Featured Product

    EC and ECB Reports Discuss Financial Integration in EU

    March 03, 2020

    EC published the 2020 edition of the Annual European Financial Stability and Integration Review. The review examines recent economic and financial developments and their impact on financial stability and integration in EU. The focus this year is on the banking sector and, in particular, on three main challenges it faces—the increased investments in certain assets, the emergence of cryptocurrencies, and the progress in relation to cross-border banking. In addition, ECB published a report, along with a statistical annex, on financial integration and structures in the Euro area. ECB also published remarks by Luis de Guindos, Vice-President of ECB, on the occasion of the publication of the report.

    The EC review this year combines different perspectives on the various structural changes that are taking place in the financial system in Europe. The Annual European Financial Stability and Integration Review presents an in-depth review of the impact and policy implications of the challenges on the financial industry and on banks in particular. The review focuses on the emergence of digital money, including cryptocurrencies and their impact on banks and the financial system. The review also analyzes cross-border-banking developments in EU, focusing on the implications and developments with respect to the macro-prudential measures and the Banking Union, including implementation of the Single Resolution Mechanism and the Bank Recovery and Resolution Directive. 

    The ECB report on financial integration and structures in the Euro area describes key structural developments such as the process of financial integration, changes in financial structure, and the process of financial development or modernization. It discusses selected financial-sector policies, notably policies related to the European Banking Union and Capital Markets Union and contributes to the debate on how European Economic and Monetary Union can be deepened. The report highlights that the last decade saw rapid growth in fintech entities. However, the sector lacks a statistical classification, which is key to being able to analyze it better and compare it with other sectors of the financial industry. Over time, further development of equity markets could make a significant contribution to decarbonizing EU economies. New ECB research suggests that countries with economies that have a funding structure more focused on equity than bank credit or other forms of debt have reduced their carbon footprints more than other countries in recent decades. Furthermore, non-bank financial intermediaries, of which investment and pension funds are the fastest growing type, now account for almost 60% of total euro area financial assets. The report notes that this deserves attention, as it could reflect not only financial development, but partly also a migration of risks from the banking sector to less regulated sectors.

     

    Related Links

    Keywords: Europe, EU, Banking, Insurance, Securities, Financial Stability, Banking Union, Capital Markets Union, Climate Change Risk, BRRD, SRM, Resolution Framework, EC, ECB

    Related Articles
    News

    EBA Updates List of Validation Rules for Reporting by Banks

    EBA issued a revised list of validation rules with respect to the implementing technical standards on supervisory reporting.

    September 10, 2020 WebPage Regulatory News
    News

    EBA Responds to EC Call for Advice to Strengthen AML/CFT Framework

    EBA published its response to the call for advice of EC on ways to strengthen the EU legal framework on anti-money laundering and countering the financing of terrorism (AML/CFT).

    September 10, 2020 WebPage Regulatory News
    News

    NGFS Advocates Environmental Risk Analysis for Financial Sector

    NGFS published a paper on the overview of environmental risk analysis by financial institutions and an occasional paper on the case studies on environmental risk analysis methodologies.

    September 10, 2020 WebPage Regulatory News
    News

    MAS Issues Guidelines to Promote Senior Management Accountability

    MAS published the guidelines on individual accountability and conduct at financial institutions.

    September 10, 2020 WebPage Regulatory News
    News

    APRA Formalizes Capital Treatment and Reporting of COVID-19 Loans

    APRA published final versions of the prudential standard APS 220 on credit quality and the reporting standard ARS 923.2 on repayment deferrals.

    September 09, 2020 WebPage Regulatory News
    News

    SRB Chair Discusses Path to Harmonized Liquidation Regime for Banks

    SRB published two articles, with one article discussing the framework in place to safeguard financial stability amid crisis and the other article outlining the path to a harmonized and predictable liquidation regime.

    September 09, 2020 WebPage Regulatory News
    News

    FSB Workshop Discusses Preliminary Findings of Too-Big-To-Fail Reforms

    FSB hosted a virtual workshop as part of the consultation process for its evaluation of the too-big-to-fail reforms.

    September 09, 2020 WebPage Regulatory News
    News

    ECB Updates List of Supervised Entities in EU in September 2020

    ECB updated the list of supervised entities in EU, with the number of significant supervised entities being 115.

    September 08, 2020 WebPage Regulatory News
    News

    OSFI Identifies Focus Areas to Strengthen Third-Party Risk Management

    OSFI published the key findings of a study on third-party risk management.

    September 08, 2020 WebPage Regulatory News
    News

    FSB Extends Implementation Timeline for Framework on SFTs

    FSB is extending the implementation timeline, by one year, for the minimum haircut standards for non-centrally cleared securities financing transactions or SFTs.

    September 07, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 5796