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12 April 2018

Friends 'Weekly' Newsletter


EBA Risk Dashboard, measurement of non-performing assets, ECB guide on internal models, MiFID II, stress testing of CCPs, EU alternative fund industry, Future UK-EU relationship report, British business reject Brexit 'Bonfire of rules', financial services see growing risks and more.

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  Articles from 29 March 2018 - 12 April 2018

  Banking Union
 
 
EBA Risk Dashboard shows significant improvements across EU banks but elevated NPLs are still the main challenge for their profitability
The European Banking Authority published the regular update of its Risk Dashboard summarising the main risks and vulnerabilities in the EU banking sector for Q4 2017. The progress is positive for European banks, but risks remain heightened on sustainable profitability.
BIS: The identification and measurement of non-performing assets: a cross country comparison
This paper outlines the major differences in identification and accurate measurement of non-performing assets (NPAs) across key jurisdictions and provides a range of prudential policy options to enhance the identification and measurement of NPAs.
ECB aims to ensure that banks apply rules on internal models in a consistent manner
The ECB has published the first chapter of its guide to internal models for consultation. The guide is intended to ensure a common and consistent approach to the most relevant aspects of the applicable regulation on internal models for banks directly supervised by the ECB.
 
  Capital Markets Union
 
 
ESMA asks the European Commission to clarify ancillary activity test under MiFID II
ESMA's Maijoor wrote a letter to the Commission Vice-President Dombrovskis regarding the exemption from authorisation as investment firm which non-financial entities are eligible for when their commodity derivative trading activity is ancillary to their main business as set out in MiFID II.
CPMI and IOSCO issue guidance on supervisory stress testing of central counterparties
The framework provides authorities with guidance to support their design and implementation of supervisory stress tests for CCPs.
 
  Asset Management
 
 
ESMA finds high degree of asset concentration in EU alternative fund industry
The EU Alternative Investment Fund (AIF) industry is highly concentrated around a few large participants and asset classes, a recent report by the European Securities and Markets Authority shows.
ICMA AMIC publishes statement on fund delegation
ICMA’s Asset Management and Investors Council (AMIC) has published a statement on fund delegation, underlining the importance of fund delegation to the asset management business model and the threat from recent legislative proposals.
 
  Financial Services Policy
 
 
IFAC: Patchwork financial regulation a $780 billion drag on the economy
Fragmentation in global financial regulation costs more than USD $780 billion annually, according to a survey released by IFAC and Business at OECD (BIAC).
 
  Friends Services
 
 
Less than a year for an increasingly unlikely Brexit - 140th Brussels for Breakfast – CPD Notes
The countdown to Brexit day is on, but with less than a year to go, British withdrawal from the EU is not secured: voters are asking for a say over the final deal. The economic and political implications of a post-Brexit deal with Brussels may make them reconsider EU membership under a new light.
 
  Brexit & UK
 
 
Future UK-EU relationship report published
In this third report of its overarching inquiry into the Article 50 negotiations, the Exiting the European Union Committee sets out key tests by which any deal agreed by October 2018 must be judged.
City AM: UK must not neglect the EU when planning post-Brexit trade deals, says IoD
The EU has seen stronger growth as a market for UK exporters than either Asia or North America over the past two years, according to a recent survey from the group.
Lloyds Banking Group: Financial services sector fears UK growth will lag behind G7 as Brexit effect takes hold
The UK’s economic growth will be outpaced by all other G7 advanced nations this year - and Brexit remains the single biggest risk on the horizon - according to a new report from Lloyds Bank Commercial Banking, canvassing the views of the world’s biggest financial services firms.
Financial Times: UK asset managers oversee record £2.6tn for overseas clients
Asset managers in the UK oversee a record £2.6tn of assets for overseas clients, according to new research that highlights the level of cash at risk from a disorderly Brexit.
ACCA: Financial services see growing risks a year before Brexit
UK financial services increasingly feel risks outweigh opportunities as Brexit draws nearer, according to the latest snapshot member survey by ACCA.
 

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