Knowledge Base
Explain the regulatory framework for French, European, and international financial institutions
Which body is responsible for developing international standards for prudential banking regulation?
The Basel Committee on Banking Supervision, hosted by the Bank for International Settlements in Basel and comprising 27 jurisdictions, is the reference body for prudential banking regulation. It has issued the Basel I, II, and III accords, which establish international standards for capital adequacy, liquidity, and leverage ratios.
What is the output floor percentage introduced by CRR3 to limit the benefit of internal models?
The banking package adopted in May 2024 introduces the 72.5% output floor in CRR3, applicable since 1 January 2025. This output floor limits the benefit that banks can derive from their internal models.
What is the date of application of the CRR3 regulation in the European Union?
The banking package adopted in May 2024, consisting of CRR3 and CRD6, finalises the transposition of the Basel III accords into European law. CRR3 has been applicable since 1 January 2025, while CRD6 must be transposed before 10 January 2026.
The Basel Accords have direct binding force without the need for transposition by national legislators.
The Basel Accords are soft law and do not have direct binding force. They must be transposed by national or regional legislators to acquire mandatory legal force. For example, the European Union transposes them into regulations and directives.
The AMF only supervises financial markets without overseeing issuers of financial instruments.
The AMF supervises not only financial markets but also monitors the information disclosed by issuers. It authorises portfolio management companies and oversees transactions on regulated markets.
How many member institutions make up the Financial Stability Board (FSB)?
The FSB is composed of 68 member institutions including central banks, finance ministries, supervisory authorities, and international organisations from 25 jurisdictions.
FSB Mission
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The Financial Stability Board, established in 2009, provides global macroprudential coordination. It identifies systemic risks worldwide and annually publishes the list of global systemically important banks subject to enhanced requirements.
Categorize items by dragging them to the appropriate zones
Items to categorize:
European authorities
French authorities
European authorities include the EBA, while French authorities include the ACPR and the AMF. These institutions play distinct roles in financial supervision at different levels.