Own funds, MREL and TLAC
Interplay and impact on banking business models
Fully booked – Registrations closed
To request inclusion in the waiting list, contact email@example.com.
The forthcoming full incorporation into the European Union legislation of the “Basel III framework” (CRD V (II) – CRR II), on the one hand, and the legislative package to enhance credit institutions’ resolvability (BRRD II-SRMR II) also based on international standards (the “TLAC standard” of the Financial Stability Board), on the other hand, set the stage of this course. The course aims at providing a holistic reading of the various regulatory layers which define the quality and composition of the different loss-absorbing requirements, both for going concern and gone concern situations. In particular, it will highlight the continuum and interplay between these two sets of requirements, assessing the opportunities and challenges they pose for different banking business models and credit institutions’ funding.
The required levels, quality, composition and pecking order in loss absorbency of own funds and other loss-absorbing instruments (MREL) will be analysed both from a theoretical and a practical perspective, to identify their implications in terms of credit institutions’ incentives, costs, profitability, business models and legal structures. The elements covered include: the definitions and criteria to set Own Funds and MREL requirements; the leverage ratio; the treatment of deferred tax assets (DTA) and credits (DTC), minority interests, investments, Third Country issuances; the transitory provisions; common reporting (COREP) and MREL monitoring and reporting. The course will address these issues leveraging on past experiences, the on-going academic and policy debate, as well as the most recent regulatory developments.
- Basel III framework – CRR and CRD IV and their forthcoming amendments
- Capital adequacy ratio
- Leverage ratio
- Own funds
- Tier 1 capital: Common Equity Tier 1 (CET 1) capital – additional Tier 1 capital
- Tier 2 capital
- Deferred tax assets (DTA) – deferred tax credits (DTC)
- FSB framework on banking resolution – BRRD and SRM Regulation and their forthcoming amendments
- Bail-in resolution tool
- Moratorium tool
- TLAC – internal and external
- Reporting and monitoring of own funds and MREL
- Impact on banking business models
What you will learn
- You will get an understanding of the criteria and methods for setting own funds requirements for credit institutions in terms of prudence and preparation for resolution.
- You will learn the differences between the capital adequacy and the leverage ratios.
- You will be able to identify the various elements of credit institutions’ own funds (Common Equity Tier 1 (CET 1) capital, Additional Tier 1 capital, Tier 2 capital) and the quantitative limitations in their use.
- You will get an understanding of the MREL and TLAC as elements of the regulatory framework relating to preparation for resolution.
How the course will work
Total course length: 15 hours.
A certificate of attendance will be provided to all participants after the course.
Meet the instructors
Christos Gortsos is Professor of Public Economic Law at the Law School of the National and Kapodistrian University of Athens. Other positions include: Visiting Professor of international and EU banking and capital markets law at the European Institute of the University of Saarland; Research Partner in the program ‘Financial Market Regulation’ at the University of Zürich; member of the Academic Board of the European Banking Institute (EBI); member and academic coordinator of the Committee on International Monetary Law of the International Law Association (MOCOMILA). In 2017, he was Fernand Braudel Senior Fellow at the Law Department of the European University Institute. He also has regular teaching assignments at the European Institute of the University of Zürich and the European Law Academy in Trier. His main fields of teaching, writing and research are international, EU and public financial law, central banking law, financial regulation and institutional economics.
Seraina Grünewald is assistant Professor for Financial Market Law at the Institute of Law of the University of Zurich. Previous positions include research appointments at the Institute for Financial Services of the University of Liechtenstein, the Program on International Financial Systems of the Harvard Law School, Yale Law School and Columbia Law School, as well as intern positions in the Financial Law Division of the European Central Bank and at the IMF. In 2012 she was awarded the Issekutz Prize of the Institute of Law of the University of Zurich for outstanding achievements in economic law and previously the prize for the best bar exam of the term by the Cantonal High Court of Bern.
Charles Canonne is a senior expert at the European Banking Authority’s capital unit and the lead expert on MREL. Before this role, he has held various positions at the European Commission and the EBA. He is a graduate of the Ecole Normale Superieure and holds an LLM from the College of Europe.
Guillaume Adamczyk is Head of Unit in charge of resolution planning at the Single Resolution Board. From 2012 to 2015 he was a Seconded National Expert working on State Aid to the Financial sector in DG Competition – Task force financial crisis. Central Banker, he joined the Banque de France in 2000 where he held various positions, notably as Financial Counsellor to the French Embassy in Japan from 2009 to 2012.
Emiliano Tornese is Deputy Head of the Resolution and Crisis Management Unit in the European Commission’s DG for Financial Stability, Financial Services and Capital Markets Union. In that capacity, he is involved in the negotiations on the completion of the Banking Union and on EDIS. He has been involved with the preparation and negotiation of the BRRD and TLAC implementation, and with the preparation, negotiation and launch of the Single Resolution Mechanism. Emiliano Tornese is also Part-time Professor at the Florence School of Banking and Finance, based at the European University Institute. Previously, he worked for the European Commission’s Securities Markets Unit and, during his tenure, was responsible for the establishment of the European Securities and Markets Authority and for matters related to its Corporate Finance Standing Committee. As Secretary of the European Securities Committee, he coordinated the European Union’s Ministries of Finance in their regulatory capacity for financial services. He drafted and negotiated the review of the primary and secondary markets regulation and the regulation of benchmarks. And he advised the European Financial Stability Facility and the European Stability Mechanism on the primary markets regulation.
A BA/MA/PhD degree in finance or in international or EU financial law is required to enroll in the course.
Participants should have a prior knowledge and understanding of international and EU financial, in particular banking law and practice.
Participant are required to bring their own laptops.
1750€ – Public Authorities (e.g. National Competent Authorities, Central Banks and European Institutions).
1900€ – Private Sector.
950€ – Academics (Full-time Professors, full-time PhD Students and full-time Research Associates). Please submit a certificate attesting your status of Professor, PhD Student or Research Associate to firstname.lastname@example.org before registering. FBF secretariat will provide you with a code to register.
The course fee covers coffee and lunch breaks. Travel and hotel costs are not included.
Please note that the payment must be settled two weeks before the start of the course.
EARLY BIRD DISCOUNT
Participants who register and settle the payment before 9 September 2019 will benefit from a 10% reduction of the course fees.
The early bird discount cannot be combined with group deals.
GROUP DEALS FOR PUBLIC AUTHORITIES AND PRIVATE SECTORIn case of registration of 3 participants from the same organisation, the course fees for each participant are the following:
- Private Sector: € 1270
- Public Authorities: € 1170
To benefit from the deal, the names of the 3 participants have to be communicated to email@example.com before registering. We cannot communicate the names of other registered people from the same institution (it is upon your responsibility to get in touch with your HR division). FBF secretariat will provide the 3 participants with a code to use to register and benefit from the group deal.
Special deals apply for larger groups.
- In case a course is cancelled, registered participants will receive the full refund.
- In case a course is moved to another date, registered participants may request a voucher to attend another FBF course.
- Registered participants who have not yet paid the registration fee can cancel their participation until one month before the start of the course.
- The registration fee is non-refundable, however it will be possible to transfer registration to another person or request a voucher for another FBF course up to 20 days before the start date of the course.
For more details, please contact firstname.lastname@example.org
Please notice that the course dinner, and most of the social activities, will take place downtown.
Recommended hotels nearby the EUI:
Recommended hotels in downtown Florence:
Suggested restaurants in Florence city centre
- Restaurant Accademia – Ph. +39 055 217343
- Restaurant Cucina Torcicoda – Ph. +39 055 265 4329
- Finisterrae – Ph. +39 0552638675
- Il Vezzo – Ph. +39 055 281096
- Osteria di Giovanni – Ph. + 39 055 284897
On arrival, participants will be provided with temporary wi-fi access for the whole duration of the course.
General information on local transport
From Florence airport:
Florence airport is located 8 km from the city centre, approximately 30 minutes by taxi or bus. Taxis can be found outside the arrivals terminal; no reservation is needed. A taxi ride from the airport costs about €20 and takes approximately 25/30 minutes.
A tramway (line T2) connects the airport to the city centre. Trains leave from the airport terminal and take 20 minutes to the main railway station. One-way tickets can be bought from vending machines for €1.50.
The airport is also connected to the main railway station in Florence by a shuttle bus (‘Vola in bus’) that leaves every 30 minutes (on the hour and on the half-hour) and takes 25 minutes. Tickets are available on board for €6.00.
From the central railway station:
Bus tickets are sold outside the railway station, at ATAF ticket kiosks and vending machines, tobacconists (tabacchi), newspaper kiosks (edicole), and most cafes (bar). They must be bought before boarding and stamped using the machine on the bus. A ticket costs €1.50 and it is valid for 90 minutes. Bus tickets can be purchased also on board (€ 2.50), but the driver is not obliged to give change.
From the A1 Milano-Napoli (Autostrada del Sole), take the Firenze Sud exit and follow directions to the city centre/Stadio. Follow the directions to the stadium (Stadio), then for Fiesole. San Domenico is on the main road to Fiesole.
The EUI has several free parking areas available all over the Campus.
Course materialRegistered participants can access the course material using the password provided by the FBF secretariat.