Capital and Liquidity Requirements for European Banks

Part of the Oxford EU Financial Regulation Series, this book analyses the harmonised legislative framework for capital adequacy and liquidity supervision in the Single Rule Book for European banks. It brings together leading experts in the field of prudential banking regulation and accounting to provide an in-depth analysis of the regulatory framework. Capital and Liquidity Requirements for EU Banks goes far beyond the existing rules and standards, not only by looking into the historical realisation of the European Single Rule Book (SRB) for capital adequacy and liquidity supervision, but also by going deeply into the background of the standards put forward by the Basel Committee for Banking Supervision, the global rule-maker for the financial sector. The insights provided into the historical and normative background are essential in order to facilitate a more constructive interpretation of the extensive rules of the SRB The book also delivers a deeper understanding of the various policy choices that Europe has made in the transposition of the Basel standards. An important reference source for all legal practitioners and scholars researching European financial regulation, this new volume provides an extensive representation of the key topics, affording the reader unique insights into the interrelation and the interplay of the various prudential rules and standards in Europe.

1 - Overview of Capital Adequacy Legislation in Europe
2 - The Definition of Regulatory Capital Instruments
3 - 3 Direct Effect and Binding of European Regulation
4 - Qualitative capital requirements and their relationship with MREL/TLAC
5 - The construction of the Total Risk Exposure Amount and the relationship with Combined Buffer Requirements
6 - 6 Ordinary quantitative buffer requirements, the definition of default, loss distribution, expected and unexpected loss and provisioning
7 - Credit Risk and Dilution Risk, Standardised and Internal Ratings Based Methods
8 - Credit Risk Mitigation Techniques and Credit Risk Protection
9 - Capital Treatment of Securitisations
10 - Position Risk and Market Risk measures. Fundamental Review of the Trading Book
11 - Capital Markets Transactions and Counterparty Credit Risk
12 - Operational Risk in the capital requirements framework for banks
13 - Capital Conservation Buffer, Countercyclical Capital Buffer
14 - Capital buffers for systemically important banks and Systemic Risk Buffer
15 - Liquidity risk and its management: The LCR and NSFR
16 - Securitisation positions and covered bond positions as HQLA
17 - Internal Capital and Liquidity Adequacy Assessment, Purpose and Relation with Supervisory Engagement
18 - Supervisory Review and Evaluation Process (SREP) in the Context of the Exercise of Supervisory Powers and Extraordinary Measures
19 - Stress-testing in banking in the EU: Critical issues and new prospects
20 - Reporting and disclosure requirements for smaller banks, application of the principle of proportionality
21 - Applicable Accounting Principles, IFRS, Local GAAP and Compatibility with Prudential Reporting

Bart P.M. Joosen holds the chair Financial Supervision Law at the Faculty of Law, Vrije Universiteit Amsterdam, the Netherlands. He is also board member of the Zuidas Institute of Financial and Corporate Law of that university. Bart Joosen held until 2017 the chair Prudential Supervision Law at the University of Amsterdam. He defended his PhThesis on the <"Transfer of undertakings in bankruptcy>" in January 2008 at Tilburg University and in connection with this comparative law study to Dutch and French law he was admitted as research fellow at the Law Faculty of the University of Paris-I (Panthéon-Sorbonne) in 1988 and 1989. Marco Lamandini is Full Professor (Chair) of Commercial Law at the University of Bologna, where he teaches European Financial Regulation, Advanced Banking Regulation and Central Banking, and International and European Company Law. He earned his Ph.D in Commercial Law in 1994. Assistant Professor (<"ricercatore>") at the Catholic University in Milan from 1995 to 1998. Associate Professor of Company Law at the University of Bologna from 1998 to 2001. He has been Visiting Fellow at the Max Planck Institute of Munich and Hamburg and in several Universities, such as Berkeley, London School of Economics, Oxford and Cambridge. He is a Vice-Chair of the Academic Board of the European Banking Institute (EBI), based in Frankfurt and a Member of the Academic Board of the European Capital Market Institute (ECMI), based in Brussels. He is currently the President of the Board of Appeal of the European System of Financial Supeand a member of the Appeal Panel of the Single Resolution Board (SRB). Tobias Tröger holds the Chair of Private Law, Commercial and Business Law at Goethe-University Frankfurt. He is the co-director of the Center for Advanced Studies Foundations of Law and Finance (CAS LawFin). At the Leibniz Institute Sustainable Architecture for Finance in Europe (SAFE), he heads the cluster <"Law and Finance>". He was the President of the Executive Board of the European Banking Institute (EBI) and currently serves as chair of the Global Corporate Governance Colloquia (GCGC). Tobias Tröger is an advisor to the European Parliament on matters regarding the Single Supervisory Mechanism (SSM) responsible for the euro area's largest banks