The Committee of European Banking Supervisors (CEBS) today publishes its second advice on options and national discretions.
Following CEBS's advice on the reduction of options and national discretions
in the Capital Requirements Directive published in October 2008, the European Commission requested further technical advice
on eight national discretions and on an additional group of national discretions relating to real estate, ‘where more granularity, criteria or impacts is needed, should those options be removed or transformed into a general rule'.
CEBS regrets that the very short time available to develop its advice was not sufficient to allow for public consultation and to conduct an impact assessment on its proposals. However, industry input was requested on the national discretions on the recognition of other unfunded credit protection for dilution risk, as these discretions were highlighted as being of special interest for some parts of the industry in the first CEBS's advice.
CEBS presents its analysis on each of the national discretions and proposes in particular: