United Kingdom

Topic: Banking

Subscribe to Banking RSS feed

EBA publishes revised guidelines on the stress tests of deposit guarantee schemes

On 15 September 2021, the European Banking Authority (EBA) published revised guidelines on the stress tests conducted by Member State deposit guarantee schemes under the Deposit Guarantee Schemes Directive (DGSD). The revised guidelines strengthen the current DGS stress-testing framework by requiring the DGSs to stress test their ability to perform all of the interventions they … Continue Reading

HM Treasury consults on amendments to section 48D of the Banking Act 2009

On 7 September 2021, HM Treasury issued a consultation paper regarding proposed amendments to section 48D of the Banking Act 2009 (the 2009 Act). Following its earlier consultation on the implementation of the Investment Firms Prudential Regime and Basel 3 Standards, the Government has decided to remove FCA regulated 730k firms from the scope of … Continue Reading

PRA issues statement on Remuneration Benchmarking and High Earners 2020 submissions

On 3 September 2021, the Prudential Regulation Authority (PRA) issued a statement on remuneration benchmarking and high earners 2020 submissions. Firms are required to submit Remuneration Benchmarking Information Reports and High Earners Reports to the PRA as set out in Chapter 17 and Chapter 18 of the Remuneration Part of the PRA Rulebook respectively. In … Continue Reading

Business Banking Resolution Service launches independent and transparent liaison panels

The Business Banking Resolution Service (BBRS) is a non-profit organisation set up to resolve disputes between eligible larger SMEs and participating banks. It was established in response to the commitments made by the banking and finance industry following the Simon Walker Review, in which the need for an independent service was identified to resolve eligible … Continue Reading

EBA observes that the number of high earners in EU banks remained overall stable in 2019

On 18 August 2021, the European Banking Authority (EBA) published a report on high earners for 2019. The report has been developed in accordance with Article 75(3) of the Capital Requirements Directive IV, which mandates the EBA to collect information on the number of individuals per institution that are remunerated EUR one million or more … Continue Reading

Published in OJ – Commission delegated act determining the content of the contractual terms on recognition of resolution stay powers

On 16 August 2021, there was published in the Official Journal of the EU (OJ), Commission Delegated Regulation 2021/1340 of 22 April 2021 supplementing the Bank Recovery and Resolution Directive (BRRD) with regard to regulatory technical standards (RTS) determining the content of the contractual terms on recognition of resolution stay powers. The RTS are based … Continue Reading

EBA publishes amended technical standards on resolution planning reporting

On 3 August 2021, the European Banking Authority (EBA) issued a report containing draft implementing technical standards (ITS) that amend the current ITS on the provision of information for the purpose of resolution plans (Implementing Regulation (EU) 2018/1624). The EBA states that the proposed amendments are minimal and are designed to re-align the standards with … Continue Reading

Banking supervisory disclosures: rules and guidance, options and discretions, SREP, and aggregate statistical data

On 30 July 2021, the PRA published information on rules and guidance, options and discretions, supervisory review and evaluation process (SREP), and aggregate statistical data as at 30 July 2021. The PRA has published this information on a voluntary basis to enable a comparison of the approaches adopted by Member State competent authorities. Prior to … Continue Reading

Proportionality in bank regulation and supervision – a joint global survey

On 30 July 2021, the Basel Committee on Banking Supervision (Basel Committee) and the World Bank (WB) published a report on an earlier joint global survey that focussed on proportionality in bank regulation and supervision. The survey involved 90 authorities, with a broad distribution across geographical regions and income groups. The concept of proportionality is … Continue Reading

PRA publishes PS19/21: International banks – the PRA’s approach to branch and subsidiary supervision

On 26 July, the Prudential Regulation Authority (PRA) published Policy Statement PS19/21 which provides feedback to responses to Consultation Paper (CP) 2/21 ‘International banks: The PRA’s approach to branch and subsidiary supervision’. PS19/21 also contains also contains the PRA’s final Supervisory Statement (SS) 5/21 ‘International banks: The PRA’s approach to branch and subsidiary supervision’ (Appendix … Continue Reading

Bank of England to review its approach to setting a minimum requirement for own funds and eligible liabilities

On 22 July, the Bank of England published a Consultation Paper (CP) as part of its review of the UK’s framework for the Minimum Requirement for Own Funds and Eligible Liabilities (MREL). The CP is the second stage of the MREL Review and sets out the Bank’s proposed changes to its MREL framework. It follows … Continue Reading

Bank of England publishes an operational guide to executing bail-in

Bail-in is a key stabilisation tool afforded to the Bank of England by the Banking Act 2009, that ensures investors rather than public funds bear the burden of resolving failing banks. This operational guide published on 22 July provides practical information on the ways in which the Bank of England might execute a bail-in resolution, … Continue Reading

Commission Implementing Regulation amending ITS as regards the disclosure of indicators of global systemic importance

On 24 June 2021, there was published in the Official Journal of the EU Commission Implementing Regulation (EU) 2021/1018 of 22 June 2021 amending the implementing technical standards laid down in Implementing Regulation (EU) 2021/7637 as regards the disclosure of indicators of global systemic importance, and repealing Implementing Regulation (EU) No 1030/2014. Article 131 of … Continue Reading

EBA proposes to further harmonise EU law applicable to branches of third country credit institutions

On 23 June 2021, the European Banking Authority (EBA) issued a report on the treatment of incoming third country branches (TCB) under the national law of Member States. The report is based on Article 21b(10) of the Capital Requirements Directive IV which mandates the EBA to submit a report to the European Parliament, the Council … Continue Reading

Commission consults on improving transparency and efficiency in secondary markets for non-performing loans

On 16 June 2021, the European Commission issued a targeted consultation designed to gather evidence on improving transparency and efficiency in secondary markets for non-performing loans (NPLs). The Commission notes that one of the key actions in fostering secondary markets for NPLs is to improve the quantity, quality and comparability of NPL data. Secondary markets … Continue Reading

EBA updates list of risk indicators and analysis tools

On 7 June 2021, the European Banking Authority (EBA) issued an updated list of indicators for risk assessment and risk analysis tools, together with the accompanying methodological guide. This guidance, which describes how risk indicators are computed in EBA publications, allows Member State competent authorities and users of EBA data to interpret key bank figures … Continue Reading

Non-performing loans: deal struck on EU rules for selling NPLs to third parties

On 7 June 2021, the European Parliament (EP) issued a press release stating that EP negotiators and the Council of the EU have agreed on the proposed Directive on credit servicers, credit purchasers and the recovery of collateral. The Directive dates back to 2018, and is intended to help lenders free their balance sheets from … Continue Reading

Basel Committee discusses effects of Covid-19 on banks, assesses post-crisis reforms and agrees public consultation on cryptoassets

On 7 June 2021, the Basel Committee on Banking Supervision (Basel Committee) issued a press release following its meeting on 4 June 2021. During this meeting the Basel Committee took stock of COVID-19 risks to the banking system and discussed policy and supervisory initiatives. In terms of crypto-assets the press release notes that the Basel … Continue Reading

EBA makes recommendations for reducing supervisory reporting costs

On 7 June 2021, the European Banking Authority (EBA) published a report that analyses EEA credit institutions’ experience with the EBA’s supervisory reporting requirements and processes. The EBA is mandated by Article 430(8) of the Capital Requirements Regulation to measure the costs institutions incur when complying with the reporting requirements set out in the EBA’s … Continue Reading

PRA CP10/21 – Implementation of Basel standards: Non-performing loan securitisations

On 3 June 2021, the PRA published Consultation Paper 10/21 ‘Implementation of Basel standards: Non-performing loan securitisations’ (CP10/21). In CP10/21 the PRA sets out proposed rules in respect of the implementation of updated prudential standards agreed by the Basel Committee on Banking Supervision for non-performing loan securitisations. It sets out how the PRA proposes to … Continue Reading

Letter – Ring-fencing and Proprietary Trading Independent Review: 1 June 2021

On 1 June 2021, the Financial Markets Law Committee (FMLC) sent a letter to Keith Skeoch, chair of the independent panel that HM Treasury has appointed to review the operation of legislation relating to ring-fencing and banks’ proprietary trading activities. The letter explains that the FMLC has resolved to establish a working group to consider … Continue Reading

ESMA consults on draft technical standards on the content and format of the STS notification for on-balance sheet securitisations under the amended Securitisation Regulation

On 27 May 2021, the European Securities and Markets Authority (ESMA) issued a consultation paper setting out draft regulatory technical standards (RTS) and implementing technical standards (ITS) specifying the content and the format of the standardised templates for simple, transparent and standardised (STS) notification of on-balance sheet (synthetic) securitisations. The draft RTS and ITS build on … Continue Reading
LexBlog