FSB published a report on the peer review of France. The peer review examined the macro-prudential policy framework and public disclosures of financial sector data in France, focusing on the steps taken by French authorities to implement reforms in these areas. The report also offers recommendations for French authorities to address the certain identified issues.
The peer review finds that, in recent years, significant progress has been made on the macro-prudential policy framework and public disclosures of financial sector; this reflects the initiatives undertaken at both the EU and the national level. Particularly, the July 2013 Banking Reforms Act provided the interagency Haut conseil de stabilité financière (HCSF) with an explicit mandate for financial stability and a broad range of macro-prudential powers. Financial stability mandates were also embedded in the objectives of the Banque de France (BdF), Autorité de Contrôle Prudentiel et de Résolution (ACPR), and the Autorité des marchés financiers (AMF).
Additionally, there have been initiatives to enhance the disclosure requirements for banks, insurers, and other financial institutions; this is supported by guidance, reviews, and assessments from ESAs, national authorities, and active interaction with stakeholders. The HCSF and BdF have expanded their public reporting of conditions and risks to the French financial system, while detailed bank-by-bank data (including for 12 French banks, which account for 91% of the domestic banking sector) is disclosed by EBA. The review concludes that additional work needs to be done on:
Macro-prudential framework. This involves continuing expansion of the scope of macro-prudential policy in the insurance and asset management sectors; enhancing systemic risk assessments and disclosing the data, methodologies, and assumptions underpinning them; and strengthening public communication on financial stability.
Disclosures. This involves adopting EBA guidance to enhance transparency of capital treatment in complex banking groups; establishing a program to review and follow up on reports to be submitted by insurers under the EU’s Solvency II Directive for insurance firms; and considering the publication, on a regular basis, of comparable insurance company information.
Related Link: Peer Review of France (PDF)
Keywords: Europe, France, Banking, Securities, Insurance, Solvency II, Macro-prudential Policy Disclosures, FSB
Previous ArticleBundesbank Updates AnaCredit Reporting Templates in June 2017
EBA finalized the guidelines on treatment of structural foreign-exchange (FX) positions under Article 352(2) of the Capital Requirements Regulation (CRR).
FSB published a statement on the impact of COVID-19 pandemic on global benchmark transition.
IAIS published technical specifications, questionnaires, and templates for 2020 Insurance Capital Standard (ICS) and Aggregation Method data collections.
BIS announced that it will establish new Innovation Hub centers across Europe and in North America in cooperation with member central banks.
FED updated the reporting form for FR 2052a, which is used to monitor the overall liquidity profile of certain supervised institutions.
PRA published a statement that sets out its views on certain amendments made to Capital Requirements Regulations (CRR and CRR2) via EU Regulation 2020/873 (CRR "Quick Fix"), including some guidance for firms.
PRA is proposing (CP5/20) an approach for publication of Solvency II technical information after the end of the transition period for Brexit.
FASB announced that SEC has upgraded the Electronic Data Gathering, Analysis, and Retrieval (EDGAR) system to Release 20.2.
The Climate Financial Risk Forum (CFRF), which is a joint climate risk forum of FCA and PRA, published a guide written by the industry for the industry to help firms approach and address climate-related financial risks.
IAIS published an application paper on liquidity risk management for insurers.