Latest Quote: 

“Mario Draghi is betting the banking system rather than the bond market is his best ally for now in the fight against deflation.”

 

Latest Hype:

6 June 2014 // The European Central Bank (ECB) has demonstrated its commitment to provide different forms of further monetary stimulus, should they be required. In particular, alongside anticipated cuts in policy rates, the central bank will conduct targeted longer-term refinancing operations (TLTROs), aimed at improving credit provision to the non-financial sector. According to Marie Diron (Moody’s) “it is through their signalling effect that these measures are likely to have the greatest impact.”

6 June 2014 // The European Banking Authority published it’s Interactive Single Rulebook. This Rulebook is an on-line tool that provides a comprehensive compendium of  the level one text for both the Capital Requirements Regulation (CRR) and the Capital Requirements Directive (CRD IV), the corresponding technical standards developed by the European Banking Authority (EBA) and adopted by the European Commission (RTS and ITS), as well as the EBA guidelines and related Q&As.

 

European Financial System reloaded:

  • June 2014: EU-Council nominates candidate for EC President
  • June/July 2014: EU-Commission is expected to publish final rules on LCR and Leverage Ratio
  • July 2014: First Plenary session; Voting for Commission President takes place
  • September 2014: List of Significant banks will be published
  • October 2014: Results of the EU stress test published
  • November 2014: ECB takes over supervision (124 European Banks)
  • End of 2014: Basel work on shadow banking to be finished
  • End of 2014: Review of the covered bond treatment in the CRR
  • January 2015: BRRD system begins to apply and provisions setting
  • Mid 2015: Updated deposit guarantee system begins to apply
  • January 2016: Second round of SRM provisions take effect, including BRRD “bail-in” system and setting up of the SRF
  • 2024: National deposit guarantee fund fully capitalised (around  €44 billion for all funds)
  • 2025: National bank recovery and resolution funds (for non-banking union countries) fully capitalised

 

 

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