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Topic: Banking

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FSB publishes consultation on SME financing evaluation

On 7 June 2019, the Financial Stability Board (FSB) issued a consultation on an Evaluation of the effects of financial regulatory reforms on small and medium-sized enterprise (SME) financing. The evaluation has been delivered to G20 Finance Ministers and Central Bank Governors for their meeting in Fukuoka on 8-9 June. The evaluation examines the effects … Continue Reading

CRR II Regulation and CRD V Directive published in OJ

On 7 June 2019, there was published in the Official Journal of the EU (OJ): Regulation (EU) 2019/876 of the European Parliament and of the Council of 20 May 2019 amending the Capital Requirements Regulation as regards the leverage ratio, the net stable funding ratio, requirements for own funds and eligible liabilities, counterparty credit risk, … Continue Reading

BRRD II Directive and SRM II Regulation published in OJ

On 7 June 2019, there was published in the Official Journal of the EU (OJ): Directive (EU) 2019/879 of the European Parliament and of the Council of 20 May 2019 amending the Bank Recovery and Resolution Directive as regards the loss-absorbing and recapitalisation capacity of credit institutions and investment firms and Directive 98/26/EC (BRRD II); … Continue Reading

PSR consults on free-to-use ATMs

On 6 June 2019, the Payment Systems Regulator (PSR) published a call for views paper on the incentives to deploy free-to-use ATMs in the LINK network, as part of its review of structure of LINK interchange fees. The PSR is considering ways to protect the current spread of free-to-use ATMs, while also improving access to cash … Continue Reading

FCA policy statement and near final rules on Securitisation Regulation

On 6 June 2019, the FCA published Policy Statement 19/15: Securitisation (Amendment) (EU Exit) Regulations 2019 and Securitisation Regulations 2018 (near final and final rules) (PS19/15). The Securitisation (Amendment) (EU Exit) Regulations 2019 (the Brexit SI) will come into force on the day the UK leaves the EU in a hard Brexit scenario, and will … Continue Reading

Council progress report on Banking Union

On 4 June 2019, the Council of the EU published a progress report providing a high level overview of the work that has recently been done to strengthen Banking Union. Specifically the progress report covers: amendments to the Capital Requirements Regulation and Directive, the Bank Recovery and Resolution Directive, and the Single Resolution Mechanism Regulation; … Continue Reading

FSB discussion paper on the solvent wind-down of derivatives and trading portfolios

On 3 June 2019, the Financial Stability Board (FSB) published a discussion paper on the solvent wind-down of derivatives and trading portfolios. The discussion paper sets out considerations related to the solvent wind-down of the derivative portfolio activities of a global systemically important bank (G-SIB) that may be relevant for authorities and firms for both … Continue Reading

FSB discussion paper on public disclosures on resolution planning and resolvability

On 3 June 2019, the Financial Stability Board (FSB) published a discussion paper on public disclosures on resolution planning and resolvability. The discussion paper explores how general and firm specific disclosures on resolution planning and resolvability could be further enhanced. It focuses mainly on disclosures of resolution planning for global systemically important banks. However, many … Continue Reading

FSB reports on work to assess and address correspondent banking declines

The Financial Stability Board (FSB) has published: a progress report on the implementation of its action plan to assess and address the decline in correspondent banking relationships. The decline in the number of correspondent banking relationships remains a source of concern for the international community, as the number of active correspondent banks declined by 3.4% … Continue Reading

EBA 2018 Annual Report

On 29 May 2019, the European Banking Authority (EBA) published its 2018 Annual Report, which provides a detailed account of the work the European Supervisory Authority has achieved in the past year. The Annual Report also sets out the EBA’s priorities for 2019. The EBA’s focus will include sequencing the CCR 2 mandate, including developing … Continue Reading

FSB thematic review on implementation of LEI

On 28 May 2018, the Financial Stability Board (FSB) published a thematic review report on the implementation of the Legal Entity Identifier (LEI). The report is divided into the following sections: jurisdictions’ approaches and strategies to implement the LEI; LEI coverage; achievements and benefits; obstacles to adoption and implementation; and advancing LEI adoption. Key points … Continue Reading

ESMA updates Q&As on BMR

On 23 May 2019, the European Securities and Markets Authority (ESMA) published an updated version of its Q&As on the Benchmarks Regulation (BMR). The updated Q&As provide the following new questions: What information may national competent authorities rely on in an external audit report of compliance to IOSCO Principles under Article 32(2) of BMR? What … Continue Reading

FSB evaluation of too-big-to-fail reforms for systemically important banks

On 23 May 2019, the Financial Stability Board (FSB) launched an evaluation into the G20 post-financial crisis too-big-to-fail reforms. The summary terms of reference have also been published. The objectives of the evaluation are twofold to: assess whether the reforms for which implementation has been completed or are underway are reducing the systemic and moral … Continue Reading

Statement on progress of adoption of risk-free rates

On 15 May 2019, the Bank of England published a statement on behalf of its Working Group on Sterling Risk-Free Reference Rates (WG) regarding the progress on adoption of risk-free rates in sterling markets. Key points in the statement include: sterling-denominated financial markets have begun to shift decisively away from LIBOR and towards SONIA; in … Continue Reading

ISDA consults on benchmark fallbacks

On 17 May 2019, the International Swaps and Derivatives Association (ISDA) published two consultations on benchmark fallbacks – the first consultation covers adjustments that would apply to fallback rates in the event certain interbank offered rates (IBORs) are permanently discontinued, and the second consultation relates to pre-cessation issues for LIBOR and certain other IBORs. Specifically, … Continue Reading

BoE speech on operational resilience work programme

On 14 May 2019, the Bank of England (BoE) published a speech given by Nick Strange, BoE Director, Supervisory Risk Specialists, providing a progress report on operational resilience. Operational resilience is defined in the speech as “the ability of firms, FMIs [financial market infrastructures] and the sector as a whole to prevent, respond to, recover … Continue Reading

Council of EU adopts banking package reforms

On 14 May 2019, the European Council announced that it had adopted the European Commission’s banking package reforms (relating to the revised Capital Requirements Regulation / Directive, and the revised Bank Recovery and Resolution Directive, and Single Resolution Mechanism Directive). Our extended blog on these reforms can be found here. The proposals implement reforms agreed … Continue Reading

EBA seeks extension for addressing Commission’s call for advice on benchmarking of national loan enforcement frameworks

On 7 May 2019, the European Banking Authority (EBA) published a letter it sent to the Director General for Financial Stability at the Financial Services and Capital Markets Union (FISMA), dated 5 March 2019, regarding the European Commission’s call for advice (CFA) for the purposes of a benchmarking of national loan enforcement frameworks (including insolvency … Continue Reading

Basel Committee progress report on implementation of Basel regulatory framework

On 7 May 2019, the Basel Committee on Banking Supervision (Basel Committee) published its sixteenth progress report on the adoption of the Basel III regulatory framework. The report sets out the adoption status of the Basel III standards for each Basel Committee member jurisdiction as of end-March 2019. Key updates as regards the adoption of … Continue Reading

IFSB consults on Shari’ah compliant lender of last resort facilities draft guidance note

On 7 May 2019, the Islamic Financial Services Board (IFSB) published for consultation a draft of Guidance Note 7 (GN7) on Sharīʻah-compliant lender-of-last-resort (SLOLR) facilities. GN7 is primarily intended to serve as a benchmark for Central Banks (CBs) in establishing and operationalising an SLOLR framework that applies to full-fledged Islamic commercial banks and Islamic commercial … Continue Reading

PRA sets systemic risk buffer rates for ring-fenced banks and large building societies

The systemic risk buffer (SRB) is one of the elements of the overall capital framework for UK banks and building societies as set out by the Financial Policy Committee (FPC) in its publication ‘The framework of capital requirements for UK banks’, which was published alongside the December 2015 Financial Stability Report. The SRB is applied … Continue Reading

Commission adopts report assessing the implementation of the BRRD and the SRMR

On 30 April 2019, the European Commission adopted a technical evaluation report on the Bank Recovery and Resolution Directive (BRRD) and the Single Resolution Mechanism (SRMR). The report notes that so far, there is limited experience on the application of the BRRD and SRMR to failing or likely to fail banks. The case of Banco … Continue Reading

ECB sets supervisory fees at €576 million for 2019

On 30 April 2019, the European Central Bank (ECB) set its supervisory fees at €576 million for 2019. The ECB estimates that €559 million will be spent on the prudential supervision of banks. However, the €576 million also covers a €15.3 million deficit carried forward from 2018 and owing to adjustments to individual fees, amounting … Continue Reading
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