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Topic: Capital Adequacy

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ESAs publish amended technical standards on the mapping of ECAIs

On 10 June 2021, the Joint Committee of the three European Supervisory Authorities (ESAs) published two amended Implementing Technical Standards (ITS) on the mapping of credit assessments of External Credit Assessment Institutions (ECAIs). Since the adoption in 2019 of the ITS on the mapping of credit assessments of ECAIs, two additional credit rating agencies (CRAs) … Continue Reading

Published in OJ – CRD IV RTS on criteria to identify material risk takers for remuneration purposes

On 9 June 2021, there was published in the Official Journal of the EU, Commission Delegated Regulation (EU) 2021/923 of 25 March 2021 supplementing the Capital Requirements Directive IV by setting out regulatory technical standards (RTS) on the criteria to identify all categories of staff whose professional activities have a material impact on the institutions’ … Continue Reading

EBA updates technical standards in view of its 2022 benchmarking of internal approaches

On 3 June 2021, the European Banking Authority (EBA) published an update to its Implementing Technical Standards (ITS) on benchmarking of internal approaches. The updated ITS include all benchmarking portfolios and metrics that will be used for the 2022 benchmarking exercise. The benchmarking exercise is an essential supervisory tool to enhance the quality of internal … Continue Reading

EBA and ESMA publish provisional list of instruments and funds for the smallest investment firms under the Investment Firms Regulation

On 31 May 2021, the European Banking Authority (EBA) and the European Securities and Markets Authority (ESMA) jointly published a provisional list of additional instruments and funds that Member State competent authorities may allow to use as own funds for some of the smallest investment firms. The list has been put together in accordance with … Continue Reading

EBA consults on institutions’ Pillar 3 disclosure of interest rate risk exposures

On 28 May 2021, the European Banking Authority (EBA) issued a consultation on draft implementing technical standards (ITS) on Pillar 3 disclosures regarding exposures to interest rate risk on positions not held in the trading book (IRRBB).  The EBA has developed the draft ITS in accordance with its mandate in Article 434a of the Capital … Continue Reading

EBA publishes final draft technical standards on own funds and eligible liabilities

On 26 May 2021, the European Banking Authority (EBA) published final draft regulatory technical standards (RTS) on own funds and eligible liabilities. The draft RTS align existing provisions to changes introduced in the revised Capital Requirements Regulation in the area of own funds. This is the case, in particular, for provisions relating to the regime … Continue Reading

EBA speech – The implementation of Basel III in the post-COVID 19 setting

On 12 May 2021, the European Banking Authority (EBA) published a speech given by its chairperson, Jose Manuel Campa, entitled The implementation of Basel 3 in the post-COVID 19 setting. In his speech Mr Campa covers: The measures taken in relation to the COVID-19 pandemic. In particular, Mr Campa states that on “the return to … Continue Reading

Commission Implementing Regulation laying down ITS for the application of the CRR with regard to the supervisory reporting and public disclosure of the minimum requirement for own funds and eligible liabilities

On 12 May 2021, there was published in the Official Journal of the EU (OJ), Commission Implementing Regulation (EU) 2021/763 of 23 April 2021 laying down implementing technical standards (ITS) for the application of the Capital Requirements Regulation (CRR) with regard to the supervisory reporting and public disclosure of the minimum requirement for own funds … Continue Reading

EBA consults on 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 29 April 2021, the European Banking Authority (EBA) issued a consultation paper on draft regulatory technical standards (RTS) specifying the types of factors to be considered for the assessment of appropriateness of risk weights and the conditions to be taken into account for the assessment of appropriateness of minimum loss given default (LGD) values … Continue Reading

EBA launches public consultation to enhance proportionality in liquidity reporting

On 28 April 2021, the European Banking Authority (EBA) issued a consultation on draft implementing technical standards (ITS) on supervisory reporting with respect to Additional Liquidity Monitoring Metrics (ALMM). The consultation paper proposes amendments to the ITS on supervisory reporting with regard to ALMM reporting requirements. These amendments are mainly driven by the introduction of … Continue Reading

Commission Implementing Regulation on ITS on public disclosures under CRR published in OJ

On 21 April 2021, there was published in the Official Journal of the EU Commission Implementing Regulation (EU) 2021/637 of 15 March 2021 laying down implementing technical standards with regard to public disclosures by institutions of the information referred to in Titles II and III of Part Eight of Regulation (EU) No 575/2013 of the … Continue Reading

EBA final draft technical standards specifying the methods of prudential consolidation

On 15 April 2021, the European Banking Authority (EBA) published final draft regulatory technical standards (RTS) specifying the conditions according to which consolidation shall be carried out in line with Article 18 of the Capital Requirements Regulation (CRR). The draft RTS seek to ensure that the appropriate method of prudential consolidation is applied for the … Continue Reading

Published in OJ – Delegated Regulation on specialised lending exposures under the CRR

On 14 April 2021, there was published in the Official Journal of the EU, Commission Delegated Regulation (EU) 2021/598 of 14 December 2020 supplementing the Capital Requirements Regulation (CRR) with regard to regulatory technical standards (RTS) for assigning risk weights to specialised lending exposures. The Delegated Regulation applies from 14 April 2022. The RTS specify … Continue Reading

EBA consults on the list of advanced economies to determine equity risk under the new market risk regime

On 7 April 2021, the European Banking Authority (EBA) issued a consultation paper regarding draft regulatory technical standards (RTS) on the list of countries with an advanced economy for calculating the equity risk under the alternative standardised approach (FRTB-SA). The Capital Requirements Regulation as amended by Regulation (EU) 2019/876 (CRR) implements in EU legislation the … Continue Reading

EBA consultation on draft RTS on disclosure of investment policy by investment firms

On 31 March 2021, the European Banking Authority (EBA) issued a consultation paper on draft regulatory technical standards (RTS) on disclosure of investment firm policy by investment firms. The legal basis for the consultation paper is Article 52 of the Investment Firms Regulation (IFR) that sets out the requirement for investment firms to disclose information … Continue Reading

Published in OJ – Revised RTS on methodology for the identification of G-SIBs

On 29 March 2021, there was published in the Official Journal of the EU (OJ) Commission Delegated Regulation (EU) 2021/539 of 11 February 2021 amending Delegated Regulation (EU) No 1222/2014 supplementing Directive 2013/36/EU of the European Parliament and of the Council with regard to regulatory technical standards (RTS) for the specification of the methodology for … Continue Reading

Commission Implementing Regulation laying down ITS on supervisory reporting

On 19 March 2021, there was published in the Official Journal of the EU (OJ) Commission Implementing Regulation (EU) 2021/451 of 17 December 2020 laying down implementing technical standards for the application of Regulation (EU) No 575/2013 of the European Parliament and of the Council with regard to supervisory reporting of institutions and repealing Implementing … Continue Reading

Published in OJ: Commission Implementing Regulation containing ITS on reporting requirements for market risk under CRR

On 16 March 2021, there was published in the Official Journal of the EU Commission Implementing Regulation (EU) 2021/453 of 15 March 2021 laying down implementing technical standards (ITS) for the application of the Capital Requirements Regulation (CRR) with regard to the specific reporting requirements for market risk. The reporting requirements defined in the ITS … Continue Reading

EBA decision on Basel III monitoring exercise

On 16 March 2021, the European Banking Authority published a decision making the Basel III monitoring exercise mandatory from December 2021. The EBA states that the move will expand the sample used for the monitoring exercise therefore making it more representative. Also, the decision provides Member State competent authorities with provisions for a reduced frequency … Continue Reading

EBA releases its annual assessment of the consistency of internal model outcomes for 2020

On 15 March 2021, the European Banking Authority (EBA) published two reports on the consistency of risk weighted assets (RWAs) across all EU institutions authorised to use internal approaches for the calculation of capital requirements for 2020. The reports cover credit risk for high and low default portfolios as well as market risk. The report … Continue Reading

EBA reports on the monitoring of the LCR implementation in the EU

On 15 March 2021, the European Banking Authority (EBA) published a report on the monitoring of liquidity coverage ratio (LCR) implementation in the EU. The report highlights areas in which further guidance is deemed useful for banks and Member State supervisors in order to foster a common understanding and harmonisation of the application of the … Continue Reading

EBA consults on technical elements for the implementation of the alternative standardised approach for market risk as part of its FRTB roadmap

On 12 March 2021, the European Banking Authority (EBA) published consultation papers regarding draft regulatory technical standards (RTS) on: Residual risk add-on (RRAO). Article 430b of the Capital Requirements Regulation (CRR) provides that from the date of application of Commission Delegated Regulation 2021/424 institutions that do not meet the conditions set out in Article 94(1) … Continue Reading

Commission Delegated Regulation amending the CRR with regard to the alternative standardized approach for market risk

On 11 March 2021, there was published in the Official Journal of the EU (OJ), Commission Delegated Regulation 2021/424 of 17 December 2019 amending the Capital Requirements Regulation with regard to the alternative standardised approach for market risk. This Delegated Regulation introduces into the Capital Requirements Regulation the technical specifications needed to make fully operational … Continue Reading

IOSCO reviews implementation of liquidity risk management recommendations and market participants´ responses to COVID-19 induced market stresses

On 5 March 2021, the International Organization of Securities Commissions (IOSCO) launched a thematic review of the 2018 Recommendations for Liquidity Risk Management for Collective Investment Schemes.  The thematic review aims to assess the extent to which the Recommendations have been implemented through IOSCO member regulatory frameworks. It also aims to gather information about how … Continue Reading
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