United Kingdom

Topic: Banking

Subscribe to Banking RSS feed

Interim statement of the independent review panel on ring-fencing and proprietary trading

The Financial Services (Banking Reform) Act 2013 required HM Treasury to appoint an independent panel to review the operation of the legislation relating to ring-fencing and banks’ proprietary trading activities. HM Treasury appointed Keith Skeoch as chair of the independent Review Panel (Panel) with responsibility to oversee and deliver two statutory reviews on the operation … Continue Reading

ECB opinion on a proposal to amend the CRR with respect to resolution

On 17 January 2022, the European Central Bank (ECB) issued an opinion on a proposal to amend the Capital Requirements Regulation (CRR) with respect to resolution. The ECB supports the proposed regulation, which ensures better alignment between the provisions of the CRR and the Bank Recovery and Resolution Directive following the entry into force of … Continue Reading

EBA confirms the continued application of COVID-19 related reporting and disclosure requirements until further notice

On 17 January 2022, the European Banking Authority (EBA) issued a press release confirming that the guidelines on the reporting and disclosure of exposures subject to measures applied in response to the COVID-19 crisis adopted on 2 June 2020 continue to apply. Unless instructed otherwise by their relevant Member State competent authorities, credit institutions are … Continue Reading

PRA supervisory priorities for 2022 for international banks active in the UK

On 12 January 2022, the PRA published a Dear CEO letter that it had sent to international banks active in the UK setting out its supervisory priorities for 2022. The priorities in the Dear CEO letter are intended to complement the PRA’s ongoing supervision and feedback that international banks have received following their most recent … Continue Reading

The Council of the IFSB has adopted two new standards

On 10 December 2021, the Council of the Islamic Financial Services Board (IFSB) adopted two new standards: IFSB-23: Revised Capital Adequacy Standard for Institutions offering Islamic Financial Services (IIFS). IFSB-23 was developed to align the IFSB’s guidance on capital adequacy for the banking sector with the latest updates to global capital standards, particularly those issued … Continue Reading

FSB global monitoring report on non-bank financial intermediation

On 16 December 2021, the Financial Stability Board (FSB) published the Global Monitoring Report on Non-Bank Financial Intermediation 2021. The report presents the results of the FSB’s annual monitoring exercise to assess global trends and risks in non-bank financial intermediation (NBFI). In contrast to the trend over the past decade, the NBFI sector grew less … Continue Reading

FSB illustrates practical approaches to the execution of bail-in

On 13 December 2021, the Financial Stability Board (FSB) published a paper on the execution of bail-in. Bail-in is at the core of resolution strategies for global systemically important banks (G-SIBs). Set out in the Key Attributes of Effective Resolution Regimes for Financial Institutions, it is an important tool enabling an orderly resolution that minimises … Continue Reading

FSB 2021 Resolution Report: “Glass half-full or still half-empty?”

On 7 December 2021, the Financial Stability Board (FSB) published its 2021 Resolution Report. The Resolution Report takes stock of the progress made in implementing the FSB resolution policies and enhancing resolvability across the banking, financial market infrastructure, and insurance sectors. It also sets out the FSB’s priorities in the resolution area going forward. Looking … Continue Reading

HM Treasury consultation – amendments to the Building Societies Act 1986

On 6 December 2021, HM Treasury issued a consultation setting out proposals to update the Building Societies Act 1986 with regard to building societies’ funding model and corporate governance requirements. It also requests views on future trends which may impact building societies’ funding models. The government proposes: excluding funding from liquidity insurance facilities within the … Continue Reading

2021 list of G-SIBs

On 23 November 2021, the Financial Stability Board (FSB) published the 2021 list of global systematically important banks (G-SIBs) using end-2020 data and an assessment methodology designed by the Basel Committee on Banking Supervision (Basel Committee). FSB member authorities apply the following requirements to G-SIBs: Higher capital buffer. The G-SIBs have been allocated to buckets … Continue Reading

FCA enters examination stage in the registration of first UK securitisation repositories

On 19 November 2021, the FCA issued a statement on its website explaining that it has now reached the examination stage in the assessment process of applications received from Securitisation Repositories (SRs) under the UK Securitisation Regulation. The obligation to report public securitisations within the scope of the UK Securitisation Regulation to a SR that … Continue Reading

Basel Committee consults on ‘Principles for the effective management and supervision of climate-related financial risks’

On 16 November 2021, the Basel Committee on Banking Supervision (BCBS) issued a public consultative document titled Principles for the effective management and supervision of climate-related financial risks. The BCBS reports that a review of the existing Basel Framework has concluded that while the ‘Core Principles for Effective Banking Supervision’ (Core Principles) and the ‘Supervisory … Continue Reading

Amendments to the FPC’s framework for the O-SII buffer

On 15 November 2021, the Bank of England issued a consultation on the Financial Policy Committee’s (FPC) framework. The consultation is relevant to PRA-regulated ring-fenced banks and large building societies that are subject to the other systemically important institutions (O-SII) buffer. The consultation sets out proposals to amend the FPC framework as follows: To change … Continue Reading

EBA publishes ESEP and EREP for 2022

On 12 November 2021, the European Banking Authority (EBA) published its European Supervisory Examination Programme (ESEP) for 2022. The EBA are required to contribute to enhancing supervisory convergence across the internal market. They have an active role in building a common supervisory culture and consistent supervisory practices throughout the European Union. The ESEP is designed … Continue Reading

EBA publishes guidelines on recovery plan indicators

On 9 November 2021, the European Banking Authority (EBA) published a final report containing guidelines on recovery plan indicators. The purpose of the guidelines is to establish a common EU approach for developing the framework of recovery plan indicators, providing additional guidance on indicators’ calibration, monitoring and breaches notification. Under the mandate of Article 9(2) … Continue Reading

FMLC report – UK Bank Ring-Fencing Legislation

On 9 November 2021, the Financial Markets Law Committee issued a paper that seeks to identify legal uncertainties within the UK’s bank ring-fencing regime, explains their impact on market participants and makes recommendations on how each might be resolved. Some of the key legal uncertainties identified in the paper concern: the definition of core services, … Continue Reading

Update on the governance of Open Banking

On 5 November 2021, the Competition and Markets Authority (CMA) published an update about the governance of Open Banking. The update sets out progress in strengthening corporate governance at the Open Banking Implementation Entity (OBIE) following an independent investigation and the status of the government’s consideration on the future governance of Open Banking.… Continue Reading

FSB progress report ‘Enhancing the Resilience of Non-Bank Financial Intermediation’

On 1 November 2021, the Financial Stability Board (FSB) published its progress report, ‘Enhancing the Resilience of Non-Bank Financial Intermediation’, which was delivered to G20 Leaders ahead of their Summit last weekend. This report details the progress over the past year and the planned work set out by the FSB alongside, standard-setting bodies and other … Continue Reading

European Commission publish a banking package for 2021, implementing new EU rules to strengthen banks’ resilience and better prepare for the future

On 27 October 2021, the European Commission published a new banking package. Adopting a review of EU banking rules (the Capital Requirements Regulation and the Capital Requirements Directive). The new rules will ensure that EU banks become more resilient to potential future economic shocks, while helping towards Europe’s recovery from COVID-19 and the transition to … Continue Reading

Final Draft Regulatory Technical Standards on gross JTD amounts under Article 325w(8) of Regulation (EU) No 575/2013

On 22 October 2021, the European Banking Authority (EBA) published its final draft Regulatory Technical Standards (RTS) on gross jump-to-default (JTD) amounts and on residual risk add-on (RRAO). These final drafts provide specifications for implementing these two elements of the alternative standardised approach for market risk. Institutions using this approach are required to compute, on … Continue Reading

EBA replies to the European Commission’s call for advice on funding in resolution and insolvency as part of the review of the crisis management and deposit insurance framework

On 22 October 2021, The European Banking Authority (EBA) published its advice to the EU Commission on funding in resolution and insolvency as part of the review of the crisis management and deposit insurance (CMDI) framework. In 2020, the European Commission (EC) initiated a review of the EU CMDI framework, which lays out rules for … Continue Reading

PRA PS24/21 ‘Implementation of Basel standards: Non-performing loan securitisations’

On 21 October 2021, the PRA published Policy Statement 24/21 ‘Implementation of Basel standards: Non-performing loan securitisations’ (PS24/21). In PS24/21 the PRA provides feedback to the responses received to Consultation Paper 10/21 ‘Implementation of Basel standards: Non-performing loan securitisations’ and sets out its final policy, as follows: A new Non-Performing Exposures Securitisation Part of the … Continue Reading
LexBlog