2013年-FSB全球金融稳定委员会_Guidance_on_Developing_Effective_Resolution_Strategies_9页_193kb

IV Meeting - Financial System Reform Summary

Introduction

Luis M. Linde, Governor of the Banco de España, addressed the IV Meeting on "Financial System Reform" organized by Expansion. He emphasized the importance of the meeting for reviewing the latest developments in the Spanish financial system and assessing the future from the perspective of financial institutions. The financial system's future is closely tied to the new international regulatory framework, which has been evolving since the 2007 economic and financial crisis.

Core Content

The meeting focused on four key aspects of the new regulatory framework:

1. Basel III Capital Accord
2. Regulation of Systemic Banks
3. Resolution Frameworks
4. Convergence of Accounting Standards

Main Points

1. Basel III Capital Accord

• Basel III is a major reform of prudential rules aimed at strengthening banks' capital.
• In the European context, the Capital Requirements Directive has been approved to implement Basel III.
• Key changes include:
  • Minimum core capital increasing from 2% to 4.5%.
  • Capital conservation buffer of 2.5%.
  • Liquidity coverage ratio and net stable funding ratio to address liquidity risks.
• These standards will be implemented progressively, with full application by 2019.
• There is pressure for early compliance, but the Governor warned that this could be procyclical in the current economic environment.

2. Regulation of Systemic Banks

• Systemically important banks (SIBs) are those whose failure could threaten the global financial system.
• The FSB has developed a framework to identify and regulate these banks.
• The latest FSB list includes two Spanish banks: Santander and BBVA.
• SIBs face higher capital surcharges, ranging from 1% to 2.5%.
• The Basel III framework will apply these requirements starting in 2016, with full implementation by 2019.

3. Resolution Frameworks

• Resolution plans are required for systemic banks to ensure orderly resolution in case of failure.
• The Ecofin agreement on the draft Directive marks progress in harmonizing resolution frameworks across Europe.
• The Directive outlines three phases of resolution: preventive, early intervention, and resolution.
• Key tools include:
  • Bail-in (converting liabilities into capital or writing them off).
  • Bridge banks (temporarily transferring healthy assets to public-controlled entities).
  • Asset segregation (transferring impaired assets to a separate management vehicle).
• Deposit Guarantee Fund will cover deposits up to €100,000, which have higher seniority.
• The Directive allows for an element of flexibility in certain cases, but it is limited and subject to strict conditions.

4. Convergence of Accounting Standards

• The G20 urged the IASB and FASB to strengthen and align accounting standards.
• A significant change is the shift from the "incurred loss" model to the "expected loss" model.
• The IASB proposes deferring loss recognition until a significant impairment is evident.
• The FASB requires banks to recognize all reasonably estimated expected losses.
• The Banco de España supports the FASB approach due to its alignment with G20 concerns about procyclicality.

Key Information

• Basel III will be implemented progressively, with full application by 2019.
• Systemic banks are subject to higher capital surcharges and must have resolution plans.
• Resolution tools include bail-in, bridge banks, and asset segregation.
• Deposit guarantee covers up to €100,000, and bail-in excludes insured deposits and certain liabilities.
• Accounting reforms aim to reduce procyclicality by recognizing losses earlier.
• The FSB and Basel Committee play a central role in international coordination.
• Structural reforms (e.g., Volcker Rule, Vickers Commission) are being considered in various countries but lack global coordination.

Conclusion

Luis M. Linde concluded that the international coordination in financial regulation is essential to prevent the re-nationalization of financial systems and to maintain integration. He emphasized that harmonization of resolution frameworks and accounting standards are crucial for a stable and resilient financial system. The Banco de España advocates for a global approach to structural reforms, ensuring consistency and avoiding fragmentation of financial activity.