The shadow banking system can broadly be described as credit intermediation involving entities and activities outside the regular banking system. Intermediating credit through non-bank channels can have important advantages and contributes to the financing of the real economy, but such channels can also become a source of systemic risk, especially when they are structured to perform bank-like functions (e.g. maturity transformation and leverage) and when their interconnectedness with the regular banking system is strong. Therefore, appropriate monitoring of shadow banking helps to mitigate the build-up of such systemic risks. The FSB set out its approach for monitoring the global shadow banking system in its report to the G20 in October 2011. This report presents the results of the third annual monitoring exercise following this approach, using end-2012 data. The report includes data from 25 jurisdictions and the euro area as a whole, bringing the coverage of the monitoring exercise to about 80% of global GDP and 90% of global financial system assets.
Shadow banking, as one of the main sources of financial stability concerns, is the subject of much international debate. In broad terms, shadow banking refers to activities related to credit intermediation and liquidity and maturity transformation that take place outside the regulated banking system. This paper presents a first investigation of the size and the structure of shadow banking within the euro area, using the statistical data sources available to the ECB/Eurosystem.
Since the fourth review, the situation in Greece has taken a turn for the worse, with the economy increasingly adjusting through recession and related wage-price channels, rather than through structural reform driven increases in productivity. The authorities have also struggled to meet their policy commitments against these headwinds. For the purpose of the debt sustainability assessment, a revised baseline has been specified, which takes into account the implications of these developments for future growth and for likely policy outcomes. It has been extended through 2030 to fully capture long term growth dynamics, and possible financing implications.
When a particular part of the population is especially important for a survey, oversampling that group can help the survey to provide better estimates. However, oversampling is not always easy or inexpensive. The ideal situation is one where information exists for the population that can help to discriminate the interesting sub-group and that information is available for sampling. Sometimes the information is weak for the intended purpose and sometimes there are restrictions on the use of information that make sampling difficult or impossible.
Like all large-scale programmes, the T2S programme consists of a huge number of activities that will have to be conducted in a “flexible order”, involving many different stakeholders and resulting in a series of deliverables that will lead to the successful launch of the T2S system, currently scheduled for Q2 2013.
Clearing fund – A fund composed of assets contributed by participants in a CCP, or by providers of guarantee arrangements, that may be used to meet the obligations of a defaulting CCP participant and/or in certain circumstances to settle transactions and cover losses and liquidity pressures resulting from such defaults. A Clearing Fund serves as insurance against unusual price movements not covered by the margin calculation in case of a member default. Each Clearing Member typically has to contribute to the Clearing Fund. It may consists of Clearing Members’ directly- deposited capital, or securities or third-party bank guarantees. It is used for securing the counterparty risk not covered by margin deposits.
The T2S Advisory Group (AG) agreed on the User Requirements Document (URD) at their meeting on 15 May 2008. The URD was subsequently agreed by the ECB decision-making bodies as the reference for the specification phase: only those requirements described in the URD will correspond to T2S delivered functionalities, unless changes are adopted by the ECB Governing Council.
During its 28/29 November 2007 meeting, the Advisory Group agreed to add possible functionality in the URD on the prioritisation of multiple T2S dedicated cash accounts. The AG also asked TG3 to analyse the issue in more depth and the 3CB+ to calculate the additional costs of this approach. The AG agreed to review the matter in view of the feedback from the public consultation and the cost and the consequences for the market. Following the AG decision, the prioritisation of multiple T2S dedicated cash accounts functionality was immediately added into the URD by the project team.
This consolidated programme plan encompasses all Eurosystem activities and is based on the ECB’s internal detailed planning and an extract of the 4CB’s internal planning. As part of the consolidation exercise, the project office of the ECB and of the 4CB tried to minimise the impact of the 7 additional months needed for the validation of the General Functional Specifications, without impacting the scope of T2S, the expected quality of the final delivery, the price or the go-live date. This was achieved through an increased parallelism of activities, in particular in the production of the UDFS and the conduct of the Eurosystem and User Acceptance testing phases.
The Eurosystem strongly supports the Commission’s objective of creating a safe, efficient and integrated EU clearing and settlement infrastructure. In principle, the Communication identifies the key issues that need to be addressed in the field of clearing and settlement in order to enhance integration and reduce systemic risk. The present infrastructure for securities clearing and settlement transactions in the EU remains insufficiently harmonised, highly fragmented and inefficient for cross-border activities. Although some consolidation has been achieved, there remain a very large number of service providers with limited competition between each other.
Introduction for Panel discussion “A Case for Rapid Euro Adoption?”
OeNB Conference on European Economic Integration
Member of the Executive Board
Vienna, 16 November 2009
The Single Euro Payments Area is an initiative of the European Central Bank which will unify all of the retail payment markets in the euro area to form a single market. The initiative has three phases: a design phase, followed by a period of integration, followed by total migration to the new system. SEPA is currently nearing completion of its migration phase, indicating that its instruments are generally in use at this time.
Clearing Member Eligibility
•Swap Portfolio minimum size of USD1 trillion
•Minimum capital USD5 billion in Clearing Entity or in Parent providing Guarantee
•Credit Rating single A or better
•Margin multipliers applied if existing member downgraded below A
•Compulsory participation in Default Management Process
As far as joint projects and joint components of the systems of the European System of Central Banks (ESCB) are concerned, this document defines the role, responsibilities, objectives and reporting lines of Internal Auditors of the European Central Bank (ECB) and National Central Banks (NCBs) and their relationship with external auditors.