Featured Product

    EC Issues Report on Financial Stability and Integration in Europe

    May 03, 2018

    EC published a report on the results of the annual European financial stability and integration review. The report analyzes the recent economic and financial developments in the EU, along with their impact on financial stability and integration. The topics discussed in the report relate to a number of key initiatives that span the broader policy areas covered by the Capital Markets Union and the Banking Union.

    The report describes recent developments in the financial sector. It highlights that the restructuring of banks’ balance sheets has brought them closer to a more traditional business model of deposit-taking and lending. Although the resilience of EU banks has improved, profitability remains an important challenge in view of the low-interest environment, tight interest margins, and high provisions for non-performing loans. The report shows that EC’s risk reduction effort is also being reflected on the ground. Banks have increased their capital position and limited their exposure to market risk by reducing bond and derivative portfolios. Moreover, the insurance sector is stronger and the insurance companies in EU have steadily improved their solvency position, as they have adjusted to the new Solvency II regime.

    Next, the report provides a detailed analysis of the following two topics that impact financial stability and integration:

    • Merits of EU capital markets development, with a focus on member states in central, eastern, and south-eastern Europe. The analysis also reveals that member states in central, eastern, and south-eastern Europe are lagging behind other parts of the EU in terms of depth and access to capital markets. This implies that these member states are those with the most potential to reap the benefits of the Capital Markets Union. On the plus side, capital market integration is improving and firms' market-based funding has increased, in line with the objectives of the Capital Markets Union. 
    • Initial coin offerings (ICOs) as a new form of start-up funding. The report that the ICO market would benefit from more transparency, given that this market is still immature and is characterized by information asymmetries, skewed incentives, and a lack of a proper disclosure framework. Moreover, cooperation at the global level will be essential for developing regulation that allows ICOs to retain their global scope and avoid regulatory arbitrage. 

     

    Related Links

    Keywords: Europe, EU, Banking, Securities, Insurance, Financial Stability, Financial Integration, NPLs, Initial Coin Offerings, Capital Markets Union, EC

    Related Articles
    News

    EBA Report on MREL Shows Progress in Resolution Planning

    EBA published the first quantitative report taking stock of the increased capacity of minimum requirements for own funds and eligible liabilities (MREL) in EU.

    February 17, 2020 WebPage Regulatory News
    News

    ESMA Updates Q&A on Credit Rating Agencies Regulation

    ESMA updated questions and answers (Q&A) document on the Credit Rating Agencies (CRA) Regulation.

    February 17, 2020 WebPage Regulatory News
    News

    EC Announces Funding for Sustainable Finance Project in France

    EC announced an investment for the latest projects, including a project on sustainable finance, under the LIFE program for the environment and climate action.

    February 17, 2020 WebPage Regulatory News
    News

    FDIC Releases Economic Scenarios for Stress Testing in 2020

    FDIC released the hypothetical economic scenarios for use in the upcoming stress tests for covered institutions with total consolidated assets of more than USD 250 billion.

    February 14, 2020 WebPage Regulatory News
    News

    EBA Acknowledges EC Adoption of Amended Supervisory Reporting Standard

    EBA acknowledged the adoption, by EC, of an Implementing Act with regard to the common reporting (COREP) and financial reporting (FINREP) changes, in accordance with the Capital Requirements Regulation or CRR.

    February 14, 2020 WebPage Regulatory News
    News

    APRA and ASIC Welcome Proposed Reforms for Superannuation Sector

    APRA and the Australian Securities and Investments Commission (ASIC) have jointly welcomed the proposed legislative reforms increasing the role of ASIC in the superannuation sector.

    February 14, 2020 WebPage Regulatory News
    News

    ESMA Responds to EC Consultation on Review of Benchmarks Regulation

    ESMA published its response to EC consultation on review of the Benchmarks Regulation in EU.

    February 14, 2020 WebPage Regulatory News
    News

    OSFI on Guide and Form for Replicating Portfolio Information Summary

    OSFI revised the instruction guide and form related to filing the Replicating Portfolio Information Summary.

    February 14, 2020 WebPage Regulatory News
    News

    FFIEC Publishes Guide to HMDA Reporting for Data Collected in 2020

    FFIEC issued the 2020 edition of guide to Home Mortgage Disclosure Act (HMDA) reporting for the data collected in 2020 and reported in 2021.

    February 13, 2020 WebPage Regulatory News
    News

    ISDA Guide on Smart Contracts for Equity and Interest Rate Derivatives

    ISDA has published the fourth and fifth installments in a series of legal guidelines for smart derivatives contracts.

    February 13, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 4687