Título: The EU regulatory framework for market risk and prudent valuation Are the rules too procyclical? : evidence from the covid-19 pandemic and the 2022 global energy crisis
Resumen:The 2020 COVID-19 pandemic crisis and the 2022 global energy crisis following Russia's aggression against Ukraine have been unprecedented in several respects. In the European Union (EU), national governments, as well as European agencies, put in place various relief measures to support the EU economy. However, prudential regulatory and supervisory responses have been very different in these two crises. In this paper, we first assess the impact of the two crises on capital requirements related to traded risk and discuss the issue of procyclicality in the regulatory framework. We then analyse and compare the regulatory measures adopted by legislators and the European Banking Authority (EBA). Finally, we identify how the regulatory framework is expected to change to address the drawbacks that became evident during the recent crises.
Summary:The 2020 COVID-19 pandemic crisis and the 2022 global energy crisis consecutive to Russia’s aggression against Ukraine have been unprecedented in several aspects. In the European Union (EU), national governments, as well as European bodies put in place several relief measures to support the EU economy. However, the regulatory and supervisory responses in relation to prudential matters have been very different in these two crises. In this paper, we first assess the impact of the two crises on the capital requirements related to traded risk and discuss the issue of procyclicality in the regulatory framework. We then analyse and compare the regulatory measures taken by the legislators and by the European Banking Authority (EBA). We finally identify how the regulatory framework is set to change to address the drawbacks that became evident during the recent crises.
Fecha publicación: 2023
Autor: Autoridad Bancaria Europea (Órgano o agencia de la UE); Boivin, Stéphane ; Crotti, Marco Giovanni ; Malikkidou, Despo
ISBN / ISSN: 978-92-9245-921-5 / 2599-7831
Link: https://n9.cl/dfzfy
Palabras clave: banco , consecuencia económica , control financiero , crisis de energía , enfermedad por coronavirus , necesidad financiera , reglamentación financiera , Reglamento financiero , riesgo financiero , supervisión financiera , vigilancia del mercado
Keywords: bank , economic consequence , financial regulation , financial regulation , financial crisis , financial crisis , financial supervision , financial supervision , financial risk , financial regulation , financial crisis , financial regulation , market surveillance , coronavirus disease , financial necessity , financial consequence , financial regulation , financial crisis , financial supervision