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Topic: Banking

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Information on current account services – complete set

On 15 January 2019, the FCA published a web page which provides data showing how long it takes UK firms to open a current account for new customers, and how long it takes them to replace customers’ debit cards. Firms are also publishing information on major operational and security incidents that they have reported to … Continue Reading

FSB 2019 work programme

On 12 February 2019, the Financial Stability Board (FSB) published its work programme for 2019. The FSB’s work programme is split across five areas: addressing new and emerging vulnerabilities in the financial system: including more detailed work on FinTech, cyber resilience and non-bank financial intermediation; finalising and operationalising post-crisis reforms: including the development of safer … Continue Reading

EMMI publishes response to EURIBOR hybrid methodology consultation

On 12 February 2019, the non-profit making association known as the European Money Markets Institute (EMMI) published a summary of stakeholder feedback to its second consultation on a hybrid methodology for EURIBOR. The consultation was part of EMMI’s commitment to deliver a reformed and robust methodology for Euribor, which aims to meet regulatory and stakeholder … Continue Reading

ICMA guide to due diligence requirements under Securitisation Regulation

On 31 January 2019, the International Capital Market Association’s (ICMA) Asset Management and Investors Council published a guide to due diligence requirements for investing in a securitisation position. The guide is designed as a starting point for investors who are interested in securitisation to understand the new due diligence requirements which came into effect on … Continue Reading

ESMA opinion and Q&A on disclosure technical standards under the Securitisation Regulation

On 1 February 2019, the European Securities and Markets Authority (ESMA) published an opinion containing a revised set of draft regulatory and implementing technical standards (disclosure RTS/ITS) under the Securitisation Regulation, which concern the details of a securitisation to be published by the originator, sponsor and securitisation special purpose entity (SSPE), as well as the … Continue Reading

FCA speech on LIBOR transition and contractual fallbacks

On 30 January 2019, the FCA published a speech by Edwin Schooling Latter, Director of Markets and Wholesale Policy at the FCA, on LIBOR transition and contractual fallbacks. Key points to note from the speech include: there is now a wide recognition that LIBOR is coming to an end. Thanks to an agreement reached with 20 … Continue Reading

BSB consults on best practice guidance on implementing certification regime regulatory references requirements

On 30 January 2019, the Banking Standards Board (BSB) published a consultation paper (the Consultation) on its proposed good practice guidance regarding the Senior Managers & Certification Regime (SM&CR). The guidance has also been published. The purpose of a regulatory reference is to provide firms recruiting people into certified roles, senior management functions or notified … Continue Reading

ESMA updates Q&As on BMR

On 30 January 2019, ESMA published an updated version of its Q&As on the Benchmarks Regulation (BMR). The updated Q&A includes a new Q&A at 4.5, on the scope of application of the Commission Delegated Regulations adopted under the BMR. The question asks if the scope of application of the Commission Delegated Regulations adopted pursuant … Continue Reading

ESRB publishes report on macro-prudential approaches to NPLs

On 28 January 2019, the European Systemic Risk Board (ESRB) published a report on macro-prudential approaches to non-performing loans (NPLs). The report focuses on the role that macro-prudential policy can play in preventing system-wide increases in NPLs and/or in strengthening banks’ resilience to such increases. Among other things the report identifies business cycle and asset … Continue Reading

Basel Committee update on principles for sound liquidity risk management and supervision

On 17 January 2019, the Basel Committee on Banking Supervision (Basel Committee) issued a press release announcing that it has completed a review of its 2008 principles for sound liquidity risk management and supervision. The review confirmed that the sound principles remain fit for purpose, and the Basel Committee advises banks and supervisors to remain … Continue Reading

New FCA online portal for mutual societies

On 16 January 2019, the FCA launched a new online portal for mutual societies. The portal provides a gateway to the FCA’s mutuals team, to allow mutual societies to complete tasks online previously managed via post and email. The portal is available to all mutual societies and allows them to: submit annual returns and accounts; … Continue Reading

SRB publishes second part of 2018 MREL policy

On 16 January 2019, the Single Resolution Board (SRB) published the second part of its 2018 policy on the minimum requirement for own funds and eligible liabilities (MREL) pertaining to the second wave of resolution plans – i.e. plans for the most complex banking groups. The second part introduces a series of new elements strengthening … Continue Reading

ESAs announce multilateral agreement on exchange of information between ECB and competent authorities

On 15 January 2019, the European Supervisory Authorities (ESAs) published a multilateral agreement on the practical modalities for the exchange of information pursuant to article 57a(2) of the Fourth Anti-Money Laundering Directive (the Agreement). The purpose of the Agreement is to define practical modalities for the exchange of information between anti-money laundering / counter terrorist … Continue Reading

Basel Committee work programme for 2019-20

On 14 January 2019, the Basel Committee on Banking Supervision (Basel Committee) published its 2019-2020 work programme. The work programme is structured around four key areas: Policy development: The Basel Committee notes that there now remains only a targeted set of policy initiatives that require finalisation. This includes work related to the leverage ratio treatment … Continue Reading

Basel Committee finalises revised minimum capital requirements for market risk

On 14 January 2019, the Basel Committee on Banking Supervision (Basel Committee) published its final standards on the minimum capital requirements for market risk (the Final Standards). The Final Standards replace the current minimum capital requirements for market risk set out in the Basel II and Basel 2.5 reforms. The revisions made in the Final … Continue Reading

Commission call for advice on benchmarking of national loan enforcement frameworks

On 15 January 2019, the European Banking Authority (EBA) published a letter from the European Commission’s Director General of FISMA, regarding a Call for Advice to the EBA to gather data for a benchmarking of national loan enforcement frameworks from a bank creditor perspective. The Call for Advice to the EBA has also been published. … Continue Reading

EBA report on cost and past performance of structured deposits

On 10 January 2019, the European Banking Authority (EBA) published a report on cost and past performance of structured deposits.  Structured deposits are legally defined under article 4(43) of MiFID II. Structured deposits are a subset of the wider product category of ‘structured products’. The report is a response to a request from the European … Continue Reading

Working Group on Sterling Risk-Free Reference Rates paper on loans referencing LIBOR

On 21 December 2018, the Bank of England’s Working Group on Sterling Risk-Free Reference Rates published a paper on new and legacy loan transactions referencing Sterling LIBOR (the Paper). The Paper is intended to raise market awareness regarding potential considerations for loan market participants in relation to new and legacy loan agreements which reference LIBOR, … Continue Reading

FCA Policy statement on EU Securitisation Regulation

On 19 December 2018, the FCA published Policy Statement 18/25: EU Securitisation Regulation (PS18/25). In PS18/25 the FCA sets out final and near-final rules that implement the EU Securitisation Regulation and the Capital Requirements Regulation Amendment (CRR Amendment). It follows two earlier FCA consultations (CP18/22 and CP18/30) which the regulator did not receive any formal … Continue Reading

Bank of England consultations on resolvability assessment framework

On 18 December 2018, the Bank of England (BoE) and the PRA published proposals on a bank resolvability assessment framework package which is designed to ensure that banks are accountable for their own resolvability. It does this by demonstrating how they are prepared for resolution as well as requiring certain banks to publicly disclose their … Continue Reading

EU exit energy legislation: explanatory letter for proposed statutory instruments

On 18 December 2018, the Department for Business, Energy & Industrial Strategy published an explanatory letter on the following Brexit related statutory instruments: The Electricity and Gas (Amendment etc) (EU Exit) Regulations 2019; The Gas (Security of Supply and Network Codes) (Amendment [Etc.] (EU Exit) Regulations 2019; The Electricity Network Codes and Guidelines (Markets and … Continue Reading

EBA calls for more action by financial institutions in their Brexit-related communication to customers

On 17 December 2018, the European Banking Authority (EBA) published a follow-up to its June 2018 opinion on financial institutions’ preparedness for the UK withdrawal from the EU. The EBA reminds financial institutions to maintain their efforts in effective contingency planning and to increase efforts in communicating to customers. The EBA also urges institutions to … Continue Reading

Agreement on measures to prevent the accumulation of NPLs

On 18 December 2018, the European Commission issued a press release welcoming the political agreement reached by the European Parliament and the Council on prudential measures to further address non-performing loans (NPLs) in Europe. The press release states that the agreed measures will ensure that banks set aside funds to cover the risks associated with … Continue Reading

ECB guidance on white team’s roles and responsibilities in TIBER-EU test

On 17 December 2018, the European Central Bank (ECB) published guidance on a white team’s roles and responsibilities in a TIBER-EU test. The Threat Intelligence-based Ethical Red Testing (TIBER-EU) Framework enables European and national authorities to work with financial infrastructures and institutions to put in place a programme to test and improve their resilience against … Continue Reading
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