The European Banking Authority (EBA) published 12 indicators and updated the underlying data from the 35 largest institutions in the EU, whose leverage ratio exposure measure exceeds EUR 200 bn. This end-2017 data contributes to the internationally agreed basis on which a smaller subset of banks will be identified as global systemically important institutions (G-SIIs), following the Basel Committee on Banking Supervision (BCBS) and the Financial Stability Board (FSB) final assessments. The EBA, acting as a central data hub in the disclosure process, will update this data on a yearly basis and will provide a user-friendly platform to aggregate it across the EU. Continue reading…

The Financial Reporting Council (FRC) today announced exclusions from the accountancy profession for three former executives of AssetCo plc, after a Disciplinary Tribunal found they had committed Misconduct in relation to the preparation and approval of the company’s financial statements for the financial years ended 31 March 2009 and 31 March 2010. Continue reading…

During the almost three years on office, former boss Cryan cleaned up most of the toxic lagacy of Deutche’s pre-financial crisis bid to compete with global investment banking giants, in part by paying billions in fines and compensation. But he failed to drag the bank back into positive numbers. On top of that President Trump’s corporate tax reform is the mail reason of the bigger than expected net loss of € 735 million in 2017, reported the Deutche Bank. Begin 2018 some investors wanted supervisory board chairman Achleitner to look for a new top manager.
Continue reading…

The Financial Conduct Authority (FCA) has, in collaboration with 11 financial regulators and related organisations, announced the creation of the Global Financial Innovation Network (GFIN), building on the FCA’s proposal earlier this year to create a ‘global sandbox’. The network will seek to provide a more efficient way for innovative firms to interact with regulators, helping them navigate between countries as they look to scale new ideas. It will also create a new framework for co-operation between financial services regulators on innovation related topics, sharing different experiences and approaches.
Continue reading…

The Threat Intelligence-based Ethical Red Teaming (TIBER-EU) Framework enables European and national authorities to work with financial infrastructures and institutions (hereafter referred to collectively as “entities”) to put in place a programme to test and improve their resilience against sophisticated cyber attacks. The ECB has published the TIBER-EU Framework (TIBER-EU Framework: How to Implement the European Framework for Threat Intelligence-based Ethical Red Teaming). The present Services Procurement Guidelines (“Guidelines”) are referred to in, and are an integral part of, the TIBER-EU Framework. They set out in detail the different elements of TIBER-EU procurement.
Continue reading…

At first sight, they seem unrelated, says Mr Claudio Borio, Head of the Monetary and Economic Department of the Bank for International Settlements (BIS). After all, why should low inflation and rising debt be linked? True, from the early 1980s inflation declined, and then stayed quite low in much of the world while debt (private plus public) in relation to GDP rose to new peaks. But is this not just a coincidence? Maybe. On reflection, though, the link may be much tighter than we think. To understand why, we need to travel back in time. Not too far, but some distance nonetheless.
Continue reading…

There is much more to CSR (Corporate Social Responsibility) than feeling good and public relations. It can be a valuable risk management tool, says Antonio Huertas of MAPFRE. “There is a higher court than courts of justice, and that is the court of conscience. It supersedes all other courts.” Mahatma Gandhi’s words from a century ago serve as more than a moral compass by which to live one’s life, they also encapsulate what is to me the essence of corporate social responsibility (CSR). I like to think of CSR as the conscience of a corporation, guiding senior management on their journey to maximising shareholder returns legally and ethically. Harnessed effectively and supported from the top down, it can contribute both to improving relationships with stakeholders and enhancing business outcomes.
Continue reading…

In the companies quarterly application to the Securities and Exchange Commission (SEC), Apple warned investors about the impact that US rates on Chinese goods could have on a company. International trade disputes may result in tariffs and other protectionist measures that may adversely affect the business activities of the company. Rates can increase the cost of the company’s products and the components and raw materials needed to make them. These higher costs can have a negative impact on the gross margin that the company earns on the sale of its products.
Continue reading…

The 2018 UK Corporate Governance Code, published by the Financial Reporting Council, is shorter and sharper than its predecessor and emphasises the importance of the way in which boards and companies apply the spirit of the Code Principles. Whilst reasserting the importance of risk management and risk reporting, it puts the relationships between companies, shareholders and stakeholders at the heart of long-term sustainable growth in the UK economy.
Continue reading…

The EFTA Surveillance Authority (EFTA SA) has registered the Nordic Credit Rating AS (NCR) as a credit rating agency under Regulation (EC) No 1060/2009 of the European Parliament and of the Council of 16 September 2009 on credit rating agencies (the CRA Regulation), as incorporated into the Agreement on the European Economic Area (EEA Agreement). This decision comes into effect on 3 August 2018.  NCR is based in Oslo, Norway, with a branch in Stockholm, Sweden. NRC intends to issue corporate ratings.
Continue reading…