FRANKFURT/LONDON (Reuters) – European insurers will be tested to see whether they could stay in business even if interest rates remained at historic lows for a long time, a top regulator said on Monday.
Low interest rates make it harder for insurers to generate income from the assets they hold, thereby raising questions about their ability to pay out on customer policies.
LONDON, April 25 (Reuters) – Britain may lose its challenge
to stop plans by 11 euro zone countries to tax financial
transactions when the European Union’s top court rules next
week, lawyers said on Thursday.
Britain is challenging an EU decision allowing the group of
EU members to push ahead with their plans to tax stock, bond and
derivatives trades to help make banks pay for the public money
they received in the 2007-09 financial crisis.
LONDON, April 24 (Reuters) – Britain’s stock-market listed
companies should be able to claw back bonuses paid to poorly
performing executive board members, a regulator proposed on
Thursday, mirroring steps already being taken by banks.
The Financial Reporting Council (FRC) published how it plans
to toughen its corporate governance code, a set of standards
which companies must comply with or explain publicly why they do
LONDON, April 17 (Reuters) – Foreign exchange dealers won’t
face the added cost of having to clear some currency trades if
the European Union decides they must come under new EU rules to
make derivatives markets safer, a top regulator said.
The bloc’s executive European Commission is deciding whether
part of the $5.3 trillion a day foreign exchange market should
be legally defined as derivatives under the bloc’s laws.
LONDON (Reuters) – Investors would be able to make a more accurate assessment of how well banks manage risks on their books under proposals published by the International Accounting Standards Board (IASB) on Thursday.
Risk management has risen to the top of the regulatory agenda for banks after the 2007-09 financial crisis left taxpayers having to bail out lenders who failed to disclose potential problems on their balance sheets.
LONDON (Reuters) – Global regulators have eased a new rule limiting how much business a bank can undertake with a single customer, as they try to minimize the risk of fallout from a counterparty going bust without imposing excessive burdens on financial firms.
Regulators want to avoid the damage to financial stability an insolvency can wreak, as seen with the collapse of U.S. bank Lehman Brothers in 2008 which led to taxpayers bailing out several lenders.
LONDON (Reuters) – The European Union will sign off on a slew of major reforms this week to allow failing banks to be wound down without public money, clearing its desk before elections in May that may lead to a slower pace of legislation.
This week is the final plenary session of the European Parliament before it breaks up ahead of the vote in May.
LONDON, April 11 (Reuters) – The European Central Bank and
Bank of England said public intervention to kick-start the
shrinking market for packaged debt is inevitable, and it accused
global regulators of taking too tough a stance on the sector.
The two banks said in a joint paper that the asset-backed
securities (ABS) market, which bundles loans into bonds, is
impaired and unable to play a role in funding the economy.
LONDON (Reuters) – The European Central Bank’s new platform for settling trillions of euros of stock and bond trades will trigger a shake-up in the business, the head of one of Europe’s biggest settlement houses said.
The combination of the new platform and new European Union law will inevitably lead to consolidation, said Jeff Tessler, the chief executive of Clearstream, Deutsche Boerse’s (DB1Gn.DE: Quote, Profile, Research) settlement arm. He expects only three or four big settlement houses offering cross-border services will be left standing.
LONDON (Reuters) – Banks will not have to hold as much capital as feared to cover trading losses, global regulators said on Thursday in their latest easing of rules to avoid crimping economic recovery.
The Basel Committee of banking supervisors from nearly 30 countries published its finalized rule on how much capital banks must set aside to cover trading positions at clearing houses from 2017.