The Committee of European Banking Supervisors (CEBS) has published its analysis of the supervisory implications of the national plans for the stabilization of markets that have been announced by the European Members States until the end of December 2008.
The report focuses on three main areas:
- An overview of the national plans, including the tools, conditions and supervisory involvement,
- An assessment of general measures for the stabilization of the markets, and
- Potential areas for further work by CEBS
CEBS work in 2009 will focus on enhancing supervisory practices for the cross border banks. In combination with the ongoing regulatory review, this will improve the framework for financial supervision.
As to the quality of capital and in the context of the revision of the Capital Requirement Directive, CEBS will issue further guidance on the definition of hybrid instruments and intends to issue guidance on the definition of core tier 1, so that it incorporates only instruments that have the highest quality in terms of loss absorbency and flexibility of payments.