This week in "Brussels"
28 September 2017
Non-performing loans in EU banks, EBA consultation on supervisory disclosure, EU banks internal governance, post-trade reporting requirements, EU - US Agreement on insurance and reinsurance, main risks for the EU financial system, risk-free reference rate for the euro area and more.
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Articles from 21 September 2017 - 28 September 2017 |
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Banking Union |
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Financial Times: Draghi: still too many non-performing loans across eurozone banking system
Mario Draghi has warned that there are still too many dud loans in the eurozone’s banking system. Non-performing loans have been a major problem in some of the eurozone’s weaker banking systems, including Italy’s. View Article |
EBA and ESMA provide guidance to assess the suitability of management body members and key function holders
These Guidelines aim to harmonise and improve suitability assessments within EU financial sectors, and to ensure sound governance arrangements in financial institutions in line with the Capital Requirements Directive (CRD IV) and the Markets in Financial Instruments Directive (MiFID II). View Article |
EBA consults on amendments to technical standards on supervisory disclosure
The European Banking Authority launched a consultation to amend the Implementing Technical Standards on supervisory disclosure, which specify the format, structure, contents list and annual publication date of the supervisory information to be disclosed by competent authorities. View Article |
EBA publishes guidance to further harmonise EU banks internal governance
These Guidelines aim at further harmonising institutions' internal governance arrangements, processes and mechanisms across the EU, in line with the new requirements in this area introduced in the Capital Requirements Directive (CRD IV) and also taking into account the proportionality principle. View Article |
ECB: Macroprudential stress-tests and tools for the non-bank sector
ECB's Vítor Constâncio spoke about what needs to be improved to operationalise stress testing and about the state of play regarding the implementation and progress made for some of the specific macroprudential instruments that authorities would need, should systemic risks materialise. View Article |
Financial Times: UK banks told to increase consumer credit safety buffers by £10bn
The Bank of England warned banks that they had been too lax in provisioning for potential losses on consumer credit. Lenders were also warned that if no action was taken to mitigate Brexit risks on continuing cross-border insurance and derivative contracts, the £20tn market might seize up. View Article |
Financial Times: Banking remains far too undercapitalised for comfort
The UK experienced, with Northern Rock, its first visible bank run. That turned out to be a small event in a huge crisis. The simplest question this anniversary raises is whether we now have a safe financial system. Martin Wolf says the answer is no. View Article |
Bank of England: Stress testing results to be published on 28 November
Bank of England (BoE) has set out the timetable for the publication of the UK stress test results, which will be published on 28 November. View Article |
Financial Times: Japan’s big banks plan digital currency launch
Japanese banks plan to introduce a digital currency ready for the 2020 Tokyo Olympics as they respond to the threat from China’s Alibaba, which recently launched its mobile-phone payments service in the country. View Article |
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Capital Markets Union |
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MiFID II / MiFIR post-trade reporting requirements
This document takes the structured approach to understanding the PTT obligations defined in MiFIR. It also highlights the key challenges and practical implementation options for the impacted qualifying investment firms to consider as they progress with plans to be MiFID II compliant. View Article |
Financial Times: Carmignac warns MiFID II will disadvantage European asset managers
The French asset manager said a shift towards absorbing the cost of research when European rules known as MiFID II come into force in January would damage the quality of research available and hurt competition in the industry. View Article |
Financial Times: Global fund houses hold crunch talks with FCA to clarify MiFID
Forty of the world’s largest asset managers and banks held an emergency summit in London with the Financial Conduct Authority in a last-ditch attempt to persuade the UK’s financial regulator to clarify new rules that threaten to disrupt their global operations. View Article |
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Insurance |
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EU - US Agreement on insurance and reinsurance
The Agreement will principally benefit EU reinsurers active in the USA by progressively removing collateral requirements. It will also benefit EU insurance and reinsurance groups active in the US by clarifying responsibilities for worldwide group supervision. View Article |
EIOPA: Survey to gather data from stakeholders for work on developing Q&As on the Insurance Distribution Directive
EIOPA's intention is to develop Q&A related to insurance distribution activities by insurance distributors, focussing on issues of interpretation or application of the IDD and its implementing measures. The Q&As will have no binding force in law and will not be subject to a "comply or explain" process. View Article |
Insurance Europe: Commission’s Single Market Information Tool proposal should be withdrawn
Insurance Europe has published a position paper on the European Commission’s proposals for a Single Market Information Tool (SMIT), where it raised serious concerns and called for the proposal to be withdrawn. View Article |
IAIS releases application paper on MCCOs
The IAIS Executive Committee adopted the Application Paper on Mutuals, Cooperatives and Community-based Organisations in Increasing Access to Insurance Markets. The Application Paper provides application guidance for the supervision of Mutuals, Cooperatives and Community-based Organisations (MCCOs). View Article |
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Asset Management |
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Investment & Pensions Europe: IASB urged to look again at DB surplus accounting rules
The International Accounting Standards Board should carry out further analysis of proposed amendments to rules governing defined benefit pension surpluses, the accounting regulator’s own staff have said. View Article |
Investment & Pensions Europe: Pension funds 'have purest approach to long-term investment'
European pension funds have provided some straight-talking feedback on recommendations made by an advisory body to the EC on sustainable finance. In trade body PensionsEurope’s submission to the consultation by the HLEG, it said “pension funds have the purest approach to long term/sustainable investment”. View Article |
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Market Abuse |
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ESMA publishes opinion on CMVM’s MAR accepted market practice on liquidity contracts
ESMA published an opinion on the accepted market practice notified by the Comissão do mercado de valores mobiliários of Portugal, which replaces the AMP under the Market Abuse Directive established on August 2008. View Article |
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Anti-Money Laundering |
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ESAs provide guidance to prevent terrorist financing and money laundering in electronic fund transfers
These guidelines are part of the ESAs' wider work on fostering a consistent approach to Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) and promote a common understanding of payment service providers' obligations in this area. View Article |
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Financial Services Policy |
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ESAs highlight main risks for the EU financial system
The ESAs Autumn 2017 Report on risks and vulnerabilities in the European Union's financial system highlights the risks to the stability of the European financial sector in an uncertain political and economic environment, not least in light of the UK’s withdrawal from the EU. View Article |
New working group on a risk-free reference rate for the euro area
The ESAs and the Commision announced the launch of a new working group tasked with the identification and adoption of a risk-free overnight rate which can serve as a basis for an alternative to current benchmarks used in a variety of financial instruments and contracts in the euro area. View Article |
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Grahams Articles, Comments & Speeches |
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Reflecting on the detailed content of PM May’s Florence speech: 553 days until we go over the cliff
May's speech was long on the desire for creative visions on the part of EU27 leaders but short on why they should divert from the visions they set out to achieve for themselves on the 60th anniversary of the Treaty of Rome. View Article |
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Political |
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The Guardian: German election: Merkel wins fourth term but far-right AfD surges to third
Angela Merkel has secured a fourth term as German chancellor but with her authority diminished, after her conservative bloc secured the lead position in parliamentary elections but failed to halt the march of rightwing populists. View Article |
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Economic |
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OECD sees synchronised momentum for global economy, but urges further policy action to ensure sustainable and inclusive medium-term growth
The world economy has picked up momentum, as expanding investment, employment and trade support synchronised growth across most countries, according to the OECD’s latest Interim Economic Outlook. In the UK, growth slowdown is expected to continue through 2018. View Article |
European Council: Greece's finances stabilised, the excessive deficit procedure is closed
The Council confirmed that the country's deficit is now below 3% of GDP, the EU's reference value for government deficits. View Article |
ACCA: Taxation of the Digital Economy - go for the International path first
Reacting to the publication of the Commission Communication on a tax overhaul in the EU for the Digital Single Market, ACCA recommends that any new measure should be embedded in the general international corporate tax framework to ensure consistency and coherence of tax rules worldwide. View Article |
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Graham's tweets |
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© Graham Bishop
Banking Union