Regulation Correspondent, Europe
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May 13, 2015

New euro zone watchdog says banks must revamp IT systems

LONDON (Reuters) – Many euro zone banks must overhaul their technology to ensure they can be split up swiftly if they run into trouble – without disrupting customers, Europe’s newest banking watchdog said on Wednesday.

The Single Resolution Board (SRB) in Brussels was set up earlier this year to handle failing lenders after the European Central Bank took over supervision of Europe’s top 120 banks.

May 12, 2015

EU watchdog to turn up heat on banks over capital

LONDON (Reuters) – Banks will need to meet tougher capital rules early to restore public trust in the sector’s health, a top European Union regulator said on Tuesday.

Some banks in Europe have a stock market values less than the sum of their assets, seen as an indication by regulators of a lack of confidence in the capital buffers they hold.

May 11, 2015

EU watchdog says QE adding to liquidity headache

LONDON (Reuters) – The ECB’s trillion euro money printing program has put asset managers at the frontline of a possible liquidity crunch, though bringing in new rules to curb investment risk would be wrong for now, a top EU markets supervisor said on Monday.

The European Central Bank has begun a 19-month bond-buying spree, aimed at spurring the economy and helping to push yields in fixed income markets into negative territory in some cases.

May 11, 2015

Insurers must speed business model change -EU watchdog

FRANKFURT/LONDON, May 11 (Reuters) – Insurers must exercise
caution over dividends and speed changes to their business
models to meet tougher capital rules from January, the European
Union’s insurance watchdog said.

Record low interest rates are making it harder for insurers
to achieve adequate returns to pay policyholders, raising
questions over the sustainability of some companies in their
current form.

May 8, 2015

EU watchdog, bankers spar over new bonus rules

LONDON, May 8 (Reuters) – The European Union’s banking
watchdog called on lenders on Friday to back up their complaints
that a blanket application of the bloc’s bonus rules will harm
the single market.

The European Banking Authority (EBA) is updating guidance on
banker pay, such as when part of a bonus should be deferred or
what constitutes fixed and variable pay. It also reflects the
bloc’s new cap on bonuses of top earners.

May 7, 2015

EU lawmakers back rewards for long-term shareholders

LONDON, May 7 (Reuters) – Long-term shareholders in
companies in the European Union will be rewarded with extra
voting rights or loyalty dividends if a draft law backed by a
panel of EU lawmakers comes into force.

The 28-country bloc is revising its shareholder rights rules
to combat what critics call “short-termism” in stock markets
where investors hold shares for only brief periods, making them
less likely to hold company boards to account.

May 6, 2015

ECB’s T2S settlement system may not launch in June – official

LONDON, May 6 (Reuters) – The European Central Bank’s
landmark project to unify settlement of securities across the
euro zone won’t be launched in June unless the platform is more
stable, a senior official said on Wednesday.

The platform will settle euro-denominated securities,
exchanging legal ownership for cash in the final part of a

May 6, 2015

U.S., EU officials clash over derivatives rules

By Huw Jones

(Reuters) – U.S. and European Union regulators clashed on
Wednesday over how to provide solid financial backing for the
world’s $630 trillion derivatives market and also avoid
duplication of rules that would be costly for banks and other

The two sides are working on regulations to make derivatives
less vulnerable to market shocks like the 2008 financial crisis,
but differences over the amount of money needed for margins or
collateral to back trades threaten to fragment the market, which
is largely traded in New York and London.

May 5, 2015

EU regulators put pressure on banks to revamp business models

LONDON, May 5 (Reuters) – Some banks must change their
business models to make themselves more sustainably profitable
in a era of low interest rates and tougher regulation, European
Union regulators said on Tuesday.

The bloc’s banking, insurance and markets watchdogs
published a joint update on risks to financial stability that
supervisors across the 28-country EU will be required to

Apr 28, 2015

Hong Kong move offers few clear benefits for HSBC

HONG KONG/LONDON, April 28 (Reuters) – The regulatory case
for HSBC to shift its head office from London to Hong Kong is
not clear-cut and the huge bureaucratic upheaval such a move
would involve may outweigh other advantages, lawyers and
analysts say.

Hong Kong’s regulators could impose a string of conditions
on the bank, while authorities in Britain and elsewhere might
also insist on onerous requirements before signing off on a
change of domicile. These could include extra guarantees on how
HSBC could be rescued without burdening their taxpayers.

    • About Huw

      "Huw is based in London and covers European regulatory issues and global rulemaking bodies such as the G20, Financial Stability Board, IOSCO, IASB and the Basel Committee. He has covered EU regulation in Brussels, the emergence pan-European stock markets, and has also been a Wall Street reporter in New York."
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