On 18 December 2023, the Joint Regulatory Oversight Committee (JROC), which is co-chaired by the FCA and the Payment Systems Regulator (PSR), published an update on the progress it has made since it outlined its open banking vision in April 2023 and set out its plans to deliver a new generation of payment products and … Continue Reading
On 15 December 2023, the European Banking Authority published a final report containing guidelines on assessment knowledge and experience of the management or administrative organ of a credit servicer as a whole, under the Non-Performing Loans Directive (Directive (EU) 2021/2167). The guidelines specify common criteria, taking into account the principle of proportionality, to assess the … Continue Reading
On 15 December 2023, the Bank of England (BoE) updated its ‘Approach to Resolution’ document, known as the Purple Book. The document is the third edition of the Purple Book and updates the 2017 version. Part 1 outlines the key features of the UK resolution regime. Part 2 looks at how the BoE would be … Continue Reading
On 14 December 2023, the Single Resolution Board (SRB) issued a consultation on the future of the minimum requirements for own funds and eligible liabilities (MREL). The consultation is part of the SRB’s strategic review to ensure that it remains optimally equipped for the future, building on lessons learned from earlier bank failures and SRB … Continue Reading
On 13 December 2023, the European Commission published Commission Delegated Regulation (EU) of 13.12.2023 supplementing the Securitisation Regulation with regard to regulatory technical standards (RTS) specifying the performance-related triggers and the criteria for the calibration of those triggers. The RTS specify the two mandatory triggers under point (a) of Article 26c(5), third subparagraph of the … Continue Reading
On 6 December 2023, the Council of the EU and the European Parliament reached a provisional political agreement on the so called Daisy Chains proposal which amends the Bank Recovery and Resolution Directive and the Single Resolution Mechanism Regulation to include targeted proportionality requirements to the treatment of internal MREL in bank resolution groups. The … Continue Reading
On 6 December 2023, the Council of the EU and the European Parliament reached a provisional political agreement on the so called Daisy Chains proposal which amends the Bank Recovery and Resolution Directive and the Single Resolution Mechanism Regulation to include targeted proportionality requirements to the treatment of internal MREL in bank resolution groups. The … Continue Reading
On 5 December 2023, the Prudential Regulation Authority (PRA) published Consultation Paper CP23/23 – Identification and management of step-in risk, shadow banking entities and groups of connected clients. In CP23/23, the PRA sets out proposed rules requiring Capital Requirements Regulation (CRR) firms that are not small domestic deposit takers (SDDTs) and CRR consolidation entities that … Continue Reading
On 30 November 2023, the Bank of England (BoE) issued a consultation paper on codes of practice for wholesale cash distribution market oversight. Legislation provides that the BoE must consult on codes of practice that it wishes to publish under the wholesale cash distribution oversight regime. The BoE consulted on its statement of policy and … Continue Reading
On 30 November 2023, the Single Resolution Board (SRB) published its Annual Work Programme for 2024. The Annual Work Programme 2024 will be completed early next year with a multi-annual work programme for the SRB, based on the 2023 strategic review of SRB and Single Resolution Mechanism (SRM) operations, which will be launched early next … Continue Reading
On 27 November 2023, the Financial Stability Board (FSB) published the 2023 list of global systemically important banks (G-SIBs). FSB member authorities apply the following to G-SIBs: high capital buffer, total loss-absorbing capacity, group wide resolution planning and regular resolvability assessments and higher supervisory expectations including for risk management functions. The new list of G-SIBs … Continue Reading
On 27 November 2023, the Basel Committee on Banking Supervision published material related to the identification of the 2023 global systemically important banks (G-SIB), including updated denominators used to calculate banks’ scores, the thresholds used to allocate the banks to buckets and the values of the 13 high-level indicators of all banks in the main … Continue Reading
On 27 November 2023, the Basel Committee on Banking Supervision (Basel Committee) published a supervisory newsletter on the adoption of the Principles for Operational Resilience (POR) and the revised Principles for the Sound Management of Operational Risk (PSMOR). The newsletter reports on the Basel Committee’s evaluation of the POR and the PSMOR in early 2023 … Continue Reading
On 22 November 2023, the Basel Committee on Banking Supervision (Basel Committee) published a newsletter on the implementation of the Principles for the effective management and supervision of climate-related financial risks (the Principles). The Basel Committee published the Principles, which seek to improve banks’ climate-related financial risk management and supervisors’ practices, as part of its … Continue Reading
On 17 November 2023, the Council of the EU issued a press release stating that it had adopted a mandate to start negotiations with the European Parliament on the so called Daisy Chains proposal. The Daisy Chains proposal is a targeted amendment of both the Bank Recovery and Resolution Directive and the Single Resolution Mechanism … Continue Reading
On 16 November 2023, Statutory Instrument (SI) 2023 No. 1206 – the Economic Crime and Corporate Transparency Act 2023 (Commencement No. 1) Regulations 2023 – was published. The SI contains the first commencement regulations made under the Economic Crime and Corporate Transparency Act 2023. It brings section 214 of the Act into force on 15 … Continue Reading
On 15 November 2023, the Prudential Regulation Authority (PRA) published a Dear Chief Financial Officer (CFO) letter setting out the steps firms should consider taking to mitigate risks relating to deposit aggregators (DAs) that they may have relationships with, either now or in the future. The potential risks associated with the increasing volumes of deposits … Continue Reading
On 14 November 2023, the European Banking Authority announced that its 2023 risk assessment report and transparency exercise with bank by bank data will be released on 12 December 2023 at 18:00 CET.… Continue Reading
On 10 November 2023, the Bank of England (BoE) announced the launch of the scenario phase of the system-wide exploratory scenario (SWES). The BoE launched the SWES in June 2023 to understand better how UK financial markets core to UK financial stability function under stress. The SWES consists of two phases: information gathering and scenario. … Continue Reading
On 9 November 2023, the European Parliament published a report on the proposal for a directive of the European Parliament and of the Council amending the Bank Recovery and Resolution Directive (BRRD) and the Regulation establishing the Single Resolution Mechanism (SRM Regulation) as regards certain aspects of the minimum requirement for own funds and eligible … Continue Reading
On 8 November 2023, HM Treasury (HMT) published a consultation on draft regulations to implement the Bank of England (BoE) levy. In parallel, the BoE published a consultation on its proposed Levy Framework Document. The Government confirmed in June 2022 its intention to proceed with a levy-based arrangement to replace the Cash Ratio Deposit (CRD) … Continue Reading
On 7 November 2023, the European Parliament’s Economic and Monetary Affairs Committee (ECON) voted for targeted changes to the so-called ‘Daisy Chain’ proposal ensuring proportionality and a level playing field between banks. The ‘Daisy Chain’ proposal introduces targeted adjustments that will help improve the resolvability of bank institutions. It seeks to amend the EU bank … Continue Reading
On 23 October 2023, the Prudential Regulation Authority (PRA) published Policy Statement PS13/23: Updating UK Technical Standards on the identification of global systemically important institutions (G-SIIs). PS13/23 provides feedback to responses to Consultation Paper CP16/23, which was published in July 2023, and sets out the PRA’s final policy to amend the UK Technical Standards (UKTS) … Continue Reading
On 19 October 2023, the European Banking Authority (EBA) published its European Supervisory Examination Programme for 2024. The EBA has selected the following three key topics for supervisory attention for 2024 on the basis of its EU-wide risk analysis, its relevant policy work and the practical experience of Member State competent authorities: The specific supervisory … Continue Reading
