April 26, 2017
APRA released the final revised Prudential Practice Guide on securitization (APG 120), after taking into account the feedback from industry submissions on the consultative draft of the revised APG 120. APRA had received two submissions in response to the consultation of draft revised APG 120 and has also published its response to these comments in its notification letter. APRA responded to issues raised in submissions, with a view to refine the final prudential standard.
April 20, 2017
The Joint Committee of the ESAs (EBA, EIOPA, and ESMA) published its 2017 report on risks and vulnerabilities in the financial system in the EU. The report highlights risks to the stability of the European financial sector in an environment subject to political and economic uncertainties.
April 25, 2017
The Basel Committee issued its twelfth progress report on adoption of the Basel regulatory framework. The report contains adoption status of all Basel III standards (which will become effective by 2019) in each member jurisdiction as of March-end this year. In particular, the report includes the status of adoption of the Basel III risk-based capital standards, the leverage ratio, the liquidity coverage ratio (LCR), the net stable funding ratio (NSFR), the standards for global and domestic systemically important banks (SIBs), Pillar 3 disclosure requirements, the large exposures framework, and interest rate risk in the banking book. The Basel Committee has been publishing these progress reports on a semi-annual basis since October 2011, under the Regulatory Consistency Assessment Program.
The Basel Committee published its two-year work program for 2017-2018, outlining the strategic priorities for its policy, supervision, and implementation activities. The key themes of the work program are finalizing existing policy initiatives, monitoring emerging risks and the impact of post-crisis reforms, promoting strong supervision, and ensuring timely and consistent implementation of the Committee's standards.
The EIOPA Chairman Gabriel Bernardino spoke at the public hearing on the mid-term review of the Capital Markets Union in Brussels. He noted that the Capital Markets Union should deliver better investment opportunities for retail and institutional investors and discussed Pan-European Personal Pension Products (PEPPs) as one of initiatives that can contribute to the success of the Capital Markets Union.
The IAIS newsletter for April 2017 highlights the key activities discussed at the spring national meeting of the National Association of Insurance Commissioners in Denver, Colorado, on April 08, 2017. The key topics include stakeholder engagement, Insurance Capital Standard (ICS), systemic risk workplan, fintech, ICP/ComFrame-related material consultation package, and emerging markets strategies. The newsletter also revealed that the IAIS has released a preliminary program for the Global Seminar to be held in Old Windsor, United Kingdom on June 29, 2017 and June 30, 2017. This event is an opportunity for members and stakeholders to receive updates and exchange views on IAIS activities and initiatives and discuss global insurance trends.
The IFRS Foundation published annual report for the year that ended on December 31, 2016, detailing activities during the year, along with plans of IFRS for 2017 and beyond. The theme of this year’s report is better communication in financial reporting.
April 21, 2017
ESRB published a report on revision of the European Market Infrastructure Regulation (EMIR). This report sets out proposals to further enhance the effectiveness and transparency of the EMIR framework, specifically the clearing obligation and trade reporting. The report also contains proposals on how to enhance the existing procyclicality-limiting tools in EMIR. ESRB highlighted some additional issues that it deems important but for which it is not delivering proposals, considering the targeted approach of the EC.
The Bank of France (Banque de France) published the 21st edition of the Financial Stability Review, which is a compilation of articles by academics, experts, and financial industry leaders. It looks at the challenges to financial stability that have been identified in context of the recent international developments. This edition analyzes the impact of financial reforms, ten years after the global financial crisis. In this context, ESMA discussed market-based finance in Europe in an article that was published in this edition of the Financial Stability Review. ESMA highlighted that market-based finance is expected to grow, driven by a strong potential for demand facilitated by a supportive policy environment and the limited ability of banks to finance the economy.
The Bank of France (Banque de France) published the 21st edition of the Financial Stability Review, which is a compilation of articles by academics, experts, and financial industry leaders. It looks at the challenges to financial stability that have been identified in context of the recent international developments. This edition analyzes the impact of financial reforms, ten years after the global financial crisis. In this context, this edition of the Financial Stability review contains an article by the FSB Chair Mark Carney, which has been also published by FSB. The article highlights that eight years after the creation of the FSB, the fault lines of the crisis have been repaired and that the financial system is now better supervised and regulated.