News
PREPARING FOR THE NEXT DECADE OF EUROPEAN BANKING SUPERVISION: RISK-FOCUSED, IMPACTFUL AND LEGALLY SOUND
Speech by Frank Elderson, Member of the Executive Board of the ECB and Vice-Chair of the Supervisory Board of the ECB, at the “10 years SSM and beyond” event organised by Allen & Overy.
ECB PUBLISHES SUPERVISORY BANKING STATISTICS ON SIGNIFICANT INSTITUTIONS FOR THE FIRST QUARTER OF 2024
Aggregate Common Equity Tier 1 ratio at 15.74% in first quarter of 2024. Aggregated annualised return on equity at 9.67% in first quarter of 2024. Aggregate non-performing loans ratio (excluding cash balances) stable at 2.31%. Share of loans showing significant increase in credit risk (stage 2 loans) at 9.50%. The year-to-date amounts presented in the profit and loss tables are now also available as linearly annualised in the ECB Data Portal. Access the full content here.
THE EBA PUBLISHES AMENDMENTS TO COUNTERPARTY CREDIT RISK STANDARDS AS PART OF ITS NEW ROADMAP FOR THE IMPLEMENTATION OF THE BANKING PACKAGE IN THE EU
The European Banking Authority (EBA) published its final draft amending Regulatory Technical Standards (RTS) on the standardised approach for counterparty credit risk (SA-CCR). This regulatory product is part of the new roadmap on the Banking Package.
FINANCIAL STABILITY REPORT – SPRING 2024
One of the main CNB’s publications in the area of financial stability and macroprudential policy is published. The Report is the key document for the Bank Board’s meetings on financial stability issues.
THE EBA UPDATES THE PILLAR 3 DISCLOSURE FRAMEWORK FINALISING THE IMPLEMENTATION OF THE BASEL III PILLAR 3 FRAMEWORK
The European Banking Authority (EBA) published a final draft implementing technical standards (ITS) on public disclosures by institutions that implement the changes in the Pillar 3 disclosure framework introduced by the amending Regulation (EU) 2024/1623 (CRR 3). These ITS will ensure that market participants have sufficient comparable information to assess the risk profiles of institutions and understand compliance with CRR 3 requirements, further promoting market discipline. Read the detailed content here.
FAMILY TIES: TEN YEARS OF MONETARY POLICY AND BANKING SUPERVISION UNDER ONE EUROPEAN ROOF
Dinner speech by Frank Elderson, Member of the Executive Board of the ECB and Vice-Chair of the Supervisory Board of the ECB, at the 2024 Annual ECB Banking Supervision Research Conference.
CENTRAL BANK MONITORING II/2024
Part of the central banks under review, including the ECB, lowered their rates at their recent meetings, while others kept them unchanged. Japan abandoned negative interest rates. A review of the Bank of England’s forecasting process was completed. The Spotlight focuses on comparing the market outlooks for euro area interest rates with the ECB’s communications, in particular on the gap between them at the start of this year. In our Selected Speech, the Governor of the French BdF discusses the current decline in inflation and the question of the level at which interest rates are going to stabilize. Find the latest edition right here.
BASEL III REFORMS: NEW EU RULES TO INCREASE BANKS’ RESILIENCE TO ECONOMIC SHOCKS
The Council today adopted new rules aimed at making banks operating in the EU more resilient to possible economic shocks. The changes aim to increase the resilience of banks, strengthen their supervision and reinforce risk management. In addition they will strengthen supervision and sustainability in the banking sector. For more info click here.
CENTRAL BANK MONITORING I/2024
Most central banks kept their rates unchanged at their recent meetings, while MNB and CNB lowered them. The Fed announced the discontinuation of the liquidity support programme in the banking sector introduced one year ago. Spotlight focuses on Danish monetary policy and the specificities of its approach with currency pegged to the euro and the ERM II membership, while Denmark has negotiated a permanent opt-out from the euro adoption. In our Selected Speech, BoC Governor Tiff Macklem discusses what monetary policy is capable of and what we should not expect from it. Find the latest edition right here.
THE EBA CONSULTS ON AMENDMENTS TO THE OPERATIONAL RISK PILLAR 3 AND SUPERVISORY REPORTING REQUIREMENTS TO IMPLEMENT THE BASEL III REFORMS IN THE EU
The European Banking Authority (EBA) launched a public consultation on two draft Implementing Technical Standards (ITS) amending Pillar 3 disclosures and supervisory reporting requirements for operational risk. These consultations complement two additional consultation papers on Pillar 3 and supervisory reporting published on 14 December 2023, in line with the roadmap for the implementation of the EU Banking Package. The consultations run until 30 April 2024. Read the detailed content here.
MONETARY POLICY DECISIONS
The Governing Council decided to keep the three key ECB interest rates unchanged. The incoming information has broadly confirmed its previous assessment of the medium-term inflation outlook. Aside from an energy-related upward base effect on headline inflation, the declining trend in underlying inflation has continued, and the past interest rate increases keep being transmitted forcefully into financing conditions. Tight financing conditions are dampening demand, and this is helping to push down inflation. For more info click here.