The European Systemic Risk Board (ESRB) published its quarterly
The ESRB was set up in 2010 with a macro prudential mandate to
oversee the EU financial system and to prevent and mitigate
systemic risk. The ESRB monitors and assesses risks in banks,
insurers, asset managers, shadow banks, financial market
infrastructures and other financial institutions and markets. In
those instances where it identifies a risk, the ESRB can issue
warnings and recommendations. Recommendations can be addressed to
the Union as a whole or to Member States, European supervisory
authorities or national supervisory authorities.
The ESRB risk dashboard consists of a set of quantitative and
qualitative indicators of systemic risk in the EU financial system.
This provides an overview of the interlinkages and composite
measures of systemic risk, macro risk, credit risk, funding and
liquidity, market risk, profitability and solvency and structural
The risk dashboard issued in June 2016 reports a decrease in
systemic risk at the end of the first quarter of 2016, following an
increase in the beginning of the year. This is measured by means of
an index, the Composite indicator of systemic stress (CISS) which
looks at financial stress in the financial intermediaries sector,
money markets, equity markets, bond markets and foreign exchange
markets. Moreover, the risk appetite of market participants is
increasing, with the global risk aversion indicator turning
negative in the first quarter of 2016. With respect to macro risk,
the ESRB Risk Dashboard indicates continued recovery whereas levels
of debt continue to remain a source of vulnerability in several
countries, both for the public and non-financial corporate sectors.
Bank lending to both households and the non-financial corporate
sector also continued to recover gradually. The profitability of
banks in the EU, as indicated by the average return on equity, has
decreased for the third consecutive quarter in the beginning of
2016. The Risk Dashboard also reports continued growth in the size
of the non-banking and non-insurance segments of the financial
Over the last 40 years, the Cayman Islands has matured into one of the world's most sophisticated and successful international financial centres, providing a competitive, effective, transparent, cost-efficient and tax-neutral platform for international capital flows underpinned by an environment of legal, political and economic stability.
In the context of the Private Member's Motion, Cayman Finance strongly urges the movers of the motion and the other members of the House to remain focused on the need to protect the Cayman Islands Financial Services Industry, which is directly responsible for more than half of the Islands' economy, more than half of the government's revenue and employs more Caymanians than any other industry.
As the UCITS acronym suggests, its original focus was on investment in "transferable securities" although UCITS do offer far wider investment possibilities, as explained below.
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