Featured Product

    EC Issues Report on Financial Stability and Integration in Europe

    May 03, 2018

    EC published a report on the results of the annual European financial stability and integration review. The report analyzes the recent economic and financial developments in the EU, along with their impact on financial stability and integration. The topics discussed in the report relate to a number of key initiatives that span the broader policy areas covered by the Capital Markets Union and the Banking Union.

    The report describes recent developments in the financial sector. It highlights that the restructuring of banks’ balance sheets has brought them closer to a more traditional business model of deposit-taking and lending. Although the resilience of EU banks has improved, profitability remains an important challenge in view of the low-interest environment, tight interest margins, and high provisions for non-performing loans. The report shows that EC’s risk reduction effort is also being reflected on the ground. Banks have increased their capital position and limited their exposure to market risk by reducing bond and derivative portfolios. Moreover, the insurance sector is stronger and the insurance companies in EU have steadily improved their solvency position, as they have adjusted to the new Solvency II regime.

    Next, the report provides a detailed analysis of the following two topics that impact financial stability and integration:

    • Merits of EU capital markets development, with a focus on member states in central, eastern, and south-eastern Europe. The analysis also reveals that member states in central, eastern, and south-eastern Europe are lagging behind other parts of the EU in terms of depth and access to capital markets. This implies that these member states are those with the most potential to reap the benefits of the Capital Markets Union. On the plus side, capital market integration is improving and firms' market-based funding has increased, in line with the objectives of the Capital Markets Union. 
    • Initial coin offerings (ICOs) as a new form of start-up funding. The report that the ICO market would benefit from more transparency, given that this market is still immature and is characterized by information asymmetries, skewed incentives, and a lack of a proper disclosure framework. Moreover, cooperation at the global level will be essential for developing regulation that allows ICOs to retain their global scope and avoid regulatory arbitrage. 

     

    Related Links

    Keywords: Europe, EU, Banking, Securities, Insurance, Financial Stability, Financial Integration, NPLs, Initial Coin Offerings, Capital Markets Union, EC

    Related Articles
    News

    OCC Revises Minimum Threshold for Banks to Conduct Stress Tests

    OCC issued the final rule that amends its company-run stress testing requirements under the 12 CFR 46 in Code of Federal Regulations.

    October 10, 2019 WebPage Regulatory News
    News

    US Agencies Update Management Interlock Rules Under DIMIA

    US Agencies (FDIC, FED, and OCC) issued a final rule that increases the thresholds in the major assets prohibition for management interlocks for purposes of the Depository Institution Management Interlocks Act (DIMIA).

    October 10, 2019 WebPage Regulatory News
    News

    US Agencies Finalize Rules to Closely Match Bank Risk Profiles

    US Agencies (OCC, FED, and FDIC) finalized rules that tailor the regulations for domestic and foreign banks to more closely match their risk profiles.

    October 10, 2019 WebPage Regulatory News
    News

    CPMI-IOSCO and FSB on Governance Arrangements for OTC Derivatives

    CPMI and IOSCO published a report that identifies key criteria, functions, and bodies for the governance arrangements.

    October 09, 2019 WebPage Regulatory News
    News

    EIOPA Launches Field Test on Templates Under 2020 Solvency II Review

    EIOPA, as part of the 2020 Solvency II reporting and disclosure review, launched a field test on the revised and newly proposed reporting templates.

    October 09, 2019 WebPage Regulatory News
    News

    US Agencies Adopt Rule on Appraisals for Real Estate Transactions

    US Agencies (FDIC, FED, and OCC) adopted the final rule to amend regulations requiring appraisals of real estate for certain transactions

    October 08, 2019 WebPage Regulatory News
    News

    US Agencies Finalize Amendments to Simplify Volcker Rule

    US Agencies (CFTC, FDIC, FED, OCC, and SEC) finalized amendments to the regulations implementing section 13 of the Bank Holding Company Act, also known as the Volcker Rule.

    October 08, 2019 WebPage Regulatory News
    News

    EC Report Explores Application and Challenges of Blockchain Technology

    The Joint Research Center of EC published a report exploring the challenges and impact of distributed ledger technologies.

    October 08, 2019 WebPage Regulatory News
    News

    BIS and SNB Sign Agreement on Innovation Hub Center in Switzerland

    BIS and SNB signed an operational agreement on the BIS Innovation Hub Center in Switzerland.

    October 08, 2019 WebPage Regulatory News
    News

    ECB Issues Results of Sensitivity Analysis of Liquidity Risk for Banks

    ECB published results of 2019 stress test on sensitivity analysis of liquidity risk.

    October 07, 2019 WebPage Regulatory News
    RESULTS 1 - 10 OF 3958