Featured Product

    ECB Publishes Its Annual Report for 2018

    April 01, 2019

    ECB published its annual report for 2018, which discusses the work of ECB in the year under review. The ECB Vice President Luis de Guindos presented this annual report to the Committee on Economic and Monetary Affairs in Brussels. In his remarks, he discussed key issues on the European financial agenda. ECB also published the feedback on the input provided by the European Parliament, as part of its resolution on the ECB Annual Report for 2017.

    Based on the report, the key contributions of ECB included the following:

    • The financial stability environment in 2018. The financial stability environment became more challenging in 2018 and this was reflected in systemic stress indicators. The analysis in 2018 highlighted that some developments supported financial stability, including a continued economic expansion and improved bank resilience. In EU, growing uncertainties related to the Brexit process and stress in the Italian bond markets contributed to higher political and policy uncertainty.
    • Macro-prudential policy function. In response to the risk environment confronting the euro area in 2018, national authorities, in consultation with ECB, implemented a number of macro-prudential measures to mitigate and build up resilience to systemic risks and to ensure that financial services continue to be provided effectively to the real economy. In 2018, ECB continued its extensive efforts in the field of macro-prudential policy, making an important contribution to preserving financial stability. In line with its legal mandate, ECB, in 2018, assessed notifications by the national authorities in the euro area of 103 macro-prudential policy decisions regarding instruments targeting cyclical and structural systemic risks as well as other instruments under Article 458 of the Capital Requirements Regulation (CRR). Most notifications related to the setting of countercyclical capital buffers (CCyBs), or the identification of global and other systemically important institutions (G-SIIs and O-SIIs) and the calibration of their capital buffers
    • Micro-prudential activities to ensure the soundness of individual banks. Throughout 2018, the ECB Banking Supervision continued to contribute to a stable European banking sector and a level playing field for all banks in the euro area. In 2018, ECB Banking Supervision finalized and published a thematic review on profitability and business models. The review found that the situation differs widely across banks. In March 2017 ECB Banking Supervision had published qualitative guidance on how to deal with NPLs. This guidance was supplemented in March 2018 by an addendum, which specifies the expectations for the provisioning of new NPLs. The ECB Banking Supervision continued improving its tools and methods. Following public consultations (launched in March 2018), ECB Banking Supervision published, in November 2018, the final guides for banks on their internal capital and liquidity management (the Internal Capital Adequacy Assessment Process, or ICAAP, and the Internal Liquidity Adequacy Assessment Process, or ILAAP).
    • ECB contribution to strengthening the Banking Union and the Capital Markets Union. In 2018, ECB continued to contribute to the ongoing discussions on completing the Banking Union and the Capital Markets Union. Establishing a common backstop to the Single Resolution Fund and a European Deposit Insurance Scheme will facilitate deeper financial integration and increase credibility of the Banking Union. ECB also contributed to the joint monitoring report on risk reduction, prepared along with EC and SRB, which provided an updated assessment of how risks are evolving within the banking union. ECB, in 2018, highlighted the importance of developing tools to mitigate risks in the non-bank financial sector. For instance, EU legislators should introduce macro-prudential tools designed to address systemic risks related to liquidity mismatches and the use of leverage in investment funds.


    Related Links

    Keywords: Europe, EU, Banking, Annual Report, Micro-Prudential Policy, Macro-Prudential Policy, Financial Stability, Supervisory Activities, Banking Union, ECB

    Related Articles
    News

    BSP Tackles Aspects of Lending and Islamic, Open & Sustainable Finance

    The Central Bank of the Philippines (BSP) issued communications covering developments related to online lending platforms, open finance framework and roadmap, and on the expected regulations in the area sustainable finance.

    January 16, 2022 WebPage Regulatory News
    News

    US Agencies Issue Regulatory Updates, FDIC Launches Tech Sprint

    The Board of Governors of the Federal Reserve System (FED) published the final rule that amends Regulation I to reduce the quarterly reporting burden for member banks by automating the application process for adjusting their subscriptions to the Federal Reserve Bank capital stock, except in the context of mergers.

    January 13, 2022 WebPage Regulatory News
    News

    EBA Issues Guide on Bank Resolvability, Consults on Transferability

    The European Banking Authority (EBA) published its assessment of risks through the quarterly Risk Dashboard and the results of the Autumn edition of the Risk Assessment Questionnaire (RAQ).

    January 13, 2022 WebPage Regulatory News
    News

    MFSA Publishes CRD5 Updates and Supervisory Priorities for 2022

    The Malta Financial Services Authority (MFSA) updated the guidelines on supervisory reporting requirements under the reporting framework 3.0.

    January 13, 2022 WebPage Regulatory News
    News

    HKMA Extends Repayment for Trade Facilities, Consults on Crypto-Assets

    The Hong Kong Monetary Authority (HKMA) published a circular, along with the reporting form and instructions, for self-assessment, by authorized institutions, of compliance with the Code of Banking Practice 2021.

    January 12, 2022 WebPage Regulatory News
    News

    FCA Registers Securitization Repositories; PRA Issues 2022 Priorities

    The Financial Conduct Authority (FCA) decided to register European DataWarehouse Ltd and SecRep Limited as securitization repositories under the UK Securitization Regulation, with effect from January 17, 2022.

    January 12, 2022 WebPage Regulatory News
    News

    EC Regulation Sets Out Methods for Measuring K-Factors Under IFR

    The European Commission (EC) published the Delegated Regulation 2022/25, which supplements the Investment Firms Regulation (IFR or Regulation 2019/2033) with respect to the regulatory technical standards specifying the methods for measuring the K-factors referred to in Article 15 of the IFR.

    January 11, 2022 WebPage Regulatory News
    News

    BIS Studies How Platform Models Impact Financial Stability & Inclusion

    The Bank of International Settlements (BIS) published a paper that assesses the ways in which platform-based business models can affect financial inclusion, competition, financial stability and consumer protection.

    January 10, 2022 WebPage Regulatory News
    News

    CBE Issues Additional Measures to Ease Disruptions from Pandemic

    The Central Bank of Egypt (CBE) published a circular with instructions on emergency liquidity assistance to banks that are unable to meet their liquidity requirements.

    January 10, 2022 WebPage Regulatory News
    News

    ESAs Publish List of Financial Conglomerates for 2021

    The European Supervisory Authorities (ESAs) published the list of identified financial conglomerates for 2021.

    January 07, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 7868