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EBA publishes final Guidelines on sound remuneration policies and its Opinion on the application of proportionality
The guidelines ensure that institutions calculate correctly and consistently the so called ‘bonus cap' by setting out specific criteria for mapping all remuneration components into either fixed or variable pay and detailing how specific remuneration elements are to be recognised over time. View Article |
EBA consults on draft guidelines on remuneration requirements for sales staff
The EBA has identified poor remuneration policies and practices as a key driver of miss-selling of financial products and services. The Guidelines are aimed at protecting consumers and reducing conduct costs of firms. View Article |
EBA calls for more certainty and consistency in the application of restrictions to profits pay-outs to restore capital adequacy
The Opinion clarifies that the MDA should be calculated taking into account both minimum (Pillar 1) and additional (Pillar 2) capital requirements which should be met at all times, as well as the combined buffer requirement. View Article |
Recommendation of the ECB on dividend distribution policies
Based on the European Central Bank recommendation, credit institutions should establish dividend policies using conservative and prudent assumptions in order, after any distribution, to satisfy the applicable capital requirements. View Article |
Bruegel: Getting eurozone deposit insurance right promises benefits
EU-wide security of savings must be considered in order to take banking union seriously. Banks' holdings of government bonds must be limited. View Article |
European Commission: Single Resolution Mechanism comes into effect for the Banking Union
The SRM became fully operational on 1 January 2016. The SRM implements the EU-wide Bank Recovery and Resolution Directive in the euro area. The full resolution powers of the Single Resolution Board (SRB) also apply as of 1 January 2016 (IP/14/2784). View Article |
CEPS: Will the Single Resolution Fund be a ‘baby tiger’ during the transition?
Authors find that, even during its early years, the SRF should be sufficient to deal with almost any crisis scenario imaginable. View Article |
BCBS: Guidance on the application of the core principles for effective banking supervision to the regulation and supervision of institutions
The Basel Committee on Banking Supervision has today issued for public consultation proposed guidance for the regulation and supervision of institutions relevant to financial inclusion. View Article |
EBA delivers guidance for business reorganisation plans under the BRRD
The EBA published its final draft Regulatory Technical Standards (RTS) on the content of business reorganisation plans and progress reports, as well as guidelines defining how to assess plans. View Article |
EBA issues methodology for valuation of liabilities arising from derivatives
These standards provide EU resolution authorities with a methodology for the valuation of derivative liabilities of credit institutions placed under resolution and ensure that the discipline brought in by the new bail-in tool can effectively be extended to these liabilities too. View Article |
EBA updates on risks and vulnerabilities in the EU banking sector
The EBA’s report shows that EU banks have continued to strengthen their capital position and to improve asset quality. However, the level of non-performing exposures remains high and profitability is still weak. View Article |
BCBS: Guidance on credit risk and accounting for expected credit losses
The BCBS' document sets out supervisory guidance on sound credit risk practices associated with the implementation and ongoing application of expected credit loss accounting framework. View Article |
BCBS: Identification and measurement of step-in risk released by the Basel Committee
The objective of the consultative document is to mitigate potential spillover effects from the shadow banking system to banks. View Article |
EBA recommends introducing the NSFR in the EU
The EBA’s analysis did not find strong statistical evidence of significant negative impacts of the NSFR on bank lending, financial assets markets or trading book positions. The EBA also explained that certain EU specificities should be taken into account. View Article |
EBA consults on draft Guidelines on stress testing
The Guidelines set out expectations for institutions' stress testing programmes and seek improvements by drawing on lessons from previous stress test exercises. In addition, they aim at promoting convergence of the use of stress testing in the context of the SREP. View Article |
Fitch: Global shadow banking growth to begin to slow in 2016
Shadow banks are increasingly likely to become victims of their own success, which will translate into incrementally slower growth, increased operating costs and the beginning of a gradual convergence with the very banks they are aiming to disintermediate. View Article |
Financial Times: Eurozone bank bond issuance to stagnate
European banks are expected to seek little additional funding from the bond market in 2016, suggesting continued subdued demand for loans from businesses and consumers. The lacklustre outlook follows a disappointing year for sales of bonds by eurozone banks. View Article |
EBA updates on the status of its final Implementing Technical Standards on benchmarking portfolios
The EBA, following requests from stakeholders, published an update on the application date of its final draft Implementing Technical Standards (ITS) on benchmarking portfolios. View Article |
EBA defines the minimum set of information on financial contracts for detailed records
The EBA’s RTS further specify the minimum set of the information on financial contracts that should be contained in detailed records and the circumstances under which the requirement to maintain such detailed records should be imposed. View Article |
Bank of England: CCP resolution and the ending Too Big to Fail agenda - speech by Andrew Gracie
BoE's Gracie says that one of the goals of global reform since the financial crisis has been ending Too Big to Fail. This is the resolution agenda – aiming to ensure that in the event that a G-SIFI fails there is minimal interruption of the activities of a firm. View Article |
Reuters: UK bank stress tests do not clear fog over China risk
British banks survived the Bank of England’s 2015 stress tests largely unscathed, but the assessment published earlier this month also underscored the vulnerability of the UK banking system to China. View Article |