Featured Product

    ESRB Publishes Risk Dashboard in September 2019

    October 02, 2019

    ESRB released the 29th quarterly risk dashboard at its October Board meeting. The risk dashboard provides a set of quantitative and qualitative indicators of systemic risk in the financial system in EU. The overview note accompanying the risk dashboard summarizes the recent development of indicators and contains two annexes describing the methodology and the covered risk indicators. This issue of risk dashboard highlights that market-based indicators of systemic stress in EU remained relatively benign while the banking sector remained resilient and the reduction of non-performing loans continued.

    The dashboard shows that the debt levels remain elevated across countries and sectors in EU, although over the medium-term most countries have deleveraged somewhat. The prices of residential real estate continued to rise considerably in all, but one, EU member states. The profitability of banks in the EU slightly remained broadly stable in the second quarter of 2019. The median solvency ratio of the EU insurance sector decreased by about 15% to 193%. The EU insurers’ asset allocation remained stable. In terms of credit quality characteristics, the EU insurers’ bond portfolio remained largely at investment-grade quality, while there seems to have been a move toward less liquid assets. Meanwhile, total assets under management in the EU investment funds and other financial institutions increased in the first quarter of 2019, reflecting a rise in asset valuations, following strong declines in the final quarter of 2018. The overall picture drawn from the credit counterparty indicators also remained broadly stable.

    At the October meeting, the Board considered a framework that should enable ESRB to assess the vulnerabilities related to the commercial real estate sector and the adequacy of the macro-prudential policy responses to address these vulnerabilities. The framework for commercial real estate needs to take into account the particular features of that sector, including the important role played by foreign institutional investors. ESRB will publish a report on this in the coming months. The Board also discussed that the provision of financial services across borders is an important feature of ongoing financial integration in EU. In this regard, the Board discussed the key issues related to the exchange and collection of information on branches of credit institutions for macro-prudential purposes. The Board also exchanged views on an interim report of the Expert Group on Margins and Haircuts, which revisits and extends the previous ESRB findings regarding procyclicality associated with margin and haircut practices. ESRB will publish this interim report in the coming months and will continue to explore the relevant policy options.


    Related Links

    Keywords: Europe, EU, Banking, Insurance, Securities, Systemic Risk, Risk Dashboard, Residential Real Estate, NPLs, Commercial Real Estate, Credit Risk, Procyclicality, ESRB

    Featured Experts
    Related Articles

    EBA Clarifies Use of COVID-19-Impacted Data for IRB Credit Risk Models

    The European Banking Authority (EBA) published four draft principles to support supervisory efforts in assessing the representativeness of COVID-19-impacted data for banks using the internal ratings based (IRB) credit risk models.

    June 21, 2022 WebPage Regulatory News

    BIS Hub Updates Work Program for 2022, Announces New Projects

    The Bank for International Settlements (BIS) Innovation Hub updated its work program, announcing a set of projects across various centers.

    June 17, 2022 WebPage Regulatory News

    US Senate Members Seek Details on SEC Proposed Climate Disclosure Rule

    Certain members of the U.S. Senate Committee on Banking, Housing, and Urban Affairs issued a letter to the Securities and Exchange Commission (SEC)

    June 16, 2022 WebPage Regulatory News

    EIOPA Consults on Review of Securitization Framework in Solvency II

    The European Insurance and Occupational Pensions Authority (EIOPA) published a consultation paper on the advice on the review of the securitization prudential framework in Solvency II.

    June 16, 2022 WebPage Regulatory News

    UK Authorities Issue Regulatory and Reporting Updates for Banks

    The Prudential Regulation Authority (PRA) issued a statement on PRA buffer adjustment while the Bank of England (BoE) published a notice on the statistical reporting requirements for banks.

    June 15, 2022 WebPage Regulatory News

    BaFin Consults on Resolvability Requirements for Resolution Planning

    The Federal Financial Supervisory Authority of Germany (BaFin) proposed to amend the “Capital Investment Conduct And Organization Ordinance” and issued a draft circular on the minimum resolvability requirements for resolution planning.

    June 10, 2022 WebPage Regulatory News

    EBA Consults on Certain Standards and Guidelines Under CRR and BRRD

    The European Banking Authority (EBA) proposed guidelines, for the resolution authorities, on the publication of the write-down and conversion and bail-in exchange mechanic, with the comment period ending on September 07, 2022.

    June 08, 2022 WebPage Regulatory News

    OJK Publishes Regulatory Updates for Financial Sector Entities

    The Financial Services Authority of Indonesia (OJK) is strengthening cooperation with the Australian Prudential Regulation Authority (APRA) and the Japanese Financial Services Agency (JFSA)

    June 03, 2022 WebPage Regulatory News

    EU Publishes Rules on DLT and Data Governance

    The European Parliament and the Council published Regulation 2022/868 on European data governance (Data Governance Act).

    June 03, 2022 WebPage Regulatory News

    EBA Publishes Phase 2 of Reporting Framework 3.2

    The European Banking Authority (EBA) published phase 2 of its reporting framework 3.2. The technical package supports the implementation of the updated reporting framework by providing standard specifications

    June 03, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8267