EBA Releases the First Two Papers in Its Staff Papers Series
EBA launched its Staff Papers series, which provides a platform for EBA staff to disseminate research and thematic analyses to a wider public. The EBA Staff Papers series will feature selected studies on financial regulation, supervisory policy, and legal issues of general interest, to stimulate discussion and public debate. Of the first two papers included in the series, one analyzes credit supply and real effects of bank bail-ins and the other proposes a standardized classification of bank business models in EU.
Sharing the Pain? Credit Supply and Real Effects of Bank Bail-ins. This paper analyzes the credit supply and real sector effects of bank bail-ins by exploiting the unexpected failure of a major Portuguese bank and its subsequent resolution. The authors show that firms more exposed to the bail-in did not suffer a reduction of overall credit after the intervention when compared to less exposed firms. While banks more exposed to the bail-in significantly reduced credit supply at the intensive margin, affected firms compensated the overall credit tightening with other sources of funding. This issue is particularly important in the context of small and medium enterprises, which rely significantly on the existing banking relationships. The paper is co-authored by the EBA staff member Samuel Da Rocha Lopes with Thorsten Beck and F. Silva from the Cass Business School.
Identification of EU bank business models. This paper proposes a standardized classification of business models of EU banks. The work is based on a rich and unique data set collected for the first time for the full population of EU banks at the individual level. The proposed classification approach combines both a qualitative and a quantitative component. The qualitative component is based on an expert knowledge of the supervisory authority, which is confirmed or challenged by quantitative indicators. The business model categorization can provide the supervisory and regulatory authorities with a benchmark for classifying institutions for a more structured and consistent approach to regulatory impact assessment, analyzing trends and risks, proportionality, and supervision. The paper is co-authored by EBA staff members Marina Cernov and Teresa Urbano.
Related Links
Keywords: Europe, EU, Banking, Staff Paper Series, Bail-In, Credit Risk, Business Models, EBA
Previous Article
IOSCO Report Examines Liquidity in Corporate Bond MarketsNext Article
IFRS Foundation Publishes IFRS Taxonomy 2018Related Articles
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.
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.
BIS Bulletin Examines Cognitive Limits of Large Language Models
The use cases of generative AI in the banking sector are evolving fast, with many institutions adopting the technology to enhance customer service and operational efficiency.
ECB is Conducting First Cyber Risk Stress Test for Banks
As part of the increasing regulatory focus on operational resilience, cyber risk stress testing is also becoming a crucial aspect of ensuring bank resilience in the face of cyber threats.
EBA Continues Momentum Toward Strengthening Prudential Rules for Banks
A few years down the road from the last global financial crisis, regulators are still issuing rules and monitoring banks to ensure that they comply with the regulations.
EU and UK Agencies Issue Updates on Final Basel III Rules
The European Commission (EC) recently issued an update informing that the European Council and the Parliament have endorsed the Banking Package implementing the final elements of Basel III standards