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Topic: Banking

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European Commission agrees MOU with SRB

On 13 August 2019, the Single Resolution Board (SRB) published a memorandum of understanding (MOU) between itself and the European Commission in respect of co-operation and information exchange pursuant to the Single Resolution Mechanism Regulation (SRMR). The MOU aims to codify best practices and ensure that effective working arrangements are in place between the Commission … Continue Reading

EBA opinion on deposit guarantee schemes

Article 19(6) of the Deposit Guarantee Schemes Directive (DGSD) requires the European Commission to submit to the European Parliament and to the Council a report on the progress towards the implementation of the DGSD. To support the Commission in meeting this obligation, the European Banking Authority (EBA) committed to drafting three opinions on the DGSD. … Continue Reading

BoE and PRA finalise the Resolvability Assessment Framework

On 30 July 2019, the Bank of England (BoE) and the PRA published the Resolvability Assessment Framework (RAF).The RAF builds on the work done since the financial crisis and sets out the next step in implementing the resolution regime: ensuring that firms are, and are able to demonstrate that they are, resolvable. This will require … Continue Reading

EBA publishes its roadmap on IFRS 9 deliverables and launches IFRS 9 benchmarking exercise

On 23 July 2019, the European Banking Authority (EBA) published its International Financial Reporting Standard (IFRS) 9 roadmap providing a comprehensive overview of planned monitoring activities on IFRS 9 implementation. The EBA has also launched an IFRS 9 benchmarking exercise on a sample of institutions aimed at analysing the different modelling practices followed by institutions … Continue Reading

LSB publishes revised Standards of Lending Practice for business customers

On 16 July 2019, the Lending Standards Board (LSB) published a revised version of its standards of lending practice (SLPs) for business customers (see previous blog post). The LSB has extended the SLPs to apply to businesses with a consolidated turnover of up to £25m, from a previous turnover threshold of £6.5m, bringing consistency in … Continue Reading

EBA report on final draft ITS on supervisory reporting in regard to FINREP

On 16 July 2019, the European Banking Authority (EBA) published a report setting out its final draft implementing technical standards (ITS) amending Commission Implementing Regulation (EU) 680/2014 on supervisory reporting of institutions with regard to financial reporting (FINREP). The amendments in the draft ITS address the risks of high non-performing exposures (NPE) and forborne exposures … Continue Reading

SRB publishes paper on public interest assessment

On 3 July 2019, the Single Resolution Board (SRB) published a paper outlining its approach to public interest assessment. The identification of public interest is a necessary pre-condition for taking resolution action in respect of a failing bank. Whenever the SRB concludes that there is public interest in resolving a bank and adopts a resolution … Continue Reading

FCA response to EBA’s opinion on strong customer authentication

On 28 June 2019, the FCA published its response to the European Banking Authority’s (EBA) opinion on strong customer authentication (SCA) under the revised Payment Services Directive (PSD2) (our blog is here). The FCA’s statement notes that the EBA’s opinion allows the FCA to give some firms extra time to implement SCA. Whilst the legal … Continue Reading

Access and governance report on payment systems: update on progress

On 27 June 2019, the Payment Systems Regulator (PSR) published its fourth report on access to payment systems and the governance of payment system operators in the UK. The report sets out developments in access to payment systems in 2018, including the work that the interbank payment system operators, indirect access providers, the PSR, the … Continue Reading

BoE publishes Discussion Paper on risk management of collateral referencing LIBOR

On 27 June 2019, the Bank of England (BoE) published a Discussion Paper on its proposed approach to the risk management of collateral referencing London Interbank Offered Rate (LIBOR) for use in the Sterling Monetary Framework (SMF). The Discussion Paper: provides a brief background to both the LIBOR transition process and the BoE’s collateral framework; … Continue Reading

EBA publishes its roadmap for the new market and counterparty credit risk approaches

On 27 June 2019, the European Banking Authority (EBA) published its roadmap on the new market and counterparty credit risk approaches and launched a consultation on eleven draft Regulatory Technical Standards (RTS) on the new Internal Model Approach (IMA) under the Fundamental Review of the Trading Book (FRTB) standards along with a data collection exercise … Continue Reading

EBA publishes an opinion on the elements of strong customer authentication under PSD2

On 21 June 2019, the European Banking Authority (EBA) published an opinion on the elements of strong customer authentication (SCA) under the revised Payment Services Directive (PSD2). The opinion provides a non-exhaustive list of the authentication approaches currently observed in the market and states whether or not they are considered to be SCA compliant. The … Continue Reading

Open Banking around the world | A global comparative guide

The UK continues to be the global pioneer in open banking through the implementation of the EU PSD2 and the CMA open banking initiative. However, through regulatory reforms and/or market-led initiatives, many jurisdictions are now catching up. Working with our colleagues across the globe, we have produced a comparative guide to open banking as part … Continue Reading

EBA consults on draft guidelines on loan origination and monitoring

On 19 June 2019, the European Banking Authority (EBA) launched a consultation on draft guidelines on loan origination and monitoring. The draft guidelines specify the internal governance arrangements for granting and monitoring credit facilities throughout their lifecycle. They introduce requirements for borrowers’ creditworthiness assessment and bring together the EBA’s prudential and consumer protection objectives. To … Continue Reading

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
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