Seminar 9: Understanding the Risk Reduction Legislative Package

Seminar 9: Understanding the Risk Reduction Legislative Package

2 February 2017, 16:00 – 18:00, European Parliament, room 6Q1 (building Jozsef Antall)

The EPFSF training sessions for Ep Staff are designed to deliver a deeper understanding of financial markets and services. Against the backdrop of ongoing parliamentary debate over potential banking structural reform measures, this seminar will expalin the purpose and nature of the services that banks provide to different economic actors, to finance their economic activity and help manage the risks arising from such activities. The seminar will also deal with the main aspects of the proposal to reform the banking sector and their possible interaction with recent policy initiatives such as the EU Investment Plan and the forthcoming Capital Markets Union.

PROGRAMME

16:00   Introduction

16:05   The health of the EU Banking Sector

– Evolution of capital and liquidity levels
– Profitability
– Impact of regulation

16:15   Capital Requirements

Introduction: role and importance of capital in a bank’s balance sheet, composition and relative importance of the different measures of capital from a regulatory perspective.
– Overview of the new proposals in the area of capital:
– 
New rules for market risk (FFRTB): basic concepts; why it is important (link with market liquidity, CMU, end-users); EC proposals; industry perspective and priorities.
– Introduction of a binding Leverage ratio: basic concepts; EC proposals; importance of preserving risk sensitivity.
Q&A

16:50   Liquidity Requirements

Introduction: role and evolution of liquidity rules; basic concepts (LCR; NSFR).
Overview of the new proposals in the area of liquidity/ funding: why it is important (link with market liquidity, CMU, end-uders); EC proposals; industry perspective and priorities.
Q&A

17:20   Loss Absorbency

– Definition of TLAC and MREL requirements.
– Subordination rules from country to country and possible harmonisation.
– Q&A

17.55 Closing Remarks

18:00   End of session

Moderators:

Stefano Mazzocchi, Managing Director for Advocacy at the Brussels Office of the Association for Financial Markets in Europe (AFME)
Enrique Velazquez, Head of Public Affaires, European Banking  Federation

Panel of speakers:

Michael Lever, Head of Prudential regulation at the Association for Financial Markets in Europe (AFME)
Mark Gheerbrant, Head of Risk and Capital at the International Swaps and Derivatives Association (ISDA)
Emil Jansson, Senior manager, Capital and Asset Liability Management at Swedbank