Germany

ESMA publishes CRA market share calculation for 2019

On 29 November 2019, the European Securities and Markets Authority (ESMA) published its annual report on market share calculation for EU registered credit rating agencies for 2019 (CRAs). The purpose of the report is to provide guidance on Article 8d of the Regulation on CRAs which provides that issuers or related third parties are required … Continue Reading

FSB final report on the evaluation of the effects of financial regulatory reforms on SME financing

On 29 November 2019, the Financial Stability Board (FSB) published a final report on the evaluation of the effects of financial regulatory reforms on small and medium-sized enterprise (SME) financing. The FSB’s intention behind the final report is motivated by the need to better understand the effects of the reforms introduced by the G20 in … 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

EBA publishes guidelines on ICT and security risk management

On 28 November 2019, the European Banking Authority (EBA) published its final guidelines on ICT and security risk management (the Guidelines). The Guidelines are addressed to financial institutions, which for these purposes are: payment services providers (PSPs) as defined in Article 4(11) of the revised Payment Services Directive (PSD2) and credit institutions and investment firms … Continue Reading

Basel Committee guiding principles for operationalisation of sectoral countercyclical capital buffers

On 27 November 2019, the Basel Committee on Banking Supervision (Basel Committee) published guiding principles for the operationalisation of a sectoral countercyclical capital buffer (SCCyB). The Basel III standards introduced a countercyclical capital buffer regime (CCyB), which was phased in from 1 January 2016 and became fully effective on 1 January 2019. National authorities can … Continue Reading

FSB updates regulatory framework for haircuts on non-centrally cleared SFTs

On 26 November 2019, the Financial Stability Board (FSB) published an updated version (dated 25 November 2019) of its regulatory framework for haircuts on non-centrally-cleared securities financing transactions (SFTs). The framework aims to address financial stability risks associated with SFTs. The framework includes numerical haircut floors to apply to non-bank-to-non-bank SFTs that were finalised after … Continue Reading

Basel Committee statement on proportionality

On 26 November 2019, the Basel Committee on Banking Supervision (Basel Committee) published a newsletter containing a joint statement with the Basel Consultative Group on the use of proportionality in the implementation of the Basel framework. In the statement, the Basel Committee states that it supports the use of proportionality in implementing the Basel framework … Continue Reading

ECB speech on the European retail payments market

On 26 November 2019, the European Central Bank (ECB) published a speech given by Benoît Cœuré, ECB executive board member, entitled “Crossing the chasm to the retail payments of tomorrow”. In his speech, Mr Cœuré explains the ECB’s governing council decision to relaunch its retail payments strategy. The aim of the strategy is to actively … 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

EBA launches consultation on disclosure and reporting of MREL and TLAC

On 22 November 2019, the European Banking Authority (EBA) issued a consultation paper on a draft implementing technical standard (ITS) on disclosure and reporting of the minimum requirement for own funds and eligible liabilities (MREL) and the total loss absorbency requirement (TLAC). The draft ITS includes proposals for templates and tables implementing the TLAC/MREL Pillar … Continue Reading

ECB update on the targeted review of internal models

On 21 November 2019, the European Central Bank (ECB) provided its third update on the targeted review of internal models (TRIM). The ECB reports that a significant milestone has been reached with the successful conclusion of the last set of on-site investigations for the TRIM project. The ECB has also completed its analysis of the … Continue Reading

ECB speech on regulation, proportionality and the sustainability of banking

On 21 November 2019, the European Central Bank (ECB) published a speech given by Andrea Enria, Chair of the Supervisory Board of the ECB, at the European Savings and Retail Banking Group Conference, “Creating sustainable financial structures by putting citizens first” focusing on banking reforms, the case for a proportionate approach to regulation and sustainable … Continue Reading

ECB speech on implications of the transition to a low carbon economy

On 21 November 2019, the European Central Bank (ECB) published a speech given by Luis de Guindos, Vice-President of the ECB, at the European Savings and Retail Banking Group Conference, “Creating sustainable financial structures by putting citizens first” focusing on the risks for the financial system in relation to climate change and its role in … Continue Reading

EBA consults on specific supervisory reporting requirements for market risk

On 21 November 2019, the European Banking Authority (EBA) launched a consultation on draft implementing technical standards (ITS) for specific supervisory reporting requirements for market risk, which are the first elements of the Fundamental Review of the Trading Book (FRTB) introduced by the revised Capital Requirements Regulation (CRR2). The draft ITS are accompanied by three … Continue Reading

EBA roadmap on risk reduction measures package

On 21 November 2019, the European Banking Authority (EBA) published a set of roadmaps outlining its approach and timelines for delivering the mandates stemming from the risk reduction measures package adopted by the Council of the EU and the European Parliament on 20 May 2019. The risk reduction package allocates over 100 new mandates to … Continue Reading

Council of EU to approve European Parliament’s position on European System of Financial Supervision

On 20 November 2019, the Council of the EU published the following three notes from the General Secretariat of the Council to the Permanent Representatives : an information note on the proposed Omnibus Regulation relating to the powers, governance and funding of the European Supervisory Authorities; an information note on the proposed Omnibus Directive amending … Continue Reading

ECSDA updates CSDR settlement fail penalties framework

On 20 November 2019, the European Central Securities Depositories Association  published an updated version of its settlement fail penalties framework. The framework aims to achieve compliance with the Central Securities Depositories Regulation (CSDR) and harmonisation of rules for the creation and operation of settlement penalties mechanisms. The framework focuses purely on the settlement fails penalties-related … Continue Reading

FSB letter to ISDA on the addition of a pre-cessation trigger

On 19 November 2019, the Financial Stability Board (FSB) published a letter (dated 15 November 2019) from the co-chairs of its Official Sector Steering Group (OSSG) of regulators and central banks to the International Swaps and Derivatives Association (ISDA). In the letter the co-chairs of the OSSG thank the ISDA for its work on more … Continue Reading

ICMA announces update to buy-in rules for CSDR

On 14 November 2019, the International Capital Market Association (ICMA) published a press release announcing that it will amend its buy-in rules to support the implementation of the EU Central Securities Depositories Regulation (CSDR) mandatory buy-in provisions. The CSDR creates a mandatory obligation for parties to execute buy-ins against counterparties who fail to settle their … 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

Commission announces details of CMU high-level forum

On 18 November 2019, the European Commission published a press release announcing the composition of a high-level forum on the Capital Markets Union (CMU). The forum is made up of a group of 28 experts from the civil society, the business and finance community and other non-public sector institutions who will provide insight and support … 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

EPC SEPA payment scheme rulebooks enter into force

On 18 November 2019, the European Payments Council (EPC) announced the entry into force of the following 2019 Single Euro Payments Area (SEPA) payment scheme rulebooks: Credit transfer rulebook (SCT) Instant credit transfer rulebook (SCT Inst) Direct debit core rulebook (SDD) Direct Debit business-to-business rulebook (SDD B2B) All of the rulebooks entered into force on … Continue Reading
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