ESA’s tough final Regulatory Standards on conglomerate capital are out.

This is complicated material. But … looking at Article 9 of this standard, the bar for recognition of supplementary capital looks high. Even though it applies after the entry into force of Regulation (EU) No 575/2013 (CRR) and only when both CRR and Solvency (2009/138/EC) apply. The requirements are stacked up high! Article 9 says basically this:  a solvency… Read More ESA’s tough final Regulatory Standards on conglomerate capital are out.

Jay! EBA publishes first final draft technical standards on own funds.

The EBA published the first final draft technical standards on own funds. Its actually a bundle that complements CRR IV, the new European regulation on capital. Haven’t had the time to digest fthe final versions, but there are four pieces, according to the EBA website: The RTS on own funds part I specify elements of… Read More Jay! EBA publishes first final draft technical standards on own funds.

What actually is Basel’s contribution to the new IASB impairment model?

Just returning from a talk by Sir David Tweedie. Funny as always and sharp, he discussed a short history on accounting standard setting. He spared few parties, with France taking most of his flak. Perhaps Sir David has a point. Accounting standard setting would be different if France was not involved. But why blame France?… Read More What actually is Basel’s contribution to the new IASB impairment model?

IASB’s stance on AOCI Discussion Paper on the new Conceptual Framework

A large document for sure, and relevant, as accounting is the prime source of capital values. Shaun Drummon of AFR notices the Board’s stance on AOCI: “One of the most controversial has been the liberal use of other comprehensive income (OCI), otherwise known as the reserve, in revisions to accounting rules to park movements in… Read More IASB’s stance on AOCI Discussion Paper on the new Conceptual Framework

Europe’s painful phase-out of old-style capital instruments

Matthew Attwood in Financial News reports on the difficulties that European banks face when replacing pre-crises capital instruments by Basel III compliant instruments. This was a small disaster waiting to happen, as Bazel III rules made it clear, pretty much from the outset, that it wanted to see the back of “old-style” instruments sooner rather than… Read More Europe’s painful phase-out of old-style capital instruments