On 26 March 2024, the Council of the EU announced it had adopted the so-called Daisy Chain Directive which makes amendments to the Bank Recovery and Resolution Directive (BRRD) and the Single Resolution Mechanism Regulation (SRMR) as regards certain aspects of the minimum requirement for own funds and eligible liabilities (MREL). Background On 18 April … Continue Reading
On 22 March 2024, there was published in the Official Journal of the EU (OJ) Commission Delegated Regulation (EU) 2024/920 of 13 December 2023 supplementing the Securitisation Regulation with regard to regulatory technical standards (RTS) specifying the performance-related triggers and the criteria for the calibration of those triggers. The RTS specify the two mandatory triggers … Continue Reading
On 21 March 2024, there was published in the Official Journal of the European Union (OJ) Decision (EU) 2024/871 of the European Central Bank (ECB) of 8 March 2024, on the total amount of annual supervisory fees for 2023. As such, the Decision lays down that the total amount shall be EUR 653 723 537; … Continue Reading
On 21 March 2024, the European Parliament issued a press release stating that the Economic and Monetary Affairs Committee (ECON) had voted on the Crisis Management Deposit Insurance Review and adopted new rules concerning orderly market exit for banks of all sizes, in order to minimise the economic burden on society. The new rules thus … Continue Reading
On 20 March 2024, there was published in the Official Journal of the EU (OJ) Commission Delegated Regulation (EU) 2024/895 of 13 December 2023 amending Delegated Regulation (EU) 2015/63 as regards the calculation of eligible liabilities and the transitional regime. The Delegated Regulation applies from the day following its publication in the OJ except for … Continue Reading
On 18 March 2024, the European Central Bank (ECB) and European Banking Authority (EBA) published a Memorandum of Understanding on the establishment of the Joint Bank Reporting Committee (JBRC). The JBRC is tasked with helping to develop common definitions and standards for the data that banks are required to report for statistical, supervisory and resolution … Continue Reading
On 13 March 2024, the Single Resolution Board (SRB) issued a public consultation on the minimum bail-in data template (MBDT). The consultation is part of the SRB’s collaboration with the industry in order to fulfil the SRB mandate and implement the new strategy, SRM Vision 2028, which moves from the key elements of resolution planning … Continue Reading
On 12 March 2024, the Bank of England (BoE) published Policy Statement PS5/24 on solvent exit planning for non-systemic banks and building societies, setting out how these types of firm in the UK should prepare, as part of their business-as-usual (BAU) activities, for an orderly ‘solvent exit’ and, if needed, be able to execute one. … Continue Reading
On 7 March 2024, the Basel Committee on Banking Supervision (Basel Committee) published a Consultative Document setting out proposed amendments to its assessment methodology for global systemically important banks (G-SIBs). The proposed changes are intended to address “window-dressing” behaviour by some banks in the context of the G-SIB framework where regulatory arbitrage behaviour seeks to … Continue Reading
On 5 March 2024, the European Commission (Commission) published a Commission Delegation Regulation, supplementing the Securitisation Regulation with regard to regulatory technical standards specifying for simple, transparent and standardised (STS) non-asset backed commercial paper (non-ABCP) traditional securitisation, and for STS on-balance-sheet securitisation, the content, methodologies and presentation of information related to the principal adverse impacts … Continue Reading
On 4 March 2024, the European Parliament’s Economic and Monetary Affairs Committee (ECON) published a draft report on the legislative proposal for a Regulation establishing a European Deposit Insurance Scheme (EDIS Regulation). The draft report contains a draft European Parliament legislative resolution setting out suggested changes to the proposed EDIS Regulation. The European Commission first … Continue Reading
On 29 February 2024, the Basel Committee on Banking Supervision (Basel Committee) announced it had approved revisions to the Core Principles for Effective Banking Supervision. The final standard, which follows an earlier consultation, will be published following the International Conference of Banking Supervisors on 24-25 April 2024. The Basel Committee has also announced that it … Continue Reading
On 29 February 2024, the Bank of England Levy (Amount of Levy Payable) Regulations 2024 were made and published on legislation.gov.uk. This statutory instrument (SI) makes provision for which eligible institutions will be liable to pay the Bank of England levy in respect of a levy year, and the proportion of the levy that each … Continue Reading
On 13 February 2024, the Single Resolution Board (SRB) announced the Single Resolution Mechanism’s (SRM) new strategic vision up until 2028. The SRB’s early work was heavily focused on policy development and the main attributes for resolution mandated by the SRM Regulation. By the end of 2023, the SRB reached various key milestones. These … Continue Reading
On 7 February 2024, the European Parliament issued a press release stating that MEPs had adopted the draft Regulation amending the Single Euro Payments Area Regulation and the Cross-Border Payments Regulation as regards instant credit transfers in euro. The press release goes on to state that MEPs have adopted the new rules to ensure transferred … Continue Reading
Last year was somewhat turbulent for bank M&A with activity in the market being driven from a variety of factors. In our recently published article on bank sector M&A trends for 2024, we look at five trends which will potentially have the biggest impact on dealmaking in the year ahead. These include: the impact of … Continue Reading
In our latest podcast series, we look at transaction risk in the banking sector. Conversations with leading lawyers and experts to dive into the detail, highlighting the key issues you really need to know about. In the first episode, Corporate Partner and Global Head of Banks, Alan Bainbridge and Financial Regulatory Partner, Matthew Gregory focus … Continue Reading
On 25 January 2024, HM Treasury (HMT) published a summary of responses to its consultation on draft regulations to implement the Bank of England (BoE) levy, along with next steps. In parallel, the BoE published a Policy Statement providing feedback to its consultation on its proposed Levy Framework Document. The Government confirmed in June 2022 … Continue Reading
On 22 January 2024, there was published on legislation.gov.uk a draft of the Bank of England Levy (Amount of Levy Payable) Regulations 2024. Schedule 2ZA to the Bank of England Act 1998 makes provision for the Bank of England (BoE) to impose a charge, known as the BoE levy (levy) on eligible institutions to fund … Continue Reading
On 19 January 2024, the Bank of England (BoE) published a working paper considering in detail the main techniques for resolving large banks and containing the systemic consequences which could arise from their failure. The paper is published as a tribute to Peter Brierley who served as a BoE official for four decades before his … Continue Reading
On 11 January 2024, the Prudential Regulation Authority (PRA) published a Dear CEO letter to PRA regulated international banks active in the UK. In the letter, the PRA notes that a common theme underpinning its 2024 priorities is the need for robust governance, risk management and controls at firms to enable the effective and proactive … Continue Reading
On 11 January 2024, the Prudential Regulation Authority (PRA) published a Dear CEO letter to PRA regulated UK deposit takers setting out its thematic priorities for supervising such firms. In the letter, the PRA notes that a common theme underpinning its 2024 priorities is the need for robust governance, risk management and controls at firms … Continue Reading
On 11 January 2024, HM Treasury (HMT) published a consultation on enhancing the Special Resolution Regime. The consultation sets out HMT’s proposals to enhance the UK’s resolution regime for banking institutions (i.e., banks, building societies, and Prudential Regulation Authority-designated investment firms), with the aim of ensuring that the UK continues to have world-class arrangements to … Continue Reading
On 18 December 2023, the Bank of England (BoE) published its supervision of financial market infrastructures (FMIs) annual report for 2023. The report highlights the crucial role of FMIs in the smooth operation of the UK financial system and the broader economy. It sets out how the BoE has exercised its responsibilities in respect of … Continue Reading