Germany

Topic: Banking

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ECB consults on draft ECB guideline on the materiality threshold for credit obligations past due for less significant institutions

On 20 January 2020, the European Central Bank (ECB) published a consultation on a draft ECB guideline that specifies how Member State national competent authorities (NCAs) shall exercise the discretion conferred on them under Article 178(2)(d) of the Capital Requirements Regulation (CRR) in relation to less significant institutions with regard to the threshold for assessing … Continue Reading

Crypto Assets: Germany introduces new regulatory regime

Germany has adopted a new regulatory regime for crypto assets in connection with the implementation of the Fifth Anti-Money Laundering Directive (AMLD5). On 29 November 2019, the second chamber of the German parliament (Bundesrat) approved the “Act on the Implementation of the Amendment Directive to the Fourth EU Money Laundering Directive” (Gesetz zur Umsetzung der Änderungs­richt­linie … Continue Reading

ESG: German regulator publishes guidance notice on sustainability

The German Federal Financial Supervisory Authority (BaFin) has issued a guidance notice on dealing with sustainability risks (ESG Guidance Notice). The binding German version was published on 20 December 2019 and later editorially modified on 13 January 2020. Further, BaFin has now also made available an English convenience translation. The German regulator had launched a consultation based on … Continue Reading

EBA peer review on the application of the RTS on the criteria to identify material risk takers

On 16 January 2020, the European Banking Authority (EBA) published a report on the application by Member State competent authorities (NCAs) of the regulatory technical standards (RTS) on the criteria to identify categories of staff whose professional activities have a material impact on an institution’s risk profile. The review shows that, within the EEA, NCAs … Continue Reading

EBA calls on banks to consider long-term horizons in their strategies and business activities

On 18 December 2019, the European Banking Authority (EBA) published a report on undue short-term pressures from the financial sector on corporations. The report is in response to the call for advice from the European Commission as part of its Action Plan, Financing Sustainable Growth, and will inform policy actions that could be taken to … Continue Reading

FSB 2020 work programme

On 17 December 2019, the Financial Stability Board (FSB) published its work programme for 2020.  The FSB’s work programme is split across five areas: addressing new and emerging vulnerabilities in the financial system: including more detailed work on FinTech, global stablecoins, cross-border payment systems and cyber resilience; finalising and operationalising post-crisis reforms: including building resilient … Continue Reading

ECB Regulation and Decision on supervisory fees

On 17 December 2019, there was published in the Official Journal of the European Union (OJ): Regulation (EU) 2019/2155 of the European Central Bank (ECB) amending the ECB Regulation on supervisory fees. The ECB has decided to no longer require advance payment of its annual supervisory fees. The fees will only be levied after the … Continue Reading

ECB speech on banking supervision activities

On 12 December 2019, the European Central Bank (ECB) published the introductory comments made by its chair, Andrea Enria, at the second ordinary hearing at the European Parliament’s Economic and Monetary Affairs Committee. In his comments, Mr Enria describes the progress in the Eurozone in reducing risks in the banking sector noting that the volume … Continue Reading

EPC 2019 Payment Threats and Fraud Trends Report

On 9 December 2019, the European Payments Council published the 2019 Payment Threats and Fraud Trends Report, which provides an overview of the most important threats in the European payments landscape. The report provides an overview of the most important threats in the payments landscape, including social engineering and phishing, malware, advanced persistent threats (APT), … Continue Reading

EBA updates guidelines on harmonised definitions and templates for the reporting of funding plans of credit institutions

On 9 December 2019, the European Banking Authority (EBA) published updated guidelines on harmonised definitions and templates for the reporting of funding plans of credit institutions. The guidelines have been drafted in accordance with Article 16 of the Regulation establishing the EBA, which mandates the European Supervisory Authority to seek to establish consistent, efficient and … Continue Reading

ESRB recommendation on exchange and collection of information on branches of credit institutions for macroprudential purposes published in OJ

On 9 December 2019, there was published in the Official Journal of the European Union (OJ) a recommendation of the European Systemic Risk Board (ESRB) on the exchange and collection of information for macroprudential purposes on branches of credit institutions having their head office in another Member State or in a third country. Contained within … Continue Reading

Basel Committee consults on targeted adjustments to CVA risk

On 28 November 2019, the Basel Committee on Banking Supervision (Basel Committee) launched a consultation paper setting out a set of targeted adjustments to the credit valuation adjustment (CVA) risk framework issued in December 2017. The purpose of the adjustments is to align the relevant parts of the revised CVA risk framework with the minimum … Continue Reading

Council of EU progress report on banking union

On 25 November 2019, the Council of the EU published a progress report on work on strengthening the EU Banking Union. The report focuses on the following: European deposit insurance scheme (EDIS). Among other things the report states that Commission services presented the main findings of a soon-to-be published study Options and national discretions under … Continue Reading

FSB publishes 2019 G-SIB list

On 22 November 2019, the Financial Stability Board published its 2019 list of global systemically important banks (G-SIBs) using end-2018 data and an assessment methodology designed by the Basel Committee on Banking Supervision. One bank, Toronto Dominion, has been added to the list of G-SIBs that were identified in 2018, and therefore, the overall number … Continue Reading

ESMA updates Q&As on Securitisation Regulation

On 15 November 2019, the European Securities and Markets Authority (ESMA) published an updated version of its Q&As on the Securitisation Regulation. ESMA has included a summary table of the Q&As which have also been reordered. The updated and new Q&As provide clarification on how different aspects of the templates contained in ESMA’s draft technical … Continue Reading

Basel Committee report on open banking and APIs

On 19 November 2019, the Basel Committee on Banking Supervision (Basel Committee) has published a report on open banking and application programming interfaces (APIs). In the report, the Basel Committee focuses on aspects of open banking related to customer-permissioned data sharing where the customer initially grants permission to a third party to access their data, … Continue Reading

FSB’s Eighth Report on the Implementation of Resolution Reforms welcomes significant progress made, but gaps remain

On 14 November 2019, the Financial Stability Board (FSB) published its eighth report on the implementation of its resolution reforms. The report assesses FSB members’ progress in implementing the FSB’s resolution policies for central counterparties (CCPs), banks and insurers. While acknowledging the “remarkable progress” already made, it points out that such progress has been uneven … Continue Reading

EFDI guidance on DGS alternative measures to pay-out

On 14 November 2019, the European Forum of Deposit Insurers (EFDI) published a non-binding guidance paper on deposit guarantee schemes’ (DGSs) alternative measures to pay-out. Article 11(3) of the Deposit Guarantee Schemes Directive (DGSD) permits DGSs to use available financial means for alternative measures in order to prevent a bank from failure, as well as … Continue Reading

EBA consults on amendments to RTS and ITS on passport notification

On 13 November 2019, the European Banking Authority (EBA) launched a consultation paper on draft amended regulatory technical standards (RTS) and implementing technical standards (ITS) on passport notification. The consultation examines two sets of technical standards on passport notification, developed by the EBA in accordance with the mandate set out in Articles 35, 36 and … Continue Reading

Basel Committee consults on guidelines on interaction and cooperation between prudential and AML/CFT supervision

On 8 November 2019, the Basel Committee on Banking Supervision (Basel Committee) issued a consultative document concerning the introduction of guidelines on the interaction and cooperation between prudential and anti-money laundering / countering the financing of terrorism (AML / CFT) supervision. In the consultative document the Basel Committee proposes certain amendments to its guidelines on … Continue Reading

FSB plenary meeting November 2019

On 7 November 2019, the Financial Stability Board (FSB) published a press release outlining the discussions held during its plenary meeting in New York. Key points from the meeting include: Current vulnerabilities in the global financial system. Members discussed a report assessing vulnerabilities associated with leveraged loans and collateralised loan obligations. The report suggests that … Continue Reading

EBA progress report on NPLs

On 8 November 2019, the European Banking Authority (EBA) published its second thematic report on non-performing loans (NPLs). The report is based on supervisory data of asset quality metrics, and provides an update on the progress made so far in addressing NPLs in Europe. It also takes stock of ongoing initiatives to tackle the NPL … Continue Reading

OJ publication – RTS on the homogeneity of the underlying exposures in securitisation

In July the European Banking Authority published two final draft regulatory technical standards (RTS) under the Securitisation Regulation. The first of these RTS established the conditions for which underlying exposures are to be considered homogeneous, being one of the requirements with respect to simplicity, standardisation and transparency of a securitisation transaction. Our earlier blog is … Continue Reading

EBA revised materials for EU-wide stress test 2020

On 7 November 2019, the European Banking Authority (EBA) published the final methodology and draft templates for its 2020 EU-wide stress test along with key milestones of the exercise. The objective of the stress test is to provide EU supervisors, banks and other market participants with a common analytical framework to consistently compare and assess … Continue Reading
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