ECB Consults on Draft SSM Framework Regulation

On 7 February 2014, the European Central Bank (ECB) published a consultation paper on a draft of the ECB Single Supervisory Mechanism (SSM) Framework Regulation.

Pursuant to the SSM, from 4 November 2014, the ECB will assume responsibility for the supervision of significant supervised entities (SSEs) Continue reading

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ECB Identifies Banks Subject to SSM

On 6 February 2014, the European Central Bank (ECB) published a decision identifying those banks that are subject to comprehensive assessment under the Single Supervisory Mechanism (SSM) in accordance with Article 33(4) of Regulation 1024/2013. Continue reading

Single Resolution System- closer to being resolved

MEP’s voted on the 17th to establish their position on critical details of the single resolution system. During yesterday’s Parliamentary hearing, ECB President Mario Draghi said, Continue reading

EU Banking Reform Legislation Expected January 2014

On 11 December 2013, the European Commission published a press release containing remarks made by Michel Barnier, European Commissioner for Internal Market and Services on EU banking structural reform.  Mr Barnier stated that the legislative proposal on EU banking reform will be presented at the beginning of January 2014.  Following the recent publication of the Volcker Rule on 10 December 2013, the Commission will also look at the details of this new rule (see this blog post for more details).  For certain banks deemed too big to fail, he explained that the EU banking reform proposal will consider separation, calibration and treatment of the risks taken by these banks.

SRM Update

On 6 December 2013, the Presidency of the EU Council published its latest compromise proposal (17410/13) with respect to the single resolution mechanism (SRM). Changes to the previous compromise text (17055/13) are highlighted in bold and underlined. The Council has also published a Presidency report (17411/13)  dated 6 December 2013 detailing key outstanding issues relating to the SRM Regulation including: Continue reading

Banking Union Details to be Discussed in Emergency Meeting

Yesterday’s meeting of finance ministers in Brussels failed to establish crucial details over bail-in according to the Financial Times. The negotiations did produce a draft compromise broadly based on Germany’s revised position (see this blog post for more details).  The financing details will be left to an emergency meeting on the eve of the next EU summit in Brussels on 19 December 2013.  In the event Brussels rejects the board proposal, the plans would need the approval of the European Commission or a majority vote of banking union member states.