A package of legislation intended to reduce risks in the EU banking sector, known as the ‘banking package’, was published in the Official Journal of the EU on 7 June...
The Basel Committee on Banking Supervision (BCBS), consisting of the central banks of governors of the so-called G10 countries (Belgium, Canada, France, Germany, Italy,...
This note provides a legislative history of Basel II which preceded the Basel III reforms. For further information regarding Basel III and CRR and CRD IV, please see CRD...
This Practice Notice details the background and legislative history in relation to the CRD IV package, the latest package of major reforms to EU legislation on prudential...
Introduction The financial crisis of 2007-2009 caused a spike in market volatility for which firms were ill-prepared. When the capital markets froze and the market value...
The implementation of Basel III in Europe saw the replacement of the Banking Consolidation Directive (BCD) and the Capital Adequacy Directive (CAD) (also known as the...
Background to CRDIV capital buffers Capital buffers originated as a key component of the Basel III capital reforms which were issued in June 2011 and implemented across...
Definition of Credit Valuation Adjustment After years of relative neglect, the concept of Credit Valuation Adjustment (CVA) is now at the forefront as an adjustment made...
Introduction and background The Basel II Accord recognised that operational risk is a major source of actual and potential exposure for banks and identified three...
BREXIT: As of exit day (31 January 2020) the UK is no longer an EU Member State. However, in accordance with the Withdrawal Agreement, the UK has entered an...
What is liquidity? Liquidity describes the requirement that firms should maintain sufficient, easily realisable resources to ensure that there is no significant risk that...
What is prudential regulation? Prudential regulation requires firms to hold certain amounts of capital, maintain requirements around liquidity and observe...
Brexit: As of exit day (31 January 2020) the UK is no longer an EU Member State. However, in accordance with the Withdrawal Agreement, the UK has entered an...
This Practice Note provides a summary of the internationally recognised requirement for financial institutions, in particular banks and investment firms, to maintain a...
Background Financial conglomerates are large groups with significant activities in more than one financial sector (banking, investment, insurance). They tend to be...
Introduction—application of the large exposure requirements Concentration risk is an area of prudential regulation which often throws up confusion. Banks and other market...