payouts, and argues that time pressures would be much reduced if funding in resolution was provided for.

Valuation reports in the context of banking resolution: What are the challenges?

05-07-2018

This study discusses the challenges concerning bank valuation reports in resolution. The resolution mechanism has three types of valuation reports, respectively to determine whether a bank is failing or likely to fail (valuation 1), to inform the use of the resolution tools including bail-in (valuation 2), and to ensure that the no creditor worse off condition is respected (valuation 3). The first experience with the preparation of valuation reports shows that even with the more formal procedures ...

This study discusses the challenges concerning bank valuation reports in resolution. The resolution mechanism has three types of valuation reports, respectively to determine whether a bank is failing or likely to fail (valuation 1), to inform the use of the resolution tools including bail-in (valuation 2), and to ensure that the no creditor worse off condition is respected (valuation 3). The first experience with the preparation of valuation reports shows that even with the more formal procedures there are still substantial uncertainties regarding the outcome of these valuations due to organisational, legal and economic challenges. Additional mitigating measures should be considered to reduce the uncertainty.

Extern avdelning

Willem Pieter de Groen, CEPS

Valuation Reports in the Context of Banking Resolution: What are the Challenges?

13-06-2018

This paper discusses from a legal perspective the challenges and difficulties involved in the production of the valuation reports required by the BRRD and considers the option of a moratorium tool for use by the resolution authorities as a possible way forward, which could address the concerns about timing and flexibility in the valuation process. Given the discretionary powers of the resolution authorities and the need for SRB independence, the paper also considers the wider issues of legitimacy ...

This paper discusses from a legal perspective the challenges and difficulties involved in the production of the valuation reports required by the BRRD and considers the option of a moratorium tool for use by the resolution authorities as a possible way forward, which could address the concerns about timing and flexibility in the valuation process. Given the discretionary powers of the resolution authorities and the need for SRB independence, the paper also considers the wider issues of legitimacy and accountability in the actions and decisions taken by the Single Resolution Board in light of the unique and complex institutional structure of the SRM.

Extern avdelning

Rosa María Lastra , Rodrigo Olivares-Caminal

Review of the 2017 SREP results

21-03-2018

This paper reviews the 2017 SREP results with a view to assessing their capital market implications and seeing whether the information provision about the SREP results could be improved. Aggregated SREP information as published by the ECB can be useful in detecting trends in banks’ conditions, but it cannot be meaningfully applied to assess capital market reactions to the SREP results. Bank-level SREP disclosures are voluntary, and therefore are expected to be biased towards news that is favourable ...

This paper reviews the 2017 SREP results with a view to assessing their capital market implications and seeing whether the information provision about the SREP results could be improved. Aggregated SREP information as published by the ECB can be useful in detecting trends in banks’ conditions, but it cannot be meaningfully applied to assess capital market reactions to the SREP results. Bank-level SREP disclosures are voluntary, and therefore are expected to be biased towards news that is favourable to investors in securities. Consistent with this, we find that bank stock returns on average are positive on SREP disclosure days. Overall, the 2017 SREP information that is in the public domain is insufficient to evaluate the efficacy of the SREP as conducted by the ECB in terms of improving the regulatory and market discipline of banks. The publication of full bank-level SREP information (by either the ECB or the individual banks) would facilitate such an evaluation, but full disclosure is undesirable as it exposes the banks with the weakest supervisory reviews to potentially very severe market discipline. However, the ECB could improve the information provision about the SREP by requiring banks that choose to reveal any capital regulatory information to disclose a complete breakdown of their CET1 demand to improve data comparability across banks and hence potentially market discipline.

Extern avdelning

Harry Huizinga

Review of the 2017 SREP results

14-03-2018

This report looks at the methodology used by the ECB to carry out its supervisory evaluation of banks (“SREP”), as well as at the aggregate results disclosed by the supervisors and the figures released over time by individual banks. Our review suggests that greater disclosure may improve uniformity in how the SREP is implemented across institutions, as well as consistency between SREP analyses and supervisory priorities. Disclosure towards banks could be enhanced by using a standard, detailed template ...

This report looks at the methodology used by the ECB to carry out its supervisory evaluation of banks (“SREP”), as well as at the aggregate results disclosed by the supervisors and the figures released over time by individual banks. Our review suggests that greater disclosure may improve uniformity in how the SREP is implemented across institutions, as well as consistency between SREP analyses and supervisory priorities. Disclosure towards banks could be enhanced by using a standard, detailed template in the communication of the SREP findings (including “horizontal” benchmarking analyses and differences between supervisory computations and the banks’ own estimates). The release of SREP results to the public, while strengthening market discipline, may trigger undesirable reactions by customers and market counterparties; for banks with listed financial instruments, however, the additional capital requirements following from the SREP meet the definition of inside information provided in the Market Abuse Regulation, and should therefore be publicly disclosed. Finally, higher transparency standards are called for when it comes to the methodologies and metrics used by supervisors to assess specific areas within the SREP.

Extern avdelning

A.Resti

The Brexit process [What Think Tanks are thinking]

12-01-2018

The EU’s Heads of State or Government gave the green light in December 2017 to the second phase of negotiations on the United Kingdom's withdrawal from the EU. They agreed that ‘sufficient progress’ had been made in talks on issues in the first phase. Those include the UK's financial obligations on leaving the EU, the rights of EU citizens within the UK and of UK citizens within the EU, and how to deal with the border between Northern Ireland and Ireland. The next phase of talks will focus on transitional ...

The EU’s Heads of State or Government gave the green light in December 2017 to the second phase of negotiations on the United Kingdom's withdrawal from the EU. They agreed that ‘sufficient progress’ had been made in talks on issues in the first phase. Those include the UK's financial obligations on leaving the EU, the rights of EU citizens within the UK and of UK citizens within the EU, and how to deal with the border between Northern Ireland and Ireland. The next phase of talks will focus on transitional arrangements and the future EU-UK relationship, including in the field of trade. This note offers links to recent commentaries and reports published by major international think tanks and other organisations on EU-UK negotiations and on the implications of Brexit more widely. More studies on these issues can be found in a previous edition of ‘What Think Tanks are thinking’ from October 2017.

Kommande evenemang

21-09-2021
EPRS online Book Talk with David Harley: Inside the room - Shaping Europe, 1992-2010
Övrigt -
EPRS
21-09-2021
Putting the 'e' in e-health
Seminarium -
STOA
27-09-2021
Turning the tide on cancer: the national parliaments' view on Europe's Cancer Plan
Övrigt -
BECA

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