16 Jun 2009, David Benyon, Operational Risk & Regulation
LONDON - The Committee of European Banking Supervisors (Cebs) has released a consultation paper of implementation guidelines for the revised large exposures regime, which will form part of the updated Capital Requirements Directive (CRD).
The draft guidelines focus on three aspects of the revised regime. The first is the definition of 'connected clients' and particularly the concept of 'interconnectedness'.
The second and third aspects are calculation of exposure values for schemes with exposure to underlying assets, and reporting requirements - particularly their linkage with the Common Reporting (Corep) framework for a harmonised European reporting system.
The draft guidelines set out in CP26 build on Cebs' earlier advice to the European Commission. In elaborating this document, Cebs has benefited from input provided by industry experts nominated by members and observers of Cebs' Consultative Panel.
A revised large-exposures regime was included in the amended CRD following Cebs' second issue of advice delivered to the Commission in April 2008. The amended CRD provisions are due for transposition into European Union member state legislation by October 31, 2010, and will be applied from December 31, 2010.
Cebs says CP26 is open to all interested parties, including supervised institutions and other market participants, until September 11. It can be read here.
Cebs has also announced that on July 9 it will hold a public hearing on its April 15 consultation paper (CP25) on operational risk mitigation techniques. Click here to register.
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