CEBS call for advice on definition of own funds

14 November 2005

CEBS received a call for advice from the Commission on the review of the definition of own funds. CEBS was asked to carry out an analysis of the capital instruments recently launched by the industry and to set out its views on the lessons to be learned about trends in the quality of regulatory capital. The analysis should include new instruments that national supervisors have recently been asked to consider for own funds purposes. New trends, market conventions and industry expectations should also be considered.

CEBS is publishing an online-questionnaire to get an input from the banking industry and other market participants on the following questions:
 

• What kind of innovative instruments have reached a reasonable market standing? Why? What characteristics do they have in common?
   
• What are the main market conventions/factors that govern the issues of innovative instruments?
   
• What new trends, e.g. in terms of domestic market structures and investors’ appetite have you identified? What would prevent/alternatively favour the developments of innovative instruments?
   
• What will be the characteristics of innovative instruments in the future?
   
• What are your key expectations and key concerns regarding the supervisors’ approach to innovative instruments?
   
• In your views as market participants, what main differences in supervisory approaches have the most important impact on the structure and quality of own funds?

  The responses should be sent to of@cebs.org Deadline for comments is CEBS is 10 February 2006.

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