Report on Risks and Vulnerabilities in the EU Financial System published by European Supervisory Authorities (ESAs)
The Joint Committee of the European Supervisory Authorities (ESAs) published today its September 2016 Report on Risks and Vulnerabilities in the EU Financial System.
This Report focuses on recent developments concerning the low growth and low yield environment and its potential effects on financial institutions' profitability and asset quality, and highlights concerns related to the interconnectedness in the EU financial system.
These risks have persisted for some time and can be related to lasting effects of the 2007 financial crisis. However, the EU financial system is also vulnerable to more immediate risks such as the result of the UK referendum on EU membership which has added political and legal uncertainties to those already affecting the financial system.
Gabriel Bernardino, Chairman of EIOPA and the current Chair of the Joint Committee, said:
"The Joint Committee proactively considers key risks to financial stability and assesses risk mitigation policies in cooperation with national and European institutions. We are considering the possibilities for further enhancing monitoring of financial industries, reinforcing adequate capital or risk buffers as well as ensuring adequate resolution arrangements for affected sectors.
The Joint Committee is committed to providing a strong and streamlined supervisory response both on a micro- and macro prudential level, which is required by the challenging economic environment."
Low growth and low yield environment
Low growth and low yields affect the financial services industry through various channels. Interest rates and growth expectations have decreased further and are posing new challenges to the entire financial sector.
Low interest margins significantly constrain banks' profitability, while life insurers' and pension funds' liabilities increase as it becomes more difficult to generate high investment returns. This environment may lead banks, insurers, pension funds and other investors to engage in risky search-for-yield behaviour, adding to already elevated risks around asset valuation and adjacent concerns about market liquidity.
The Joint Committee considers it essential to further develop effective recovery and resolution schemes in all relevant sectors, to employ adequate stress testing procedures and to enhance the monitoring of relevant risk drivers.
Profitability of financial institutions
Low quality of assets in many countries, conduct costs and growing competition from non-bank and non-insurance financial institutions negatively affect the profitability of banks and insurers. Subdued returns, further lowered by fees and charges, reduce the attractiveness of investment funds. While the EU-wide bank stress test results have demonstrated the importance of a better capitalised banking system, the high levels of non-performing lands (NPLs) exacerbate concerns about medium-terms sustainability.
Addressing NPLs as a major driver of uncertainties in the financial system has become a key challenge, and further NPL resolution requires comprehensive and proactive action among all relevant stakeholders. Following the UK referendum, profitability risks may be further intensified.
Expectations of weaker macroeconomic conditions are amplified by growing political risks within the EU and globally. In addition, traditional financial service providers are facing increasing competition from Fintech providers which will further challenge the sustainability of their business models.
Responding to this risk, supervisors need to encourage steps to adjust business models in search for sustainable income, to address excess capacities as well as to monitor and assess the impact of emerging innovative technologies and market practices.
Interconnectedness within the financial system
The interconnectedness between the financial sector outside of the banking, insurance and pension fund industries with the wider financial system is increasing, as cross-sectoral exposures, asset price commonalities and the interdependency of business processes augment.
The Joint Committee considers that related stability risks should be assessed thoroughly to mitigate the increasing risk exposure outside the traditional financial system.
The Joint Committee is a forum for cooperation that was established on 1 January 2011, with the goal of strengthening cooperation between the European Banking Authority (EBA), European Securities and Markets Authority (ESMA) and European Insurance and Occupational Pensions Authority (EIOPA), collectively known as the three European Supervisory Authorities (ESAs).
Through the Joint Committee, the three ESAs cooperate regularly and closely to ensure consistency in their practices. In particular, the Joint Committee works in the areas of supervision of financial conglomerates, accounting and auditing, micro-prudential analyses of cross-sectoral developments, risks and vulnerabilities for financial stability, retail investment products and measures combating money laundering. In addition, the Joint Committee also plays an important role in the exchange of information with the European Systemic Risk Board (ESRB).
Source: EBA statement
Adauga un comentariu
Adauga un comentariu folosind contul de Facebook
Alte stiri din categoria: Noutati EBA
The Joint Committee of the three European Supervisory Authorities (EBA, EIOPA and ESMA - ESAs) published today an Opinion on the use of innovative solutions by credit and financial institutions when complying with their customer due diligence (CDD) obligations. This Opinion is part of detalii
EU banks continued to strengthen their capital ratios in the third quarter of 2017, according to EBA Risk Dashboard. The CET1 ratio increased by 30 bps, from 14.3% in Q2 2017 to 14.6% in Q3 2017, reaching a new peak since Q4 2014. This growth was driven by an increase of detalii
EBA Risk Dashboard confirms steady improvements in the EU banking sector but banks profitability and business model sustainability remain key challenges
The European Banking Authority (EBA) published today its regular Risk Dashboard. Using quantitative risk indicators, along with the opinions of banks and market analysts from its Risk Assessment Questionnaire, the EBA´s dashboard identified ongoing improvements in the repair of the EU detalii
EBA sees a more resilient EU banking sector but challenges in NPLs, IT security and long-term profitability remain (EBA press release) The European Banking Authority (EBA) published today its tenth report on risks and vulnerabilities in the EU banking sector. The detalii
- Topul bancilor dupa active in 2016
- Topul bancilor dupa active in 2015
- Topul bancilor dupa active in 2014
- Cota de piata a bancilor dupa active la finalul anului 2013, conform datelor BNR
- Topul bancilor cu cele mai mici comisioane la internet banking
- Bancile se declara "profund ingrijorate de consecintele negative ale proiectelor de lege privind sectorul financiar-bancar"
- BNR, despre plafonarea dobanzilor: este absolut necesar ca orice masuri de reglementare sa se realizeze cat mai echilibrat
- Numarul restantierilor din Biroul de Credit urca la cel mai ridicat nivel din ultimele sase luni
- Cate credite noi in euro au acordat bancile in 2017
- Statisticile creditelor acordate de banci populatiei (decembrie 2017)
- Statisticile creditelor acordate de banci firmelor (decembrie 2017)
- Statisticile cardurilor, platilor, POS-urilor si bancomatelor
- Noul Cod Civil
- Legea 677 din 2001 privind protectia datelor personale
- Directiva privind Serviciile de Plata (PSD)
- Hotararea Guvernului nr. 2/2018 pentru modificarea si completarea Hotararii Guvernului nr. 717/2009 privind aprobarea normelor de implementare a programului "Prima casa"
- Normele metodologice pentru aplicarea Ordonantei de urgenta a Guvernului nr. 193/2002 privind introducerea sistemelor moderne de plata
- Economistii Bancii Transilvania estimeaza decelerarea PIB-ului de la 7% in 2017 la 4,2% in 2018
- Cresterea economica este nesustenabila, avertizeaza economistii Bancii Transilvania
- Estimarile economice din Romania sunt modeste, in pofida conditiilor financiare bune (studiu GfK)
- National Bank of Romania could leave unchanged the key rate in 2017
- Poland: EU funds - key factor for growth next year
- CEC Bank isi informeaza clientii ca serviciile de internet banking si mobile banking nu vor functiona de vineri seara pana duminica seara
- HSBC, by first direct and Bud, is trialling an open banking app model
- Probleme cu autorizarea platilor online cu carduri Mastercard si Maestro
- Sistemul informatic al Raiffeisen (carduri, ATM-uri, POS-uri, online banking) nu a functionat in aceasta dimineata
- UniCredit prepares for multinational roll-out of instant payments
- Procesul dintre Lucian Isar si Banca Comerciala Feroviara
- Raiffeisen Bank pierde un proces cu ANPC
- Instanta constata caracterul abuziv al dobanzii variabile din contractele de credit ale BCR
- Clauze abuzive in contractele de credit ale Raiffeisen
- BCR a fost reclamata la CEDO de clientii care au pierdut procesele privind clauzele abuzive din contractele de credit
- Ministerul Finantelor anunta ca introduce Declaratia Unica pentru persoanele fizice care realizeaza venituri din activitati economice sau alte categorii de venituri
- Ministerul Finantelor a imprumutat 2 miliarde euro de pe pietele internationale
- Ministerul Finantelor pregateste noi formulare de plata a CAS si CASS, in locul Declaratiei 600
- Guvernul a alocat garantii de 2 miliarde lei pentru Programul Prima Casa in 2018
- Transferul contributiilor de la angajator la angajat va avea aplicabilitate cel putin pana in anul 2020, spune Ministerul Finantelor
- Numarul fimelor active din Romania, conform statisticilor Registrului Comertului
- Evolutia istorica a cresterii anuale a Produsului Intern Brut (PIB), conform datelor Institutului National de Statistica (INS)
- Evolutia istorica a valorii Produsului Intern Brut (PIB), conform datelor Institutului National de Statistica (INS)
- Transferurile de bani ale romanilor din strainatate au ajuns la 2,1 miliarde euro anul trecut, conform statisticilor Eurostat
- Salariul mediu net si brut lunar pe economie - evolutie istorica intre in anii 1991 - 2016, conform datelor Institutului de Statistica (INS)
- ECB: Insights into the digital transformation of the retail payments ecosystem
- ECB introductory statement on Governing Council decisions
- Speech by Mario Draghi, President of the ECB: Sustaining openness in a dynamic global economy
- Deciziile de politica monetara ale BCE
- Mario Draghi, President of the ECB: Introductory statement to the press conference (with Q&A)
- EBA launches 2018 EU-wide stress test exercise
- Opinion on the use of innovative solutions in the customer due diligence process
- EBA Risk Dashboard
- EBA Risk Dashboard confirms steady improvements in the EU banking sector but banks profitability and business model sustainability remain key challenges
- EBA report on risks and vulnerabilities in the EU banking sector
- Depozitele bancare nu intra in campania electorala
- FGDB explica modul de aplicare a procedurii de recapitalizare interna a unei banci cu depozitele negarantate ale clientilor (bail-in)
- Valoarea depozitelor garantate de FGDB a crescut cu 50 miliarde lei in ultimul an, la 221 miliarde lei in total
- FGDB aminteste ca toate conturile si depozitele din bancile romanesti sunt garantate in limita a 100.000 de euro
- IMF statement of the 2018 Article IV Mission to Romania
- Jaewoo Lee, new IMF mission chief for Romania and Bulgaria
- IMF concludes article IV consultation with Romania
- IMF statement on the stability of the banking system in Ukraine
- Global House Prices: Time to Worry Again?
- EBRD hails Moldova banking breakthrough
- Banca Transilvania and EBRD become majority shareholders of Victoriabank in Moldova
- BERD devine actionar Agricover Holding
- Life satisfaction: the pursuit of happiness - EBRD study
- EBRD is launching a new Green Economy Financing Facility in Romania
- Federal Reserve issues FOMC statement
- A Challenging Decade and a Question for the Future (speech by Janet Yellen, The Fed chair)
- Janet Yellen speech: Financial Stability a Decade after the Onset of the Crisis
- Janet Yellen - Semiannual Monetary Policy Report to the Congress
- Federal Reserve majoreaza din nou dobanda
- Romania implements SME Initiative: EUR 580 m for Romanian businesses
- European Investment Bank (EIB) is lending EUR 20 million to Agricover Credit IFN
- Obligatiunile Good Pople SA (FRU21) au debutat pe piata AeRO
- BVB avertizeaza doua firme ca nu si-au respectat obligatiile de raportare
- Raiffeisen Centrobank (RCB) a lansat produse de investitii tip warrant la BVB
- BVB a initiat procesul de fuziune cu Sibex
Cand BNR da inapoi, chiar si cu 1% (nu conteaza cu cat in fapt) la gradul de indatorare, apar ... detalii
Lucrez an Olanda că instalator salariu este de 2000 pe luna cu contract nedeterminat măr interesa ... detalii
Cristina, trimite-mi mai multe detalii pe adresa de e-mail: email@example.com ca sa te pot ... detalii
poprire pensie de boala
Stimate domn, Nu se poate pune poprire pe pensia de boala, intrucat reprezinta un ajutor pentru ... detalii