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Topic: Banking

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BIS newsletter on bank exposures to non-bank financial intermediaries

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

FSB publishes list of globally systemically important Banks

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

SRB publishes work programme for 2023

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

EBA Consultation Paper on draft guidelines to institutions and resolution authorities on resolvability testing

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

EBA Opinion on the set-up and operationalisation of intermediate EU parent undertakings

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

EBA publishes assessment on the application of the supporting factor to infrastructure lending

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

Financial policy summary and record of the Financial Policy Committee meeting on 30 September 2022

On 12 October 2022, the Bank of England (the Bank) published a financial policy summary and record of the Financial Policy Committee’s (FPC) meeting on 30 September. The financial policy summary addresses: Global economic and financial market developments – Since the July 2022 Financial Stability Report (FSR), the global economic outlook has continued to deteriorate … Continue Reading

Commission Implementing Regulation amending ITS laid down in Implementing Regulation (EU) 2020/1227 as regards the templates for the provision of information in accordance with the STS notification requirements for on-balance-sheet synthetic securitisations

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

ECB guidelines on transferability to support the resolvability assessment for transfer strategies

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

ECB consults on guide of how to assess buyers of qualifying stakes in banks

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

ICMA publishes updated version of its SFTR reporting recommendations

On 23 September 2022, the International Capital Market Association (ICMA) published an updated version of its detailed recommendations for reporting under SFTR. The updated guidance includes six new questions and numerous further updates, reflecting new insights as well as additional guidance from the European Securities and Markets Authority (ESMA), e.g. regarding the reporting of central … Continue Reading

EBA publishes final draft RTS specifying the performance-related triggers pursuant to the Securitisation Regulation

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

BCBS reaffirms Basel III implementation expectations and work priorities

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

ECB appoints five experts to re-evaluate annual supervisory review process

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

House of Commons Research briefing on the future of local banking services and access to cash

On 9 August 2022, the House of Commons published a research briefing on the future of local banking services and access to cash. The research briefing provides an overview of the policy relating to the closure of bank and building society branches and to efforts to protect access to cash. In particular: The Government announced a … Continue Reading

EBA consults on revised Guidelines on methods for calculating contributions to deposit guarantees schemes

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

EBA publishes Consultation Paper on Draft Regulatory Technical Standards 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

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

EBA releases Consultation Paper: Supervisory handbook on the validation of rating systems under the Internal Ratings Based approach

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

ECB publishes Working Paper on the optimal quantity of CBDC in a bank-based economy

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

ECB publishes Working Paper on voluntary support and ring-fencing in cross-border banks

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

Financial Ombudsman Service publishes new guidance for consumers and businesses regarding complaints that involve gambling-related harm

On 27 July 2022, the Financial Ombudsman service (FOS) announced that it has published two new webpages on the subject of complaints that involve gambling-related harm. One page is directed at consumers and the other is directed at businesses.  Key points on the page directed at businesses include that: The FOS has been contacted by … Continue Reading
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