Tight new rules for EU conglomerate solvency calculations are official

Following on from an earlier post on conglomerate capital rules, the EU now made the conglomerate rules official. This is EU’s answer to criticism on its watered down implementation of Basel III. But it may never become clear why the EU uses conglomerate rules to compensate for weaknesses in bank rules. It looks like a costly… Read More Tight new rules for EU conglomerate solvency calculations are official

Jay! The CRD IV Technical Standards on Own Funds are out!

The Council of the EU has published a document attaching the text of a European Commission Delegated Regulation of 7 January 2014 supplementing the Capital Requirements Regulation (575/2013) with regard to regulatory technical standards for own funds requirements for institutions (document C(2013) 9763 final). The Regulation will enter into force on the 20th day following its publication in… Read More Jay! The CRD IV Technical Standards on Own Funds are out!

Excellent: EBA publishes final draft technical standards on own funds

Having worked hard and diligently: the European Banking Authority (EBA) published today its final draft Regulatory Technical Standards (RTS) on own funds (=regulatory capital) ‘Part three’, which set out criteria to deduct indirect and synthetic holdings, to define broad market indices, and to calculate minority interest. On deduction of indirect and synthetic holdings: to achieve… Read More Excellent: EBA publishes final draft technical standards on own funds

Brief comment on my post: EBA publishes standards on NPL, etc

Apparently EBA chose a relatively friendly route here, as it offers banks to report NPL and forbearance via FINREP, a reporting tool that is close to financial reporting. Bank also will have to report via COREP, and COREP determines the solvency calculations of banks directly. Here is EBA’s justification for not tampering with the solvency… Read More Brief comment on my post: EBA publishes standards on NPL, etc

Jay! EBA publishes standards on NPL, Forbearance, and AQR

The European Banking Authority (EBA) released today its final technical standards on supervisory reporting on Non-Performing Exposures and Forbearance, which will provide consistent indicators of asset quality of banks across the European Union. The EBA also issued recommendations on asset quality reviews (AQRs) aimed at supporting existing and/or planned reviews across the EU. See link… Read More Jay! EBA publishes standards on NPL, Forbearance, and AQR