On 16 October 2007 the Committee of European Banking Supervisors (CEBS) held an open hearing on prudential filters. On 1 November CEBS published a summary of the discussion that took place at the public hearing. The discussion began by focusing on the findings of the CEBS analytical report on the implementation of the CEBS guidelines on prudential filters for regulatory capital. The discussion then moved on to possible future developments in this area.

Among the conclusions that were drawn at the public hearing were:

  • That the current CEBS prudential filters are appropriate and working satisfactorily.
  • Observed differences (mainly relating to the treatment of unrealised gains in additional own funds) should be addressed even though the majority felt that any short- or medium-term changes would cause more burden in terms of system changes than benefits from reduced competitive differences.
  • For the future overhaul of the own funds definitions it is important to identify the right criteria for regulatory capital.

View CEBS publishes summary of the discussions at the public hearing on prudential filters, 1 November 2007