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Topic: Capital adequacy

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EBA final draft RTS and ITS on authorisation of credit institutions under CRD IV

The European Banking Authority (EBA) has published draft regulatory technical standards (RTS) and draft implementing technical standards (ITS) pursuant to the mandates set out in Articles 8(2) and 8(3) of the Capital Requirements Directive IV. Specifically: the RTS set out the information to be provided in applications for the authorisation of credit institutions. The aim … Continue Reading

Delegated Regulation on RTS further specifying additional objective criteria relating to liquidity coverage for credit institutions

There has been published in the Official Journal of the European Union (OJ), Commission Delegated Regulation (EU) 2017/1230 of 31 May 2017 supplementing the Capital Requirements Regulation with regard to regulatory technical standards further specifying the additional objective criteria for the application of a preferential liquidity outflow or inflow rate for cross-border undrawn credit of … Continue Reading

Commission adopts Implementing Regulation on ITS on supervisory reporting to reflect IFRS 9 changes to FINREP

The European Banking Authority (EBA) has announced that the European Commission (Commission) has adopted the Implementing Act amending Regulation (EU) No 680/2014 (Implementing Technical Standards on Supervisory Reporting) with regard to financial reporting following the changes in the International Accounting Standards (IFRS 9). Publication of the Implementing Act in the Official Journal of the EU … Continue Reading

Capital treatment for simple, transparent and comparable short-term securitisations proposed by Basel Committee

The Basel Committee on Banking Supervision (BCBS) has issued a consultative document, Capital treatment for simple, transparent and comparable short-term securitisations. The consultative document supplements an earlier consultative document that the BCBS co-published with the International Organization of Securities Commissions (Criteria for identifying simple, transparent and comparable short-term securitisations). The consultative document contains additional guidance … Continue Reading

Top 10: EBA’s public hearing on the Prudential Regime for Investment Firms

On 3 July 2017, the European Banking Authority (EBA) held a public hearing in London to update stakeholders on its progress in developing recommendations for the European Commission (the Commission) for a new prudential regime for MiFID investment firms. The EBA’s work on a new prudential regime for investment firms is in response to a … Continue Reading

Basel Committee publishes a report on the implementation of the Basel III reforms

The Basel Committee on Banking Supervision (BCBS) has published a report that is intended to update G20 leaders on progress by its members on implementing the Basel III reforms. The report notes that overall, further progress has been made since last year’s update to the G20 leaders in implementing the Basel III standards in a … Continue Reading

Basel Committee report on range of practices in implementing the countercyclical capital buffer

The Basel Committee on Banking Supervision (Basel Committee) has published a report, Range of practices in implementing the countercyclical capital buffer policy. The primary objective of the countercyclical capital buffer (CCyB) is to build a varying capital buffer that protects the banking sector from periods of excess credit growth that are often associated with the … Continue Reading

EBA to hold a public hearing in July 2017 on possibility of developing new prudential regime for MiFID investment firms

The European Banking Authority (EBA) has announced that it will hold a public hearing on 3 July 2017 at 14:00 UK time to update all relevant stakeholders on the progress made so far on the possibility of developing a new prudential regime for MiFID investment firms.. In particular, the EBA will present the preliminary results … Continue Reading

Commission responds to EBA comments on proposed CRD V Directive and CRR II Regulation

The European Banking Authority (EBA) has published a letter from the Vice-President of the European Commission (Commission), Valdis Dombrovskis, on the proposed Regulation amending the Capital Requirements Regulation (CCR) and the proposed Directive amending the Capital Requirements Directive IV. Mr Dombrovskis comments on the net stable funding ratio (NSFR) and the leverage ratio. In relation … Continue Reading

Basel Committee updates FAQs on Basel III LCR framework

The Basel Committee on Banking Supervision (Basel Committee) has published an updated version of its FAQs on the liquidity coverage ratio (LCR). New FAQs and updates to the previous FAQs published in April 2014 are denoted in italics and consist of: 1(b, d and e), 2, 5, 6 (d and e), 9, 10, 13(i), 15, … Continue Reading

ECON draft report on proposed Regulation amending CRR as regards transitional period for mitigating impact on own funds of introduction of IFRS 9

The European Parliament’s Committee on Economic and Monetary Affairs (ECON) has published its draft report on the proposed Regulation amending the Capital Requirements Regulation (CRR) as regards the leverage ratio, the net stable funding ratio, requirements for own funds and eligible liabilities, counterparty credit risk, market risk, exposures to central counterparties, exposures to collective investment … Continue Reading

EBA updates final guidelines on disclosure requirements for EU banking sector

The European Banking Authority (EBA) has published a final report containing guidelines on disclosure requirements under Part Eight of the Capital Requirements Regulation (CRR). The final guidelines follow an earlier EBA consultation which was published last year (our blog is here) following an update to the Pillar 3 framework by the Basel Committee on Banking … Continue Reading

EBA consults on scope of its draft guidelines on connected clients

The European Banking Authority (EBA) has published a consultation paper on the scope of the draft guidelines on connected clients under Article 4(1)(39) of the Capital Requirements Regulation (CRR). The objective of the definition of ‘group of connected clients’ in Article 4(1)(39) of the CRR is to identify clients so closely linked by idiosyncratic risk … Continue Reading

EBA opinion on CRR II and CRD V proposals on own funds

Article 80 of the Capital Requirements Regulation (CRR) mandates the European Banking Authority (EBA) to monitor the quality of own funds instruments issued by institutions across the Union and to notify the European Commission immediately where there is significant evidence of those instruments not meeting the criteria set out in Article 28, or where applicable, … Continue Reading

ECB guide for fit and proper assessments

The European Central Bank (ECB) has published a guide to fit and proper assessments. The guide is relevant to significant credit institutions that fall under the direct supervision of the ECB and is intended to ensure consistency in the application of the fit and proper assessment criteria, with a view to establishing common supervisory practices … Continue Reading

Member State negotiations on risk reduction package continue

On 26 April, Member State representatives met for a full day’s discussion of the Risk Reduction Measures legislation. The meeting focused on the European Commission’s (Commission) November 2016 proposal for amendments to the Capital Requirements Regulation (CRR) and Capital Requirements Directive (CRD). Discussions are still centered on the aspects of the proposal which are likely … Continue Reading

BCBS April 2017 progress report on implementation of Basel regulatory framework

The Basel Committee on Banking Supervision (Basel Committee) has published the twelfth progress report on adoption of the Basel III regulatory framework. The updated progress report provides a high-level view of Basel Committee members’ progress in adopting Basel III standards as of end-March 2017. As of end-March 2017, all 27 member jurisdictions have final risk-based … Continue Reading

EBA final draft ITS amending CRR supervisory reporting ITS to reflect operational risk

The Capital Requirements Regulation mandates the European Banking Authority (EBA), in Article 99(5) and Article 415(3) to develop uniform reporting requirements. The EBA has now published its final draft implementing technical standards (ITS) amending the European Commission’s Implementing Regulation (EU) No 680/2014 on supervisory reporting (Implementing Regulation)  so as to keep reporting requirements in line … Continue Reading

Basel Committee guidance on the prudential treatment of problem assets – definitions of non-performing exposures and forbearance

The Basel Committee on Banking Supervision (Basel Committee) has published final guidelines that are intended to complement the existing accounting and regulatory framework in relation to asset categorisation. Specifically the guidelines provide for definitions for two important terms – “non-performing exposures” and “forbearance”. The definition of non-performing exposures introduces harmonised criteria for categorising loans and … Continue Reading

Basel Committee finalises second phase of revisions to Pillar 3 disclosure framework

The Basel Committee on Banking Supervision (Basel Committee) has issued Pillar 3 disclosure requirements – consolidated and enhanced framework. The standard represents the second phase of the Basel Committee’s review of the Pillar 3 disclosure framework and builds on the revisions to the Pillar 3 disclosure that the Basel Committee published in January 2015. Following … Continue Reading

Commission inception impact assessment on new prudential framework for investment firms

The European Commission (Commission) has published an inception impact assessment on its review of the appropriate prudential treatment for investment firms. The impact assessment aims to inform stakeholders about the Commission’s work in order to allow them to provide feedback on the intended initiative and to participate effectively in future consultation activities. The impact assessment … Continue Reading

ECB guidance to banks on non-performing loans

The European Central Bank (ECB) has published guidance on non-performing loans (NPLs). The guidance follows the life cycle of NPL management. It starts with the supervisory expectations on NPL strategies, which closely link to NPL governance and operations. The guidance also outlines important aspects for forbearance treatments and NPL recognition. The guidance also covers NPL … Continue Reading
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