On 24 November 2022, the Bank for International Settlements (BIS) published a newsletter on bank exposures to non-bank financial intermediaries. The newsletter highlights the following: The non-bank financial intermediary (NBFI) sector continues to grow and has the potential to cause financial stability concerns, though its size and the associated risk vary amongst member jurisdictions. Recent … Continue Reading
On 21 November 2022, the Financial Stability Board (FSB) published the 2022 list of globally systemically important banks (G-SIBs). The list is based on end-2021 data and an assessment methodology designed by the Basel Committee on Banking Supervision, which was revised in 2018. The revised methodology is applied for the first time this year. The … Continue Reading
On 18 November 2022, the Single Resolution Board (SRB) published its work programme for 2023. In summary, the coming twelve months will see the SRB’s focus moving from the more general phases of drafting and fine-tuning of resolution plans towards ensuring that each plan and preferred resolution strategy for each bank in the Banking Union … Continue Reading
On 15 November 2022, the European Banking Authority (EBA) issued a consultation paper containing draft guidelines addressed to institutions and resolution authorities on resolvability testing. The draft guidelines seek to introduce a common framework for resolution testing by: Introducing a self-assessment by resolution banks of their resolvability focusing on the minimum standard set by the … Continue Reading
On 7 November 2022, the European Banking Authority (EBA) published an Opinion on the set-up and operationalisation of intermediate EU parent undertaking(s) under Article 21b of the Capital Requirements Directive IV (CRD IV). Article 21b of the CRD IV strengthens the supervision of third-country groups with significant activities in the EU. It does this by … Continue Reading
On 3 November 2022, the European Banking Authority (EBA) published a report on the application of the infrastructure supporting factor. The report analyses the lending trends and riskiness of infrastructure loans which have benefited from a capital reduction due to the introduction of the so-called Infrastructure Supporting Factor (ISF) according to Article 501a of the … Continue Reading
On 13 October 2022, there was published in the Official Journal of the EU (OJ), Commission Implementing Regulation (EU) 2022/1929 of 31 March 2022 amending the implementing technical standards laid down in Implementing Regulation (EU) 2020/1227 as regards the templates for the provision of information in accordance with the simple, transparent and standardised (STS) notification … Continue Reading
The German Federal Financial Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht – BaFin) makes use of its product intervention powers under the European Markets in Financial Instruments Regulation (MiFIR): Under a general administrative act (Allgemeinverfügung) dated 30 September 2022 (link to English convenience translation), BaFin prohibited the marketing, distribution and sale of futures to retail clients domiciled in … Continue Reading
On 28 September 2022, the European Banking Authority (EBA) published final guidelines on transferability to support the resolvability assessment for transfer strategies. The guidelines complement the EBA resolvability guidelines as regards resolution tools other than bail-in. They assess the feasibility and credibility of transfer strategies and encompass requirements relating to the implementation of transfer tools … Continue Reading
On 28 September 2022, the European Central Bank (ECB) issued a public consultation on a draft guide which seeks to clarify how it assesses applications to acquire qualifying holdings in banks. The ECB intends for the guide to function as a user-friendly handbook. The guide explains who is obliged to undergo qualifying holding assessments, the … Continue Reading
On 20 September 2022, the European Banking Authority (EBA) published final draft Regulatory Technical Standards (RTS) specifying the minimum performance-related triggers for simple, transparent and standardised (STS) on-balance-sheet securitisations that feature non-sequential amortisation. The draft RTS have been developed in accordance with Article 26c(5) of the Securitisation Regulation (as amended by Regulation 2021/557), which requests … Continue Reading
On 13 September 2022, the Basel Committee on Banking Supervision (BCBS) published a press release following a meeting of the Group of Central Bank Governors and Heads of Supervision (GHOS) reaffirming their expectation to implement Basel III in full and work as fast as possible; provide direction on future work on climate-related financial risks and … Continue Reading
On 1 September 2022, the European Central Bank (ECB) announced the appointment of five experts on banking supervision to review the effectiveness and efficiency of the Supervisory Review and Evaluation process (SREP) and how it relates to other supervisory processes. The expert group will engage with major relevant stakeholders and other international experts to gather … Continue Reading
On 29 July 2022, the European Banking Authority (EBA) launched a public consultation on its draft revised Guidelines on deposit guarantee schemes (DGS) contributions. The revised Guidelines are aimed at enhancing the proportionality between the risk of a credit institution and its contributions to the DGS, and at streamlining and simplifying the original Guidelines. In … Continue Reading
On 28 July 2022, the European Banking Authority (EBA) published a Consultation Paper on Draft Regulatory Technical Standards (RTS) on the homogeneity of the underlying exposures in STS securitisation under Articles 20(14), 24(21) and 26b(13) of Regulation (EU) 2017/2402, as amended by Regulation (EU) 2021/557. These draft RTS will be amending the Commission Delegated Regulation … Continue Reading
On 28 July 2022, the European Banking Authority (EBA) published a Consultation Paper on its supervisory handbook for the validation of internal ratings based systems. This handbook clarifies the role of the validation function as part of corporate governance, in particular in terms of scope of work and interaction with the credit risk control unit. … Continue Reading
On 28 July 2022, the European Central Bank (ECB) published a Working Paper on the optimal quantity of CBDC in a bank based economy. The paper provides evidence on the estimated effects of digital euro news on bank valuations and lending and finds that they depend on deposit reliance and design features aimed at calibrating … Continue Reading
On 28 July 2022, the European Central Bank (ECB) published a Working Paper on voluntary support and ring-fencing in cross-border banks. The paper provides a theoretical contribution to the ring-fencing debate in the context of supervisory intervention in an impaired subsidiary of a cross-border bank (CBB). Amongst other things, the paper addresses the following questions: … Continue Reading
On 13 July 2022, the Single Resolution Board (SRB) published, for the first time, its assessment of bank resolvability. The assessment is based on the information available to the SRB during the drafting phase of 2021 resolution plans up until the end of September 2021. The resolvability assessment and ‘heat-map’ for 2021 shows that banks … Continue Reading
On 12 July 2022, the European Securities and Markets Authority (ESMA) issued a statement on the implementation of Legal Entity Identifier (LEI) requirements for third country issuers under the Securities Financing Transactions Regulation (SFTR) reporting regime. Key points in the statement include: The ESMA acknowledges the potential reporting implementation issue with respect to securities financing … Continue Reading
On 27 June 2022, the European Central Bank issued a statement containing details of the methodology that will be used for exercising supervisory discretion regarding cross-border intra-European Banking Union (EBU) exposures in the global systemically important bank (G-SIB) assessment framework. The Basel Committee on Banking Supervision (Basel Committee) has completed a targeted review of the … Continue Reading
On 17 June 2022, the European Commission published a Delegated Regulation supplementing the Capital Requirements Directive IV (CRD IV) with regard to regulatory technical standards (RTS) specifying the information to be provided in the application for authorisation as a credit institution, and specifying the obstacles which may prevent the effective exercise of supervisory functions of … Continue Reading
On 16 June 2022, the Eurogroup issued a statement on the future of the Banking Union. In the statement the Eurogroup states that, as an immediate step, work on the Banking Union should focus on strengthening the common framework for bank crisis management and national deposit guarantee schemes (CMDI framework). The broad elements to underpin … Continue Reading
On 15 June 2022, the Single Resolution Board (SRB) updated its operational guidance to banks on the implementation of the bail-in tool. Specifically, the SRB has updated its guidance on bail-in playbooks, bail-in data set instructions and an explanatory note on the latter. Compared to previous documents the SRB has added more detail to the … Continue Reading
