Follow TopicFollow Contributor Share Feedback
2020 UPDATE | European Regulators

2020 UPDATE | European Regulators

by Starling Insights

Starling Insights Editorial Board

May 04, 2020

Compendium

In the latest figures from the Operational Risk Exchange (ORX), the not-for-profit industry association, losses resulting from operational risk were down by 10.8% between 2017-2018, with the biggest proportional decreases in internal and external fraud events.1 However, a study conducted in March 2017 found that less than a quarter of the EU’s competent authorities have established dedicated teams or units on conduct risk.2 Only around half include conduct risk in their supervisory examinations, despite the fact that it represents the vast majority of operational risks expected by Europe’s top banks and can lead to significant consumer harm. 

Relevant rules and supervisory guidelines have been aggregated in a Scrutiny Paper, commissioned by the European Parliament,3 with a number of authorities relevant to the supervision of banking-sector misconduct, including the European Banking Authority, the EEA Joint Committee, and the European Securities and Markets Authority (ESMA).4 Andrea Resti, author of the Paper, comments that “large portions of the rules used to address banking misconduct are country specific, and addressed by domestic law.” She finds also that “misconduct rules and principles are implemented by individual EU countries in a heterogeneous manner,” to include the functioning of regulatory and judiciary systems.

This content is available to paid Members of Starling Insights.

If you are a Member of Starling Insights, you can sign in below to access this item. 

 

If you are not a member, please consider joining Starling Insights to support our work and get access to our entire platform.  Enjoy hundreds of articles and related content from past editions of the Compendium, special video and print reports, as well as Starling's observations and comments on current issues in culture & conduct risk management.

Join The Discussion

See something that doesn't look quite right?

We strive to provide high quality and accurate content at all times. With that said, we realize that sometimes links break, new information becomes available, or there is something that you feel we may have missed.

If you see something that you think we should be aware of, we would love to hear from you. Feel free to drop us a note below and leave your name and contact info if you'd like to hear back from us.

Thank you for being a key part of the Starling Insights community!