This week in "Brussels"
03 March 2016
EBA, stress test, CRDIV-CRR/Basel III monitoring exercise, ECB, bonus cap, payments, OTC, CCP, IOSCO, EIOPA, IORP II, IFRS 9, G20 and more.
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Articles from 25 February 2016 - 03 March 2016 |
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Banking |
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EBA launches 2016 EU wide stress test exercise
The EBA released the methodology and macroeconomic scenarios for the 2016 EU-wide stress test. The stress test is designed to provide supervisors, banks and other market participants with a common analytical framework to consistently compare and assess the resilience of EU banks to economic shocks. View Article |
EBA publishes results of the CRDIV-CRR/Basel III monitoring exercise as of 30 June 2015
This exercise, run in parallel with the one conducted by the Basel Committee on Banking Supervision at a global level, allows the gathering of aggregate results on capital – risk-based and non-risk-based (leverage) ratios – and liquidity ratios – the LCR and NSFR – for banks in the EU. View Article |
ECB publishes quarterly Consolidated Banking Data for September 2015 and revisions
The European Central Bank published the September 2015 Consolidated Banking Data, a data set of the EU banking system on a group consolidated basis. View Article |
Financial Times: EU rethinks rules on bank bonuses
City brokers and smaller banks are on course to win a reprieve from EU rules on bonuses that regulators and the industry have warned could saddle companies with unnecessary administrative costs. View Article |
Fitch: EU bank investors unsure on resolution; capital reassures
Investors in EU bank bonds are uncertain about how the Bank Recovery and Resolution Directive will be applied, but are reassured by stronger, better capitalised banks, according to Fitch Ratings' latest investor survey. View Article |
EPC: Publication of a SEPA cards standardisation volume bulletin to ensure compliance with some aspects of the interchange fee regulation
The EPC and the CSG regularly maintain and develop the SEPA Cards Standardisation. It is a key set of documents for the card industry, aimed at achieving a better and functionally richer card services environment, as well as cards standardisation, interoperability, and security in Europe. View Article |
BBC: Big banks should loosen control of payments system
Big banks should loosen their stranglehold on the system behind the way consumers pay for things to encourage innovation, the Payment Systems Regulator said. View Article |
EBA publishes its annual assessment of EU colleges of supervisors
The report assesses how colleges have functioned during 2015 and identifies key activities for the effective oversight of EU cross border banking groups in 2016. It draws the attention of supervisors to NPLs and balance sheet cleaning, business model sustainability, conduct risk and IT risk. View Article |
Bank of England: PRA and FCA statement on compliance with the EBA guidelines on Sound Remuneration Policies
The regulators reported they will comply with all aspects of the EBA Guidelines on Sound Remuneration Policies, except for the limit on awarding variable remuneration to 100% of fixed remuneration, or 200% (the bonus cap) with shareholder approval must be applied to firms subject to the CRD. View Article |
Bank of England: Strengthening individual accountability in banking
This PRA policy statement provides feedback on responses to CP 1/16 - Strengthening individual accountability in banking: amendments to notification rules and forms and sets out the amended definition of the term ‘significant risk taker’ in the PRA’s Certification rules as proposed in CP 29/1. View Article |
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Securities |
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New EU rules on central clearing for certain credit derivative contracts
The European Commission has adopted a new set of rules that requires certain over-the-counter OTC credit derivative contracts to be cleared through central counterparties. View Article |
ESMA issues report on risks and costs of CCP interoperability
The report details how the concept of interoperability has emerged in the EU and the general EU regulatory framework applicable to it as described in EMIR and in the Guidelines and Recommendations for establishing consistent, efficient and effective assessments of interoperability arrangements. View Article |
Hedgeweek: Euroclear white paper examines implications of collateral settlement fails
It suggests that, if the current 3% settlement fail rates prevail from September 2016 (when new rules for bilateral clearing of OTC derivatives may significantly increase the number of collateral movements between market participants) the operational cost will become unsustainably burdensome. View Article |
IOSCO publishes the securities markets risk outlook 2016
The outlook is a forward-looking report focusing specifically on issues relevant to securities markets and on whether these may be, or could become, a threat to the global financial system. View Article |
IOSCO issues Second Review of Implementation of Principles by IBOR Administrators
In regard to the Principles on governance, transparency and accountability, the review found that a majority of the recommendations made by the first review had been implemented by the administrators. View Article |
ISDA publishes principles for US/EU trading platform recognition
The paper analyses the regulatory frameworks in the US and EU, with the aim of determining whether EU trading platforms should be deemed comparable with those in the US. View Article |
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Asset Management |
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PensionsEurope: EIOPA’s stress test results show that the holistic balance sheet methodology does not work
PensionsEurope highlights that the frequency of any future stress tests should be limited to situations that justify the exercise. View Article |
IPE: Stress test results could undermine trust
The Dutch Pensions Federation has said EIOPA’s use of the holistic balance sheet for stress tests has led to confusing results. View Article |
Insurance Europe: IORP II trialogues offer opportunity to safeguard members and beneficiaries
The upcoming trialogue discussions on the revised directive on IORP between the European institutions provide an important opportunity to ensure appropriate safeguards for IORPs’ members and beneficiaries, according to Insurance Europe. View Article |
IPE: Germany's ABA sides with European Council on IORP II risk evaluation
Provisions for EIOPA approval of pension scheme transfers and for risk assessments to include ESG matters should be among others left out of the final version of IORP II, according to ABA, the German pension fund association. View Article |
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Corporate Governance/Accounting |
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EBA comments on the IASB´s ED IFRS Practice Statement: Application of Materiality to Financial Statements
The EBA welcomed the IASB initiative to develop guidance in applying the concept of materiality to general purpose financial statements but calls for clarification of some of the proposals. View Article |
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Financial Services Policy |
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FSB Chair sets out to the G20 the FSB work programme for 2016
The greater resilience of the financial system resulting from the new regulatory framework will ensure that the financial system can better support jobs and growth in the short, medium and long term. View Article |
EBF: Europe-wide action targets money mule schemes
Law enforcement agencies and judicial bodies from Belgium, Denmark, Greece, the Netherlands, the United Kingdom, Romania, Spain and Portugal - joined forces in the first coordinated European action against money muling. View Article |
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International/G20 |
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G20 Finance Communiqué
Finance Ministers and Central Bank Governors said the global recovery continues, but it remains uneven and falls short of the G20 ambition for strong, sustainable and balanced growth. The document warns against "the shock of a potential UK exit from the European Union." View Article |
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Grahams Articles, Comments & Speeches |
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Spanish political deadlock hits turning point with PSOE trying to win confidence vote
The Political impasse in Spain might be drawing to a close this week, with the Socialist leader becoming Premier after the investiture debate ... or face a re-run of the election on 20 December, 2015. View Article |
The Eurozone: IN and OUT relations
This paper seeks to consider the problems posed for the EU by having most of its members using the euro while others remain outside it. How can these problems be solved – or merely mitigated? Will the solutions help or hinder PM Cameron’s renegotiation of the UK’s relationship with Europe? View Article |
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Graham's tweets |
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Spanish political deadlock hits turning point with #PSOE trying to win confidence vote #Spain https://t.co/lAervAmSfx
— Graham Bishop (@GrahamBishopcom) March 3, 2016
© Graham Bishop
Banking