CEBS publishes a quantitative survey on hybrid capital instruments

The Committee of European Banking Supervisors (CEBS) has published an empirical analysis of the characteristics of hybrid capital instruments recognised as regulatory original own funds in the European Economic Area. Hybrids refer to a wide range of capital instruments that combine features of debt and equity but are neither common stock nor ordinary debt. CEBS advises that the analysis should be read as part of a wider and more complete quantitative study of the other eligible capital instruments and of the interplay between the limits to their inclusion. The final analysis is in progress at CEBS and is expected to be finalised by mid 2007.

First reading deal on prudential assessment of bank takeovers

The European Parliament has reached agreement in first reading on the European Commission's proposed Directive to tighten the procedures that Member States' supervisory authorities have to follow when assessing proposed mergers and acquisitions in the banking sector. The current EU rules allow supervisory authorities to block proposed M&A if they believe that the sound and prudent management of the target company could be put at risk. The proposed new Directive aims to clarify the criteria against which supervisors should assess possible M&A operations.

Treasury Committee announces decisions about Private Equity Funds and competition in banking and the future of ‘free’ banking

The Treasury Select Committee has published a press release advising that it expects to undertake new inquiries into Private Equity Funds and into competition in banking and the future of ‘free’ banking.