Germany

Topic: Capital Adequacy

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Commission Delegated Regulations relating to the IFR

On 11 January 2022, there was published in the Official Journal of the EU (OJ): Commission Delegated Regulation (EU) 2022/25 of 22 September 2021 supplementing the Investment Firms Regulation (IFR) with regard to regulatory technical standards (RTS) specifying the methods for measuring the K-factors referred to in Article 15 of that Regulation. Specifically the RTS … Continue Reading

EBA confirms EU banks’ solid overall liquidity position but warns about low foreign currency liquidity buffers

On 17 December 2021, the European Banking Authority (EBA) published a report on liquidity measures, which monitors and evaluates the liquidity coverage requirements currently in place in the EU. The liquidity coverage ratio (LCR) of EU banks stood at 176% in June 2021, materially above the minimum threshold of 100%. At the same time, the … Continue Reading

EBA report on a feasibility study of an integrated reporting system under Article 430c CRR

On 16 December 2021, the European Banking Authority (EBA) published its final report on the feasibility study of an integrated reporting system (IRS). The report puts forward a long-term vision on how the reporting processes could be streamlined and improved for both institutions and competent authorities and how cooperation among the latter could be enhanced … Continue Reading

EBA publishes amended technical standards on credit risk adjustments

On 13 December 2021, the European Banking Authority (EBA) issued a final report on draft Regulatory Technical Standards (RTS) amending the RTS on credit risk adjustments in the context of the calculation of the risk weight (RW) of defaulted exposures under the Standardised Approach (SA) of credit risk. The proposed amendments follow up on the … Continue Reading

EBA consults on liquidity requirements for investment firms

On 10 December 2021, the European Banking Authority (EBA) issued public consultations on draft Regulatory Technical Standards (RTS) on specific liquidity measurement requirements for investment firms and draft guidelines on liquidity requirements exemptions for small and non-interconnected investment firms. The draft RTS have been developed in accordance with Article 42(6) of the Investment Firm Directive … Continue Reading

EBA updates on monitoring of CET1 capital instruments

On 8 December 2021, the European Banking Authority (EBA) published an updated list of Common Equity Tier 1 (CET1) instruments of EU institutions. This list is accompanied by an updated CET1 report, which includes information on the underlying objectives of the monitoring as well as on the consequences of including or excluding instruments in or … Continue Reading

IFD Delegated Regulations

On 7 December 2021, the following Delegated Regulations supplementing the Investment Firm Directive (IFD) were published in the Official Journal of the EU: Commission Delegated Regulation (EU) 2021/2153 of 6 August 2021 supplementing the IFD with regard to regulatory technical standards specifying the criteria for subjecting certain investment firms to the requirements of Regulation (EU) … Continue Reading

Commission Delegated Regulation with regard to RTS specifying the conditions in accordance with which consolidation is to be carried out

On 3 December 2021, there was published in the Official Journal of the EU Commission Delegated Regulation (EU) of 3.12.2021 supplementing the Capital Requirements Regulation (CRR) with regard to regulatory technical standards (RTS) specifying the conditions in accordance with which consolidation is to be carried out in the cases referred to in Article 18(3) to … Continue Reading

EBA consults on interest rate risk arising from non-trading book activities

On 2 December 2021, the European Banking Authority (EBA) issued three consultations covering technical aspects of the revised framework capturing interest rate risks for banking book (IRRBB) positions. Specifically, the consultations cover: Guidelines on IRRBB and credit spread risk arising from non-trading book activities (CSRBB). When finalised these guidelines will replace the current guidelines on … Continue Reading

Commission issues targeted consultation on improving the EU’s macroprudential framework for the banking sector

On 30 November 2021, the European Commission issued a targeted consultation intended to gather evidence on the current macroprudential rules for credit institutions in line with the better regulation principles and in view of the forthcoming legislative review mandated by Article 513 of the Capital Requirements Regulation (CRR). The information obtained will feed into the … Continue Reading

Published in OJ – Commission Implementing Regulation (EU) 2021 of 13 September 2021 amending Implementing Regulation (EU) 2016/2070

On 26 November 2021, there was published in the Official Journal of the EU Commission Implementing Regulation (EU) 2021 of 13 September 2021 amending Implementing Regulation (EU) 2016/2070 as regards benchmark portfolios, reporting templates and reporting instructions to be applied in the Union for the reporting referred to in Article 78(2) of the Capital Requirements Directive … Continue Reading

EBA publishes draft RTS on the calculation of risk-weighted exposure amounts of CIUs

On 25 November 2021, the European Banking Authority (EBA) published a final report setting out draft regulatory technical standards (RTS) that specify the methodology to apply to calculate the risk-weighted exposure amounts of collective investment undertakings (CIUs), in the context of the mandate-based approach when there are some missing inputs. The draft RTS have been … Continue Reading

Amendments to Implementing Regulation (EU) 2016/2070 on benchmarking of internal models under CRD IV

On 19 November 2021, there was published in the Official Journal of the EU, Commission Implementing Regulation (EU) 2021/1971 amending Implementing Regulation (EU) 2016/2070 laying down implementing technical standards for templates, definitions and IT-solutions to be used by institutions when reporting to the European Banking Authority and competent authorities under Article 78(2) of the CRD … Continue Reading

EBA consults on draft RTS on Pillar 2 add-ons for investment firms

On 18 November 2021, the European Banking Authority (EBA) and the European Securities and Markets Authority (ESMA) issued a public consultation on draft guidelines on common procedures and methodologies for the supervisory review and evaluation process (SREP). The draft guidelines have been developed on the basis of Article 45(2) of the Investment Firms Directive (IFD), … Continue Reading

Amendments to Implementing Regulation (EU) 2016/1799

Commission Implementing Regulation (EU) 2016/1799 specifies, in its Annex III, the correspondence between the relevant credit assessments issued by an external credit assessment institution (‘ECAI’) and the credit quality steps set out in Section 2 of Chapter 2 of Title II of Part Three of the Capital Requirements Regulation (CRR). On 17 November 2021, there … Continue Reading

EBA discussion paper on machine learning for IRB models

On 11 November 2021, the European Banking Authority (EBA) published a discussion paper on machine learning for internal ratings-based (IRB) models.  The discussion paper is a first step to engage the industry and the supervisory community to investigate the possible use of machine learning as IRB models and to build up a common understanding of … Continue Reading

Draft ITS amending Implementing Regulation (EU) No 637/2021 on disclosure of information on exposures to interest rate risk on positions not held in the trading book

On 10 November 2021, the European Banking Authority (EBA) published its first draft implementing technical standards (ITS) on Pillar 3 disclosure of institutions’ exposures to interest rate risk on positions not held in the trading book (IRRBB). From 28 June 2021, Article 448 of the Capital Requirements Regulation (CRR) requires institutions to disclose quantitative and … Continue Reading

G-SIB assessment methodology review process – technical amendment finalisation

On 9 November 2021, the Basel Committee on Banking Supervision announced that it had finalised a technical amendment to the Basel Framework which relates to the process used by the Committee to review the Global Systemically Important Bank assessment methodology. The Committee has replaced the prior three year review cycle with a process of ongoing … Continue Reading

EBA consults on draft technical standards on Initial Margin Model Validation under EMIR

On 4 November 2021, the European Banking Authority (EBA) issued a consultation paper containing draft Regulatory Technical Standards (RTS) on Initial Margin Model Validation (IMMV) under the European Markets Infrastructure Regulation (EMIR). The consultation paper sets out the supervisory procedures for initial and ongoing validation of initial margin models, which will be used to determine … Continue Reading

EBA publishes final draft technical standards specifying how to identify the appropriate risk weights and conditions when assessing minimum LGD values for exposures secured by immovable property

On 5 November 2021, the European Banking Authority (EBA) published its final draft Regulatory Technical Standards (RTS) specifying the types of factors and conditions to be considered for the assessment of the appropriateness of risk weights and of minimum loss given default (LGD) values. These final draft RTS will support relevant authorities across EU Member … Continue Reading

Delegated Regulation on RTS on assessment methodology for IRB approach under CRR

On 20 October 2021, the European Commission adopted a Delegated Regulation containing regulatory technical standards (RTS) for the specification of the assessment methodology competent authorities are to follow when assessing the compliance of credit institutions with the requirements to use the Internal Ratings Based (IRB) Approach. Under the Capital Requirements Regulation (CRR), credit institutions are … Continue Reading

European Commission adopts Delegated Regulation amending RTS on passporting notifications under CRD IV

On 20 October 2021, the European Commission adopted a Delegated Regulation containing amendments to the regulatory technical standards (RTS) in Commission Delegated Regulation 1151/2014 which contains information to be notified when exercising the right of establishment and the freedom to provide services under the CRD IV. The Delegated Regulation introduces amendments to improve the quality … Continue Reading

Draft RTS on disclosure of investment policy by investment firms under Article 52 of the IFR

On 19 October 2021, the European Banking Authority (EBA) published draft regulatory technical standards (RTS) on disclosure of investment policy by investment firms. Article 52 of the Investment Firms Regulation (IFR) sets out a requirement for investment firms to disclose information on investment policy, including the following information: Proportion of voting rights attached to shares … Continue Reading
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