The Basel Committee on Banking Supervision finalised the new standardised approach (SA) for operational risk capital, as published in the final Basel III standards in December 2017. To promote consistent global implementation of those requirements, the Committee has agreed to periodically review frequently asked questions (FAQs) and publish answers along with any technical elaboration of the standards text and interpretative guidance that may be necessary.
Working Paper Series No 2306 / August 2019
Prepared by Maria Teresa Chimienti, Urszula Kochanska and Andrea Pinna
Introductory statement by Mr Mario Draghi, President of the European Central Bank, and Mr Luis de Guindos, Vice-President of the European Central Bank, Frankfurt am Main, 25 July 2019.
Working Paper SeriesNo 99 / August 2019
Working Paper Series No 2299 / July 2019
Working Paper Series No 2298 / July 2019
An Overview and Assessment of the Euro Area Fiscal Stance – Institutional Paper 110 | July 2019
NBFI MonitorNo 4 / July 2019
Working Paper Series No 227 / July 2019
The Single Resolution Board (SRB) today announced that the Single Resolution Fund (SRF) received a cash injection of €7.8 billion from 3,186 institutions for the year 2019. This brings the total amount in the SRF to just under €33 billion. The target size of the SRF is intended to be at least 1% of covered deposits by end 2023, which is expected to be about €60 billion.
Today, the private sector working group on euro risk-free rates has published a set of recommendations on the legal action plan for the transition from the euro overnight index average (EONIA) to the euro short-term rate (€STR).
The European Banking Authority (EBA) published today its Risk Dashboard, which summarises the main risks and vulnerabilities in the EU/EEA banking sector. The Risk Dashboard includes for the first time IFRS 9 related data on asset quality and banks’ fair valued positions, as well as information about their sovereign exposures. Together with the Risk Dashboard, the EBA published the results of its Risk Assessment Questionnaire (RAQ), which includes banks’ and market analysts’ expectations for future trends and developments.
The General Board of the European Systemic Risk Board (ESRB) continues to highlight financial market repricing, as well as balance sheet vulnerabilities of EU financial institutions and indebtedness, as the main risks to financial stability in the European Union in the context of a weaker economic growth outlook. The presence of uncertainties related to geopolitical factors and the rising threat of protectionism and vulnerabilities in emerging markets have led to deterioration in the growth outlook with downside risks looking ahead. This could further heighten vulnerabilities of EU financial institutions and challenge debt sustainability in the public and private sectors.
The European Banking Authority (EBA) published today the 2020 EU-wide stress test draft methodology, templates and template guidance, which will be discussed with the industry. The 2020 exercise will assess EU banks’ resilience to an adverse economic shock and inform the 2020 Supervisory Review and Evaluation Process (SREP). The methodology covers all risk areas and builds on the methodology prepared for the 2018 exercise, while improving some aspects based on the lessons learnt. The preliminary list of institutions participating in the exercise as well as the timeline are also released today.
The Advisory Scientific Committee of the European Systemic Risk Board has today published a report presenting the main channels through which Exchange-Traded Funds (ETFs) have the potential to affect systemic risk. ETFs are hybrid investment vehicles that track an index or a basket of assets (typically referred to as “constituent securities”) and are continuously traded on liquid secondary markets.
The Advisory Scientific Committee of the European Systemic Risk Board has today published a report discussing how excessive regulatory complexity can contribute to systemic risk and possible ways to address the issue, in view of the existing significant complexity and uncertainty in the financial system.
The European Insurance and Occupational Pensions Authority (EIOPA) launched today a consultation on a draft opinion on sustainability within Solvency II. The draft opinion forms part of EIOPA’s strategic activities on sustainable finance and follows a call for opinion from the European Commission. The consultation runs until Friday, 26 July 2019.