This week in "Brussels"
05 November 2015
Bank resolvability, FSB and BIS information on G-SIBs, bank capital ratios, EBA, ECB Banking supervision, Banking Union, European deposit insurance, Deutsche Bank, Visa deal, CCP, ISDA, EIOPA, Solvency II, UCITS, AIFMD, QE and more.
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Articles from 29 October 2015 - 05 November 2015 |
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Banking |
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FSB: New measures to promote resolvability, including effective cross-border resolution
The FSB released two finalised guidance papers and three consultative documents as part of its policy agenda to end “too-big-to-fail” and promote the resolvability of all financial institutions that could be systemic in failure. View Article |
BIS/FSB: Information on global systemically important banks published by the Basel Committee
In conjunction with the publication by the Financial Stability Board of the updated list of global systemically important banks (G-SIBs), the Basel Committee on Banking Supervision has released further information. View Article |
Reuters: Europe to align bank capital buffers to global standard
The euro zone's bank resolution authority will align its capital buffer demands with those being set separately for the world's largest banks, aiming to avoid duplication, SRB's Koenig said. View Article |
Reuters: European investment banks get the nip and tuck treatment
Europe's biggest investment banks are slimming down in a fight for survival, eight years after the global financial crisis wrought regulatory changes and sparked litigation costs that have left them still struggling to achieve profitability. View Article |
EBA finds further increase in EU banks capital ratios in 2015
In its risk dashboard for the EU banking sector, the EBA gives an overview of the health of EU banks for the second quarter of 2015. While capital ratios have increased, the quality of loan portfolios remains weak, but EU banks profitability has increased compared to last year. View Article |
ECB: One year ECB Banking Supervision
Mario Draghi said that "there can only be a single money if there is a single banking system". Nouy and Lautenschläger outlined the future challenges and past achievements of the SSM. View Article |
Bruegel: Firmer foundations for a stronger European Banking Union
This paper argues that to complete Banking Union, the lender-of-last-resort and deposit insurance functions should move to the euro-area level, breaking the sovereign-bank loop. View Article |
VoxEU: Options for European deposit insurance
The European Banking Union – in all likelihood – is going to involve a European deposit insurance scheme. This column clarifies the different options for organising European deposit insurance and explains what the different options can achieve. View Article |
Financial Times: ECB officials met bankers before key decisions
Some of the European Central Bank’s top decision-makers met bankers and asset managers days before major policy decisions, and on one occasion just hours before, copies of their diaries reveal. View Article |
ECB: Euro area bank interest rate statistics - September 2015
The composite cost-of-borrowing indicator for new loans to corporations increased to 2.22%; to households for house purchase remained broadly unchanged at 2.25%; and for new deposits from corporations increased whereas the one from households remained broadly unchanged. View Article |
EUbusiness: Deutsche Bank to slash jobs, exit countries in EUR 3.8 bn cost-cut
Deutsche Bank, Germany's biggest lender, announced it would cut 9,000 jobs and pull out of 10 countries in a new 3.8-billion-euro cost-cutting drive after it ran up record losses in the third quarter. View Article |
Financial Times: Visa to buy back former European arm for up to €21bn
Visa has agreed to acquire its former European subsidiary for up to €21.2bn in a deal that will generate large windfalls for some of the continent’s biggest banks. View Article |
Fitch: Franchise is key to european bank business model success
Many of Europe's G-SIBs are adapting business models to deal with the pressures of more challenging regulation and a prolonged low interest rate environment. Banks with strong customer franchises and effective client segmentation have the best chance of achieving a solid sustainable earnings base. View Article |
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Securities |
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FSB reports describe progress in implementing OTC derivatives market reforms, and highlight where further work is needed
The FSB released two reports on implementation of the reforms to over-the-counter (OTC) derivatives market agreed by the G20 - The Thematic Peer Review of OTC Derivatives Trade Reporting and The OTC Derivatives Market Reforms: Tenth Progress Report on Implementation. View Article |
ECB'S Cœuré: The international regulatory agenda on CCP links
Cœuré says that the ongoing EMIR review, as well as the upcoming report on the systemic risk and cost implications of interoperability arrangements, will provide the ECB with an opportunity to discuss the risks involved and think about potential enhancements to the current regulatory framework. View Article |
ISDA: Cross-border fragmentation of global interest rate derivatives - The new normal?
The global derivatives markets remains fragmented along geographic lines, according to an analysis of data to June 30, 2015. This report is the fourth in a series of research notes charting changes in global liquidity pools since US swap execution facility rules came into force two years ago. View Article |
ISDA Publishes 2015 Section 871(m) Protocol
The Protocol comes in response to changes in US tax laws, which will impose a 30% withholding tax on a variety of equity derivatives transactions that reference US equity securities. View Article |
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Insurance |
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EIOPA consults on revised preparatory Guidelines on product oversight and governance
The EIOPA published a Consultation Paper on its revised proposal for preparatory Guidelines on product oversight and governance arrangements by insurance undertakings and insurance distributors (POG Guidelines). View Article |
Bank of England: Solvency II: applying EIOPA Set 2, system of governance and ORSA guidelines
This statement has been subject to public consultation and reflects the feedback that was received by the PRA. It sets out the PRA’s expectation that all firms must comply with all of the Set 2, system of governance and ORSA guidelines View Article |
Bank of England: Solvency II: reporting and public disclosure - options provided to supervisory authorities
This supervisory statement sets out the PRA’s expectations of firms where the Solvency II supervisory reporting ITS and the Solvency II public disclosure ITS allows supervisory authorities to specify different approaches to the default set out in the standards, or requires to issue instructions. View Article |
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Asset Management |
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ESMA publishes responses to the consultation on Guidelines on sound remuneration policies under the UCITS Directive and AIFMD
The European Securities and Markets Authority (ESMA) has published the responses received to the consultation on Guidelines on sound remuneration policies under the UCITS Directive and AIFMD. View Article |
Financial Times: QE ‘acted like an opaque tax’ on pension funds
Quantitative easing, the process in which central banks create new money and use it to buy government debt and other assets from banks to lower interest rates, has had significant unintended consequences for large investors in the EU. View Article |
OECD: Stocktaking of the tax treatment of funded private pension plans in OECD and EU countries
This document shows that about half OECD countries and half EU Member States apply a variant of the “Exempt-Exempt-Taxed” regime to funded private pension plans, where both contributions and returns on investment are exempted from taxation and benefits are treated as taxable income upon withdrawal. View Article |
Pensions Regulator: New research published on trustee landscape
The Pensions Regulator published new research on the skills and knowledge of pension scheme trustees and their boards in the context of major industry reforms. View Article |
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Corporate Governance/Accounting |
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ACCA: Upgrading the Single Market in line with today's economic realities
ACCA warmly supports the main aim of the Internal Market Strategy (IMS), which is about getting the EU back to work at the service of its SMEs and consumers. View Article |
IFAC: New thought paper setting out a vision for integrated thinking
The IFAC has published Creating Value with Integrated Thinking: The Role of Professional Accountants to facilitate the contribution of professional accountants to integrated thinking and to help align capital allocation, corporate behavior, financial stability, and sustainable development. View Article |
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International/G20 |
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BIS: From the Vasa to the Basel framework - The dangers of instability
BIS's Ingves said that the BCBS is now "clearly within reach of finalising the Basel III reform package," and outlined the Committee's ongoing reforms. View Article |
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Grahams Articles, Comments & Speeches |
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Completing Economic and Monetary Union
Graham Bishop’s Plan for a Temporary Eurobill Fund as a Stepping Stone to Stage 2. View Article |
Deepening EMU – Round-up of Key Events – October 2015
Brexit and Brexin campaigns were launched, and British PM Cameron geared up EU reform talks. The ECON updated EU rules on online payments, and BCBS' Ingves said that the Basel III policy response to the financial crisis is complete. View Article |
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Friends Services |
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Deepening EMU – Round-up of Key Events – October 2015
Brexit and Brexin campaigns were launched, and British PM Cameron geared up EU reform talks. The ECON updated EU rules on online payments, and BCBS' Ingves said that the Basel III policy response to the financial crisis is complete. View Article |
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Temporary Eurobill Fund (TEF) |
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Completing Economic and Monetary Union
Graham Bishop’s Plan for a Temporary Eurobill Fund as a Stepping Stone to Stage 2. View Article |
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CPD/Education and Learning |
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Brussels for Brunch Webinar October 2015
Main topics included: Brexit, Capital Markets Union and financial supervision architecture. View Article |
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Graham's tweets |
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© Graham Bishop
Banking