Featured Product

    Sabine Lautenschläger of ECB Speaks on Issues to be Dealt by BCBS

    March 12, 2019

    Sabine Lautenschläger, Member of the Executive Board of ECB and Vice-Chair of the Supervisory Board of ECB, spoke at the at the 20th anniversary conference of FSI. She emphasized the need find the right balance between risk-sensitivity and simplicity of Basel III rules and spoke in favor of having a risk-sensitive capital framework, although restricted by important backstops. She also outlined certain remaining issues that should be dealt with or discussed at BCBS, some of which she mentioned are already part of the 2019 work program of BCBS.

    Ms. Lautenschläger believes that "the basic architecture of Basel III is solid and that it will serve us well for years to come." She agreed with the idea of not coming up with a new framework every three years and instead focusing on implementation while also emphasizing that she does not want to give the impression that she is in favor of less regulation. With respect to the issues to be dealt with at the BCBS, she mentioned that work can be done to improve joint understanding of emerging risks in the banking sector, to exchange information on standards and best practices on new or increasingly relevant topics, and on a minimum convergence of supervisory practices. She also mentioned the following: 

    • First and foremost, BCBS should monitor how the new Basel rules are implemented in national laws and ensure it has a thorough overview of how these are then translated into supervisory practices.
    • The Basel Committee should also foster an intensive exchange of information about the current and emerging risks and vulnerabilities. These discussions should also cover the approaches supervisors could use to analyze, assess, and react to these upcoming risks via Pillar 2 or other instruments. 
    • BCBS could and should be a hub for exchanging supervisory knowledge, tools, and approaches regarding cyber risk.
    • BCBS could be of great help for supervisors regarding operational, legal, and reputational risks in banks, which are linked to conduct risks or anti-money laundering. The same is true for green finance or climate-related risk. Here, too, a structured exchange of information about different tools and methods would help to strengthen supervision globally.

     

    Related Link: Speech

     

    Keywords: International, Europe, EU, Banking, Basel III, Pillar 2, Cyber Risk, Operational Risk, Climate Related Risk, ECB, BCBS, BIS

    Featured Experts
    Related Articles
    News

    EBA Issues Erratum for Phase 2 Package of Reporting Framework 3.0

    EBA published an erratum for the technical package on phase 2 of the reporting framework 3.0.

    April 08, 2021 WebPage Regulatory News
    News

    EBA Updates Lists of Entities for Use in Capital Calculations under SA

    EBA published an erratum for the technical package on phase 2 of the reporting framework 3.0.

    April 08, 2021 WebPage Regulatory News
    News

    MAS Amends Notice on Related Party Transactions of Banks

    MAS amended Notice 643A that addresses requirements for banks to prepare statements of exposures and credit facilities to related concerns or parties.

    April 08, 2021 WebPage Regulatory News
    News

    ECB Amends Guideline on Euro Short-Term Rate

    ECB has published, in the Official Journal of the European Union, the Guideline 2021/565 on the euro short-term rate (€STR) and this guideline amends the previous ECB Guideline 2019/1265.

    April 07, 2021 WebPage Regulatory News
    News

    EBA Consults on Standards Related to FRTB-SA

    EBA launched a consultation on the draft regulatory technical standards on the list of countries with an advanced economy for calculating the equity risk under the alternative standardized approach (FRTB-SA).

    April 07, 2021 WebPage Regulatory News
    News

    PRA Proposes Rules Related to IRB Approach for Credit Risk

    PRA is proposing, via CP7/21, the approach to implementing new requirements related to the specification of the nature, severity, and duration of an economic downturn in the internal ratings-based (IRB) approach to credit risk.

    April 07, 2021 WebPage Regulatory News
    News

    BoE Outlines Regulatory Treatment of Recovery Loan Scheme of UK

    The UK government launched the Recovery Loan Scheme (RLS) as part of its continued COVID-19 support for UK businesses, as announced by HM Treasury on March 03, 2021.

    April 06, 2021 WebPage Regulatory News
    News

    FSB Addresses G20 on COVID Measures, TBTF Reforms, and Climate Risks

    FSB published a letter, from its Chair Randal K. Quarles, to the G20 Finance Ministers and Central Bank Governors, ahead of their virtual meeting on April 07, 2021.

    April 06, 2021 WebPage Regulatory News
    News

    OSFI Unwinds Temporary Increase to Covered Bond Limit for Banks

    OSFI issued a letter to the deposit-taking institutions issuing covered bonds and announced the unwinding of the temporary increase to the covered bond limit for deposit-taking institutions, effective immediately.

    April 06, 2021 WebPage Regulatory News
    News

    EU Amends CRR and Securitization Regulation in Response to Pandemic

    To support recovery from the COVID-19 crisis, EU has published two regulations to amend the securitization framework, as set out in the Securitization Regulation (2017/2402) and the Capital Requirements Regulation or CRR (575/2013).

    April 06, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 6826