Featured Product

    EC Authorizes Reinsurance Scheme to Support French Credit Insurance

    July 20, 2020

    Under the EU state aid rules, EC has authorized a French short-term credit reinsurance scheme to support the credit insurance market in the context of the COVID-19 epidemic. Credit insurance protects businesses providing goods and services against the risk of non-payment from their customers.

    Given the economic impact of the COVID-19 epidemic, the likelihood of credit insurers refusing to cover a risk has become higher. The French reinsurance regime, which complements the other measures implemented by France in the field of credit insurance, ensures that credit insurance remains available to all businesses, preventing buyers of goods or services from paying for their purchases in advance, thus reducing their immediate liquidity needs. The estimated maximum budget of EUR 2 billion, for the measure, comes from a reallocation of the budget of EUR 10 billion planned for a previous French credit insurance measure approved by EC on April 12, 2020.

    EC assessed the measure in the light of EU state aid rules, and in particular Article 107 (3) (b) of the Treaty on the Functioning of the European Union (TFEU), which allows EC to authorize State aid measures put in place by member states to remedy a serious disturbance in their economy. The Commission considered that the scheme notified by France was necessary, appropriate and proportionate to remedy a serious disturbance in the economy of a member state, in accordance with Article 107 (3) (b) TFEU and the general principles set out in the temporary framework adopted by EC. On this basis, EC cleared the measure under EU state aid rules.


    Related Links

    Keywords: Europe, EU, France, Insurance, Reinsurance, Short-Term Credit, Credit Risk, COVID-19, EC

    Featured Experts
    Related Articles

    FINMA Approves Merger of Credit Suisse and UBS

    The Swiss Financial Market Supervisory Authority (FINMA) has approved the takeover of Credit Suisse by UBS.

    March 21, 2023 WebPage Regulatory News

    BOE Sets Out Its Thinking on Regulatory Capital and Climate Risks

    The Bank of England (BOE) published a working paper that aims to understand the climate-related disclosures of UK financial institutions.

    March 13, 2023 WebPage Regulatory News

    OSFI Finalizes on Climate Risk Guideline, Issues Other Updates

    The Office of the Superintendent of Financial Institutions (OSFI) is seeking comments, until May 31, 2023, on the draft guideline on culture and behavior risk, with final guideline expected by the end of 2023.

    March 12, 2023 WebPage Regulatory News

    APRA Assesses Macro-Prudential Policy Settings, Issues Other Updates

    The Australian Prudential Regulation Authority (APRA) published an information paper that assesses its macro-prudential policy settings aimed at promoting stability at a systemic level.

    March 07, 2023 WebPage Regulatory News

    BIS Paper Examines Impact of Greenhouse Gas Emissions on Lending

    BIS issued a paper that investigates the effect of the greenhouse gas, or GHG, emissions of firms on bank loans using bank–firm matched data of Japanese listed firms from 2006 to 2018.

    March 03, 2023 WebPage Regulatory News

    HMT Mulls Alignment of Ring-Fencing and Resolution Regimes for Banks

    The HM Treasury (HMT) is seeking evidence, until May 07, 2023, on practicalities of aligning the ring-fencing and the banking resolution regimes for banks.

    March 02, 2023 WebPage Regulatory News

    BCBS Report Examines Impact of Basel III Framework for Banks

    The Basel Committee on Banking Supervision (BCBS) published results of the Basel III monitoring exercise based on the June 30, 2022 data.

    February 28, 2023 WebPage Regulatory News

    PRA Consults on Prudential Rules for "Simpler-Regime" Firms

    Among the recent regulatory updates from UK authorities, a key development is the first-phase consultation, from the Prudential Regulation Authority (PRA), on simplifications to the prudential framework that would apply to the simpler-regime firms.

    February 28, 2023 WebPage Regulatory News

    DNB Publishes Multiple Reporting Updates for Banks

    DNB, the central bank of Netherlands, updated the list of additional reporting requests and published additional data quality checks and XBRL-Formula linkbase documents for the first quarter of 2023.

    February 28, 2023 WebPage Regulatory News

    NBB Sets Out Climate Risk Expectations, Issues Reporting Updates

    The National Bank of Belgium (NBB) published a communication on climate-related and environmental risks, issued an update on XBRL reporting

    February 24, 2023 WebPage Regulatory News
    RESULTS 1 - 10 OF 8798