BANKING

ECB chair sets out when and how some banks should fail

The chair of the supervisory board of the European Central Bank (ECB), Danièle Nouy, has said the role of the European banking supervision is not to prevent each and every bank from failing. Instead, it is to create a level supervisory playing field and make the banking sector safer. It also helps to prepare the ground for a ‘truly European banking market that will trigger cross-border consolidation sooner rather than later’.

European Central Bank, 5 September 2017

 

IFRS and BCSB sign MoU on global accounting standards

The Basel Committee on Banking Supervision (BCBS) and the International Financial Reporting Standards (IFRS) Foundation have signed a memorandum of understanding (MoU) focusing on the development of IFRS standards, the interaction between IFRS standards and the BCBS’s framework, and the manner in which they are applied in practice by financial institutions across the world. The co-operation agreement aims to foster long-term financial stability, enhance market discipline and further develop sharing of information.

Bank for International Settlements, 5 September 2017

 

FOS publishes complaints data for Q1 and Q2 2017 on individual financial businesses

The Financial Ombudsman Service (FOS) has released data on the complaints it received over the six months from 1 Jan to 30 Jun 2017 about individual financial businesses. The data is set out in two tables, covering the number of new cases received by the ombudsman service in that six-month period from consumers dissatisfied with the financial business’s response to their complaint, and the percentage of resolved cases where the FOS made a change in favour of the consumer.

Financial Ombudsman Service, 5 September 2017

 

ECB supervisor sets out case for a European Deposit Guarantee Scheme

In a speech on bank restructuring, resolution and insolvency, a member of the supervisory board of the European Central Bank (ECB), Pentti Hakkarainen, said it was important to have a special insolvency regime for the sector that was faster than standard insolvency proceedings, protected society from the potentially massive negative spill-over effects associated with bank failures, and ensured the continuation of the critical functions of financial institutions.

European Central Bank, 5 September 2017

 

INVESTMENTS AND FUNDS

EBA release final draft ITS for resolution authorities’ MREL reporting

The European Banking Authority (EBA) has published final draft implementing technical standards (ITS) specifying templates and procedures resolution authorities should follow when informing the EBA of the minimum requirement for own funds and eligible liabilities (MREL) that have been set for institutions in their jurisdiction under the Bank Recovery and Resolution Directive 2014/59/EU (BRRD). The standards will enable the EBA to monitor the consistency of MREL implementation across the EU.

European Banking Authority, 5 September 2017