Featured Product

    EC Vice President Speaks on Banking and Capital Markets Unions

    May 17, 2018

    The EC Vice President Valdis Dombrovskis discussed the ongoing work in the areas of Banking Union and Capital Markets Union, while speaking at the Committee on Economic and Monetary Affairs (ECON) of the European Parliament in Brussels. He started with a brief on the recent work done on Banking Union, before moving on to discuss the key dimensions of the Capital Markets Union and the ongoing work toward sustainable finance.

    As per Mr. Dombrovskis, with respect to the Capital Markets Union, out of the 13 legislative proposals tabled so far, ten are still waiting to be adopted by co-legislators. Therefore, there is a need to accelerate the work to get these proposals “past the finish line before the next European elections.” Two months ago, EC presented several more proposals to promote EU-wide products, including a new EU license for crowdfunding platforms, common EU rules for covered bonds, and measures to reduce barriers to the cross-border distribution of investment funds. Next week, EC will supplement this list with a legislative proposal to enable the market-led development of sovereign bond-backed securities, or SBBS. With its Call for Evidence, EC had identified measures to simplify rules and reduce the regulatory burden on companies, also incorporating these into the upcoming legislation. Next week, EC will also propose more proportionate rules for small and medium enterprises (SMEs) to list and issue on SME Growth Markets. SMEs are the backbone of the European economy, so the Capital Markets Union cannot be built without them.

    In the area of sustainable and green finance, EC will present the first batch of the following four proposals next week:

    • First, EC will start the process of designing an EU-wide classification system for sustainable economic activities. This will also help to define criteria for future EU standards and labels for green financial products, such as green bonds or investment funds.
    • Second, it will propose to outline how those who manage investments on behalf of others should disclose how they incorporate sustainability into their procedures.
    • Third, it will propose to create new categories of benchmarks that give investors greater information on a portfolio's carbon footprint.
    • Finally, EC will propose that investment firms and insurance distributors consider the sustainability preferences of each client when giving investment advice.

    He added that the Sustainable Finance Action Plan from March of this year contains six further actions that EC will take between now and the end of this mandate. In particular, EC supports Peter Simon's proposals for a Green Supporting Factor to boost green investments and loans and for better integrating sustainability into the risk management of banks. EC stands ready to provide all necessary support to identify the most prudentially sound way of implementing these proposals, said the EC Vice President.

     

    Related Link: Speech

    Keywords: Europe, EU, Banking, Securities, Capital Markets Union, Banking Union, Proportionality, Sustainable Finance, SBBS, EC

    Related Articles
    News

    APRA Reviews Repayment Deferral Plans, Identifies Best Practices

    APRA has concluded its review of the comprehensive plans of authorized deposit-taking institutions for the assessment and management of loans with repayment deferrals.

    September 22, 2020 WebPage Regulatory News
    News

    ESAs Assess Risks to Financial Sector After COVID-19 Outbreak

    ESAs (EBA, EIOPA, and ESMA) published the first joint report that assesses risks in the financial sector since the outbreak of the COVID-19 pandemic.

    September 22, 2020 WebPage Regulatory News
    News

    BoE Confirms Withdrawal of COVID Corporate Financing Facility

    BoE and HM Treasury confirmed that the COVID Corporate Financing Facility (CCFF) will close for new purchases of commercial paper, with effect from March 23, 2021.

    September 22, 2020 WebPage Regulatory News
    News

    ECB Allows Temporary Relief in Leverage Ratio Amid COVID-19 Pandemic

    ECB published a decision allowing the euro area banks under its direct supervision to exclude certain central bank exposures from the leverage ratio.

    September 21, 2020 WebPage Regulatory News
    News

    ESAs Launch Survey on Templates for Product Disclosures Under SFDR

    ESAs launched a survey seeking feedback on the presentational aspects of product templates under the Sustainable Finance Disclosure Regulation (SFDR or Regulation 2019/2088).

    September 21, 2020 WebPage Regulatory News
    News

    ECB Proposes Integrated Reporting Framework to Reduce Burden for Banks

    ECB published input of the European System of Central Banks (ESCB) into the EBA feasibility report on reducing the reporting burden for banks in EU.

    September 21, 2020 WebPage Regulatory News
    News

    EC Deems UK Framework for CCPs Temporarily Equivalent to EMIR Rules

    EC adopted a decision determining, for a limited period of time, that the regulatory framework applicable to central counterparties, or CCPs, in the UK and Northern Ireland is equivalent to the requirements laid down in the European Market Infrastructure Regulation (EMIR or Regulation 648/2012).

    September 21, 2020 WebPage Regulatory News
    News

    EBA to Phase Out Guidelines on Loan Repayment Moratoria

    EBA has decided to phase out the guidelines on legislative and non-legislative moratoria of loan repayments, in accordance with the earlier specified end of September deadline.

    September 21, 2020 WebPage Regulatory News
    News

    EBA Provides Opinion on Definition of Credit Institution in CRR

    EBA published an Opinion addressed to EC to raise awareness about the opportunity to clarify certain issues related to the definition of credit institution in the upcoming review of the Capital Requirements Directive and Regulation (CRD and CRR).

    September 18, 2020 WebPage Regulatory News
    News

    ECB Finalizes Methodology to Assess CCR and A-CVA Risk of Banks

    ECB finalized the guide on assessment methodology for the internal model method for calculating exposure to counterparty credit risk (CCR) and the advanced method for own funds requirements for credit valuation adjustment (A-CVA) risk.

    September 18, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 5820