Featured Product

    EC Progress Report on NPLs and Communication on Capital Markets Union

    November 28, 2018

    EC published the third progress report and the associated questions and answers (Q&A) on risk reduction and the trend of declining non-performing loans (NPLs). Also published was a communication on the Capital Markets Union, which highlights initiatives on which further swift progress is needed. The EC communication calls for swift progress on Pan European Personal Pension Products (PEPPs), covered bonds, cross-border distribution of collective investment funds, and disclosures on sustainable finance, among others.

    In the third progress report on the reduction of NPLs, EC highlighted that NPLs in the European banking sector have declined further, now standing at an EU average of 3.4%. While efforts need to continue to address legacy issues still weighing on the sector since the financial crisis, this development is very encouraging.  Ther report confirms that EC has delivered all elements of the European Council's July 2017 Action Plan on NPLs and explores the potential set-up of a European NPL transaction platform, where banks and investors could trade NPLs and NPL portfolios. The progress report also accompanies a Communication that highlights important deliverables on the roadmap to completing the Banking Union.

    In addition, the EC Vice president delivered a keynote speech at a conference in Brussels, wherein he called for renewed efforts to deliver the Capital Markets Union. He said that, out of the 13 Capital Markets Union legislative proposals, which have been proposed, 10 are still sitting on the desks of EU co-legislators. However, EC will soon adopt amendments to Solvency II to facilitate investment by insurers in private equity and long-term listed equity. He also said that, in March, EC put forward an Action Plan on Sustainable Finance, to incentivize more money to flow into decarbonizing the economy. In this context, EC has presented three legislative proposals:

    • The first proposal is the draft regulation to agree on EU-wide definitions on what is green and what is not. This sustainable finance taxonomy will provide clarity for investors and companies that want to invest in green and climate-friendly projects.

    • The second proposal will require investment managers to disclose how they integrate sustainability considerations into their investment and advisory processes.

    • The third proposal will set standards for climate-friendly benchmarks, to help investors steer capital towards low-carbon portfolios.


    Related Links

    Keywords: Europe, EU, Banking, Banking Union, Capital Markets Union, NPLs, Sustainable Finance, Solvency II, EC

    Featured Experts
    Related Articles
    News

    BCBS Consults on Principles for Operational Risk and Resilience

    BCBS is consulting on the principles for operational resilience and the revisions to the principles for sound management of operational risk for banks.

    August 06, 2020 WebPage Regulatory News
    News

    FSI Note Discusses Challenges Associated with COVID Relief Measures

    The Financial Stability Institute (FSI) of BIS published a brief note that examines the supervisory challenges associated with certain temporary regulatory relief measures introduced by BCBS and prudential authorities in response to the COVID-19 pandemic.

    August 06, 2020 WebPage Regulatory News
    News

    HKMA Announces Repayment Deferment Under Payment Holiday Scheme

    HKMA, together with the Banking Sector Small and Medium-Size Enterprise (SME) Lending Coordination Mechanism, announced a ninety-day repayment deferment for trade facilities under the Pre-approved Principal Payment Holiday Scheme.

    August 05, 2020 WebPage Regulatory News
    News

    ESRB Paper Presents Alternative Approach to EBA Stress Test Proposal

    The Advisory Scientific Committee of ESRB published a response, in the form of an Insights Paper, to the EBA proposals for reforms to the stress testing framework in EU.

    August 05, 2020 WebPage Regulatory News
    News

    MAS Announces Key Initiatives to Support Adoption of SORA

    MAS announced several initiatives to support adoption of the Singapore Overnight Rate Average (SORA), which is administered by MAS.

    August 05, 2020 WebPage Regulatory News
    News

    BoE Updates Template and Definitions for Form ER

    BoE updated the reporting template for Form ER as well as the Form ER definitions, which contain guidance on the methodology to be used in calculating annualized interest rates.

    August 05, 2020 WebPage Regulatory News
    News

    PRA to Extend Temporary High Balance Coverage Amid COVID Crisis

    PRA published the policy statement PS19/20 on the final policy for extending coverage under the Financial Services Compensation Scheme (FSCS) for Temporary High Balance.

    August 04, 2020 WebPage Regulatory News
    News

    EBA Publishes Standards on Disclosure and Reporting of MREL and TLAC

    EBA published the final draft implementing technical standards for disclosures and reporting on the minimum requirements for own funds and eligible liabilities (MREL) and the total loss-absorbing capacity (TLAC) requirements in EU.

    August 03, 2020 WebPage Regulatory News
    News

    EBA Releases Erratum for Phase 2 Package on Reporting Framework 2.10

    EBA published an erratum for the phase 2 of technical package on the reporting framework 2.10.

    August 03, 2020 WebPage Regulatory News
    News

    EC Sets Out Updated Technical Information for Solvency II Calculations

    EC published the Implementing Regulation 2020/1145, which lays down technical information for calculation of technical provisions and basic own funds.

    August 03, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 5635