1 / 33

RICS EU Policy & Public Affairs

RICS EU Policy & Public Affairs. Sander Scheurwater, Head of EU Policy & Public Affairs. January 2012. Content. Introduction of RICS EU Policy & Public Affairs Residential mortgage credit Basel III & CRD IV Member-staff contact and communication. Month 2008. Content.

oro
Download Presentation

RICS EU Policy & Public Affairs

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. RICS EU Policy & Public Affairs Sander Scheurwater, Head of EU Policy & Public Affairs January 2012

  2. Content • Introduction of RICS EU Policy & Public Affairs • Residential mortgage credit • Basel III & CRD IV • Member-staff contact and communication Month 2008

  3. Content • Introduction of RICS EU Policy & Public Affairs • Residential mortgage credit • Basel III & CRD IV • Member-staff contact and communication Month 2008

  4. The EU - growth

  5. EU Policy & Public Affairs • Gaining recognition of RICS standards

  6. EU Policy & Public Affairs • Gaining recognition of RICS standards • Update members of upcoming relevant legislation

  7. EU Policy & Public Affairs • Gaining recognition of RICS standards • Update members of upcoming relevant legislation • Liaise with EU institutions

  8. The EU - growth • Treaties • 80% of national legislation is derived from EU legislation • Direktiv (Directive) • Förordning (Regulation) • 3 key institutions • Europeiska Kommissionen • Europeiska Unionens Råd • Europaparlamentet

  9. The EU - Commission • Political & administrative • Initiation and formulation of policies • Monitoring of policy implementation • Guardian of the treaty • European interests

  10. The EU - Council • Council of Europe and the European Council • Voting: • Unanimity or Qualified Majority Voting (QMV) • Germany, UK, … - 29 votes • Sweden, Austria, … - 10 votes • Malta – 3 votes • Total: 345 • QMV = 255 and 18 Member States • National interests

  11. The EU - Parliament • 734 representatives • Political parties: • EPP (Moderata Samlingspartiet,Kristdemokraterna) • S&D (Arbetarepartiet-Socialdemokraterna) • Liberals (Centerpartiet, Folkpartiet liberalerna) • Greens (Miljöpartiet de gröna, Piratpartiet) • United Left (Vänsterpartiet) • Greater power, but still the great unknown

  12. The EU – ordinary legislative procedure • European Commission proposal • Parliament and Council approve, reject or amend • Maximum three readings • Increased dialogue between institutions • RICS influence at early stages

  13. EU Policy & Public Affairs • Gaining recognition of RICS standards • Update members of upcoming relevant legislation • Liaise with EU institutions • Liaise with relevant stakeholders

  14. EU Policy & Public Affairs • Gaining recognition of RICS standards • Global support • Update members of upcoming relevant legislation • Liaise with EU institutions • Liaise with relevant stakeholders

  15. The team Sander Scheurwater; Head of EU Policy & Public Affairs • Valuation & financial services; Housing Zsolt Toth; EU Policy & Public Affairs Officer • Construction, Energy & Climate, Internal Market Thomas Jézéquel; EU Policy & Public Affairs Officer • Urban development, CEN standards, Land, Disaster Management Natasha Lanskaya; Assistant • Admin support, events, multimedia

  16. Content • Introduction of RICS EU Policy & Public Affairs • Residential mortgage credit • Basel III & CRD IV • Member-staff contact and communication Month 2008

  17. Residential mortgage credit & valuation • 31 March 2011: pre-contractual information for residential mortgage credit agreements • European Parliament: • Committee discussion: significant extension of scope • Including valuation • RICS: • Mandatory valuation standards & qualifications • International valuation standards • Valuation & foreclosure • Outcome?

  18. Content • Introduction of RICS EU Policy & Public Affairs • Residential mortgage credit • Basel III & CRD IV • Member-staff contact and communication Month 2008

  19. Basel III - background • Basel Committee on Banking Supervision (BCBS) • Aim: Encourage convergence toward common approaches and standards for banks • Supervisory standards and guidelines • Recommends best practice • No binding regulation Month 2008

  20. Basel I • “1988 Basel Accord” • Minimal capital requirements for banks • Risk weights • 8% of capital for banks with international presence Month 2008

  21. Basel II • Published in 2004 • Consistency & level-playing field • Risk-based • Three pillar concept • Minimum capital requirements • Supervisory review • Market discipline

  22. Basel II was just being implemented… Month 2008

  23. Basel III • December 2010 • Basel II+ • Same three pillars • Massive readjustment • Capital & Liquidity Requirements • Risks-weights evaluated

  24. Basel III – strengthening of capital • Basel II+ • Same three pillars • Massive readjustment • Strenghtening of the quality and level of capital • Minimum level of core bank capital will increase • Capital conservation buffer • Countercyclical buffer • Leverage ratio (3%)

  25. Basel III – liquidity requirements • Liquidity Coverage Ratio (LCR) • Short-term resilience • To be met continuously • Stock of high-quality liquid assets / Total net cash outflows over the next 30 calendar days ≥ 100% • Net Stable Funding Ratio (NSFR) • Long-term resilience • Available amount of stable funding / Required amount of stable funding > 100% • Subject to test period

  26. Basel III - timetable • Capital Conservation buffer (2%): 2016 – 2019 • Countercyclical buffer: Discretion of national authorities • Leverage ratio: 2018 • LCR: 1 January 2015 • NSFR: 1 January 2018

  27. EU implementation – Capital Requirements Directive (CRD) • CRD IV = Basel III + • All banks • Sanctions • Enhanced supervision • Less reliance on external ratings? • What about property and valuation? • Banks will have higher costs • Banks will have a lower risk premium

  28. CRD - property • Eligible collateral. Distinction between residential and commercial property. • Risk weight: • 35% for residential property • 50% for commercial • Only if certain conditions are met, otherwise 100% • Member States may be allowed to set higher risk weights • New • Reporting obligations • Speculation and default

  29. CRD - valuation • Independent qualified valuer • Minimum once a year for commercial • Minimum once every three years for residential • Definitions include: • Market value • Mortgage lending value • Marking to market • Marking to model

  30. CRD - conclusion • Implementation dates same as Basel III • Diverging views between EU institutions & countries • More stringent requirements for banks • Impact on mortgage lending sector expected • Impact on wider property sector?

  31. Content • Introduction of RICS EU Policy & Public Affairs • Residential mortgage credit • Basel III & CRD IV • Member-staff contact and communication Month 2008

  32. Communication with members • Updates & policy development • rics.org/eu • EU Connect • Twitter & Facebook • Monitoring Documents • Country Managers • Direct member contact • National position/statement

  33. Thank you

More Related