On 15 November 2021, the European Central Bank (ECB) issued a consultation on a draft guide on the notification of securitisation transactions for directly supervised banks. The consultation follows the ECB’s announcement of its decision in May 2021 to ensure that directly supervised banks comply with the requirements for risk retention, transparency and
EBA publishes ESEP and EREP for 2022
On 12 November 2021, the European Banking Authority (EBA) published its European Supervisory Examination Programme (ESEP) for 2022. The EBA are required to contribute to enhancing supervisory convergence across the internal market. They have an active role in building a common supervisory culture and consistent supervisory practices throughout the European Union.
The
ECB speech – Overcoming the tragedy of the horizon: requiring banks to translate 2050 targets into milestones
On 20 October 2021, Frank Elderson, Member of the Executive Board of the European Central Bank (ECB) gave a keynote speech at the Financial Market Authority’s Supervisory Conference, regarding the need for banks to translate their 2050 carbon-neutral targets into milestones.
Key points in the speech include:
- Banks can no longer simply declare
ECB letter to banks – information on participation in the 2022 ECB climate risk stress test
On 18 October 2021, the European Central Bank (ECB) published a letter that it had sent to CEOs of significant institutions providing them with information on participation in the 2022 ECB Climate Risk Stress Test.
In the letter the ECB explains that the output of the stress test exercise will be integrated into
ECB Banking Supervision’s post-pandemic priorities – the way forward
On 5 October 2021, the European Central Bank published a speech by a member of its Supervisory Board, Edouard Fernandez-Bollo. The speech is entitled ‘ECB Banking Supervision’s post-pandemic priorities – the way forward’.
In his speech Mr Fernandez-Bollo reflects on some of the challenges and priorities that lie ahead for the banking sector.
Firms and banks to benefit from early adoption of green policies, ECB’s economy-wide climate stress test shows
On 21 September 2021, the European Central Bank (ECB) issued the results of its economy-wide climate stress test. The test looked at the impact of climate change on more than four million firms worldwide and 1,600 euro area banks under three different climate policy scenarios.
The results show that, although the effects of
SRB approach to prior permissions regime: update
On 16 September 2021, the Single Resolution Board (SRB) published an update to information on its approach to prior permissions for eligible liabilities.
Prior to calling, redeeming, repaying or repurchasing eligible liabilities instruments before their contractual maturity, institutions are required to obtain the authorisation of the resolution authority in accordance with Article 77(2)
ECB decisions relating to delegation and internal tasks
On 6 September 2021, the following European Central Bank decisions were published in the Official Journal of the EU:
- Decision (EU) 2021/1437 of the European Central Bank of 3 August 2021 amending Decision (EU) 2017/934 on the delegation of decisions on the significance of supervised entities (ECB/2021/33).
- Decision (EU) 2021/1438 of the European Central
SSM-wide stress test 2021
On 30 July 2021, the European Central Bank (ECB) published the results of its 2021 stress test.
The stress test shows that the euro area banking system is resilient to adverse economic developments. The Common Equity Tier 1 capital ratio of the 89 ECB supervised banks in the stress test would fall by
SRB approach to prior permissions regime
On 28 July 2021, the Single Resolution Board (SRB) published information on its approach to prior permissions for eligible liabilities, in line with upcoming regulatory changes.
Banks need an authorisation under Articles 77 and 78a of the Capital Requirements Regulation (CRR) to redeem eligible liabilities, as of 27 June 2019. Article