CEBS published the findings of an analysis it has carried out with regard to prudential filters. The report assesses CEBS' members compliance with the guidelines on the use of prudential filters for regulatory capital released in December 2004. It presents their impact in quantitative terms on regulatory own funds and provides a basis for discussion on the possible scope for further convergence of these filters.
The report shows that the implementation of the prudential filters has improved over time and that a very high level of compliance with the CEBS guidelines has been achieved amongst members.
The flexibility provided in the guidelines has led to some diversity among countries, notably regarding the treatment of unrealised gains.
CEBS has concluded that it will aim at further convergence on the treatment of unrealised gains within the context and timeframe of the discussion on the redefinition of regulatory capital. CEBS will also continue to assess the need and the economic appropriateness of harmonised adjustments to regulatory figures related to IAS 19.
CEBS will hold a public hearing on 16 October.
Press release
Report
© Graham Bishop
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