CEBS publishes a questionnaire on market practics on large exposures

23 March 2006

CEBS has received a call for advice from the European Commission on the review of the large exposures rules in the EU which requests CEBS to undertake a survey of market practices in this respect.

To respond to this Commission?s request, CEBS today publishes a questionnaire on current industry practices and thinking in relation to the measurement and management of concentration risk. In particular, consideration of industry best practice and institutions' own monitoring and reporting for internal purposes should be addressed.

CEBS? questionnaire aims at covering the full range of banking and trading activities. Questions have also been devised to give consideration to the needs of both smaller and larger institutions.

In parallel with this questionnaire CEBS is consulting market participants on its guidance to both supervisors and institutions with regard to the management of concentration risk in the context of Pillar 2. CEBS is aware that the industry is now faced with two connected pieces of work from CEBS on concentration risk. The two pieces of work need to be run parallel to meet the given timelines.

CEBS has already carried out a survey of current supervisory practices of large exposures. The provisional report will be sent to the Commission on 31 March 2006, which will be completed with a final report at the end of April. The final reports on current supervisory and market practices will be published on the CEBS website. The information collected should allow assessing whether revisions in the current rules are warranted. Further rounds of consultations could then be envisaged.

The questionnaire is available on CEBS? website LE_questionnaire.pdf. The responses will be published unless otherwise requested by the respondents. Comments should be sent to le@c-ebs.org by 18 May 2006.

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Franca Rosa Congiu

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