Factsheets

ECB and ESM study analysing drivers of supervisory capital add-ons for banks using Internal Ratings-Based (IRB) models under CRR, distinguishing material deficiencies (signal) from minor ones (noise) to improve microprudential regulation and efficient use of supervisory resources (2014–2020).

Bank for International Settlements paper analysing the trade-off between banking efficiency and financial stability, proposing size-dependent capital regulation to optimise bank size distribution and welfare, with a focus on GSIBs and scale economies.

European Central Bank and De Nederlandsche Bank study introducing a price-at-risk measure to assess systemic risk from overlapping portfolios and fire sales in euro area banks and investment funds, highlighting contagion risks and market price impact under tail scenarios.

Study by Federal Reserve Bank of New York analysts examining investor attention to bank risk during the 2023 US bank run, focusing on uninsured deposits, unrealized losses, and limited market discipline through stock returns.

AEFR debate paper from November 2023 proposing recommendations to harmonize transition plans for low-carbon transition, covering structure, planning processes, and finance alignment under EU frameworks like ESRS, SFDR, and Green Bond Standard to enhance comparability and credibility.

Study analysing the impact of climate stress tests by French banking supervisors on bank lending and borrowers' transition to a carbon-neutral economy, showing increased lending to high-carbon emitters at higher rates and improved environmental performance for borrowers of participating banks.

Study analyzing risks of Open Banking (PSD2) and AI in financial services, revealing how transaction data may inadvertently correlate with protected personal characteristics, raising fairness and privacy concerns under the EU AI Act and financial regulation frameworks.

Study analysing the divergence of banks into high-rate and low-rate models over the past decade, examining their distinct business strategies, impact on monetary policy transmission, maturity transformation, and credit risk concentration, driven by technological advancements and deposit behaviour shifts.

Study analysing how macroprudential policy shocks impact systemic risk in Europe, revealing unintended increases in risk within non-bank financial intermediaries despite reduced risk in traditional banks.

Study by Deutsche Bundesbank and ECB researchers analysing how multinational corporations use internal capital markets to redistribute credit after macroprudential shocks like countercyclical capital buffer (CCyB) changes, affecting bank and nonbank lending across borders.

EBA-related study analysing how rising interest rates led shadow banks, particularly Asset-Backed Commercial Paper (ABCP) conduits, to expand issuance and lower collateral quality in search of yield, increasing run risks during the pre-2007 financial crisis period.

Study analysing whether bank resolution reforms reduce investors' perception of Too-Big-To-Fail subsidies, finding no impact on large banks but reduced implicit guarantees for non-large banks across 19 jurisdictions (2002–2021).

EBA presentation by Stephen G. Cecchetti analysing AI's impact on financial stability, covering potential benefits like cost reduction and risks including system destabilization and malicious use in the financial sector.

European Supervisory Authorities (ESAs) urge financial entities and ICT third-party providers to finalize preparations for the Digital Operational Resilience Act (DORA) ahead of its 17 January 2025 application, emphasizing timely compliance with ICT risk management, incident reporting, and third-party provider registration requirements.

EBA consultation on draft regulatory technical standards amending Delegated Regulation (EU) 2018/1108 to update criteria for central contact points for electronic money issuers, payment service providers, and crypto-asset service providers (CASPs) under Directive (EU) 2015/849.