The EBA Guidelines on SREP
|
|
- Hillary Cordelia Miles
- 8 years ago
- Views:
Transcription
1 Newsletter EBA Guidelines on SREP FINANCIAL SERVICES July 2014 The EBA Guidelines on SREP Consultation on a holistic approach for the supervisory review and evaluation process Executive summary On 7. July 2014, EBA published the draft guidelines on common procedures and methodologies for the supervisory review and evaluation process (SREP) for public consultation. The roughly 200 page draft, developed pursuant to Article 107 (3) of Directive 2013/36/EU, is addressed to Competent Authorities of all Member States of the European Union. EBA invites comments on all proposals till 7. October 2014; the guidelines are expected to be applied by January 2016 taking into account the results of the public consultation. The EBA follows a holistic approach to SREP as it is built around the assessment of key indicators, business model, governance, the capital adequacy and liquidity risks. A new key feature in this context is for the individual supervisor to draw its own quantitative picture of the capital and liquidity risk profile of an institution. It is also worth noting, that the EBA guideline is very specific; e.g. the indicators and sources supervisors should use to identify material deteriorations in the risk profile and supporting SREP framework are specified in detail. The elements of the SREP framework are individually assessed and scored and summed to a final overall SREP score. This final overall score is not the simple arithmetic mean of the individual scores, rather the supervisor has the option to deviate and reflect its findings from the previous 12 months here. Content Executive summary Page 1 The SREP approach Page 2 Assessment with respect to the ECB supervisory role Page 4 Implications for your institution Page 4 The implementation of this guideline is severely dependent on the behaviour of the EZB. It already appears certain that the EZB will develop its own SREP approach which will not only be binding for all directly supervised banks, but also for all indirectly supervised banks in accordance with the principle of proportionality. As EBA and ECB both are institutions with a European background and are closely collaborating on the development of such regulatory texts, we assume that the EBA draft SREP guideline gives a good indication of the ECB SREP. We are expecting significant fundamental changes in the SREP from what financial institutions are currently used to, so even though such methodical changes are only broadly defined yet, we especially recommend to banks directly supervised by EZB to prepare for these upcoming changes.
2 Newsletter SREP-Leitlinie der EBA / Financial Services / Juli The SREP approach The EBA follows a holistic approach in the draft guideline. The prescribed SREP assessments, both in individual risk categories as well as on an overarching level, results in a graded scoring of an institution which ties back to the ongoing supervision on Pillar 2 supervision as addressed in Art and 87 CRD IV, and addressed in Directive 2013/36/EU (CRR), with the determination of whether an institution is 'failing or likely to fail', as addressed in Directive 2014/59/EU (BRRD Bank Recovery and Resolution Directive). In addition to the holistic approach, it needs to be particularly highlighted that the supervisors are supposed to give a quantitative estimate of the capital adequacy and liquidity risks of a financial institution; an approach that has not previously been part of all national review and evaluation processes. The following chart shows an overview of the SREP elements proposed by EBA. Categorisation of Institutions Monitoring of key indicators Business Model Analysis Assessment of internal governance and institution-wide control Assessment of risks to capital (assessment of inherent risks and control; own funds requirement and Stress Testing; capital adequacy assessment) Assessment of risks to liquidity and funding (assessment of inherent risks and control; own funds requirement and Stress Testing; capital adequacy assessment) Overall SREP assessment Supervisory measures (quantitative: capital & liquidity; other measures) Early Intervention Measures Source: EBA/CP/2014/14 The EBA proposes a categorisation of institutions into four distinct categories in line with the concept of proportionality depending on size, structure, internal governance and business model of the institution. The classification includes global systemically relevant banks, local systemically relevant banks and small non-systemically relevant banks. For instance, EBA proposes to complete the SREP on a yearly basis at global systemically relevant banks, bi-yearly at local systemically relevant banks and only every three years at small non-systemically relevant banks. The SREP framework requires quarterly monitoring of key financial and nonfinancial indicators for all financial institutions. The supervisors are supposed to develop control processes to identify unusual changes as well as specify thresholds for the key indicators (comparison to the peer group etc.) The indicators serve as both, the input for the assessment of the capital and liquidity resources to cover these risks and the business model analysis. The proposed
3 Newsletter SREP-Leitlinie der EBA / Financial Services / Juli indicators cover all of the regulatory Pillar 1 and Pillar 2 ratios (all ratios from external reporting, reorganisation and winding-up of credit institutions, etc.) as well as market indicators (share price, CDS-Spreads, etc.). The centre of the SREP focuses on the following four analyses that result in the overall SREP assessment. For each individual analysis, EBA suggests a numerical scoring between the values 1 (best result) and 4 (worst result). The final overall SREP result is not the simple arithmetic mean of the four individual scores; rather, the supervisors have some leeway in the evaluation process and weight assignments. The business model analysis supports the other elements of the SREP. Focus are the business and strategic risks and is used to evaluate the sustainability and risk bearing ability of an institution. Therefore, EBA proposes that supervisors should not only focus on current business models, but also evaluate the forwardlooking strategy and financial planning of the financial institution to identify shortcomings. For this purpose, supervisors should use a number of institution specific internal sources (strategic plan, reorganisation and winding-up concept, external and internal reporting) as well as external sources (financial stability reports, rating reports). The assessment of the governance and control arrangements should encompass the entire internal governance framework and institution-wide control arrangements of a financial institution; this includes the corporate and risk culture as well as the risk management framework, including ICAAP (Internal Capital Adequacy Assessment Process) and the new ILAAP (Internal Liquidity Adequacy Assessment Process), remuneration policies and practices, and the recovery planning arrangements. The overall assessment of the internal governance and institution-wide controls should enable the supervisors to verify whether these measurements are adequate to the risk profile, business model, size and complexity of the financial institution, and to what degree the institution adheres to the requirements and standards of good internal governance and risk controls arrangements. In the assessment of the risks to capital, EBA identifies credit and counterparty risk, market risk, operational risk, and interest rate risk from non-trading activities (IRRBB). While evaluating the risks that have been identified as material for the financial institution, competent authorities should also evaluate the corresponding risk management and control processes; hereby using a broad basis of information such as standard and ad-hoc reporting, internal risk reports, risks identified in the institution s ICAAP, communications to investors, rating agencies etc. The subsequent SREP capital assessment not only consists of the assessment weather the own funds held by the institution ensure a sound coverage of risks to capital to which the institution is or might be exposed (e.g. impact on own funds from model risks or from control, governance or other deficiencies), but also of the risks from excessive leverage and an assessment whether the capitalization is adequate given the economic cycle. Lastly, the liquidity and funding risk requires its own quantitative assessment from the local supervisor. There are two main components in the liquidity and funding risk that need to be evaluated; first, the assessment whether the current liquidity buffer can cover intra-day, short- and medium-term outflows in a normal and a stress scenario (including an evaluation of the LCR implementation) and second, an assessment of the medium- and long-term funding risk via analysis of the institution s funding profile as well as the evaluation of risks to the stability of the funding profile. EBA also requires competent authorities to take into account possible concentration risks, expected changes in the funding risk based on the institution s funding plan, and finally, an assessment of the funding market available to the institution. As was the case in the capital assessment, the SREP liquidity assessment is the basis for the competent authority to take measures
4 Newsletter SREP-Leitlinie der EBA / Financial Services / Juli (e.g. higher LCR requirement, longer time horizon for inflows to exceed outflows, differing composition of liquidity buffer, etc.) The prudential assessment criteria shown in SREP are only broadly defined and include, in addition to the core measures (liquidity and capital requirements) further requirements in the risk management processes, adjustments to the business model and even so called early intervention measures (this early intervention is part of the BRRD and covers the transition between solvent and insolvent institutions). The SREP could also result in a financial institution being identified as failing or likely to fail, an assessment that would result in further procedures in the scope of the BRRD (reorganisation and winding-up of credit institution). The SREP does not intend to be exhaustive and gives leeway to competent authorities to take into account other additional criteria that may be deemed relevant according to their experience and the specificities of the institution. Assessment with respect to the ECB supervisory role One could argue that the guideline currently is in draft status only and hence will be subject to future revisions and that the national implementations will add another level of uncertainty suggesting to wait for finalization before any relevant actions from the financial industry. In this context we would like highlight the fact that the ECB will take on the supervisory responsibility from November of this year onwards. Already as of today it is known that the ECB is developing an own approach to SREP, which will be application right away to those institutes directly supervised by the ECB. It also will by the principle of proportionality also to apply to those banks only indirectly supervised by the ECB. As EBA and ECB both are institutions with a European background and are closely collaborating on the development of such regulatory texts, we assume that the EBA draft SREP guideline gives a good indication of the ECB SREP. Implications for your Institution The EBA draft guideline indicates fundamental changes to the SREP and to the methods banks need to employ for quantification of their economic capital adequacy as well as their liquidity risks. As the future methods are yet to be defined in more detail during national implementation, we would currently not propose to perform premature changes to internal methods and approaches. Nonetheless we strongly advise banks, especially those to be in the future directly supervised by the ECB, to start preparing for the imminent change process. At least the following steps should be addressed: Establish a Single Point of Contact for the SREP process: the national supervisor or the ECB will employ the SREP process in order to achieve a holistic view on an institution which covers the business model, the risk bearing capacity, the funding situation and last but not least the status of recovery planning. In the supervised bank responsibility for those elements typically is distributed across various organizational units. We propose to decide in a timely manner on a central unit to manage the SREP process both from a process and content perspective in a role of a Single Point of Contact in order to prevent frictions, inefficiencies and inconsistencies. Analyse readiness for the new SREP process: the future SREP process comprises new and also quantitative analyses by the regulators. Especially in the review of the internal approaches (ICAAP and ILAAP) we expect a strong standardization, e.g. by in a clear definition of risk types as well as comparisons and reconciliations against Pillar 1 figures and top-down models produced by the regulators. A consolidation of data sources and definitions between the Pillar 1 and Pillar 2 approaches will be necessary in order to support the standardization. We expect that the ECB will employ the new
5 Newsletter SREP-Leitlinie der EBA / Financial Services / Juli process at least partially already in 2015 and recommend to identify potential impediments and gaps which might reduce the ability of an institution to optimally support the SREP process. Here we would like to stress that this ability will also enter the score a bank will attain with respect to quality of governance and control. Impact analysis on capital needs: some of the emerging methodological changes directly impact the economic capital adequacy. We do expect that the risk bearing capacity also in Pillar 2 will focus on the equity components prescribed by Pillar 1. Additionally Pillar 1 capital needs per risk category will form a floor for the respective economic capital needs while diversification effects will in future be at least to a large extent - disregarded. We recommend to start to perform recurring impact analyses on the resulting changes in capital needs in order to identify potential gaps in the capitalization as soon as possible. Identify requirements to enhance internal management processes: the future SREP process will lead to fundamental changes both in the analysis of the capital adequacy as well as in liquidity risk management. This comprises a continuous monitoring and active management of the key indicators as defined by the regulators. This fact in turn will need to be reflected in the business and risk strategies and might impact certain business models. We recommend to analyse the current portfolio of business plans and projects with regard to compatibility with the future SREP process in order to prevent misguided investments.
6 Newsletter SREP-Leitlinie der EBA / Financial Services / Juli Contact KPMG AG Wirtschaftsprüfungsgesellschaft THE SQUAIRE Am Flughafen Frankfurt am Main Ulrich Pukropski Partner, Head of Financial Services T upukropski@kpmg.com Dr. Matthias Mayer T matthiasmayer@kpmg.com Daniel Quinten T dquinten@kpmg.com Dr. Heiko Carstens T hcarstens@kpmg.com Dr. Holger Spielberg T hspielberg@kpmg.com Marc Schäfer T mschaefer@kpmg.com Die enthaltenen Informationen sind allgemeiner Natur und nicht auf die spezielle Situation einer Einzelperson oder einer juristischen Person ausgerichtet. Obwohl wir uns bemühen, zuverlässige und aktuelle Informationen zu liefern, können wir nicht garantieren, dass diese Informationen so zutreffend sind wie zum Zeitpunkt ihres Eingangs oder dass sie auch in Zukunft so zutreffend sein werden. Niemand sollte aufgrund dieser Informationen handeln ohne geeigneten fachlichen Rat und ohne gründliche Analyse der betreffenden Situation KPMG AG Wirtschaftsprüfungsgesellschaft, eine Konzerngesellschaft der KPMG Europe LLP und Mitglied des KPMG-Netzwerks unabhängiger Mitgliedsfirmen, die KPMG International Cooperative ( KPMG International ), einer juristischen Person schweizerischen Rechts, angeschlossen sind. Alle Rechte vorbehalten. Der Name KPMG, das Logo und cutting through complexity sind eingetragene Markenzeichen von KPMG International Cooperative.
The Internal Capital Adequacy Assessment Process (ICAAP) and the Supervisory Review and Evaluation Process (SREP)
Supervisory Statement SS5/13 The Internal Capital Adequacy Assessment Process (ICAAP) and the Supervisory Review and Evaluation Process (SREP) December 2013 Prudential Regulation Authority 20 Moorgate
More informationAccomplishment of the EBA Colleges Action Plan for 2014 and establishment of the EBA Colleges Action Plan for 2015
Accomplishment of the EBA Colleges Action Plan for 2014 and establishment of the EBA Colleges Action Plan for 2015 Assessment of the Colleges Action Plan for 2014 Promoting and monitoring colleges in 2014
More informationICAAP Report Q2 2015
ICAAP Report Q2 2015 Contents 1. INTRODUCTION... 3 1.1 THE THREE PILLARS FROM THE BASEL COMMITTEE... 3 1.2 BOARD OF MANAGEMENT APPROVAL OF THE ICAAP Q2 2015... 3 1.3 CAPITAL CALCULATION... 3 1.1.1 Use
More informationPART B INTERNAL CAPITAL ADEQUACY ASSESSMENT PROCESS (ICAAP)
Framework (Basel II) Internal Capital Adequacy Assessment PART A OVERVIEW...2 1. Introduction...2 2. Applicability...3 3. Legal Provision...3 4. Effective Date of Implementation...3 5. Level of Application...3
More informationFinal Draft Guidelines
EBA/GL/2015/05 20 May 2015 Final Draft Guidelines on the determination of when the liquidation of assets or liabilities under normal insolvency proceedings could have an adverse effect on one or more financial
More informationThe PRA s approach to supervising liquidity and funding risks
Supervisory Statement SS24/15 The PRA s approach to supervising liquidity and funding risks June 2015 Prudential Regulation Authority 20 Moorgate London EC2R 6DA Prudential Regulation Authority, registered
More informationComprehensive Assessment Q&A. 22 October 2014
Comprehensive Assessment Q&A 22 October 2014 This document has been prepared to assist the ECB media team with queries on the comprehensive assessment. SSM in Numbers Description Number Number of banks
More informationDNB Liquidity Pillar 2 Supervision. Seminar Das neue SREP Konzept der Aufsicht Clemens Bonner (c.bonner@dnb.nl)
DNB Liquidity Pillar 2 Supervision Seminar Das neue SREP Konzept der Aufsicht Clemens Bonner (c.bonner@dnb.nl) Legal framework Act on Financial Supervision (Wft) Decree on Prudential Rules pursuant to
More informationBefore turning to detailed remarks on the questions for consultation, we would like to draw EBA s attention to our key issues and concerns.
Frankfurt am Main 16 August 2013 BVI s position on the Draft Regulatory Technical Standards on the determination of the overall exposure to a client or a group of connected clients in respect of transactions
More informationDecision on recovery plans of credit institutions. Subject matter Article 1
Pursuant to Article 101, paragraph (2), item (8) and Article 154, paragraph (2) of the Credit Institutions Act (Official Gazette 159/2013) and Article 43, paragraph (2), item (9) of the Act on the Croatian
More informationConsultation Paper CP37/15 The implementation of ring-fencing: prudential requirements, intragroup arrangements and use of financial market
Consultation Paper CP37/15 The implementation of ring-fencing: prudential requirements, intragroup arrangements and use of financial market infrastructures October 2015 Prudential Regulation Authority
More informationEUROPEAN CENTRAL BANK
19.2.2013 Official Journal of the European Union C 47/1 III (Preparatory acts) EUROPEAN CENTRAL BANK OPINION OF THE EUROPEAN CENTRAL BANK of 24 May 2012 on a draft Commission delegated regulation supplementing
More informationFinal Draft Guidelines
EBA/GL/2015/04 20 May 2015 Final Draft Guidelines on factual circumstances amounting to a material threat to financial stability and on the elements related to the effectiveness of the sale of business
More informationYEARENDED31DECEMBER2013 RISKMANAGEMENTDISCLOSURES
RISKMANAGEMENTDISCLOSURES 2015 YEARENDED31DECEMBER2013 ACCORDINGTOCHAPTER7(PAR.34-38)OFPARTCANDANNEXXIOFTHECYPRUSSECURITIES ANDEXCHANGECOMMISSIONDIRECTIVEDI144-2007-05FORTHECAPITALREQUIREMENTSOF INVESTMENTFIRMS
More informationREPORT ON INVESTMENT FIRMS
RESPONSE TO THE COMMISSION S CALL FOR ADVICE OF DECEMBER 2014 EBA/Op/2015/20 Contents List of Tables 3 Abbreviations 4 Executive Summary 5 1. Introduction 9 1.1 Evolution of investment firms prudential
More informationConsultation Paper. Draft regulatory technical standards
EBA/CP/2013/39 22.10.2013 Consultation Paper Draft regulatory technical standards On derogations for currencies with constraints on the availability of liquid assets under Article 419(5) of Regulation
More informationPossible impact of the CRR and CRD IV on bank financing of the economy
7 October 2015 To: The European Commission Possible impact of the CRR and CRD IV on bank financing of the economy The Danish Bankers Association, the Danish Mortgage Banks' Federation and the Association
More informationMeasurement of Banks Exposure to Interest Rate Risk and Principles for the Management of Interest Rate Risk respectively.
INTEREST RATE RISK IN THE BANKING BOOK Over the past decade the Basel Committee on Banking Supervision (the Basel Committee) has released a number of consultative documents discussing the management and
More informationICAAP Required Capital Assessment, Quantification & Allocation. Anand Borawake, VP, Risk Management, TD Bank anand.borawake@td.com
ICAAP Required Capital Assessment, Quantification & Allocation Anand Borawake, VP, Risk Management, TD Bank anand.borawake@td.com Table of Contents Key Takeaways - Value Add from the ICAAP The 3 Pillars
More informationHigh level principles for risk management
16 February 2010 High level principles for risk management Background and introduction 1. In their declaration of 15 November 2008, the G-20 leaders stated that regulators should develop enhanced guidance
More informationEBA-GL-2015-02. 23 July 2015. Guidelines. on the minimum list of qualitative and quantitative recovery plan indicators
EBA-GL-2015-02 23 July 2015 Guidelines on the minimum list of qualitative and quantitative recovery plan indicators Contents EBA Guidelines on the minimum list of qualitative and quantitative recovery
More informationImpact analysis of stress tests in the financial system
Impact analysis of stress tests in the financial system Financial Institutions www.managementsolutions.com Design and Layout Marketing and Communication Department Management Solutions - Spain Photographs
More informationthe actions of the party who is insured. These actions cannot be fully observed or verified by the insurance (hidden action).
Moral Hazard Definition: Moral hazard is a situation in which one agent decides on how much risk to take, while another agent bears (parts of) the negative consequences of risky choices. Typical case:
More informationSaxo Capital Markets CY Limited
Saxo Capital Markets CY Limited DISCLOSURES IN ACCORDANCE WITH THE REGULATION FOR THE CAPITAL REQUIREMENTS OF INVESTMENT FIRMS FOR THE YEAR ENDED 31 DECEMBER 2014 MAY 2015 CONTENTS 1. GENERAL INFORMATION
More informationDiscussion paper on the impact on the volatility of own funds of the revised IAS 19
POSITION PAPER Our reference: 2014/00028 Your reference: EBA/DP/2014/01 1 (10) 11/04/2014 European Banking Authority Discussion paper on the impact on the volatility of own funds of the revised IAS 19
More informationSupervisory Statement SS18/13. Recovery planning. December 2013. (Last updated 16 January 2015)
Supervisory Statement SS18/13 Recovery planning December 2013 (Last updated 16 January 2015) Prudential Regulation Authority 20 Moorgate London EC2R 6DA Prudential Regulation Authority, registered office:
More informationDiese Liste wird präsentiert von. Netheweb.de
Diese Liste wird präsentiert von Netheweb.de Die Liste enthält 1000 Do-Follow Blogs, die zum Linkbuilding genutzt werden können, es kann sein, dass verkürzte URL s nicht korrekt weiter geleitet werden.
More informationChina International Capital Corporation (UK) Limited Pillar 3 Disclosure
1. Overview Pillar 3 Disclosure March 2014 China International Capital Corporation (UK) Limited Pillar 3 Disclosure The European Union s Capital Requirements Directive ( CRD ) came into effect on 1 January
More informationNEWSLETTER UPCOMING EBA PUBLICATIONS (MARCH MAY 2016)
STRENGTHENING THE EU BANKING SECTOR MARCH-2016 NEWSLETTER RECOMMENDED SIZE Height = 60 mm tagline EBA PRESS UPCOMING EBA PUBLICATIONS (MARCH MAY 2016) Please note that all products listed in the table
More informationConsultation Paper. Draft Regulatory Technical Standards on the content of resolution plans and the assessment of resolvability EBA/CP/2014/16
EBA/CP/2014/16 9 July 2014 Consultation Paper Draft Regulatory Technical Standards on the content of resolution plans and the assessment of resolvability Contents 1. Responding to this Consultation 3 2.
More informationEBA final draft Regulatory Technical Standards
EBA/RTS/2014/11 18 July 2014 EBA final draft Regulatory Technical Standards on the content of recovery plans under Article 5(10) of Directive 2014/59/EU establishing a framework for the recovery and resolution
More informationGuidelines. on the data collection exercise regarding high earners EBA/GL/2014/07. 16 July 2014
EBA/GL/2014/07 16 July 2014 Guidelines on the data collection exercise regarding high earners Contents 1. Executive summary 3 2. Background and rationale 4 3. EBA Guidelines on the data collection exercise
More informationInsurance Guidance Note No. 14 System of Governance - Insurance Transition to Governance Requirements established under the Solvency II Directive
Insurance Guidance Note No. 14 Transition to Governance Requirements established under the Solvency II Directive Date of Paper : 31 December 2013 Version Number : V1.00 Table of Contents General governance
More informationESRB response to the EBA Consultation Paper on Draft Implementing Technical Standards on supervisory reporting requirements for institutions (CP 50)
27.2.2012 ESRB response to the EBA Consultation Paper on Draft Implementing Technical Standards on supervisory reporting requirements for institutions (CP 50) Introduction The European Systemic Risk Board
More informationExplanatory Note 2014 on the Establishment of Recovery Plans
Explanatory Note 2014 on the Establishment of Recovery Plans Explanatory Note 2014 on the Establishment of Recovery Plans Background The Explanatory Note for drafting a bank recovery plan (including the
More informationGuidance on the management of interest rate risk arising from nontrading
Guidance on the management of interest rate risk arising from nontrading activities Introduction 1. These Guidelines refer to the application of the Supervisory Review Process under Pillar 2 to a structured
More informationRegional workshop BCCL-METAC Operational functioning of supervisory Colleges BEYROUTH, April 25 th, 2012
Regional workshop BCCL-METAC Operational functioning of supervisory Colleges BEYROUTH, April 25 th, 2012 INTRODUCTION SUPERVISORY COLLEGES ARE A FUNDAMENTAL TOOL OF COOPERATION : At the light of the crisis,
More informationFinal Draft Guidelines
EBA/GL/2015/06 20 May 2015 Final Draft Guidelines on the minimum list of services or facilities that are necessary to enable a recipient to operate a business transferred to it under Article 65(5) of Directive
More informationCore Principles for Effective Banking Supervision: New Edition Released
News Bulletin September 17, 2012 Core Principles for Effective Banking Supervision: New Edition Released Last Friday, September 14, 2012, the Basel Committee on Banking Supervision published a new set
More informationCRD IV CRR / Basel III monitoring exercise
CRD IV CRR/BASEL III MONITORING EXERCISE 3 March 2015 CRD IV CRR / Basel III monitoring exercise Results based on data as of 30 June 2014 CRD IV CRR/BASEL III MONITORING EXERCISE Contents List of figures
More informationSTRESS TESTING GUIDELINE
STRESS TESTING GUIDELINE JUIN 2012 Table of Contents Preamble... 2 Introduction... 3 Scope... 5 Coming into effect and updating... 6 1. Stress testing... 7 A. Concept... 7 B. Approaches underlying stress
More informationConsultation on a proposed Statement of Policy
December 2015 The Bank of England s approach to setting a minimum requirement for own funds and eligible liabilities (MREL) Consultation on a proposed Statement of Policy December 2015 The Bank of England
More informationBVI s position on the Consultative Document of the Basel Committee on Banking Supervision: Capital requirements for banks equity investments in funds
Frankfurt am Main, 4 October 2014 BVI s position on the Consultative Document of the Basel Committee on Banking Supervision: Capital requirements for banks equity investments in funds BVI 1 gladly takes
More informationCertificate SAP INTEGRATION CERTIFICATION
Certificate SAP INTEGRATION CERTIFICATION SAP SE hereby confirms that the interface software MCC SR2015 for the product MCC SR2015 of the MEIERHOFER AG. has been certified for integration with SAP ECC
More informationEuropean Stability Mechanism Draft Guideline on Financial Assistance for the Direct Recapitalisation of Institutions
European Stability Mechanism Draft Guideline on Financial Assistance for the Direct Recapitalisation of Institutions Article 1 Scope 1. The Board of Governors of the ESM may decide to grant financial assistance
More informationEIB Group Risk Management Charter
EIB Group Risk Management Charter 16 th July 2015 EIB Group Risk Management Charter A. Definitions Core definitions are outlined in this section. These definitions shall establish a common language for
More informationThe recent Asset quality review on non-performing loans conducted by the Bank of Italy: Main features and results
The recent Asset quality review on non-performing loans conducted by the Bank of Italy: Main features and results 1. Introduction In the last few years the Italian economy has been under considerable strain.
More informationComments 1. EBA Discussion Paper and Call for Evidence on SMEs and the SME Supporting Factor
Comments 1 EBA Discussion Paper and Call for Evidence on SMEs and the SME Supporting Factor Register of Interest Representatives Identification number in the register: 52646912360-95 Contact: Michael Engelhard
More informationEBA Work Programme 2015
30 September 2014 EBA Work Programme 2015 1. In accordance with Regulation (EU) No 1093/2010 1 of the European Parliament and of the Council of 24 November 2010 establishing the European Banking Authority
More informationLiquidity: A bigger challenge than capital
FINANCIAL SERVICES Liquidity: A bigger challenge than capital May 2012 kpmg.com 2 LIQUIDITY: A BIGGER CHALLENGE THAN CAPITAL Liquidity: A bigger challenge than capital The Basel Committee on Banking Supervision
More informationImpact assessment of the new liquidity rules on Luxembourg banks
Impact assessment of the new liquidity rules on Luxembourg Abstract of the presentation held at the ABBL conference Basel III New Liquidity Rules: Which Impacts for Luxembourg? 1 Context A local Quantitative
More informationCapital Requirements Directive Pillar 3 Disclosure. December 2015
Capital Requirements Directive Pillar 3 Disclosure December 2015 1. Background The purpose of this document is to outline the Pillar 3 disclosures for BlueBay Asset Management LLP ( BlueBay ). BlueBay
More informationEBA FINAL draft implementing technical standards
EBA/ITS/2013/11/rev1 24/07/2014 EBA FINAL draft implementing technical standards on additional liquidity monitoring metrics under Article 415(3)(b) of Regulation (EU) No 575/2013 EBA FINAL draft implementing
More informationRecovery planning. Comparative report on the approach taken on recovery plan scenarios. 8 December 2015. EBA Report
8 December 2015 EBA Report Recovery planning Comparative report on the approach taken on recovery plan scenarios Contents Executive summary 3 Introduction 4 1. Approach 5 2. Recovery scenarios: Analysis
More informationJupiter Asset Management Ltd Pillar 3 Disclosures as at 31 December 2014
Jupiter Asset Management Ltd Pillar 3 Disclosures CONTENTS Overview 2 Risk management framework 3 Own funds 7 Capital requirements 8 Credit risk 9 Interest rate risk in non-trading book 11 Non-trading
More informationGuidelines on operational functioning of colleges
EIOPA-BoS-14/146 EN Guidelines on operational functioning of colleges EIOPA Westhafen Tower, Westhafenplatz 1-60327 Frankfurt Germany - Tel. + 49 69-951119-20; Fax. + 49 69-951119-19; email: info@eiopa.europa.eu
More informationThe Impact of Bank Capital Regulation on Financing the Economy
IW policy paper 27/2015 Contributions to the political debate by the Cologne Institute for Economic Research The Impact of Bank Capital Regulation on Financing the Economy Comments on the Public Consultation
More informationThe EBA s competence to deliver an opinion is based on the sixth subparagraph of Article 10(1) of Regulation (EU) No 1093/2010 2.
OPINION ON RTS ADDITIONAL COLLATERAL OUTFLOWS EBA/Op/2016/08 03/05/2016 Opinion of the European Banking Authority on the Commission s intention not to endorse the draft Regulatory Technical Standards on
More informationSolvency II. Solvency II implemented on 1 January 2016. Why replace Solvency I? To which insurance companies does the new framework apply?
Solvency II A new framework for prudential supervision of insurance companies 1 Solvency II implemented on 1 January 2016. 1 January 2016 marks the introduction of Solvency II, a new framework for the
More informationGL ON THE MINIMUM LIST OF SERVICES AND FACILITIES EBA/GL/2015/06 06.08.2015. Guidelines
EBA/GL/2015/06 06.08.2015 Guidelines on the minimum list of services or facilities that are necessary to enable a recipient to operate a business transferred to it under Article 65(5) of Directive 2014/59/EU
More informationLiquidity Coverage Ratio
Liquidity Coverage Ratio Aims to ensure banks maintain adequate levels of unencumbered high quality assets (numerator) against net cash outflows (denominator) over a 30 day significant stress period. High
More informationApproach to Regulating and Supervising Financial Groups
and Supervising Financial Issued on 21 May 2014 Page 2/26 PART A Overview... 3 1. Introduction... 3 2. Broad approach... 4 3. Scope of application... 7 PART B Prudential Framework for Financial... 16 4.
More informationCONSULTATION PAPER P016-2006 October 2006. Proposed Regulatory Framework on Mortgage Insurance Business
CONSULTATION PAPER P016-2006 October 2006 Proposed Regulatory Framework on Mortgage Insurance Business PREFACE 1 Mortgage insurance protects residential mortgage lenders against losses on mortgage loans
More information1. This Prudential Standard is made under paragraph 230A(1)(a) of the Life Insurance Act 1995 (the Act).
Prudential Standard LPS 110 Capital Adequacy Objective and key requirements of this Prudential Standard This Prudential Standard requires a life company to maintain adequate capital against the risks associated
More informationCP FOR DRAFT RTS ON RWS/LGDS ARTICLES 124 AND 164 CRR EBA/CP/2015/12. 6 July 2015. Consultation Paper
EBA/CP/2015/12 6 July 2015 Consultation Paper Draft Regulatory Technical Standards on the conditions that competent authorities shall take into account when determining higher risk-weights, in particular
More informationCapital Requirements Directive IV Framework Introduction to Regulatory Capital and Liquidity. Allen & Overy Client Briefing Paper 1 January 2014
Capital Requirements Directive IV Framework Introduction to Regulatory Capital and Liquidity Allen & Overy Client Briefing Paper 1 January 2014 2 CRD IV Framework: Introduction to Regulatory Capital and
More informationDG FISMA CONSULTATION PAPER ON FURTHER CONSIDERATIONS FOR THE IMPLEMENTATION OF THE NSFR IN THE EU
EUROPEAN COMMISSION Directorate-General for Financial Stability, Financial Services and Capital Markets Union DG FISMA CONSULTATION PAPER ON FURTHER CONSIDERATIONS FOR THE IMPLEMENTATION OF THE NSFR IN
More informationFinancial Stability Report 2015/2016
Financial Stability Report 2015/2016 Press Conference Presentation Miroslav Singer Governor Prague, 14 June 2016 Structure of presentation I. Overall assessment of risks and setting of countercyclical
More informationGuidelines. on capital measures for foreign currency lending to unhedged borrowers under the supervisory review and evaluation process (SREP)
EBA/GL/2013/02 20 December 2013 Guidelines on capital measures for foreign currency lending to unhedged borrowers under the supervisory review and evaluation process (SREP) Guidelines on capital measures
More informationESM Management Comments on Board of Auditors Annual Report to the Board of Governors for the period ended 31 December 2014
ESM Management Comments on Board of Auditors Annual Report to the Board of Governors for the period ended 31 December 2014 Dear Chairperson, I would like to thank you for the opportunity to provide management
More informationPart II Prudential regulatory requirements
List of references to the Basel frameworks The questionnaire is aimed at assessing equivalence with respect to the provisions Capital Requirements Regulations () and the Capital Requirements Directive
More informationZAG BANK BASEL II & III PILLAR 3 DISCLOSURES. December 31, 2014
ZAG BANK BASEL II & III PILLAR 3 DISCLOSURES December 31, 2014 Zag Bank (the Bank ) is required to make certain disclosures to meet the requirements of the Office of the Superintendent of Financial Institutions
More informationCapital Requirements Directive Pillar 3 Disclosure. Western Asset Management Company Limited December 2008
Capital Requirements Directive Pillar 3 Disclosure Western Asset Management Company Limited December 2008 Background Under the 2006 Capital Requirements Directive ( CRD ), a revised regulatory framework
More informationUpgrading Your Skills to MCSA Windows Server 2012 MOC 20417
Upgrading Your Skills to MCSA Windows Server 2012 MOC 20417 In dieser Schulung lernen Sie neue Features und Funktionalitäten in Windows Server 2012 in Bezug auf das Management, die Netzwerkinfrastruktur,
More information11 November 2014 EBA/CP/2014/39. Consultation Paper. Draft Guidelines on the rate of conversion of debt to equity in bail-in
11 November 2014 EBA/CP/2014/39 Consultation Paper Draft Guidelines on the rate of conversion of debt to equity in bail-in 1 Contents 1. Responding to this Consultation 3 2. Executive Summary 4 3. Background
More informationFinal report. Guidelines on the minimum list of qualitative and quantitative recovery plan indicators EBA-GL-2015-02. 6 May 2015
EBA-GL-2015-02 6 May 2015 Final report Guidelines on the minimum list of qualitative and quantitative recovery plan indicators 1 Contents 1. Executive Summary 3 2. Background and rationale 5 3. EBA Guidelines
More informationRaiffeisenlandesbank Oberösterreich Aktiengesellschaft
Fifth Supplement dated 29 October 2014 to the Debt Issuance Programme Prospectus dated 29 November 2013 This document constitutes a supplement (the "Fifth Supplement") for the purposes of Article 13 of
More informationEquita SIM SpA publishes this Public Disclosure on its website www.equitasim.it
PUBLIC DISCLOSURE OF STATUS AS AT 31/12/2012 Introduction The Bank of Italy s Regulation concerning prudential supervision for securities brokerage companies [Italian legal entity acronym = SIM] (Title
More informationCONSULTATION PAPER ON DRAFT ITS AMENDING THE REPORTING REGULATION EBA/CP/2016/02. 04 March 2016. Consultation Paper
EBA/CP/2016/02 04 March 2016 Consultation Paper Draft Implementing Technical Standards amending Commission Implementing Regulation (EU) 680/2014 on supervisory reporting of institutions 1 Contents 1. Responding
More informationGuidance Notices for applications to use the IRBA for calculating minimum capital requirements. Introduction
April 01, 2007 Guidance Notices for applications to use the IRBA for calculating minimum capital requirements Introduction Institutions, groups of institutions and financial holding companies 1 within
More informationBasel 4 Emerging from the mist?
Basel 4 Emerging from the mist 1 Financial ServiceS Basel 4 Emerging from the mist? September 2013 kpmg.com 2 Basel 4 Emerging from the mist Executive Summary Basel 4 Emerging from the mist Even before
More informationProject Cost Reporting for PPM
Project Cost Reporting for PPM A PLM Consulting Solution Public Project Cost Reporting for PPM The Consulting Solution Project Cost Reporting supports project-centric and cross-project evaluations in PPM,
More informationKey matters in examining Liquidity Risk Management at Large Complex Financial Groups
Key matters in examining Liquidity Risk Management at Large Complex Financial Groups (1) Governance of liquidity risk management Senior management of a large complex financial group (hereinafter referred
More informationshareplc: Pillar 3 Disclosures CONTENTS Oxford House Oxford Road Aylesbury Buckinghamshire HP21 8SZ phone 01296 41 41 41 visit www.shareplc.
Pillar 3 Disclosures 3 March 2015 Based on Financial Data as at 31 December 2014 CONTENTS 1.0 Introduction 3 2.0 Risk Appetite 5 3.0 Risk management objectives and processes 6 4.0 Risk categories and exposures
More informationRecovery planning. Comparative report on the approach to determining critical functions and core business lines in recovery plans.
06 March 2015 EBA Report Recovery planning Comparative report on the approach to determining critical functions and core business lines in recovery plans Contents Introduction 3 1. Preliminary considerations
More informationGuidance for the Development of a Models-Based Solvency Framework for Canadian Life Insurance Companies
Guidance for the Development of a Models-Based Solvency Framework for Canadian Life Insurance Companies January 2010 Background The MCCSR Advisory Committee was established to develop proposals for a new
More informationCentre for Technical Central Bank Cooperation International Central Banking Courses 2015
Centre for Technical Central Bank Cooperation International Central Banking Courses 2015 Content Foreword: an application-oriented learning experience...4 Preface by the Management of the Centre for Technical
More informationEBA s Proposed Definition of Shadow Banking poses Risks to the Real Economy
EBA s Proposed Definition of Shadow Banking poses Risks to the Real Economy Non-Financial Companies and their In-House Financial Services Companies Must Not Be Regarded as Shadow Banks by Supervisory Authorities
More informationImplementing a UK leverage ratio framework
A response to the Prudential Regulation Authority s consultation Implementing a UK leverage ratio framework by the British Bankers Association October 2015 Introduction The BBA is pleased to respond to
More informationConsultation Paper CP13/14. Implementing the Bank Recovery and Resolution Directive
Consultation Paper CP13/14 Implementing the Bank Recovery and Resolution Directive July 2014 Prudential Regulation Authority 20 Moorgate London EC2R 6DA Prudential Regulation Authority, registered office:
More informationBank Capital Adequacy under Basel III
Bank Capital Adequacy under Basel III Objectives The overall goal of this two-day workshop is to provide participants with an understanding of how capital is regulated under Basel II and III and appreciate
More informationRecognised Investment Exchanges. Chapter 2. Recognition requirements
Recognised Investment Exchanges Chapter Recognition REC : Recognition Section.3 : Financial resources.3 Financial resources.3.1 UK Schedule to the Recognition Requirements Regulations, Paragraph 1 (1)
More informationFSI-IADI Seminar on Bank Resolution, Crisis Management and Deposit Insurance Issues. Coordination of safety net players: Role of DIA.
FSI-IADI Seminar on Bank Resolution, Crisis Management and Deposit Insurance Issues Coordination of safety net players: Role of DIA Jerzy Pruski IADI President and Chair of the Executive Council President
More informationGuidelines on the Application of the Supervisory Review Process under Pillar 2 (CP03 revised)
25 January 2006 Guidelines on the Application of the Supervisory Review Process under Pillar 2 (CP03 revised) Table of contents Executive Summary...2 Chapter 1: Introduction...4 Chapter 2. Guidance for
More informationCapital Market Services UK Limited Pillar 3 Disclosure
February 2013 Capital Market Services UK Limited Pillar 3 Disclosure Contents 1.0 Overview 2.0 Frequency and location of disclosure 3.0 Verification 4.0 Scope of application 5.1 Risk Management objectives
More informationEBA Guidelines on Internal Governance
EBA Guidelines on Internal Governance Bernd Rummel Policy Expert Regulation, EBA 15 April 2013 Malta 2013 EBA European Banking Authority Contents Guidelines on Internal Governance (GL44) > The Single Rulebook
More informationThe Liquidity Coverage Ratio and Potential Implications for (Small) Business Financing in an Austrian Context Executive Summary (July 2012)
The Liquidity Coverage Ratio and Potential Implications for (Small) Business Financing in an Austrian Context Executive Summary (July 2012) A study by IHS (Bernhard Felderer, Ines Fortin) and LBMS (Luise
More informationTHE INSURANCE BUSINESS (SOLVENCY) RULES 2015
THE INSURANCE BUSINESS (SOLVENCY) RULES 2015 Table of Contents Part 1 Introduction... 2 Part 2 Capital Adequacy... 4 Part 3 MCR... 7 Part 4 PCR... 10 Part 5 - Internal Model... 23 Part 6 Valuation... 34
More informationPillar III Disclosures Calendar Year 2008
21 Lombard Street London EC3V 9AH Tel. +44-20-7901 5000 www.ubs.com (No. 2) Ltd and Subsidiary Undertakings Table of Contents 1. Background... 3 2. Disclosures... 4 2.1 BIPRU 11.5.2 Disclosure: Scope of
More informationPART A: OVERVIEW...1 1. Introduction...1. 2. Applicability...2. 3. Legal Provisions...2. 4. Effective Date...2
PART A: OVERVIEW...1 1. Introduction...1 2. Applicability...2 3. Legal Provisions...2 4. Effective Date...2 PART B: INTERNAL CAPITAL ADEQUACY ASSESSMENT PROCESS...3 5. Overview of ICAAP...3 6. Board and
More information