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Journal
2016 | 4 (65) | 116-144
Article title

POSITION OF THE EUROPEAN FINANCIAL CONGRESS ON THE SUPPLEMENTARY SUPERVISION OF FINANCIAL CONGLOMERATES

Content
Title variants
Languages of publication
EN
Abstracts
EN
This article presents the position of the European Financial Congress in relation to the European Commission’s consultation document on the supplementary supervision of credit institutions, insurance undertakings and investment firms in a financial conglomerate. From 9th June till 20th September 2016, the EC ran a public consultation on the evaluation of the financial conglomerate directive (FICOD), whether it delivers on its objective to identify and manage group risks, i.e. multiple gearing, excessive leveraging of capital, contagion, complexity management, concentration and conflict of interest. Financial conglomerates were originally represented by bancassurance. Over time financial institutions have expanded into investment banking, asset management and other financial activities, with separate segment supervisions. Now, they are getting bigger, more complex and international, expanding into the real economy, outsourcing critical processes to non-regulated external offshore companies. Moreover, manufacturing companies are developing competencies in banking area and traditional financial institutions are being challenged by expanding fintech projects. The evaluation of supplementary supervision shall lead to better regulation in terms of relevance, effectiveness, efficiency, coherence and added value. As a result, the legislation shall contribute to enhanced financial stability, safeguard creditors’ and policyholders’ interests, and promote the competitiveness of financial conglomerates within the EU and at international level. From the Polish perspective, FICOD shall protect the financial system from the import of group risks and lead to secure growth of local financial conglomerates, enjoying a level playing field in the EU. The EC consultation paper was addressed by representatives of different groups of stakeholders in the Polish financial market, including in particular: universal banks, auto loan companies, insurance undertakings, regulatory bodies, consulting firms and academia.
Journal
Year
Issue
Pages
116-144
Physical description
Contributors
author
  • Wydział Zarządzania Uniwersytet Gdański
  • doktorant Uniwersytet Gdański
References
  • The supervision of financial conglomerates, Bank for International Settlements, July 1995.
  • Commission Delegated Regulation (EU) 2014/342 of 21 January 2014 supplementing Directive 2002/87/EC of the European Parliament and of the Council and Regulation (EU) No 575/2013 of the European Parliament and of the Council with regard to regulatory technical standards for the application of the calculation methods of capital adequacy requirements for financial conglomerates.
  • Commission Delegated Regulation (EU) 2015/2303 of 28 July 2015 supplementing Directive 2002/87/EC of the European Parliament and of the Council with regard to regulatory technical standards specifying the definitions and coordinating the supplementary supervision of risk concentration and intra-group transactions.
  • Consultation Document – Directive 2002/87/EC on the supplementary supervision of credit institutions, insurance undertakings and investment firms in a financial conglomerate, European Commission, http://ec.euroconsultation-document_ en.pdf
  • Directive 2002/87/EC of the European Parliament and of the Council of 16 December 2002 on the supplementary supervision of credit institutions, insurance undertakings and investment firms in a financial conglomerate and amending Council Directives 73/239/EEC, 79/267/EEC, 92/49/EEC, 92/96/EEC, 93/6/EEC and 93/22/EEC, and Directives 98/78/EC and 2000/12/EC.
  • Herring R., Carmassi J., The Corporate Structure of International Financial Conglomerates: Complexity and Its Implications for Safety & Soundness, The Oxford Handbook of Banking, January 2012.
  • Kaufman G., Bliss R., Financial Institutions and Markets: Current Issues in Financial Markets, Palgrave Macmillan, 2008.
  • Lelyveld I., Schilder A., Risk in financial conglomerates: management and supervision, Research Series Supervision no. 49, November 2002.
  • List of Identified Financial Conglomerates. As per 31 December 2014 figures. Financial Conglomerates with head of group in the EU/EEA, Joint Committee of the European Supervisory Authorities (European Securities and Markets Authority, European Banking Authority, European Insurance and Occupational Pensions Authority), 19 Oct. 2015.
  • Martynova N., Internal Asset Transfers and Risk Taking in Financial Conglomerates, De Nederlandsche Bank – Research Department November 20, 2013.pa.eu/finance/ consultations/2016/financial-conglomerates-irective/docs/
  • Schmid M.M., Walter I., Do financial conglomerates create or destroy economic value?, Journal of Financial Intermediation, 18, issue 2, 2009.
Document Type
Publication order reference
Identifiers
ISSN
1429-2939
YADDA identifier
bwmeta1.element.desklight-24f68fdf-e23c-49f5-8db2-991b6d6244c4
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