Featured Product

    ECB Report on Financial Structures in Euro Area Financial Sector

    October 23, 2017

    ECB published a report on financial structures in the euro area, which reviews the main structural features of, and developments in, the broader euro area financial sector. The report covers the banking sector (monetary financial institutions, or MFIs), insurance corporations and pension funds, and other financial intermediaries (OFIs).

    The first chapter of the report presents the evolution of the overall structure and composition of the financial sector, also analyzing the interconnectedness across different parts of the financial sector to assess possible structural risks to financial stability. The second chapter presents structural developments in the euro area banking sector, providing a wide set of structural information from both a cross-sectional perspective (that is, different banking types, business models, etc.) and a time perspective. The third chapter discusses structural developments in euro area insurance corporations and pension funds. Although the sector continued to grow, it remained strongly concentrated in a relatively small number of countries, with France and Germany each accounting for more than a quarter of this sector in the euro area, followed by the Netherlands (18%) and Italy (10%). The fourth and final chapter reviews the structural features of the euro area non-bank financial sector, including all other financial intermediaries, except insurers and pension funds. Structural features of different parts of the non-bank financial sector are outlined in more detail, namely for non-money market investment funds, money market funds, and financial vehicle corporations.

    The report shows ongoing consolidation in the banking sector while assets in the investment fund sector grew by 7% in 2016. Euro area banks’ median common equity tier 1 ratio rose to 15.4 % in 2016, from 14.4 % in 2015. While the median nonperforming loan (NPL) ratio declined further, the stock of NPLs remained persistently high in a number of countries. Solvency position of the insurers and pension funds is well above the requirements of the EU’s Solvency II supervisory regime. This report serves as a complement to the semi-annual ECB Financial Stability Review (FSR), which focuses more on cyclical factors.

     

    Related Link: Report on Financial Structures (PDF)

    Keywords: Europe, EU, Banking, Insurance, Securities, Basel III, Solvency II, ECB

    Featured Experts
    Related Articles
    News

    APRA Consults to Standardize Submission Date for Quarterly Reporting

    APRA proposed to standardize quarterly reporting due dates for authorized deposit-taking institutions. The proposed standardized due date is 35 calendar days after the last day of the reference quarter, which will create a 14-calendar-day extension for credit unions and building societies.

    November 08, 2019 WebPage Regulatory News
    News

    EBA Single Rulebook Q&A: First Update for November 2019

    EBA updated the Single Rulebook question and answer (Q&A) tool with answers to two questions. The answers provide clarifications on topics related to own funds and strong customer authentication under the revised Payment Services Directive or PSD2.

    November 08, 2019 WebPage Regulatory News
    News

    FED Proposes to Extend Initial Compliance Dates Under SCCL Rule

    FED published a proposal to extend, by 18 months, the initial compliance dates for foreign banks subject to the single-counterparty credit limit (SCCL) rule.

    November 08, 2019 WebPage Regulatory News
    News

    EBA Publishes Technical Package on Reporting Framework 2.9.1

    EBA published a new release of the reporting framework 2.9.1. This release includes validation rules, Data Point Model (DPM) data dictionary, XBRL taxonomy, and other supporting documents. Additionally, the release fixes some modeling issues on COREP Liquidity and FINREP.

    November 08, 2019 WebPage Regulatory News
    News

    EBA Report Examines Progress in Addressing Nonperforming Loans in EU

    EBA published a report that examines the progress toward addressing the nonperforming loan (NPL) issue in Europe.

    November 08, 2019 WebPage Regulatory News
    News

    EIOPA Publishes Q&A on Regulations in November 2019

    EIOPA published new sets of questions and answers (Q&A) on directives and regulations applicable to insurers in Europe.

    November 08, 2019 WebPage Regulatory News
    News

    EBA Publishes Methodology and Draft Templates for Stress Tests in 2020

    EBA published a package for the 2020 EU-wide stress test exercise for banks.

    November 07, 2019 WebPage Regulatory News
    News

    EC Publishes Results of Fitness Check of Reporting Requirements in EU

    EC published results of the fitness check of supervisory reporting requirements in financial services legislation in EU.

    November 07, 2019 WebPage Regulatory News
    News

    BCBS Assesses NSFR and LE Rules in Argentina and China as Compliant

    BCBS published reports that assess the implementation of net stable funding ratio (NSFR) and large exposures, or LE, framework in Argentina and China.

    November 07, 2019 WebPage Regulatory News
    News

    FSB Publishes Summary of Plenary Meeting in Paris

    At the meeting, the Plenary reviewed vulnerabilities in the global financial system, fintech developments (including developments in the crypto-asset markets), ongoing work of FSB, and the work program for 2020.

    November 07, 2019 WebPage Regulatory News
    RESULTS 1 - 10 OF 4123