CEBS releases report on current supervisory practices on large exposures
The Committee of European Banking Supersivion (CEBS) has carried out a survey of member states’ implementation of the large exposures rules. The report provides a review of the different regulatory approaches and insights into the proposed manner of implementation of the new and old options in the Capital Requirements Directive (CRD). The report also indicates where there are synergies and conflicts of practice between national supervisory authorities.
The report represents the first step in a review of the large exposures framework. “Consideration of the commonalities and divergences identified will form an important aspect of the next stage of the work. A further key step, which is currently in progress, is a thorough consideration of industry practices in relation to the measurement and management of large exposure and concentration risk,” CEBS stated on its website.
Due to Basel II requirements, CEBS found that the large exposures rules will need to be reviewed to take into consideration new market practices in the risk management of large exposures and the interrelationship between the measurement of these exposures in Pillar I and the Pillar II rules on concentration of risk.
CEBS is conducting a public consultation on Pillar II guidance with regard to concentration risk, which is also being addressed by the Basel Committee.
Click here to see the report in full.
BaselAlert.comOnly users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe
You are currently unable to print this content. Please contact info@risk.net to find out more.
You are currently unable to copy this content. Please contact info@risk.net to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@risk.net
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@risk.net
More on Regulation
Competitiveness mandate for Esma faces uphill battle
European Parliament offers last chance to force Esma to take more nuanced approach
Europe expects FRTB to bite on XVA hedges
Risk Benchmarking: One-third of European dealers fear new market risk rules will have major effect on hedges
Burning ambition: will Europe join the US in setting fire to the rules?
As the US dismantles post-crisis regulations, some think Europe will follow in a bid to boost economic growth
Can US perpetual futures solve their identity crisis?
Market could fall under four different regulatory categories, with sharply diverging outcomes
Banks want AML data upgrade to complement US regulatory reform
FinCEN’s proposed overhaul sparks debate on whether it will lead to smarter or weaker supervision
Industry pushes EU exchanges to solve equity post-trade frictions
Deutsche Bank, Goldman Sachs and JP Morgan join calls for mandatory cash CCP interoperability
Regulatory clarity urged for CME’s single-stock futures
SEC short selling and market access rules may hamper clearing and broker participation
Imminent US shake-up of LCR slated to include discount window
Adding Fed liquidity facility to bank regulation may help overcome stigma, raise lending capacity
