1. The BCBS publishes its reports to G20 finance ministers and central bank governors on Basel III implementation.
2. The Joint Committee of the ESAs calls for action on cross-sectoral risks.
1. IMPLEMENTATION OF BASEL III REGULATORY REFORM
The BCBS published its report on monitoring implementation of Basel III regulatory reform.
This report updates G20 finance ministers and central bank governors on progress in adoption of the Basel III regulatory reforms since the BCBS issued its October 2012 report. The scope of this update is broader than previous progress reports to the G20. In addition to reporting on the steps taken by Basel Committee member jurisdictions towards implementing the Basel III capital standards, which was the focus of the last report, this update also covers developments in other Basel III regulatory standards, and banks' progress in bolstering their capital bases. The report also highlights specific implementation-related shortcomings that are surfacing, which require continued policy and operational attention.
The Joint Committee of the European Supervisory Authorities published its first report dated 13 March on risks and vulnerabilities in the EU’s financial system.
The publication identifies the key cross-sectoral risks facing the EU’s financial markets and system, and sets out recommendations on how these can be addressed through coordinated policy and supervisory action by policy-makers, the ESAs and Member States.
The report has identified the following risks the EU financial system is facing:
I. Weak macroeconomic outlook and consequently a deterioration for financial institutions’ asset quality and profitability;
II. Low interest rate environment;
III. Risk of further fragmentation on the single market ;
IV. Increased reliance on collateral;
V. Lack of confidence in financial institutions’ balance sheet valuations and risk disclosure;