The Council of the European Union has published minutes from the 2882nd Economic and Financial Affairs Council meeting which was held on 8 July 2008. The Council:
- Welcomed the Committee of European Banking Supervisors (CEBS) reports, issued mid June 2008, on banks' transparency on activities and products affected by the recent market turmoil and on issues regarding the valuation of complex and illiquid financial instruments
- Took note of the need to enhance consistency of banks' disclosure practices, as well as of the valuation of exposures and their accounting.
- Welcomed the guidance provided by CEBS.
- Called on banks to implement these guidelines, in a way consistent with their exposures and involvement in the activities affected by the crisis.
- Invited CEBS and supervisors to monitor this implementation following the publication of banks’ mid-year results and to report back to the FSC/EFC and Ecofin in November.
The Council also called on international standard setters to take into consideration CEBS' report on issues regarding the valuation of complex and illiquid financial instruments. The Council also welcomed the initiatives undertaken by industry to improve transparency for investors, markets and regulators of securitised markets. The Council considered that, given the central role ratings play in structured finance as well as their role in European financial services regulation, it is important to address the concerns that have been raised in the context of the financial turmoil concerning the transparency of the rating processes, risk of conflicts of interest related to the remuneration models of the rating agencies, accountability and the quality of ratings.
View Main conclusions of the Council on transparency and rating agencies, (PDF 131KB), 8 July 2008