Exploratory work on a digital euro has been underway for more than a year, yet in some ways the UK’s early digital pound proposals are more defined.
Europe
EU looks set for significant Basel III deviations
Finance and regulation experts are startled at how much the EU is deviating from Basel guidelines in its latest banking reforms, raising fears of non-compliance with international banking standards.
To fuel sustainable growth in Europe, we must rethink the banking regulatory framework
A review of the current capital requirements and supervisory processes for EU banks could provide capacity for around €4tn in additional bank lending to finance the green and digital transitions, and strengthen the competitiveness of the EU economy.
FINMA tells banks to establish frameworks for managing climate risk
Banks and insurers operating in Switzerland are expected to establish frameworks for managing climate risk based on established practices and relevant to their individual businesses.
EU banks update their SREP requirements
A sample of 17 of the EU’s largest banks by rating agency Scope Ratings found that six had to increase their Pillar 2 Capital requirements following the annual Supervisory Review and Evaluation Process (SREP) undertaken by supervisors.
European AT1 borrowing costs reach highest level in a decade
Coupon rates for newly issued contingent convertible bonds (CoCos) from European banks reached an average of 7.8% during the third quarter of 2022 and 9.8% during the fourth quarter – the highest level since the third quarter of 2011, according to a report from the Association for Financial Markets in Europe (AFME).
ESMA advises use of DTIs as part of its digital asset reporting pilot
Market participants are being advised to use digital token identifiers (DTIs) by the European Securities and Markets Authority (ESMA) in relation to its reporting pilot for digital assets.
A digital euro would not be a lurch towards a dystopian future, says ECB official
The digital euro would never be programmable nor undermine personal privacy, a European Central Bank (ECB) official told the European Parliament in a bid to defuse fears that it could represent a slippery slide towards a dystopian society.
ECB warns banks on hedge fund and family office counterparty credit risks
The European Central Bank (ECB) found “several material shortcomings” in a review of the risk management practices of EU banks particularly active in prime brokerage activities.
ECB boosts co-operation with six non-eurozone member states
The European Central Bank (ECB) has signed a memorandum of understanding (MoU) with the six EU member states not part of European banking supervision, to boost supervisory co-operation.
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