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03 March 2016

Friends 'Weekly' Newsletter


EBA, stress test, CRDIV-CRR/Basel III monitoring exercise, ECB, bonus cap, OTC, CCP, IOSCO, EIOPA, G20, Brexit, Spanish political impasse, FSB, Fintech, Single Market and more.

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  Articles from 25 February 2016 - 03 March 2016

  Banking
 
 
EBA launches 2016 EU wide stress test exercise
The EBA released the methodology and macroeconomic scenarios for the 2016 EU-wide stress test. The stress test is designed to provide supervisors, banks and other market participants with a common analytical framework to consistently compare and assess the resilience of EU banks to economic shocks.
EBA publishes results of the CRDIV-CRR/Basel III monitoring exercise as of 30 June 2015
This exercise, run in parallel with the one conducted by the Basel Committee on Banking Supervision at a global level, allows the gathering of aggregate results on capital – risk-based and non-risk-based (leverage) ratios – and liquidity ratios – the LCR and NSFR – for banks in the EU.
Financial Times: EU rethinks rules on bank bonuses
City brokers and smaller banks are on course to win a reprieve from EU rules on bonuses that regulators and the industry have warned could saddle companies with unnecessary administrative costs.
 
  Securities
 
 
New EU rules on central clearing for certain credit derivative contracts
The European Commission has adopted a new set of rules that requires certain over-the-counter OTC credit derivative contracts to be cleared through central counterparties.
ESMA issues report on risks and costs of CCP interoperability
The report details how the concept of interoperability has emerged in the EU and the general EU regulatory framework applicable to it as described in EMIR and in the Guidelines and Recommendations for establishing consistent, efficient and effective assessments of interoperability arrangements.
IOSCO publishes the securities markets risk outlook 2016
The outlook is a forward-looking report focusing specifically on issues relevant to securities markets and on whether these may be, or could become, a threat to the global financial system.
 
  Asset Management
 
 
PensionsEurope: EIOPA’s stress test results show that the holistic balance sheet methodology does not work
PensionsEurope highlights that the frequency of any future stress tests should be limited to situations that justify the exercise.
 
  International/G20
 
 
G20 Finance Communiqué
Finance Ministers and Central Bank Governors said the global recovery continues, but it remains uneven and falls short of the G20 ambition for strong, sustainable and balanced growth. The document warns against "the shock of a potential UK exit from the European Union."
 
  Grahams Articles, Comments & Speeches
 
 
The Eurozone: IN and OUT relations
This paper seeks to consider the problems posed for the EU by having most of its members using the euro while others remain outside it. How can these problems be solved – or merely mitigated? Will the solutions help or hinder PM Cameron’s renegotiation of the UK’s relationship with Europe?
 
  Friends Services
 
 
Spanish political deadlock hits turning point with PSOE trying to win confidence vote
The Political impasse in Spain might be drawing to a close this week, with the Socialist leader becoming Premier after the investiture debate ... or face a re-run of the election on 20 December, 2015.
 
  Political
 
 
Greater London Authority: London - the global powerhouse
The report affirms that London is the UK’s global city, and suggests that it can also lay claim to being the world’s leading international city.
UK Government: Alternatives to membership - possible models for the UK outside the EU
The UK Government paper looks at potential models for the UK’s relationship with the European Union, if the UK were to vote to leave the EU.
UK Government: The process for withdrawing from the European Union
The UK Government published its assessment of the withdrawal process from the EU in the event of a vote in favour of Brexit in the referendum, saying the process would lead to “up to a decade or more of uncertainty”.
IN Facts: UK doesn’t send EU £350m a week or £55m a day to the European Union
Total cost of EU membership not even half of the figures used in the Leave campaign, after accounting benefits received from Brussels and not properly gauging the exact benefits of Single Market for UK economy.
 
  Financial
 
 
Financial Times: Financial Stability Board adds fintech to list of worries
Innovations in financial technology have been added to the list of things the Financial Stability Board worries about by Mark Carney, head of the international group of policymakers and regulators G20.
 
  Economic
 
 
Council conclusions on the Single Market Strategy
The European Council welcomed the Single Market Strategy and its 11 key areas, focusing on SMEs growth and on reducing regulatory and administrative burden on businesses.
TheCityUK: Demographics, Growth and Financial Services
The report analyses some of the key economic issues associated with long-term demographic change, including the impact of immigration on economic growth and on countries’ fiscal positions; the distribution of debt across different age cohorts; and the challenges associated with an ageing population.
 

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