June 13, 2017

Sabine Lautenschläger, Member of the ECB Executive Board and Vice-Chair of the ECB Supervisory Board, spoke and answered questions at the International Monetary Conference in London. While addressing the audience, she outlined the priorities with respect to the banking supervision.

The four priorities of banking supervision, according to Ms. Lautenschläger, are as follows:

She discussed the global aspects of banking regulations and stated that it is time to finalize reforms of banking regulations, implement them, and see how they work. She suggested focusing on different approaches of application of these rules by supervisors worldwide and learning lessons and best practices from this variety of approaches.

The importance of addressing the potential effects of Brexit is another priority.

Resolving large exposures to nonperforming loans (NPLs) was the third priority on her list. Getting rid of NPLs takes time and effort. In March, a guidance was published for banks on how to deal with NPLs and the supervisors are closely  monitoring the strategies banks devise and the progress they make.

The fourth priority is risk management, including internal models. She discussed the launch of the targeted review of internal models (TRIM) and its objectives.

TRIM is intended to harmonize the supervisory treatment of internal models and ensure a level playing field. It is also intended to ensure that the results of internal models are conservative and driven by actual risks, not by modeling choices. This will strengthen trust in the banks’ calculation of risk and, ultimately, in the adequacy of capital buffers.

Related Link: Speech

Keywords: Europe, ECB, Banking, Regulatory Reform, Banking Supervision, NPL, TRIM

 


Related Articles
News

EBA Report Assesses Regulatory Framework for Fintech Activities

EBA published the findings of its analysis on the regulatory framework applicable to fintech firms when accessing the market.

July 18, 2019 WebPage Regulatory News
News

OSFI Revises Capital Requirements for Operational Risk for Banks

OSFI is revising its capital requirements for operational risk, in line with the final Basel III revisions published by BCBS in December 2017.

July 18, 2019 WebPage Regulatory News
News

OSFI Consults on Revised Principles for Management of Liquidity Risk

OSFI proposed revisions to Guideline B-6 on the principles for the management of liquidity risk.

July 18, 2019 WebPage Regulatory News
News

ESMA Guidance on Disclosures for Credit Rating Sustainability Issues

ESMA published the technical advice on sustainability considerations in the credit rating market, along with the final guidelines on disclosure requirements applicable to credit ratings.

July 18, 2019 WebPage Regulatory News
News

FASB Issues Q&A on Estimation of Expected Credit Losses by Firms

FASB issued a second question-and-answer (Q&A) document that addresses more than a dozen frequently asked questions related to the Accounting Standards Update No. 2016-13 titled “Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.”

July 17, 2019 WebPage Regulatory News
News

US Agencies Delay Enforcing Volcker Rule Restrictions on Foreign Funds

US Agencies (FDIC, FED, and OCC) announced that they will not take action related to restrictions under the Volcker Rule for certain foreign funds for an additional two years.

July 17, 2019 WebPage Regulatory News
News

SRB Announces SRF Receives Cash Injection, Grows to EUR 33 billion

SRB announced that the Single Resolution Fund (SRF or the Fund) received a cash injection of EUR 7.8 billion from 3,186 institutions in 2019, bringing the total amount in the Fund to about EUR 33 billion.

July 17, 2019 WebPage Regulatory News
News

FASB to Propose to Delay CECL Compliance Deadline for Certain Entities

FASB published a summary of the tentative decisions taken at its Board meeting in July 2019.

July 17, 2019 WebPage Regulatory News
News

IMF Publishes Report on 2019 Article IV Consultation with Vietnam

IMF published its staff report in context of the 2019 Article IV consultation with Vietnam.

July 16, 2019 WebPage Regulatory News
News

European Parliament Elects Next President of European Commission

European Parliament elected Ursula von der Leyen from Germany as the first female President of the next European Commission for a five-year term from November 01, 2019.

July 16, 2019 WebPage Regulatory News
RESULTS 1 - 10 OF 3476