On 7 January 2012, the EU Commission published a statement by Michel Barnier welcoming the agreement of the Basel Committee to the revision of the Liquidity Coverage Ratio (LCR) and its gradual phasing-in between 2015 and 2019. The Commission’s approach to liquidity issues within the context of CRD4 is to initiate a reporting period at […]

On 23 December 2012, ISDA published a letter sent in response to the EU Commission’s Consultation on a possible recovery and resolution framework for financial institutions other than banks. ISDA’s response focuses mainly on RRP for Central Clearing Counterparties (CCPs).  It believes that a common resolution framework should apply to all FMIs (and not just […]

Introduction On 21 December 2012, the European Commission published a summary of the replies received to its October 2012 consultation on the recommendations of the high-level expert group on reforming the structure of the EU banking sector (the “Liikanen Group”).  It also published links to individual responses. In total, the Commission services received 89 responses […]

On 19 December 2012, the European Commission published a press release confirming that it had adopted nine regulatory and implementing technical standards under EMIR. The regulatory technical standards will be published in the Official Journal of the European Union immediately following the receipt of ‘non-objection’ from the EU Parliament and Council. Both institutions have one […]

Introduction On 5 December 2012, the European Central Bank (ECB) published its opinion on the EU’s draft directive establishing a framework for recovery and resolution of credit institutions and investment firms (the “Recovery and Resolution Directive” or “RRD”). In general, the ECB fully supports the RRD, welcomes the fact that it is in line with […]

Introduction On 8 October 2012, the EU Parliament’s Committee on Economic and Monetary Affairs (ECON) published a draft report proposing amendments to the European Commission’s draft regulation establishing a single supervisory mechanism (SSM). The most significant amendment proposed by the EU Parliament would restrict the number of banks coming under direct ECB supervision.  Whilst subject […]

Introduction On 5 October 2012, the European Commission published a consultation paper on a possible recovery and resolution framework for financial institutions other than banks.  The aim of the consultation is to ensure that all nonbank financial institutions the failure of which could threaten financial stability are capable of being resolved in an orderly manner […]

On 28 September 2012, the EU Commission published a press release confirming that the final report of the Liikanen Committee is due to published on 2 October 2012. The Liikanen Committee is an expert group, formed by the EU Commission in February 2012 and chaired by Erkki Liikanen (former Governor of the Bank of Finland), to investigate […]

Introduction On 13 September 2012, the EU Parliament published a press release announcing that it has adopted a resolution relating to the establishment of a single EU banking supervisor.  The resolution was adopted the day following the publication by the EU Commission of two legislative proposals on EU banking union. In passing the resolution, the […]