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Topic: Banking

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BoE: Financial Policy Summary and Record of the Financial Policy Committee Meetings on 9 and 19 March 2020

On 24 March 2020, the Bank of England (BoE) published a record of the Financial Policy Committee (FPC) meetings held on 9 and 19 March 2020. Key points in the record include: having built up the resilience of the UK financial system over recent years, the FPC judges that major UK banks are well able … Continue Reading

IFSB exposure draft of the guiding principles on investor protection in Islamic capital markets (ED- 24) for public consultation

On 24 March 2020, the Islamic Financial Services Board (IFSB) issued an exposure draft of a standard on guiding principles for investor protection in Islamic capital markets (ICM). In the context of Islamic finance, several elements pertaining to the protection of investors underlie its foundational values, including ensuring fairness, certainty in transactions and avoiding exploitation … Continue Reading

ICMA and ISLA ask ESMA to delay SFTR reporting go-live date

On 18 March 2020, the International Capital Markets Association (ICMA) and the International Securities Lending Association (ISLA) published a letter sent to the European Securities and Markets Authority (ESMA) asking for a delay to the upcoming application of reporting obligations under the Securities Financing Transactions Regulation ((EU) 2015/2365) (SFTR). Under Article 4 of the SFTR, … Continue Reading

HM Treasury and Bank of England Covid Corporate Financing Facility

HM Treasury and the Bank of England have this afternoon published information on the Covid Corporate Financing Facility (CCFF) being offered to large companies that make a “material contribution to economic activity in the United Kingdom” and have an acceptable rating or creditworthiness. Further detail will be published on Monday, 23 March. The facility will … Continue Reading

ESMA delays SFTR reporting requirement

On Thursday, 19 March 2020, the European Securities and Markets Authority (ESMA) published a Public Statement setting out its approach to the reporting obligation under Regulation (EU) 2015/2365 on transparency of securities financing transactions and of reuse (“Securities Financing Transaction Regulation” or SFTR). Noting significant impact caused by the COVID-19 outbreak on the EU financial … Continue Reading

EBA releases final chapter of handbook on valuation for purposes of resolution under BRRD

On 10 March 2020, the European Banking Authority (EBA) published a new chapter of its Handbook on valuation for the purposes of resolution. The new chapter replaces chapter 10 relating to management information systems. The new chapter deals with resolution authorities’ assessment, in the context of the resolvability assessment, of the institutions’ capability to swiftly … Continue Reading

EBA issues updated list of validation rules

On 10 March 2020, the European Banking Authority issued a revised list of validation rules in its Implementing Technical Standards (ITS) on supervisory reporting, highlighting those which have been deactivated either for incorrectness or for triggering IT problems. Member State competent authorities throughout the EU are informed that data submitted in accordance with these ITS … Continue Reading

EBA launches consultation to update identification methodology for G-SIIS

On 5 March 2020, the European Banking Authority (EBA) published a consultation to update the identification methodology of global systemically important institutions (G-SIIs) and related capital buffer rates. The consultation follows the Basel Committee on Banking Supervision updating its approach to identify global systemically important banks in July 2018. The EBA methodology closely follows the … Continue Reading

Basel Committee meets to review vulnerabilities and emerging risks

On 27 February 2020, the Basel Committee on Banking Supervision issued a press release concerning its meeting on 26-27 February 2020. Among other things the press release notes that the Basel Committee discussed the financial stability implications of the coronavirus  outbreak (Covid-19) for the banking system and exchanged information on the business continuity measures that … Continue Reading

Shaping the future of payments: BIS Quarterly Review

On 1 March 2020, the Bank for International Settlements (BIS) published its latest Quarterly Review. In its overview of market developments covering the three months to late February, the Review: recounts how the late 2019 market upswing faltered amid unease over the impact of the Covid-19 outbreak; notes that the sell-off was uneven across asset … Continue Reading

ESRB report – Macroprudential implications of financial instruments in Levels 2 and 3 for accounting purposes

On 25 February 2020, the European Systemic Risk Board (ESRB) published a report on the macroprudential implications of financial instruments that are measured at fair value according to IFRS 9 and IFRS 13 (with a focus on those classified in Levels 2 and 3, since they are typically measured using models and other market-based techniques, … Continue Reading

LSB second report on access to banking standard

On 24 February 2020, the Lending Standards Board (LSB) published its latest summary report on the Access to Banking Standard. The Standard replaced the ‘Access to Banking Protocol’ which the main high street banks have been following since March 2015. The Standard sets out requirements to inform customers and stakeholders about a branch closure and … Continue Reading

Consultation on expanding the dormant assets scheme

On 21 February 2020, the Government launched a consultation seeking views on its proposals to expand the dormant assets scheme to include new financial assets. The UK’s dormant assets scheme is currently narrower in its scope than other international schemes, with only bank and building society accounts included. Over the past three years, industry has … Continue Reading

FCA feedback on LSB’s Standards of Lending Practice for business customers

On 11 February 2020, the FCA published Feedback Statement 20/1: Recognition of codes: feedback on QCP 25 CP19/27 (FS20/1). In FS20/1 the FCA states that it has decided to recognise the LSB’s Standards of Lending Practice for business customers for unregulated activities. As the LSB’s Standards of Lending Practice for business customers covers both regulated … Continue Reading

Final EBA opinion on deposit guarantee schemes pay outs

Article 19(6) of the Deposit Guarantee Schemes Directive (DGSD) requires the European Commission to submit to the European Parliament and to the Council a report on the progress towards the implementation of the Directive. To support the Commission in meeting this obligation, the European Banking Authority (EBA) committed to drafting three opinions on the DGSD. … Continue Reading

FCA Handbook Notice 73

On 31 January 2020, the FCA published Handbook Notice 73. This Handbook Notice provides a summary of the changes the FCA board made to the Handbook on 12 December 2019, 10 January 2020 and 30 January 2020. The relevant instruments are: Conduct of Business Sourcebook (Independent Governance Committees) Instrument 2019; Fees (Cryptoasset Business) Instrument 2020; Mortgages … Continue Reading

EEA Joint Committee Decisions published in OJ

On 30 January 2020, there was published in the Official Journal of the European Union: Decision No 62/2018 of the EEA Joint Committee concerning the incorporation of delegated and implementing regulations relating to the Solvency II Directive; Decision No 63/2018 of the EEA Joint Committee concerning the incorporation of Commission Delegated Regulation (EU) 2016/438 and … Continue Reading

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

On 31 January 2020, the European Banking Authority (EBA) published two reports on the consistency of risk weighted assets across all EU institutions authorised to use internal approaches for the calculation of capital requirements. The reports cover credit risk for high and low default portfolios, as well as market risk. The credit risk report examines … Continue Reading

The finalisation of the Basel III reforms in a post-Brexit environment: single or dual-track approach?

On 22 January 2020, Norton Rose Fulbright’s corporate financial services and government relations practices, in cooperation with the City of London Corporation, organised a panel debate on “The finalisation of the Basel III reforms in a post-Brexit environment: single or dual-track approach?”. Hosted in Norton Rose Fulbright’s Brussels office, the event gathered over 75 participants, … Continue Reading

EBA discussion paper on future changes to EU-wide banking sector stress test

On 22 January 2020, the European Banking Authority (EBA) published a discussion paper on future changes to the EU-wide stress test. The proposed new framework comprises of two components owned by supervisors and banks respectively: the supervisory leg and the bank leg. The supervisory leg serves as the starting point for supervisory decisions and would … Continue Reading

ECB recommendation on dividend distribution policies

On 21 January 2020, the European Central Bank (ECB) published a letter from Andrea Enria, ECB Supervisory Board Chair, to significant institutions supervised under the Single Supervisory Mechanism (SSM) regarding variable remuneration policies. Additionally, the ECB has also published a recommendation (dated 17 January 2020) on dividend distribution policies. In the letter, the ECB reminds … Continue Reading