Risk and Regulation Monthly - May 2013

May was a busy month for the European Banking Authority (EBA), which launched 15 consultation papers, largely focussed on the Capital Requirements Directive and Regulation package (CRD IV/CRR), but also recovery planning requirements under the proposed Recovery and Resolution Directive (RRD). There was also a flurry of papers on structural reform of the banking sector, with growing interest at the international level. As usual this note is produced for information only on a best efforts basis, and does not constitute advice of any kind.

Capital (including stress testing)

In light of concerns that macroeconomic conditions in Europe have led to a deterioration in EU banks' asset quality, and in order to bolster confidence in the EUwide stress test, the EBA agreed recommendations that supervisors conduct asset quality reviews (classification and valuation) on major EU banks. Meanwhile the next EU-wide stress test has been pushed back to 2014, with the recommendations