Simplification of the European prudential regulatory, supervisory and reporting framework
15 Articles
15 Articles
The European Central Bank (ECB) has just published its recommendation for bank simplification, a document in which it proposes to reduce the number of capital buffers required of banks and a more advantageous regulation for smaller entities. The work, led by the vice president of the body, Luis de Guindos, has been aimed at reducing the regulatory burden. "The objective has been to identify undue complexities within the European framework of reg…
ECSC has welcomed the proposals made today by the European Central Bank (ECB) to simplify the regulatory and supervisory framework for institutions, especially with regard to capital requirements, as indicated by a spokesperson for the European Press. Specifically, the Council of [...] The ECSC entry is pleased with the ECB’s proposal to simplify the capital requirement structure appears first in Forbes Spain.
The European Central Bank wants to simplify the playbook banks must follow to build their capital buffers for crises. But that doesn't mean they should set aside less money to cover emergencies.
The European Central Bank proposes to streamline the composition of banks' risk ratios or to amend the framework for subordinated debt. If some measures are part of a simplification effort, none of them should have an impact on the level of capital to be mobilised.
The European Supervisor points to simplifying the rules but warns that this does not mean facilitating them.
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