EC Issues List of Indicators to Monitor Progress in EU Capital Markets
EC published a list of indicators to help track developments of capital markets and measure progress achieved by the Capital Markets Union policy of EU. These indicators will help identify whether certain rules need to be adjusted to boost capital markets of Europe or if new measures are required. Developing capital markets and ensuring access to market financing will be essential to help Europe recover from the economic crisis caused by COVID-19 pandemic.
The purpose of the indicators is three-fold:
- Monitor progress toward objectives of the Capital Markets Union
- Provide a framework for the analysis of capital market development and an empirical basis for future analysis of the overall impact of past capital markets union measures
- Help identify the areas where existing policies may need to be adjusted or new policies may need to be developed.
EC put forward a new Capital Markets Union action plan in September 2020. While some progress has been made since the Capital Markets Union was launched, the EU capital markets remain largely fragmented. By tracking overall progress toward the key objectives of the Capital Markets Union, the indicators will complement evaluation and impact assessment of individual measures under the action plan. In its staff working document on the indicators, EC highlights that the indicators allow for a comparison between the member states. For most indicators, over the examined period, the member states with less developed markets have also been the ones where the situation has improved the most, demonstrating the well-established "catching-up" effect. However, the Capital Markets Union indicators cannot offer a complete picture of all relevant developments. They are designed to be stable, yet sufficiently open to integrate new indicators or replace existing indicators with more suitable ones, once more or better data become available, making the toolkit dynamic.
Furthermore, reporting on relevant sustainability data will be gradually introduced to track progress toward sustainable finance and more broadly towards the green objectives, notably the reporting under the Taxonomy Regulation, the Sustainable Finance Disclosure Regulation, and the recently tabled proposal for a Corporate Sustainability Reporting Directive (revising the Non-Financial Reporting Directive). These could be useful to develop new sustainable finance indicators. Other areas where new indicators may become available in the future relate to financial literacy and the state of insolvency frameworks (when the ongoing feasibility assessment on value recovery data is completed). Thus, the future iterations of the Capital Markets Union indicators toolkit, which is planned to be updated annually, may include new or adapted indicators.
Related Links
Keywords: Europe, EU, Banking, Securities, Capital Markets Union, Sustainable Finance, ESG, Taxonomy Regulation, SFDR, NFRD, EC
Previous Article
EC Finalizes Standards to Identify Material Risk-Takers Under CRDRelated Articles
BIS and Central Banks Experiment with GenAI to Assess Climate Risks
A recent report from the Bank for International Settlements (BIS) Innovation Hub details Project Gaia, a collaboration between the BIS Innovation Hub Eurosystem Center and certain central banks in Europe
Nearly 25% G-SIBs Commit to Adopting TNFD Nature-Related Disclosures
Nature-related risks are increasing in severity and frequency, affecting businesses, capital providers, financial systems, and economies.
Singapore to Mandate Climate Disclosures from FY2025
Singapore recently took a significant step toward turning climate ambition into action, with the introduction of mandatory climate-related disclosures for listed and large non-listed companies
SEC Finalizes Climate-Related Disclosures Rule
The U.S. Securities and Exchange Commission (SEC) has finalized the long-awaited rule that mandates climate-related disclosures for domestic and foreign publicly listed companies in the U.S.
EBA Proposes Standards Related to Standardized Credit Risk Approach
The European Banking Authority (EBA) has been taking significant steps toward implementing the Basel III framework and strengthening the regulatory framework for credit institutions in the EU
US Regulators Release Stress Test Scenarios for Banks
The U.S. regulators recently released baseline and severely adverse scenarios, along with other details, for stress testing the banks in 2024. The relevant U.S. banking regulators are the Federal Reserve Bank (FED), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC).
Asian Governments Aim for Interoperability in AI Governance Frameworks
The regulatory landscape for artificial intelligence (AI), including the generative kind, is evolving rapidly, with governments and regulators aiming to address the challenges and opportunities presented by this transformative technology.
EBA Proposes Operational Risk Standards Under Final Basel III Package
The European Union (EU) has been working on the final elements of Basel III standards, with endorsement of the Banking Package and the publication of the European Banking Authority (EBA) roadmap on Basel III implementation in December 2023.
EFRAG Proposes XBRL Taxonomy and Standard for Listed SMEs Under ESRS
The European Financial Reporting Advisory Group (EFRAG), which plays a crucial role in shaping corporate reporting standards in European Union (EU), is seeking comments, until May 21, 2024, on the Exposure Draft ESRS for listed SMEs.
ECB to Expand Climate Change Work in 2024-2025
Banking regulators worldwide are increasingly focusing on addressing, monitoring, and supervising the institutions' exposure to climate and environmental risks.