On 15 April 2024, the Council of the EU published the text of the proposed Directive amending the Bank Recovery and Resolution Directive and the Resolution establishing the Single Resolution Mechanism as regards certain aspects of the minimum requirement for own funds and eligible liabilities. The draft Directive is sometimes known as the ‘daisy-chain proposal’. … Continue Reading
On 11 April 2024, the European Banking Authority (EBA) published a final report containing ‘Guidelines on the application of the group capital test for investment firm groups’. The final report notes that the group capital test provision pursuant to Article 8 of the Investment Firms Regulation appears to be subject to different interpretations from Member … Continue Reading
On 2 April 2024, the European Parliament’s Committee on Economic and Monetary Affairs (ECON) published three reports that it has adopted in relation to the European Commission’s (Commission) crisis management and deposit insurance (CMDI) legislative package. The set of reports consists of: Each of the reports contains a draft European Parliament legislative resolution, which sets out ECON’s … Continue Reading
On 15 March 2024, the European Commission adopted an Implementing Regulation amending the implementing technical standards laid down in Implementing Regulation 2021/451 as regards rules on the supervisory reporting of interest rate risk in the banking book. Commission Implementing Regulation 2021/451 specifies the uniform reporting formats and templates, the instructions and methodology on how to … Continue Reading
On 13 March 2024, the European Commission adopted a Delegated Regulation supplementing the Investment Firms Regulation (IFR) with regards to regulatory technical standards (RTS) specifying the details of the scope and methods for prudential consolidation of an investment firm group. The draft technical standards specify the details of the scope of and methods for prudential … Continue Reading
On 8 March 2024, there was published in the Official Journal of the EU, Commission Implementing Regulation (EU) 2024/796 of 4 March 2024 amending the implementing technical standards (ITS) laid down in Implementing Regulation (EU) No. 650/2014 as regards the information to be disclosed by competent authorities in accordance with the Capital Requirements Directive IV … Continue Reading
On 8 March 2024, there was published in the Official Journal of the EU, Commission Implementing Regulation 2024/348 of 19 January 2024, amending the Implementing Technical Standards (ITS) laid down in Commission Implementing Regulation 2016/2070, as regards benchmark portfolios, reporting templates and reporting instructions, for the reporting referred to in Article 78(2) of the Capital … Continue Reading
On 5 March 2024, the European Commission (Commission) published a draft Commission Implementing Regulation amending the implementing technical standards (ITS) laid down in Commission Implementing Regulation (EU) No 650/2014 as regards the information to be disclosed by Member State competent authorities (NCAs) in accordance with the Capital Requirements Directive IV (CRD IV). Commission Implementing Regulation … Continue Reading
On 4 March 2024, the European Banking Authority (EBA) published a Consultation Paper on its draft Regulatory Technical Standards (RTS) under the Capital Requirements Regulation (CRR3) relating to the allocation of off-balance sheet items under the standardised approach of credit risk. The draft RTS set out: The RTS form part of phase 1 of the EBA … Continue Reading
On 27 February 2024, the European Parliament published the text of a legislative resolution confirming that it had adopted at first reading the attached text of the proposed Directive amending the Bank Recovery and Resolution Directive and the Regulation establishing the Single Resolution Mechanism, as regards certain aspects of the minimum requirement for own funds … Continue Reading
On 19 February 2024, the European Central Bank (ECB) published a Memorandum of Cooperation that it had entered into with Member State competent authorities (NCAs) (together the Authorities) for the performance of their supervisory tasks in relation to the supervision of third country groups and third country branches. Background In accordance with Article 47(2a) of … Continue Reading
On 20 February 2024, the European Banking Authority (EBA) published a consultation paper to consult on the draft implementing technical standards (ITS) amending Commission Implementing Regulation (EU) 2021/637 to implement the disclosure requirements coming from the introduction of the new regulatory framework for operational risk in the Capital Requirements Regulation (CRR) 3. Background The CRR … Continue Reading
On 20 February 2024, the European Banking Authority (EBA) issued a consultation paper on the business indicator component (BIC). The Capital Requirements Regulation 3 includes amendments to the operational risk area, where a revised framework is introduced and all previously existing approaches for the calculation of regulatory capital are replaced by the BIC. The BIC … Continue Reading
On 19 February 2024, the European Central Bank (ECB) published its revised guide to internal models. The guide covers general topics, credit risk, market risk and counterparty credit risk. This follows a public consultation which ended in September 2023. The ECB has considered all 625 comments received from 20 respondents during the public consultation and … Continue Reading
On 12 February 2024, the European Banking Authority (EBA) published a follow up to its 2021 peer review report on the joint European Supervisory Authorities’ (ESAs) guidelines on the prudential assessment of the acquisition of qualifying holdings. The joint ESAs guidelines define common procedures based on the assessment criteria laid down in the EU legislative … Continue Reading
On 1 February 2024, the European Banking Authority (EBA) issued a consultation paper containing draft regulatory technical standards (RTS) on the exemption from the residual risk add-on own funds requirements for certain type of hedges under Article 325u(4a) of the Capital Requirements Regulation (CRR). The residual risk add on (RRAO) is a key pillar of … Continue Reading
On 29 January 2024, there was published in the Official Journal of the EU (OJ), Commission Delegated Regulation (EU) 2024/397 of 20 October 2023 supplementing the Capital Requirements Regulation (CRR) as regards regulatory technical standards (RTS) on the calculation of the stress scenario risk measure. The RTS foresee two overarching methods to develop the extreme … Continue Reading
On 24 January 2024, the European Commission (Commission) published its report to the European Parliament and the Council on the macroprudential review for credit institutions, the systemic risks relating to Non-Bank Financial Intermediaries (NBFIs) and their interconnectedness with credit institutions, under Article 513 of the Capital Requirements Regulation (CRR). The report is required by Article … Continue Reading
On 23 January 2024, the European Commission published Commission Implementing Regulation of 19 January 2024, amending implementing technical standards laid down in Commission Implementing Regulation (EU) 2016/2070 as regards benchmark portfolios, reporting templates and reporting instructions for the reporting referred to in Article 78(2) of the Capital Requirements Directive IV together with annexes. The amendments … Continue Reading
On 18 January 2024, the European Banking Authority (EBA) issued a consultation on draft guidelines on the management of environmental, social and governance (ESG) risks. The EBA has developed these draft guidelines in line with its roadmap on sustainable finance and they address the mandate specified in letters a, b, and c of Article 87(a)5 … Continue Reading
On 16 January 2024, the European Banking Authority (EBA) published a report on specific aspects of the net stable funding ratio (NSFR) framework. The report has been prepared in accordance with the mandates set out in Article 510 (4), (6) and (9) of the Capital Requirements Regulation (CRR). These commit the EBA to evaluate the … Continue Reading
On 11 January 2024, the European Banking Authority (EBA) issued a final report containing draft implementing technical standards (ITS) amending Commission Implementing Regulation (EU) 2021/451 with regard to reporting requirements for market risk and repealing Commission Implementing Regulation (EU) 2021/453. The draft ITS set out the frame and details for expanding the Fundamental Review of … Continue Reading
On 20 December 2023, the European Banking Authority (EBA) published a final report on draft implementing technical standards (ITS) amending the ITS on disclosures and reporting on MREL and TLAC with regard to the disclosures and reporting of information in daisy chains and prior permissions. The amendments reflect the new requirement to deduct investments in … Continue Reading
On 19 December 2023, the European Securities and Markets Authority (ESMA) published a final report on the guidelines on stress test scenarios under the Money Market Funds Regulation (MMF Regulation). Article 28 of the MMF Regulation mandates ESMA to develop guidelines establishing common reference parameters of stress test scenarios to be included in the stress … Continue Reading
