EBA reports on bank regulation impact: EBA has published a report outlining the effects that a range of regulations might have on banks' business models. The report considers the impact of:

  • Capital Requirements Regulation (CRR) and the fourth Capital Requirements Directive (CRD4) capital requirements;
  • leverage ratio;
  • liquidity ratios;
  • structural reforms for banks' business models;
  • resolution regimes for business models; and
  • the European Market Infrastructure Regulation (EMIR) for banks' business models.

EBA concludes that the regulatory measures considered will likely put pressure on banks' profitability and the returns of the banking sector. EBA also identifies the following as specific potential consequences:

  • impacts on the levels of lending to the real economy;
  • some aspects of lending moving to the shadow banking sector.

It acknowledges that there is a need for further work to explore the impact on banks' counterparties and to support the analysis using a more quantitative approach based on existing internal and industry impact assessments. (Source: Overview of the Potential Implications of Regulatory Measures for Banks’ Business Models)

EBA updates Single Rulebook Q&As: EBA has updated the Single Rulebook Q&As to include 19 new items. (Source: EBA Updates Single Rulebook Q&As)