The “whole balance sheet” approach to capital calculation combined with the strong emphasis on a firm’s risk management and supervisory review will result in a much transformed regulatory and supervisory framework. This year, Central Bank supervisors and the supervised firms will be putting this framework into operation for the first time.
During 2016, you can expect to hear plenty of discussion about the European Commission’s proposal for Capital Markets Union (CMU). The CMU Action Plan published in September 2015 contains 33 initiatives designed to enhance the performance of the financial sector in supporting growth across European economies.