Lunchtime events

CEPS - Centre for European Policy Studies, 1 Place du Congrès/Congresplein, 1000 Brussels

With an outstanding volume of about €2.1 trillion, covered bonds rank high among the main funding sources for EU banks. These specialised debt securities provide banks with attractive funding for the financing of mortgages and public authorities in many EU member states. Due to overcollateralisation, covered bonds are relatively cheap and have a longer maturity. In turn, they are also an appealing investment class for risk-averse investors (including other banks), as long as the collateral is of sufficient quality and the amount is large enough.

CEPS - Centre for European Policy Studies, 1 Place du Congrès/Congresplein, 1000 Brussels

Issuing equity or debt instruments can provide SMEs with the stable, long-term financing that bank lending typically does not.

CEPS - Centre for European Policy Studies, 1 Place du Congrès/Congresplein, 1000 Brussels

International Financial Reporting Standards (IFRS) 9, issued by the International Accounting Standards Board (IASB) on 24 July 2014 and came into effect on 3 January 2018, addresses multiple aspects of accounting for financial instruments, namely classification and measurement, impairment of financial assets and general hedge accounting. The objective is to establish common and harmonised principles for the reporting of financial assets and financial liabilities.

CEPS - Centre for European Policy Studies, 1 Place du Congrès/Congresplein, 1000 Brussels

Global financial stability continues to strengthen, thanks to extraordinary policy support, stronger banks, regulatory enhancements, and a cyclical

CEPS - Centre for European Policy Studies, 1 Place du Congrès/Congresplein, 1000 Brussels

In the aftermath of the financial crisis, banks have accumulated about a trillion euro of non-performing loans (NPLs) in their balance sheets. The high levels of NPLs in countries such as Italy, Greece and Portugal constrain their banks’ lending abilities, which causes delays in the countries’ economic recovery.

CEPS - Centre for European Policy Studies, 1 Place du Congrès/Congresplein, 1000 Brussels

The Capital Markets Union (CMU) Action Plan set out a programme of actions aiming at overcoming information barriers that prevent SMEs and prospective investors from identifying new opportunities to secure funding and to make investments, respectively. 

  1. Strengthening the feedback given by banks when turning down credit applications from SMEs, in order to allow rejected SMEs to adjust their business model to have better access to external funding;
  2. Mapping local or national support and advisory structures across the EU to promote best practices in assisting SMEs; and
  3. Investigating how to develop or support pan-European information systems that link up national systems to bring finance-seeking SMEs together with finance providers

CEPS - Centre for European Policy Studies, 1 Place du Congrès/Congresplein, 1000 Brussels

From a historical perspective, interest rates have been on a downward trend over the past four decades. In Europe, the financial and sovereign debt crises and the ensuing weak macroeconomic environment – persistent output gap, low growth and excessively low inflation – together with the expansionary monetary policy responses, in particular QE, have contributed to a further decline in interest rates.

CEPS - Centre for European Policy Studies, 1 Place du Congrès/Congresplein, 1000 Brussels

Financial market infrastructures (FMIs) are the backbone of the financial system: they enable market participants to transact with one another in an efficient manner. FMIs are inherently systemic, as their very names imply: payments systems, central securities depositories (CSDs), securities settlement systems (SSSs), central counterparties (CCPs) and trade repositories (TRs).

CEPS - Centre for European Policy Studies 1 Place du Congrès / Congresplein 1000 Brussels

In the context of the capital markets union plan, the European Commission proposed an initiative to re-launch securitisation, with harmonised rules across the EU for a subset of standardised offerings, and with CRR amendments to adjust capital charges to provide for a more risk-sensitive treatment for such instruments.

Pages