Regulators announce stress test result dates: EBA and the European Central Bank (ECB) have announced that the results of the 2014 stress test of 130 banks will be announced at noon on 26 October. (Source: EBA Announces Stress Test Result Dates and ECB Announces Stress Test Result Dates)
EBA publishes work programme: EBA's work programme for 2015 shows continued focus on the single rulebook. EBA will concentrate its efforts also on implementation of the Bank Recovery and Resolution Directive (BRRD) and its work under the fourth Capital Requirements Directive package (CRD 4). It also has work to do on stress tests and the Single Supervisory Mechanism. On the retail side, it plans to monitor and take action on financial innovation, particularly innovative payment systems, issue guidelines in support of the Mortgage Credit Directive (MCD), the Payment Accounts Directive (PAD), the review of the Payment Services Directive (PSD2), as well as on structured deposits under Markets in Financial Instruments Regulation (MiFIR). It will also work on "crowd funding", will collect, analyse and report on consumer trends, and continue to monitor the market for virtual currencies. (Source: EBA Publishes Work Programme)
EBA updates single rulebook Q&A: EBA has updated its FAQs on the single banking rulebook. (Source: EBA Updates Single Rulebook Q&A)
EBA consults on securitisations: EBA is inviting views on a discussion paper on simple, standard and transparent securitisations. The paper is a response to the Commission's request that EBA consider how to develop a safe and stable securitisation market. EBA says the risks arising in a securitisation transaction include:
- model risk;
- agency risk between the various participants in the securitisation process;
- legal and governance risks;
- counterparty risks;
- servicing risks;
- liquidity risks; and
- risks of operational nature.
It also says the structure of transactions may be designed to lack transparency towards investors and other market participants.
EBA recognises there is no "one-size-fits-all" approach to regulating securitisations and proposes a distinction between qualifying securitisations and other securitisations. "Qualifying" transactions would have to meet criteria (a) ensuring simplicity, standardisation and transparency and (b) of minimum credit quality of the underlying exposures. The paper sets out details of the criteria and of capital considerations associated with regulatory treatment. EBA asks for views by 15 January 2015. (Source:EBA Consults on Securitisations)
EBA publishes results of bankers' remuneration investigation: EBA has published the results of an investigation into discretionary remuneration practices across the EU banking sector. The investigation looked at how banks use "role-based" allowances, and considered what should be treated as fixed remuneration. It wants authorities to ensure banks classify remuneration correctly. (Source: EBA Publishes Results of Bankers' Remuneration Investigation)