Pillar II paper delayed

MONTE CARLO – The Committee of European Banking Supervisors’ (CEBS) consultation paper on Pillar II that was due to be published in March has been delayed, and is being divided into two sections – one to be published in July and the other in October – according to Andrea Enria, secretary general of CEBS.

Enria was speaking at the Global Risk Management Summit in Monte Carlo in late April. "We are actively working on this," he said. "But I think it will come out a little bit later than previously expected."

He added: "We will probably have to wait until June because we still have some work on-going."

Part of the delay has been due to a new round of work on how regulators should assess banks’ internal governance of risk management processes, said Enria. He also said regulators wanted to flesh out the interaction between the Supervisory Review and Evaluation Process and the Internal Capital Adequacy Assessment Process.

A second paper, tentatively titled CP08, will focus on difficulties regulators have encountered with risk buckets and stress testing for credit risk portfolios, among other issues. Workshops with technical experts will be convened to vet the proposals over the summer, before the consultation paper is finally produced in October, said Enria.

Earlier in April, the CEBS published its second public consultations on prudential reporting requirements for credit institutions, or CP06. This focuses on the development of a standardised consolidated financial reporting framework for credit institutions. The consolidated financial reporting framework is designed to be consistent with international accounting standards, and the CEBS says the data elements detailed within the framework should already be available in credit institutions’ accounting systems, since they are required for the compilation of the institutions’ published financial statements. The framework’s objective is to streamline the reporting process for supervisory purposes, and thereby to increase the cost-effectiveness of supervision across the EU, said a CEBS statement.

The CEBS aims to have a compendium or guide book at the end of 2005 that will provide a comprehensive framework for the implementation of the EU Capital Requirements Directive across the EU member countries. OpRisk

Comments are due by July 8.The consultation paper is available at:

http://www.c-ebs.org/Consultation_papers/consultationpapers.htm