The European Commission last week adopted a package of Regulatory Technical Standards (RTS) affecting bank capital standards, which are part of the larger Capital Requirements Regulation and Directive.
The nine RTS, which were developed by the European Banking Authority, are part of the effort to create and implement a single rule book for banking throughout the European Union. The RTS relate to how competent authorities and market participants handle disclosures related to securitization instruments, measure potential losses stemming from derivatives and counterparty failure, and what financial instruments may be used to pay bonuses. The standards will contribute to a stricter regulatory environment for banks and other financial firms, the commission said.
