Featured Product

    ESRB Publishes Risk Dashboard in September 2019

    October 02, 2019

    ESRB released the 29th quarterly risk dashboard at its October Board meeting. The risk dashboard provides a set of quantitative and qualitative indicators of systemic risk in the financial system in EU. The overview note accompanying the risk dashboard summarizes the recent development of indicators and contains two annexes describing the methodology and the covered risk indicators. This issue of risk dashboard highlights that market-based indicators of systemic stress in EU remained relatively benign while the banking sector remained resilient and the reduction of non-performing loans continued.

    The dashboard shows that the debt levels remain elevated across countries and sectors in EU, although over the medium-term most countries have deleveraged somewhat. The prices of residential real estate continued to rise considerably in all, but one, EU member states. The profitability of banks in the EU slightly remained broadly stable in the second quarter of 2019. The median solvency ratio of the EU insurance sector decreased by about 15% to 193%. The EU insurers’ asset allocation remained stable. In terms of credit quality characteristics, the EU insurers’ bond portfolio remained largely at investment-grade quality, while there seems to have been a move toward less liquid assets. Meanwhile, total assets under management in the EU investment funds and other financial institutions increased in the first quarter of 2019, reflecting a rise in asset valuations, following strong declines in the final quarter of 2018. The overall picture drawn from the credit counterparty indicators also remained broadly stable.

    At the October meeting, the Board considered a framework that should enable ESRB to assess the vulnerabilities related to the commercial real estate sector and the adequacy of the macro-prudential policy responses to address these vulnerabilities. The framework for commercial real estate needs to take into account the particular features of that sector, including the important role played by foreign institutional investors. ESRB will publish a report on this in the coming months. The Board also discussed that the provision of financial services across borders is an important feature of ongoing financial integration in EU. In this regard, the Board discussed the key issues related to the exchange and collection of information on branches of credit institutions for macro-prudential purposes. The Board also exchanged views on an interim report of the Expert Group on Margins and Haircuts, which revisits and extends the previous ESRB findings regarding procyclicality associated with margin and haircut practices. ESRB will publish this interim report in the coming months and will continue to explore the relevant policy options.

     

    Related Links

    Keywords: Europe, EU, Banking, Insurance, Securities, Systemic Risk, Risk Dashboard, Residential Real Estate, NPLs, Commercial Real Estate, Credit Risk, Procyclicality, ESRB

    Featured Experts
    Related Articles
    News

    BaFin Publishes Submission Deadlines Under Solvency II

    BaFin published quarterly and annual submission deadlines on the Solvency II reporting page on its website.

    February 25, 2020 WebPage Regulatory News
    News

    RBNZ to Address Cyber Risk Through Risk Management Guidance

    RBNZ announced that it is strengthening its efforts to enhance resilience of the financial system from cyber threats, including developing risk management guidance and promoting information-sharing in collaboration with industry and other public organizations.

    February 25, 2020 WebPage Regulatory News
    News

    FSI Convened Meeting on Climate Risk Assessment in Financial Sector

    The Financial Stability Institute (FSI) of BIS issued a summary of the meeting held in Basel from February 20-21, 2020.

    February 24, 2020 WebPage Regulatory News
    News

    BCBS Updates Basel III Monitoring Workbook in February 2020

    BCBS updated the workbook for Basel III monitoring to version 4.1.2, for the collection of December 2019 data.

    February 24, 2020 WebPage Regulatory News
    News

    Bank of Finland Updates Validation Checks for AnaCredit Reporting

    Bank of Finland published Version 1.8 of the validation checks for credit data collection under the AnaCredit Regulation.

    February 24, 2020 WebPage Regulatory News
    News

    APRA Plans to Assess Climate Risks and Develop Prudential Guidance

    APRA published a letter that outlines its plans to undertake a climate change vulnerability assessment and develop a prudential practice guide focused on climate-related financial risks.

    February 24, 2020 WebPage Regulatory News
    News

    FDIC Publishes Guide to Help with Third-Party Risk Management

    The technology lab of FDIC (FDiTech) published a new guide to help financial technology, or fintech, companies and others partner with banks.

    February 24, 2020 WebPage Regulatory News
    News

    PRA Removes References to LIBOR in SoP on Pillar 2 Capital and SS20/15

    PRA published a policy statement (PS3/20) that provides updates to certain supervisory statements (SS20/15, SS28/15, and SS35/15) and statements of policy (SoP).

    February 24, 2020 WebPage Regulatory News
    News

    APRA to Transition to Annual Stress Testing of Large Banks in 2020

    APRA published key findings of the stress testing assessment conducted on authorized deposit-taking institutions.

    February 21, 2020 WebPage Regulatory News
    News

    BoE Updates Version 1.1.0 of Taxonomy for Form AS and Form FV

    BoE published the statistical notice 2020/01 that provides an update to Version 1.1.0 of the taxonomy for forms AS (MFI holdings of securities collection) and FV (Financial Vehicle Corporations return) and the associated validation rules.

    February 21, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 4729