On 12 March 2024, the Bank of England (BoE) published Policy Statement PS5/24 on solvent exit planning for non-systemic banks and building societies, setting out how these types of firm in the UK should prepare, as part of their business-as-usual (BAU) activities, for an orderly ‘solvent exit’ and, if needed, be able to execute one. … Continue Reading
On 7 March 2024, the Basel Committee on Banking Supervision (Basel Committee) published a Consultative Document setting out proposed amendments to its assessment methodology for global systemically important banks (G-SIBs). The proposed changes are intended to address “window-dressing” behaviour by some banks in the context of the G-SIB framework where regulatory arbitrage behaviour seeks to … Continue Reading
On 29 February 2024, the Basel Committee on Banking Supervision (Basel Committee) announced it had approved revisions to the Core Principles for Effective Banking Supervision. The final standard, which follows an earlier consultation, will be published following the International Conference of Banking Supervisors on 24-25 April 2024. The Basel Committee has also announced that it … Continue Reading
On 29 February 2024, the Bank of England Levy (Amount of Levy Payable) Regulations 2024 were made and published on legislation.gov.uk. This statutory instrument (SI) makes provision for which eligible institutions will be liable to pay the Bank of England levy in respect of a levy year, and the proportion of the levy that each … Continue Reading
On 13 February 2024, the Single Resolution Board (SRB) announced the Single Resolution Mechanism’s (SRM) new strategic vision up until 2028. The SRB’s early work was heavily focused on policy development and the main attributes for resolution mandated by the SRM Regulation. By the end of 2023, the SRB reached various key milestones. These … Continue Reading
Last year was somewhat turbulent for bank M&A with activity in the market being driven from a variety of factors. In our recently published article on bank sector M&A trends for 2024, we look at five trends which will potentially have the biggest impact on dealmaking in the year ahead. These include: the impact of … Continue Reading
On 25 January 2024, HM Treasury (HMT) published a summary of responses to its consultation on draft regulations to implement the Bank of England (BoE) levy, along with next steps. In parallel, the BoE published a Policy Statement providing feedback to its consultation on its proposed Levy Framework Document. The Government confirmed in June 2022 … Continue Reading
On 19 January 2024, the Bank of England (BoE) published a working paper considering in detail the main techniques for resolving large banks and containing the systemic consequences which could arise from their failure. The paper is published as a tribute to Peter Brierley who served as a BoE official for four decades before his … Continue Reading
On 11 January 2024, the Prudential Regulation Authority (PRA) published a Dear CEO letter to PRA regulated international banks active in the UK. In the letter, the PRA notes that a common theme underpinning its 2024 priorities is the need for robust governance, risk management and controls at firms to enable the effective and proactive … Continue Reading
On 11 January 2024, the Prudential Regulation Authority (PRA) published a Dear CEO letter to PRA regulated UK deposit takers setting out its thematic priorities for supervising such firms. In the letter, the PRA notes that a common theme underpinning its 2024 priorities is the need for robust governance, risk management and controls at firms … Continue Reading
On 11 January 2024, HM Treasury (HMT) published a consultation on enhancing the Special Resolution Regime. The consultation sets out HMT’s proposals to enhance the UK’s resolution regime for banking institutions (i.e., banks, building societies, and Prudential Regulation Authority-designated investment firms), with the aim of ensuring that the UK continues to have world-class arrangements to … Continue Reading
On 18 December 2023, the Bank of England (BoE) published its supervision of financial market infrastructures (FMIs) annual report for 2023. The report highlights the crucial role of FMIs in the smooth operation of the UK financial system and the broader economy. It sets out how the BoE has exercised its responsibilities in respect of … Continue Reading
On 18 December 2023, the Bank of England (BoE) published its supervision of financial market infrastructures (FMIs) annual report for 2023. The report highlights the crucial role of FMIs in the smooth operation of the UK financial system and the broader economy. It sets out how the BoE has exercised its responsibilities in respect of … Continue Reading
On 10 January 2024, the European Central Bank (ECB) published a guide on financial conglomerate reporting of significant risk concentrations and intragroup transactions. The guide is relevant for financial conglomerates that are headed by a credit institution which the ECB has classified as a significant institution. The guide is intended to provide transparency regarding the approach … Continue Reading
On 9 January 2024, the European Banking Authority published final draft regulatory technical standards (RTS) and final draft implementing technical standards (ITS) on the functioning of supervisory colleges under the Capital Requirements Directive (CRD) IV. Commission Delegated Regulation (EU) 2016/98 and Commission Implementing Regulation (EU) 2016/99 specify the functioning of supervisory colleges. The final draft … Continue Reading
On 4 January 2024, the European Central Bank (ECB) published the latest version of its Supervisory Manual. The Supervisory Manual describes the organisational set-up of the Single Supervisory Mechanism (SSM) and defines the methodologies, processes and procedures for banking supervision in the euro area. It also covers how the SSM cooperates with other authorities in … Continue Reading
On 20 December 2023, the European Banking Authority (EBA) published a final report updating its existing guidelines on the specification and disclosure of systemic importance indicators. The guidelines define uniform requirements for disclosing the values used during the identification and scoring process of global systemically important institutions (G-SIIs), in line with internationally agreed standards developed … Continue Reading
On 21 December 2023, the European Securities and Markets Authority (ESMA) issued a consultation paper on the securitisation disclosure templates under Article 7 of the Securitisation Regulation. Article 7 of the Securitisation Regulation sets out the transparency requirements for all types of securitisations. These requirements include the disclosure of information related to the structure of … Continue Reading
On 19 December 2023, the FCA published a new webpage, Expectations of firms selling client banks. On the webpage the FCA explains that a client bank is the name for a list of clients or accounts maintained by someone who provides financial services. It may include all clients the firms has worked with in the … Continue Reading
On 19 December 2023, the European Central Bank (ECB) published the results of its 2023 Supervisory Review and Evaluation Process (SREP) and its supervisory priorities for 2024 – 2026. The SREP is an annual exercise in which ECB supervisors examine EU banks’ risks and produce capital requirements and guidance for each individual bank (which is … Continue Reading
On 19 December 2023, the European Banking Authority (EBA) published a report on the deposit coverage level and coverage of public authorities’ deposits, in response to a call for advice by the European Commission. The report presents the EBA’s analysis of the data collected from 28 EEA countries covering the period between January 2022 and … Continue Reading
On 18 December 2023, the Payment Systems Regulator (PSR) published a consultation paper, CP23/12, on expanding variable recurring payments (VRPs). In CP23/12, which has been published alongside a progress update from the Joint Regulatory Oversight Committee (JROC), the PSR is consulting on changes to Faster Payments to enable a phased expansion of VRPs. In particular, … Continue Reading
On 18 December 2023, the Joint Regulatory Oversight Committee (JROC), which is co-chaired by the FCA and the Payment Systems Regulator (PSR), published an update on the progress it has made since it outlined its open banking vision in April 2023 and set out its plans to deliver a new generation of payment products and … Continue Reading
On 15 December 2023, the European Banking Authority published a final report containing guidelines on assessment knowledge and experience of the management or administrative organ of a credit servicer as a whole, under the Non-Performing Loans Directive (Directive (EU) 2021/2167). The guidelines specify common criteria, taking into account the principle of proportionality, to assess the … Continue Reading