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

    EBA Analyzes Impact of Unwind Mechanism of Liquidity Coverage Ratio

    EBA published a report analyzing the impact of the unwind mechanism of the liquidity coverage ratio (LCR) for a sample of European banks over a three-year period, from the end of 2016 to the first quarter of 2020.

    November 19, 2020 WebPage Regulatory News
    News

    ECB Outlines Views on Possible Changes to AnaCredit Rule and TLTROs

    In response to questions from a member of the European Parliament, the ECB President Christine Lagarde issued a letter clarifying the possibility of amending the AnaCredit Regulation and making targeted longer-term refinancing operations (TLTROs) dependent on the climate-related impact of bank loans.

    November 19, 2020 WebPage Regulatory News
    News

    IASB Begins First Phase of Post-Implementation Review of IFRS 9

    IASB started the post-implementation review of the classification and measurement requirements in IFRS 9 on financial instruments and added the review as a project to its work plan.

    November 18, 2020 WebPage Regulatory News
    News

    FSB Report Examines Progress in Resolvability of Systemic Institutions

    FSB published a report that examines progress in implementing policy measures to enhance the resolvability of systemically important financial institutions.

    November 18, 2020 WebPage Regulatory News
    News

    EBA Benchmarks National Insolvency Frameworks Across EU

    EBA published a report on the benchmarking of national loan enforcement frameworks across 27 EU member states, in response to the call for advice from EC.

    November 18, 2020 WebPage Regulatory News
    News

    FSB Reports Assess Impact of Pandemic on Financial Stability

    FSB published a letter from its Chair Randal K. Quarles, along with two reports exploring various aspects of the market turmoil resulting from the COVID-19 event.

    November 17, 2020 WebPage Regulatory News
    News

    RBNZ Consults on Implementation of Capital Review Changes

    RBNZ launched a consultation on the details for implementing the final Capital Review decisions announced in December 2019.

    November 17, 2020 WebPage Regulatory News
    News

    IASB Announces Andreas Barckow as the New Chair from July 2021

    The Trustees of the IFRS Foundation, which are responsible for the governance and oversight of IASB, have announced the appointment of Dr. Andreas Barckow as the IASB Chair, effective July 2021.

    November 17, 2020 WebPage Regulatory News
    News

    HKMA Consults on Capital Rules for Bank Equity Investments in Funds

    HKMA issued a letter to consult the banking industry on a full set of proposed draft amendments to the Banking (Capital) Rules for implementing the Basel standard on capital requirements for banks’ equity investments in funds in Hong Kong.

    November 17, 2020 WebPage Regulatory News
    News

    ESRB Supports Extension of Macro-Prudential Measure by Swedish FSA

    ESRB published an opinion assessing the decision of Swedish Financial Supervisory Authority (FSA) to extend the application period of a stricter measure for residential mortgage lending, in accordance with Article 458 of the Capital Requirements Regulation (CRR).

    November 17, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 6153