Stellungnahme DK zum BCBS Consultation Paper “Capital requirements for banks’ equity investments in funds” (BCBS 257)
We welcome the intention of the Financial Stability Board (FSB) and of BCBS to strengthen the regulation of shadow banking. However, we would like to point out that, even at present, in the EU, investment funds are already subject to stringent supervisory requirements as well as oversight under the national jurisdiction. What is more, already since the introduction of Basel II, investment funds in the EU have be-come subject to a sophisticated regulatory framework which, in our view, has stood the test of time. Hence, we see no need for any amendments to these requirements.
We share the BCBS’s view that the look-through approach is the most risk sensitive approach. We also welcome the recognition that this approach is not always feasible. Under the proposals set out under paragraph 13, the look-through approach shall be mandatory if all in-formation necessary for the calculation of the risk weights are available and if the information on the funds’ composition are verified by a third party (depending on the disclosure frequency, this shall take place on an annual, semi-annual or quarterly basis). In our view, a verification by the auditor of the annual accounts that the calculation per investment fund is correct should be equally recognised if the look-through approach is being applied by a bank that uses the Credit Risk Standardised Approach.
In our understanding under the current proposals, banks shall be allowed to use the Credit Risk Standardised Approach for their calculation of the risk weights of exposures underlying a fund if the bank has exempted these exposure positions on a transitional or permanent basis from the IRBA application. We welcome this proposal. Furthermore, also IRBA banks which are not able to calculate the capital requirements under the IRBA shall have the right to use the Credit Risk Standardised Approach for non-equity positions (paragraph 15). We commend BCBS on this proposal, too. […]