BANCI | ENGLISH

The European Banking Authority (EBA) publishes Guidelines on recovery and resolution

Autor:

2014-09-25 10:59

The European Banking Authority (EBA) published today its final Guidelines specifying the type of tests, review or exercises that may lead to extraordinary public support measures for institutions in the banking sector. These Guidelines aim at promoting a consistent and coherent approach to bank resolution across the European Union and will be part of the EU Single Rulebook in the banking sector.

The Bank Recovery and Resolution Directive (BRRD) defines a harmonised regulatory framework for resolving institutions across the EU. It establishes that resolution should be primarily and almost exclusively financed by private resources, in order to avoid, as far as possible, resorting to taxpayers’ funds when dealing with unsound or failing credit institutions and investment firms.

The Directive also defines a request for extraordinary public support, as an indicator that an institution is failing or likely to fail. However, such support will not necessarily trigger a resolution if certain exceptional elements and conditions are met. Among these elements and conditions, the BRRD specifically refers to public injections of own funds or to acquisition of capital instruments addressing a capital shortfall that may result from a stress test, an asset quality review or other equivalent exercises.

In the Guidelines published today, the EBA has developed the necessary elements and features of the tests, reviews and exercises mentioned in the BRRD. The EBA Guidelines specify that these tests, reviews, and exercises should have a specific timeline and scope, should provide a time horizon and reference dates, as well as a quality review process. Moreover, where relevant, they should also provide a macro-economic scenario and hurdle rates, and a timeframe to address the shortfall.

Legal basis and next steps

The draft Guidelines have been developed in accordance with Article 32(4)(d)(iii) of Directive 2014/59/EU (BRRD), which mandates the EBA to specify the type of tests, reviews or exercises which may lead to a precautionary recapitalisation of an institution, under certain conditions.

See details here

Taguri:

Comentarii

Adauga un comentariu

Adauga un comentariu folosind contul de Facebook

Alte stiri din categoria: ENGLISH

Neutral interest rate in Romania

The neutral nominal rate in Romania has been falling since the start of inflation targeting in 2005. The Taylor Rule clearly shows that interest rates peaked in 2022 and have been on a clear downward path ever since.Furthermore, the model estimates a long-term neutral nominal rate of around 3.9%, which is the equivalent of approx. 1.4% real.Using a more sophisticated model (i.e. New York FED’S HLW model), the real neutral interest rate in Romania is estimated currently at around 1.5% (1.7% 2023 average) and the historical mean at 1.2%.This implies a neutral nominal rate between 4.00% and 4.50%. In the past decade, the NBR real effective rate was below the neutral rate and only over the past year climbed above the neutral mark.Source: Erste Bank

Merger of Alpha Bank and UniCredit Bank Romania

Press Release:"Alpha Services and Holdings announces a strategic partnership with UniCredit in RomaniaMerger of Alpha Bank Romania and UniCredit Bank Romania and creation of third largest bank in Romania by... detalii

National Bank of Romania (NBR) Board decisions on monetary policy

NBR Board decisions on monetary policyIn its meeting of 4 April 2023, the Board of the National Bank of Romania decided:• to keep the monetary policy rate at 7.00 percent per annum;• to leave unchanged the lending (Lombard) facility rate at 8.00 percent per annum and the deposit facility rate at 6.00 percent per annum;• to keep the existing levels of minimum reserve requirement ratios on both leu- and foreign currency-denominated liabilities of credit institutions.The annual inflation rate went down to 15.52 percent in February 2023, from 16.37 percent in December 2022, relatively in line with forecasts. The decrease was mainly driven by the sizeable drop in the dynamics of fuel and electricity prices, under the impact of significant base effects and the change made to the energy price capping and compensation scheme starting 1... detalii

ING posts 2022 net result of €3,674 million, dividend of €0.389 per share

ING press release:ING posts FY2022 net result of €3,674 million,proposed final 2022 dividend of €0.389 per share 4Q2022 profit before tax of €1,711 million; CET1 ratio remains strong at 14.5%•Profit before tax up 29% on 4Q2021 and 24% on 3Q2022, mainly driven by higher income•Higher net interest income, as a further increase in liability margins helped offset TLTRO impact this quarter•Risk costs declined to 17 bps of average customer lending Full-year 2022 net result of €3,674 million, supported by growing customer base and increase in lending and deposits•On a full-year basis, our primary customer base grew by 585,000•Net core lending growth of €18 billion and net core deposits growth of €25 billion in 2022•Net result of €3,674 million in a challenging year; proposed final 2022 dividend of €0.389 per share CEO statement“Looking back, 2022 was... detalii