EBA Announces Details of 2016 EU-Wide Stress Test
The European Banking Authority (EBA) published on November 5, 2015 its EU-wide stress test and draft methodology for discussion. The stress-test exercise to be carried out in 2016 will assess a sample of banks covering broadly 70% of the banking sector in the EU against a common macroeconomic baseline and adverse scenario. The objective will be to provide supervisors, banks and other market participants with a common analytical framework to compare and assess the resilience of the EU banking system to shocks.
Details of the stress test are set out in a press release published by the EBA, and the draft methodology note is also available for review.
EU Council Information Note on SFT Regulation
Following the first reading of the proposed Regulation on reporting and transparency of securities financing transactions (SFT Regulation) in the European Parliament, the Council of the EU has published a note setting out the proposals.
The Council's note explains what the policy makers aim to achieve through the new regulation and also sets out the outcomes of the Parliament's first reading, including discussion of proposed amendments to the regulation.
EIOPA Consultation Paper
On October 30, 2015 the European Insurance and Occupational Pensions Authority (EIOPA) published a consultation paper on the proposal for preparatory guidelines on product oversight and governance arrangements by insurance undertakings and insurance distributors.
The guidelines will be addressed to competent authorities and will provide support and guidance on how to proceed in the preparatory period leading up to the transposition of the Insurance Distribution Director (IDD).
The paper invites consultation responses – responses must be received by January 29, 2016.
BCBS Consultation Document on Haircut Floors
The Basel Committee on Banking Supervision (BCBS) has published a consultation document on haircut floors for non-centrally cleared securities financing transactions.
The report is published following a recommendation by the Financial Stability Board that the BCBS incorporate the haircut floors into capital requirements for non-centrally cleared SFTs by setting significantly higher capital requirements for transactions traded below the haircut floors.
The document welcomes consultation responses, and specifically asks whether the public sees any weakness in the proposals or any specific implementation challenges. Responses must be received by January 5, 2016.
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