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Plenary Session: Parliament backs EU banking supervisory system plans
Draft laws setting up a single EU bank supervisory system were approved in a plenary vote on Wednesday. The ECB will supervise the eurozone's largest banks directly and have a say in supervising other banks.
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Plenary Session: Single banking supervision system on right track but one step remains
MEPs broadly welcomed the package of rules setting up a single EU bank supervisor but also pointed out that important steps had yet to be taken to ensure the supervisor's accountability before the deal could be fully ratified by the house.
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"Banking Union is a greater pooling of sovereignty than signing up to the euro" - Sharon Bowles MEP
The ECON chair cautioned that the plans to hand over supervision of eurozone banks to the ECB constituted a major pooling of sovereignty. She also called for the Parliament to hold out for an agreement which would ensure full accountability of ECB supervision.
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EPP: European banking supervision crucial step towards safer banking
The EP today adopted a series of amendments on the legislative package establishing stricter banking supervision. In addition to the Regulation establishing an SSM, the package includes a Regulation that aligns the working of the EBA with the new supervisory structure.
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ALDE: No Single Supervisory Mechanism until an agreement is reached with the ECB
ALDE spokesperson Wolf Klinz said: "No green light to the SSM until we get the necessary guarantees that the ECB's supervisory arm will be fully accountable to European Parliament and national parliaments of participating Member States".
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Sven Giegold: Landmark banking supervision rules approved; final go-ahead pending agreement on EP scrutiny
The rapporteur on the EBA supervision file welcomed the vote and called on the ECB to engage more constructively in negotiations on Parliament's scrutiny role of the new supervisory mechanism.
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EBF: Banks welcome progress towards Banking Union but call for a clear European framework for bank resolution
The Board of the EBF noted with satisfaction the steady progress towards a Single Supervisory Mechanism and reiterated its support for the objectives of the Banking Union.
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ECON Committee: Taxpayers and savers last in line to save banks
Taxpayers and savers must be the last people called upon to bail out bankers, says Parliament's negotiating position, approved by the ECON Committee on draft rules on how to save struggling banks. The "bail-in" scheme should be up and running by January 2016 at the latest.
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Commissioner Barnier: Resolution mechanism for banking union can be created without treaty change
In an interview with Kathimerini, Commissioner Barnier said the major lesson from the Cypriot crisis was that depositors, shareholders and creditors have the right to know the rules of the game regarding banking resolution well in advance.
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ALDE: Recovery and Resolution Directive (RRD) - Protection of small depositors guaranteed
Last night the ECON Committee adopted its report on an EU framework for bank recovery and resolution, which aims to provide Member States' relevant authorities with common and effective tools to address the banking crisis and eventually the orderly winding up of insolvent institutions.
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S&D: "We want to avoid taxpayers bailing out banks in future"
The new rules backed last night to rescue failing banks in the future will mean Member States will have to set up national resolution funds financed by all financial institutions according to the risks they present. The fund should amount to at least 1.5 per cent of the deposits of all credit institutions.
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EPP: Rules for banking resolution to stabilise financial markets
"Europe will now get modern legislation on the management of a bank in crisis and of banking crises", said Gunnar Hökmark, the Parliament's rapporteur for the Bank Recovery and Resolution Directive, following Monday's vote in the ECON Committee.
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EBA recommends supervisors to conduct asset quality reviews and adjusts the next EU-wide stress test timeline
While banks' capital positions were significantly strengthened under the EBA's recapitalisation exercise, the objective of the asset quality exercises will be to review banks' classifications and valuations of their assets to help dispel concerns over the deterioration of asset.
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BBA: Too-big-to-fail is nearly over but regulators must avoid new moral hazards
The Resolution and Recovery Directive (RRD) will give the regulator the power to step in and take over a bank if it stops being financially viable, but a pre-funded "resolution fund" risks undermining much of the progress so far.
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ECON Committee: Small depositors should be protected when a bank needs saving, demand MEPs
Deposits under €100,000 should not be used to prop up failing banks, according to a report adopted by the ECON Committee. Instead, shareholders should bear the losses, followed by bondholders and only as a last resort large depositors.
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European Commission: A bank account if you need one
New measures would give all Europeans a legal right to a basic bank account anywhere in the EU – and make switching to another provider easier. EU leaders will now consider the proposals together with the EP. If accepted, the proposals could come into effect in 2014.
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Commission meets key stakeholders in the context of its consultation on the structural reform of the banking sector
The objective of this work, following on from the Liikanen report, is both to ensure that the EU treats in a comprehensive manner the problems that can arise from banks being too big and too complex, and also to avoid taxpayers having to rescue banks and pay the bill.
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Commission launches consultation on reforming the structure of the EU banking sector
The consultation focuses on the structural separation recommendation of the Liikanen High-Level Expert Group, and on the key attributes of the structural reform, i.e. the scope of activities, the strength of separation, and the possible institutional scope. Deadline for comments is 3 July, 2013.
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EBF remarks on the ECON Committee report on improving access to finance for SMEs
In this paper, the EBF discusses a number of points made in the De Backer report which touch on rather complex areas of banking practice, and offers its perspective as the main counterpart to SMEs in the financing relationship.
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Decisions taken by the Governing Council of the ECB (in addition to decisions setting interest rates)
The ECB published its decisions linked to market operations, financial stability and supervision, advice on legislation, statistics, corporate governance and issuance of banknotes and coins/banknotes (in addition to decisions setting interest rates).
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EBA consults on draft Technical Standards for the definition of material risk-takers for remuneration purposes
EBA launched a consultation paper on draft RTS on criteria to identify categories of staff whose professional activities have a material impact on an institution's risk profile. The consultation runs until 21 August, 2013.
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FT: EU set to widen cap on bonuses
Europe's banking regulator said it had broadened the definition of staff affected by the incoming cap significantly by including anyone who receives a bonus of more than €75,000 that is worth at least three-quarters of their salary.
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EBA consults on draft RTS on own funds (Part III)
EBA launched a consultation on draft RTS on own funds (Part III) related to criteria to define broad market indices, the calculation of minority interest, and the deduction of indirect and synthetic holdings. The consultation runs until 18 July, 2013.
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EBA consults on draft Technical Standards on securitisation retention rules
EBA launched a consultation paper on: i) draft RTS to specify the securitisation retention rules and related requirements; and ii) draft ITS to clarify the measures to be taken in the case of non-compliance with such obligations. The consultation runs until 22 August, 2013.
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EBA consults on draft RTS on the definition of market and on option risks under the standardised approach for market risk
The two consultation papers aim to define: i) the term market for the purpose of calculating the general component of market risk for equities under the standardised rules; and ii) a range of methods to reflect in the own funds requirements non-delta risks for options and warrants. Deadline: 31.8.13.
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EBA consults on joint decisions on institution-specific prudential requirements
The consultation aims at facilitating the reaching of effective joint decisions between the consolidating supervisor and the competent authorities responsible for the supervision of subsidiaries in a Member State. The consultation runs until 16 August, 2013.
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EBA consults on draft RTS to determine overall exposure to a client/group of connected clients re transactions with underlying assets
This consultation defines the conditions and methodologies used to determine the overall exposure to a client or group of connected clients resulting from a transaction with underlying assets and the risks inherent in the structure of the transaction itself. Deadline for comment is 16 August, 2013.
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EBA consults on draft Technical Standards on Passport Notifications
The two consultations on draft RTS/ITS on passport notifications aim at specifying the information to be notified to the competent authorities as well as to develop standard forms, templates and procedures underlying the submission of passport notifications. Both consultations run until 21.8.13.
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Call for Expression of Interest regarding the renewal of the EBA's Banking Stakeholder Group
EBA launched a Call for Expression of Interest to prepare the renewal of its Banking Stakeholder Group (BSG). The BSG has been established to help facilitate the EBA's consultation with stakeholders. The deadline for application is 28 June, 2013.
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BaFin/Röseler on Basel III/CRD IV: "Preventing future crises"
In an interview, Röseler said that to achieve a more resilient banking system, it was important to adjust the supervisory practice. "In future, banking supervision will have to analyse and assess business models as well as risk management systems and controls in much greater detail."
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DW: Germany beefs up banking regulations
The Bundestag has passed the Capital Requirements Directive into German law, becoming one of the first EU countries to do so. The Directive contains further new regulations for the banking world.
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NewEurope: Sweden determined to preserve high capital ratios
Swedish Finance Minister Anders Borg said he was determined not to succumb to pressure from banks or the EU to lower capital ratios, and insisted that they have to remain higher compared to other EU countries.
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BoE publishes Haldane paper on constraining discretion in bank regulation
Speaking at the conference, 'Maintaining Financial Stability: Holding a Tiger by the Tail(s)', Haldane said that making greater use of simple, prudent regulatory metrics could restore faith, hope and clarity to the financial system - to the benefit of banks, investors and regulators alike.
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BoE/Tucker: Resolution and future of finance
Tucker outlined the keys steps necessary to further the progress already made by the international regulatory community on resolution since the crisis.
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ESBG: Electronic legal tender is now a matter of fairness
The EPC's Norbert Bielefeld analyses the changing behaviour of the European 'payment citizen' in the digital world. In line with stated policy objectives, he advocates an alternative approach: a SEPA legal tender model spanning both cash and electronic payments.
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GreySpark: Banks must adapt to the growth of fixed income electronic trading to retain customer flow
A new piece of research from GreySpark Partners examines the state of electronic trading in fixed income markets for bonds, CDS and IRS.
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