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Topic: Banking

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Commissioner Margrethe Vestager: A level playing field for banks in the Union

On 10 October 2019, the European Commission (Commission) published a speech given by Margrethe Vestager (Competition Commissioner) at the SRB Conference 2019. The speech was entitled A level playing field for banks in the Union. In her speech Competition Commissioner Vestager discusses the Commission’s response to the financial crisis of 2008, competition control in the … Continue Reading

ECB final results of sensitivity analysis of liquidity risk stress test

On 7 October 2019, the European Central Bank (ECB) published the final results from its Sensitivity Analysis of Liquidity Risk – Stress Test 2019. The shocks simulated in the exercises were calibrated on the basis of experience gained in recent crisis episodes. For further information on the details of the stress test, see our previous … Continue Reading

ECB 2020 supervisory priorities for SSM

On 7 October 2019, the European Central Bank (ECB) published its supervisory priorities setting out its focus areas for the single supervisory mechanism (SSM) for 2020. The key drivers of banking sector risk have been identified in a related risk assessment for 2020. These risks centre around economic, political and debt sustainability challenges in the … Continue Reading

BCBS Basel III monitoring report

On 2 October 2019, the Basel Committee on Banking Supervision (BCBS) published a report presenting the results of its latest Basel III monitoring exercise, based on data as of 31 December 2018. The report sets out the impact of the Basel III framework that was initially agreed in 2010 as well as the effects of … Continue Reading

ECB consolidated guide to internal models under SSM

On 1 October 2019, the European Central Bank (ECB) published the consolidated version of its guide to internal models under the single supervisory mechanism (SSM). The ECB’s rationale for the publication of this document is to consolidate its general topics and risk-type-specific chapters into one document. The guide provides transparency on how the ECB understands … Continue Reading

PRA consults on asset encumbrance

On 30 September 2019, the PRA published Consultation Paper 24/19: Asset encumbrance (CP24/19).The proposals in CP24/19 are relevant to all PRA authorised firms, except credit unions and insurance firms. In CP24/19 the PRA sets out its proposed expectations of firms when managing the key prudential risks associated with asset encumbrance, specifically in the contexts of … Continue Reading

BoE findings from 2018 cyber simulation exercise

On 27 September 2019, the Bank of England (BoE) published a webpage containing the outcomes and high level findings of its cyber simulation exercise (SIMEX18) held in November 2018. The purpose of SIMEX18 was to exercise participants from 29 of the most systemically important firms and financial market infrastructures, who during the exercise responded to … Continue Reading

EBA work programme for 2020

On 30 September 2019, the European Banking Authority (EBA) published its work programme for 2020. The programme is defined under six strategic areas: supporting the deployment of the risk reduction package and the implementation of the global standards in the EU; providing efficient methodologies and tools for supervisory convergence and stress testing; moving towards an integrated EU … Continue Reading

ESG: German regulator launches consultation regarding guidance notice on sustainability

On 24 September 2019, the German Federal Financial Supervisory Authority (BaFin) published a draft guidance notice on dealing with sustainability risks for consultation (link; only available in German). BaFin expects supervised entities to also take into account environmental risks, social risks and risks arising from corporate governance (commonly referred to as environmental, social and governance – … Continue Reading

BoE implementation update on ISO 20022 migration for UK payments industry

On 25 September 2019, the Bank of England (BoE) published an update on the UK payments industry’s move to ISO 20022 – a common language standard for world-wide payments data. As outlined in a joint response to its consultation on the adoption of ISO 20022 in November 2018, the BoE’s approach to the implementation of … Continue Reading

EBA consults on STS framework for synthetic securitisations

On 25 September 2019, the European Banking Authority (EBA) announced that it had published a discussion paper on its proposals for a simple, transparent and standardised (STS) framework for synthetic securitisation. The discussion paper has been developed in response to a mandate assigned to the EBA as per Article 45 of the Securitisation Regulation, which … Continue Reading

EBA launches its 2019 EU-wide transparency exercise

On 23 September 2019, the European Banking Authority (EBA) announced that it was launching its latest EU wide transparency exercise. In November, the EBA will release data points on about 130 EU banks. The data will cover capital positions, financial assets, risk exposure amounts, sovereign exposures and asset quality. As with previous transparency exercises, this … Continue Reading

China banking: New measures for opening up

In recent years China has accelerated its opening up to foreign investment. In June, China rolled out revised Negative Lists for foreign investment market access, allowing foreign investors to run majority-share-controlling or wholly-owned businesses in various sectors. We have published a China Foreign Investment Expert Q&A series, to keep clients and contacts apprised of developments … Continue Reading

Bank of England and FSCS update memorandum of understanding

On 19 September 2019, the Bank of England (BoE) published an updated memorandum of understanding (MoU) between itself (exercising its prudential regulation functions) and the Financial Services Compensation Scheme (FSCS). The MoU sets out the framework agreed between the FSCS and the PRA. It was agreed pursuant to section 217A(1) and (2) of the Financial … Continue Reading

Amendment to the maximum amount per SCT Inst transaction to 100,000 euros

On 10 September 2019, the European Payments Council (EPC) decided to amend the maximum amount per Single Euro Payments Area (SEPA)  Instant Credit Transfer (SCT Inst) transaction to 100,000 euros, effective as of 1 July 2020. For the time being, the maximum amount an originator can transfer via a single SCT Inst transaction is set … Continue Reading

PSD2: German regulator postpones strong costumer authentication requirements for online credit card payments

The German Federal Financial Supervisory Authority (BaFin) will allow payment service providers domiciled in Germany to execute credit card payments online without strong customer authentication (SCA) as a temporary measure after 14 September 2019. Pursuant to a press release published on 21 August 2019, BaFin will not object to such transactions for the time being in order … Continue Reading

ECB Chair introductory statement to European Parliament’s Economic and Monetary Affairs Committee

On 4 September 2019, the European Central Bank (ECB) published the introductory statement given by its chair, Andrea Enria, at the first ordinary hearing in 2019 at the European Parliament’s Economic and Monetary Affairs Committee. Among other things, the statement lists the ECB’s work and priorities for the near future. In particular, the ECB will: … Continue Reading

Banking Standards Board publishes final Statement of Good Practice

On 3 September 2019, the Banking Standards Board (BSB) published the final version of its Statement of Good Practice (Statement) on the certification regime and regulatory references. The Statement is intended to help firms implement the regulatory reference requirement of the Senior Managers and Certification Regime (SMCR) by providing a high-level set of principles and … Continue Reading

EBA adds Securitisation Regulation to its online Interactive Single Rulebook and Q&A tools

On 2 September 2019, the European Banking Authority (EBA) updated its Interactive Single Rulebook and Q&A tool on the “simple, transparent and standardised” (STS) Securitisation Regulation. The update allows users to review all the EBA’s final technical standards and guidelines associated with the Securitisation Regulation by navigating through the legislation on an article by article … Continue Reading

ECB decisions on adopting decisions on passporting, acquisition of qualifying holdings and withdrawal of authorisations of credit institutions

On 28 August 2019, there was published in the Official Journal of the EU, the following decisions relating to the Regulation on the Single Supervisory Mechanism (SSM): Decision (EU) 2019/1376 of the European Central Bank (ECB) on delegation of the power to adopt decisions on passporting, acquisition of qualifying holdings and withdrawal of authorisations of … Continue Reading