Featured Product

    ECB Reports Examine Health of Financial Sector in EU

    The European Central Bank (ECB) published the results of the financial stability review and the survey on credit terms and conditions in euro-denominated securities financing and over-the-counter (OTC) derivatives markets (also known as SESFOD).

    The financial stability review for May 2022 highlights that the financial stability conditions in the euro area have worsened as a consequence of the Russian invasion of Ukraine. The key themes include rising inflation, house price corrections, re-merging credit risks, possible tightening of credit standards (see results of SESFOD survey for more information), and rising cyber risks, with such risks collectively adding up to the renewed concerns on bank asset quality and profitability. The report notes that, over the medium term, the resilience of the financial system would be reinforced by creating more macro-prudential space through an increase in the amount of releasable buffers, complemented by enhancing the effectiveness of the existing countercyclical capital buffer (CCyB). The report then goes on to discuss the ongoing review of macro-prudential framework and the ECB proposals in that respect. The financial stability review also includes two special features on risks stemming from climate change and from crypto-assets. The feature on crypto-assets notes the importance of closing regulatory and data gaps in the crypto-asset ecosystem to mitigate systemic risks. The feature on risks stemming from climate change notes the evidence of better disclosure by non-financial corporations and increasing awareness of climate-related risks in financial markets. However, progress of banks has been more limited. The findings can inform evidence-based international and European policy debates around climate-related corporate disclosure, standards for sustainable financial instruments. and climate-related prudential policies. It is also noted that further investments in the transition to a net-zero economy would also have a positive impact on medium-term growth and energy security.

    The survey results on credit terms and conditions are based on responses from a panel of 27 large banks, comprising 14 euro area banks and 13 banks with head offices outside the euro area. The results show that the overall credit terms and conditions offered by banks to counterparties tightened slightly from December 2021 to February 2022. The survey participants were expecting overall credit terms to tighten further during March 2022 to May 2022. With respect to the credit terms and conditions in early March 2022 versus those reported in the previous year, the overall terms and conditions for securities financing and OTC derivatives transactions have tightened across all counterparties and against most types of collateral, except domestic government bonds. The survey respondents reported stronger demand for funding against government bonds, but weaker demand for funding against most other collateral types. 


    Related Links

    Keywords: Europe, EU, Banking, SESFOD, Credit Risk, Credit Terms And Conditions, OTC Derivatives, Lending, Financial Stability Review, Systemic Risk, Basel, ESG, Climate Change Risk, Macro-Prudential Policy, Crypto-Assets, Disclosures, Greenwashing, Non-Bank Financial Institutions, ECB

    Featured Experts
    Related Articles

    EBA Sets Out Roadmap for 2023, Updates Reporting Framework 3.2

    The European Banking Authority (EBA) published its work program for 2023 as well as the technical package for phase 3 of version 3.2 of its reporting framework.

    September 30, 2022 WebPage Regulatory News

    FED Announces Launch of Climate Scenario Analysis Exercise in 2023

    The Board of Governors of the Federal Reserve System (FED) announced a pilot climate scenario analysis exercise for six largest banks in the U.S.

    September 29, 2022 WebPage Regulatory News

    BIS Paper Studies Impact of Fintech Lending on Small Businesses in US

    The Bank for International Settlements (BIS) published a paper that studies impact of fintech lending on credit access for small businesses in U.S.

    September 26, 2022 WebPage Regulatory News

    UK Regulators Issue CRR Changes and Stress Test Scenarios for Banks

    The Prudential Regulation Authority (PRA) issued the policy statement PS8/22 to amend the Own Funds and Eligible Liabilities (CRR) Part of the PRA Rulebook and update the supervisory statement SS7/13 titled "Definition of capital (CRR firms).

    September 26, 2022 WebPage Regulatory News

    EBA Launches EU-Wide Transparency Exercise in 2022

    The European Banking Authority (EBA) launched the EU-wide transparency exercise for 2022, with results of the exercise expected to be published at the beginning of December, along with the annual Risk Assessment Report.

    September 23, 2022 WebPage Regulatory News

    SRB on CRR Quick-Fix to Policy for Multiple Point of Entry Banks

    The Single Resolution Board (SRB) welcomed the adoption of the review of the Capital Requirements Regulation, or CRR, also known as the "CRR quick-fix."

    September 22, 2022 WebPage Regulatory News

    EC Rule Lists Advanced Economies for Market Risk Capital Calculations

    The European Commission (EC) recently adopted the Delegated Regulation 2022/1622, which sets out the regulatory technical standards to specify the countries that constitute advanced economies for the purpose of specifying risk-weights for the sensitivities to equity.

    September 21, 2022 WebPage Regulatory News

    EBA Publishes Final Regulatory Standards on STS Securitizations

    The European Banking Authority (EBA) published the final draft regulatory technical standards specifying and, where relevant, calibrating the minimum performance-related triggers for simple.

    September 20, 2022 WebPage Regulatory News

    ECB Further Reviews Costs and Benefits Associated with IReF

    The European Central Bank (ECB) is undertaking the integrated reporting framework (IReF) project to integrate statistical requirements for banks into a standardized reporting framework that would be applicable across the euro area and adopted by authorities in other EU member states.

    September 15, 2022 WebPage Regulatory News

    EBA Publishes Funding Plans Report, Receives EMAS Certification

    The European Banking Authority (EBA) has been awarded the top European Standard for its environmental performance under the European Eco-Management and Audit Scheme (EMAS).

    September 15, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8523