Streamlined SRT process aims to optimize capital management while ensuring resilience The European Central Bank (ECB) is set to accelerate the approval process for Significant Risk Transfers (SRTs) , a move designed to improve capital efficiency for banks while maintaining financial stability. The ECB’s pilot program, scheduled to begin in early 2025 , will simplify procedures and reduce approval timelines, aligning with the growing demand for efficient capital allocation across European lenders. What’s Changing? The ECB, in collaboration with the European Banking Federation , is introducing a pilot program to shorten the SRT approval process. The notification period for SRT transactions will be reduced from three months to two weeks before deal finalization. The information submission requirements will be streamlined to ease regulatory burdens for banks. These changes are expected to make SRT transactions more attractive , all...
As he prepares to leave his post, outgoing US Ambassador to China Nicholas Burns reflected on the state of US-China relations, emphasizing that while progress has been made, competition remains the defining feature of the relationship.
Balanced Approach to US-China Ties
- Burns revealed that 80% of his efforts focus on managing competition with Beijing and 20% on engagement. He called this the “right balance” to maintain stability while addressing key issues.
- The ambassador praised collaborative achievements, such as:
- Fentanyl crackdown: China arrested 300 individuals and banned 55 precursor chemicals in a significant move to curb illegal drug trafficking.
- Improved military communication and a prisoner swap.
- “We’re on the right road here,” Burns said, urging continuity in the approach to relations.
Key Areas of Cooperation and Conflict
- Fentanyl Trade: Burns highlighted unprecedented cooperation, with Beijing taking steps not seen in the past six years.
- Cybersecurity: US concerns over Chinese cyber-aggression remain a major sticking point.
- Russia’s War in Ukraine: Burns criticized Beijing’s support for Russia, calling it a “major division” with tangible costs to the relationship.
- Economic Competition: Burns supported maintaining tariffs to protect US manufacturing, saying, “We cannot afford a second ‘China shock.’”
- Human Rights: He strongly condemned China’s restrictions on religious freedom and its actions in Hong Kong, which he said have eroded democracy and human rights.
Future Outlook
- Burns emphasized that the future of US-China ties depends on choices made by both nations.
- As President-elect Donald Trump prepares to take office, Burns avoided direct commentary on potential policy shifts, including Trump’s proposed tariffs.
- Trump’s nominee for ambassador, ex-senator David Perdue, is set to take over in January. Burns expressed confidence in the embassy team’s ability to support Perdue.
Key Quotes
- On Russia: “China’s support for Russia has created a firestorm and remains a major division between us.”
- On religious freedom: “Severe limits on religious practice in China demand clear and consistent advocacy from the US.”
- On Hong Kong: “The disappearance of democracy and human rights in Hong Kong is squarely the fault of the Chinese government.”
Burns’ tenure, which began during a low point in US-China relations in 2022, underscores the complexities of managing ties between the two largest economies. As his term concludes, his message is clear: the US-China relationship requires careful navigation, balancing competition with cooperation.
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