This week in "Brussels"
22 January 2015
Headlines include: Reuters: ECB QE set up for disappointment
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Articles from 15 January 2015 - 22 January 2015 |
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Banking |
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Reuters: ECB QE set up for disappointment
Rarely has a major market event been as expected as quantitative easing from the European Central Bank; rarer still has something been so likely to underwhelm. |
Reuters: ECB action could hurt banks' margins - Deutsche Bank co-CEO
"Quantitative easing will be of profound importance for Europe overall and particularly for banks operating in Europe," Anshu Jain, co-chief executive of Deutsche Bank, said at a panel at the World Economic Forum in Davos January 21. |
European Voice: MEPs divided over breaking up the eurozone’s biggest banks
The revised banking structure proposal will reduce affected banks to ten. |
EBA: Challenges for the future of EU banking
The pathway out of the crisis – including both the gradual structural adjustment of banks’ balance sheets and the regulatory reforms driving that process – will, to a large extent, affect the future shape of EU banking markets. |
EBA says impact of liquidity coverage requirements for EU banks not likely to have adverse effects
The report is based on liquidity data provided by 322 European banks, covering about 2/3 of total banking assets in the EU. It will inform EU policies aimed at strengthening the resilience of EU banks. |
Reuters: Bank-style regulation offered as temporary fix for money market funds
The rules proposed by the European Commission in Sept. 2013 aim to increase transparency and stability for MMFs, which are used by companies as an interest-earning cash deposit facility, but they have created deep splits among European Parliament members. |
Bank of England: Assessing capital adequacy under Pillar 2
This consultation paper sets out proposed changes to the PRA’s Pillar 2 framework for the banking sector, including changes to rules and supervisory statements. |
Bank of England: Recovery planning and resolution planning
These rules and supervisory statement are relevant to holding companies, mixed financial holding companies, mixed activity financial holding companies, banks, building societies, and PRA-designated investment firms. |
BIS: Banking statistics
International banking activity continued to expand in the third quarter of 2014. |
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Securities |
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Reuters: BoE's Cunliffe cautiously welcomes EU capital markets plan
The European Union's plans to build a capital markets union to increase funding for the economy will take years and needs careful handling. |
Reuters: Derivatives watchdogs expected to agree swaps rules reprieve
ESMA’s chair said the European regulator hopes to agree a new timeline for introducing margin requirements for privately-traded derivatives in the coming weeks. |
IFLR: MiFID II - one step closer to a common rulebook?
The Draft Level 2 Provisions could be said to represent the first draft of a single rulebook. Their implementation will be a significant step towards the full harmonisation of member states' divergent regulatory regimes. |
EBF response to EBA discussion paper on simple standard and transparent securitisations
EBF appreciates the determined resolution of European policy makers to put in place policy actions that can help overcome the obstacles to the proper functioning of the European securitisation market. |
AFME responds to EBA Discussion Paper on simple standard and transparent securitisations
The Joint Associations are disappointed that asset-backed commercial paper is out of scope. |
ESMA’s Maijoor delivers speech on long-term sustainable growth
The speech covered the reform of the regulatory system in the EU, Capital Markets Union and international regulatory cooperation. |
TCS: ESMA announces consultations on new MiFID II reforms
This paper covers the challenges and impact of MiFID ll on financial markets. |
ESMA to cooperate with the Hong Kong SFC on CCPs
Both authorities have conclude a Memorandum of Understanding established under the European Markets Infrastructure Regulation. |
Bloomberg: Banks must bear the risk of derivatives losses
The debate over how clearinghouses are managed and the level of resources available has gone back and forth between CME Group and its largest bank members, such as JPMorgan Chase & Co. |
ICMA responds to Fair and Effective Markets Review consultation document
ICMA’s response focuses on specific questions related to fixed income. |
SEC adopts rules to increase transparency in security-based swap market
The new rules will require security-based swap data repositories to register with the SEC and prescribe reporting and public dissemination requirements for security-based swap transaction data. |
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Insurance |
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Fitch: New international insurance regulations pose no threat to ratings
The agency expects that some insurers will face higher capital requirements. |
Fitch: Prism capital model shows EMEA insurers strongly capitalized
To assess capital adequacy, Fitch considers Prism scores, regulatory solvency, leverage metrics and insurers' own capital models. |
Insurance Europe: Delegated Acts published in Official Journal
Olav Jones: “The adoption of the Delegated Acts is an important, and very welcome, step forward in the implementation of Solvency II in 2016." |
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Asset Management |
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IPE: APG, PGGM expecting extension for pension funds' EMIR exemption
APG and PGGM have argued repeatedly that the regulation will come at the expense of pension funds’ returns while increasing financial risks. |
IPE: EIOPA challenged to decide fate of past accrual before HBS action
Pension funds will be unwilling to take part in a further holistic balance sheet impact assessment until EIOPA decides how to treat existing deficits. |
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Corporate Governance/Accounting |
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Comment letters to the IASB on reporting the financial effects of rate regulation
Responses from Deloitte, EFRAG and FRC. |
EFRAG´s final comment letter to the IASB on measuring quoted investments in subsidiaries, joint ventures and associates at fair value
EFRAG supports the clarification that the unit of account for investments is the investment in a subsidiary, joint venture or associate as a whole, rather than individual financial instruments included within that investment. |
IFAC: IAASB issues final standards to improve auditor's report
These changes will reinvigorate the audit, as auditors substantively change their behavior and how they communicate about their work, explained the IAASB's Chairman. |
ACCA: Improvement in auditor's reports is crucial to the future value of audits
ACCA highlights the IAASB’s new revisions to International Auditing Standards. The IAASB encourages auditors to be bold and use standards to enhance transparency and showcase innovation. |
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Financial Services Policy |
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US-EU financial markets regulatory dialogue joint statement
Participants met to exchange information on regulatory developments as part of their ongoing dialogue, and discuss their cooperation and shared interests in continuing to implement and enforce robust standards. |
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Grahams Articles, Comments & Speeches |
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Greece: Are more bailouts inevitable? No – if Syriza wins
In a few days, 10m Greek voters will be entitled to vote for a new Parliament and perhaps two-thirds of them will exercise their right. |
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Friends Services |
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Blog Post: Greece: Are more bailouts inevitable? No – if Syriza wins
Is this the best opportunity for 40 years to vote for genuine and permanent reform? |
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Think Tanks/EP groups |
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Bruegel: Deepening the economic and monetary union
Commissioner Moscovici: "We are now entering a new period where the acute phase of the crisis is over. We can now take the time to take stock of our past actions, and think about how to design a permanently stable and balanced EMU." |
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© Graham Bishop
Banking