United Kingdom

Topic: Banking

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House of Commons’ briefing paper – statistics on access to cash, bank branches and ATMs

On 12 October 2021, the House of Commons published a briefing paper titled, ‘Statistics on access to cash, bank branches and ATMs’. This briefing paper is comprised of statistics on cash use, access to cash, bank and building society branches, post offices and ATMs. Some of the headlines from the briefing paper include: Digital payments … Continue Reading

ESMA final report on technical standards on content and format of the STS notification for on-balance sheet securitisations

On 12 October 2021, the European Securities and Markets Authority (ESMA) published a final report on technical standards specifying the content and format of the simple, transparent and standardised (STS) securitisation notification for on-balance sheet securitisations. Regulation (EU) 2021/557 amended the framework under the Securitisation Regulation (SECR) to on-balance sheet securitisations (also called synthetic securitisations). … Continue Reading

Financial Policy Summary and Record of the FPC Meeting on 23 September 2021

On 8 October 2021, there was published the Financial Policy Summary and Record of the Financial Policy Committee (FPC) meeting on 23 September 2021. Among other things the document notes that the FPC is maintaining the UK countercyclical capital buffer (CCyB) rate at 0%. The FPC has previously stated that it expects to maintain a … Continue Reading

BRRD ITS for contractual recognition of write down and conversion powers

On 4 October 2021, there was published in the Official Journal of the EU (OJ) Commission Implementing Regulation (EU) 2021/1751 laying down implementing technical standards for the application of the Bank Recovery and Resolution Directive with regard to uniform formats and templates for notifications of determination of the impracticability of including contractual recognition of write … Continue Reading

Review of the Cash Ratio Deposit scheme: consultation on proposed changes

On 24 September 2021, HM Treasury issued a consultation setting out proposed changes to the Cash Ratio Deposit Scheme. The Cash Ratio Deposit (CRD) scheme funds the Bank of England’s (BoE) monetary policy and financial stability functions. Under the scheme, banks and building societies with eligible liabilities of more than £600 million are required to … Continue Reading

EBA report on the platformisation of the EU banking and payments sector

On 21 September 2021, the European Banking Authority (EBA) published a report on the platformisation of the EU banking and payments sector. The EBA identifies a rapid growth in the use of digital platforms to ‘bridge’ customers and financial institutions, a trend expected to accelerate in line with the wider trend toward the digitisation of … Continue Reading

Delegated Regulation supplementing the BRRD with regard to RTS for contractual recognition of write down and conversion powers published in the OJ

On 17 September 2021, there was published in the Official Journal of the EU (OJ) Commission Delegated Regulation (EU) 2021/1527 of 31 May 2021 supplementing the Bank Recovery and Resolution Directive (BRRD) with regard to regulatory technical standards (RTS) for the contractual recognition of write down and conversion power. The Delegated Regulation covers: Conditions under … Continue Reading

SRB approach to prior permissions regime: update

On 16 September 2021, the Single Resolution Board (SRB) published an update to information on its approach to prior permissions for eligible liabilities. Prior to calling, redeeming, repaying or repurchasing eligible liabilities instruments before their contractual maturity, institutions are required to obtain the authorisation of the resolution authority in accordance with Article 77(2) of the … Continue Reading

EBA publishes revised guidelines on the stress tests of deposit guarantee schemes

On 15 September 2021, the European Banking Authority (EBA) published revised guidelines on the stress tests conducted by Member State deposit guarantee schemes under the Deposit Guarantee Schemes Directive (DGSD). The revised guidelines strengthen the current DGS stress-testing framework by requiring the DGSs to stress test their ability to perform all of the interventions they … Continue Reading

HM Treasury consults on amendments to section 48D of the Banking Act 2009

On 7 September 2021, HM Treasury issued a consultation paper regarding proposed amendments to section 48D of the Banking Act 2009 (the 2009 Act). Following its earlier consultation on the implementation of the Investment Firms Prudential Regime and Basel 3 Standards, the Government has decided to remove FCA regulated 730k firms from the scope of … Continue Reading

PRA issues statement on Remuneration Benchmarking and High Earners 2020 submissions

On 3 September 2021, the Prudential Regulation Authority (PRA) issued a statement on remuneration benchmarking and high earners 2020 submissions. Firms are required to submit Remuneration Benchmarking Information Reports and High Earners Reports to the PRA as set out in Chapter 17 and Chapter 18 of the Remuneration Part of the PRA Rulebook respectively. In … Continue Reading

Business Banking Resolution Service launches independent and transparent liaison panels

The Business Banking Resolution Service (BBRS) is a non-profit organisation set up to resolve disputes between eligible larger SMEs and participating banks. It was established in response to the commitments made by the banking and finance industry following the Simon Walker Review, in which the need for an independent service was identified to resolve eligible … Continue Reading

EBA observes that the number of high earners in EU banks remained overall stable in 2019

On 18 August 2021, the European Banking Authority (EBA) published a report on high earners for 2019. The report has been developed in accordance with Article 75(3) of the Capital Requirements Directive IV, which mandates the EBA to collect information on the number of individuals per institution that are remunerated EUR one million or more … Continue Reading

Published in OJ – Commission delegated act determining the content of the contractual terms on recognition of resolution stay powers

On 16 August 2021, there was published in the Official Journal of the EU (OJ), Commission Delegated Regulation 2021/1340 of 22 April 2021 supplementing the Bank Recovery and Resolution Directive (BRRD) with regard to regulatory technical standards (RTS) determining the content of the contractual terms on recognition of resolution stay powers. The RTS are based … Continue Reading

EBA publishes amended technical standards on resolution planning reporting

On 3 August 2021, the European Banking Authority (EBA) issued a report containing draft implementing technical standards (ITS) that amend the current ITS on the provision of information for the purpose of resolution plans (Implementing Regulation (EU) 2018/1624). The EBA states that the proposed amendments are minimal and are designed to re-align the standards with … Continue Reading

Banking supervisory disclosures: rules and guidance, options and discretions, SREP, and aggregate statistical data

On 30 July 2021, the PRA published information on rules and guidance, options and discretions, supervisory review and evaluation process (SREP), and aggregate statistical data as at 30 July 2021. The PRA has published this information on a voluntary basis to enable a comparison of the approaches adopted by Member State competent authorities. Prior to … Continue Reading

Proportionality in bank regulation and supervision – a joint global survey

On 30 July 2021, the Basel Committee on Banking Supervision (Basel Committee) and the World Bank (WB) published a report on an earlier joint global survey that focussed on proportionality in bank regulation and supervision. The survey involved 90 authorities, with a broad distribution across geographical regions and income groups. The concept of proportionality is … Continue Reading

PRA publishes PS19/21: International banks – the PRA’s approach to branch and subsidiary supervision

On 26 July, the Prudential Regulation Authority (PRA) published Policy Statement PS19/21 which provides feedback to responses to Consultation Paper (CP) 2/21 ‘International banks: The PRA’s approach to branch and subsidiary supervision’. PS19/21 also contains also contains the PRA’s final Supervisory Statement (SS) 5/21 ‘International banks: The PRA’s approach to branch and subsidiary supervision’ (Appendix … Continue Reading

Bank of England to review its approach to setting a minimum requirement for own funds and eligible liabilities

On 22 July, the Bank of England published a Consultation Paper (CP) as part of its review of the UK’s framework for the Minimum Requirement for Own Funds and Eligible Liabilities (MREL). The CP is the second stage of the MREL Review and sets out the Bank’s proposed changes to its MREL framework. It follows … Continue Reading

Bank of England publishes an operational guide to executing bail-in

Bail-in is a key stabilisation tool afforded to the Bank of England by the Banking Act 2009, that ensures investors rather than public funds bear the burden of resolving failing banks. This operational guide published on 22 July provides practical information on the ways in which the Bank of England might execute a bail-in resolution, … Continue Reading

Commission Implementing Regulation amending ITS as regards the disclosure of indicators of global systemic importance

On 24 June 2021, there was published in the Official Journal of the EU Commission Implementing Regulation (EU) 2021/1018 of 22 June 2021 amending the implementing technical standards laid down in Implementing Regulation (EU) 2021/7637 as regards the disclosure of indicators of global systemic importance, and repealing Implementing Regulation (EU) No 1030/2014. Article 131 of … Continue Reading

EBA proposes to further harmonise EU law applicable to branches of third country credit institutions

On 23 June 2021, the European Banking Authority (EBA) issued a report on the treatment of incoming third country branches (TCB) under the national law of Member States. The report is based on Article 21b(10) of the Capital Requirements Directive IV which mandates the EBA to submit a report to the European Parliament, the Council … Continue Reading

Commission consults on improving transparency and efficiency in secondary markets for non-performing loans

On 16 June 2021, the European Commission issued a targeted consultation designed to gather evidence on improving transparency and efficiency in secondary markets for non-performing loans (NPLs). The Commission notes that one of the key actions in fostering secondary markets for NPLs is to improve the quantity, quality and comparability of NPL data. Secondary markets … Continue Reading
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