ECB publishes CET1 decision: ECB has published a decision setting out the conditions under which credit institutions can include interim or year-end profits in Common Equity Tier 1 (CET1) capital for the purposes of the Capital Requirements Regulation. (Source: ECB Publishes CET1 Decision)

ECB comments on ESRB mission and organisation: ECB has published an opinion on the Commission's review of the European Systemic Risk Board (ESRB). In general ECB supports the conclusions. It thinks ESRB has functioned well and does not believe that any far-reaching changes to the ESRB legal framework are needed. ECB also said:

  • there should be an appropriate balance on the degree of autonomy for ESRB as an unwarranted degree of autonomy would be incompatible with the continued reliance of ESRB on ECB’s reputation and expertise;
  • it supports the Commission’s proposal to keep the President of ECB as the Chair of ESRB’s General Board;
  • there would be only very limited possibilities to reduce membership of the ESRB Board as suggested by the Commission;
  • it agrees with the Commission’s proposal to strengthen the Steering Committee’s role;
  • there is a need for clarity on the role of the ESRB Managing Director and the ex-officio chairmanship of the General Board should be permanently assigned to the President of ECB;
  • there should be more clarification on proposals to expand ESRB’s toolbox; and
  • the current framework for the provision of data to ESRB is appropriate and ESRB’s Secretariat and the European Supervisory Authorities cooperate closely.

(Source: ECB Opinion on the Review of the Mission and Organisation of the European Systemic Risk Board)