United Kingdom

Topic: Banking

Subscribe to Banking RSS feed

ECB consolidated guide to internal models under SSM

On 1 October 2019, the European Central Bank (ECB) published the consolidated version of its guide to internal models under the single supervisory mechanism (SSM). The ECB’s rationale for the publication of this document is to consolidate its general topics and risk-type-specific chapters into one document. The guide provides transparency on how the ECB understands … Continue Reading

PRA consults on asset encumbrance

On 30 September 2019, the PRA published Consultation Paper 24/19: Asset encumbrance (CP24/19).The proposals in CP24/19 are relevant to all PRA authorised firms, except credit unions and insurance firms. In CP24/19 the PRA sets out its proposed expectations of firms when managing the key prudential risks associated with asset encumbrance, specifically in the contexts of … Continue Reading

BoE findings from 2018 cyber simulation exercise

On 27 September 2019, the Bank of England (BoE) published a webpage containing the outcomes and high level findings of its cyber simulation exercise (SIMEX18) held in November 2018. The purpose of SIMEX18 was to exercise participants from 29 of the most systemically important firms and financial market infrastructures, who during the exercise responded to … Continue Reading

EBA work programme for 2020

On 30 September 2019, the European Banking Authority (EBA) published its work programme for 2020. The programme is defined under six strategic areas: supporting the deployment of the risk reduction package and the implementation of the global standards in the EU; providing efficient methodologies and tools for supervisory convergence and stress testing; moving towards an integrated EU … Continue Reading

ESG: German regulator launches consultation regarding guidance notice on sustainability

On 24 September 2019, the German Federal Financial Supervisory Authority (BaFin) published a draft guidance notice on dealing with sustainability risks for consultation (link; only available in German). BaFin expects supervised entities to also take into account environmental risks, social risks and risks arising from corporate governance (commonly referred to as environmental, social and governance – … Continue Reading

BoE implementation update on ISO 20022 migration for UK payments industry

On 25 September 2019, the Bank of England (BoE) published an update on the UK payments industry’s move to ISO 20022 – a common language standard for world-wide payments data. As outlined in a joint response to its consultation on the adoption of ISO 20022 in November 2018, the BoE’s approach to the implementation of … Continue Reading

EBA consults on STS framework for synthetic securitisations

On 25 September 2019, the European Banking Authority (EBA) announced that it had published a discussion paper on its proposals for a simple, transparent and standardised (STS) framework for synthetic securitisation. The discussion paper has been developed in response to a mandate assigned to the EBA as per Article 45 of the Securitisation Regulation, which … Continue Reading

EBA launches its 2019 EU-wide transparency exercise

On 23 September 2019, the European Banking Authority (EBA) announced that it was launching its latest EU wide transparency exercise. In November, the EBA will release data points on about 130 EU banks. The data will cover capital positions, financial assets, risk exposure amounts, sovereign exposures and asset quality. As with previous transparency exercises, this … Continue Reading

China banking: New measures for opening up

In recent years China has accelerated its opening up to foreign investment. In June, China rolled out revised Negative Lists for foreign investment market access, allowing foreign investors to run majority-share-controlling or wholly-owned businesses in various sectors. We have published a China Foreign Investment Expert Q&A series, to keep clients and contacts apprised of developments … Continue Reading

Bank of England and FSCS update memorandum of understanding

On 19 September 2019, the Bank of England (BoE) published an updated memorandum of understanding (MoU) between itself (exercising its prudential regulation functions) and the Financial Services Compensation Scheme (FSCS). The MoU sets out the framework agreed between the FSCS and the PRA. It was agreed pursuant to section 217A(1) and (2) of the Financial … Continue Reading

Amendment to the maximum amount per SCT Inst transaction to 100,000 euros

On 10 September 2019, the European Payments Council (EPC) decided to amend the maximum amount per Single Euro Payments Area (SEPA)  Instant Credit Transfer (SCT Inst) transaction to 100,000 euros, effective as of 1 July 2020. For the time being, the maximum amount an originator can transfer via a single SCT Inst transaction is set … Continue Reading

PSD2: German regulator postpones strong costumer authentication requirements for online credit card payments

The German Federal Financial Supervisory Authority (BaFin) will allow payment service providers domiciled in Germany to execute credit card payments online without strong customer authentication (SCA) as a temporary measure after 14 September 2019. Pursuant to a press release published on 21 August 2019, BaFin will not object to such transactions for the time being in order … Continue Reading

ECB Chair introductory statement to European Parliament’s Economic and Monetary Affairs Committee

On 4 September 2019, the European Central Bank (ECB) published the introductory statement given by its chair, Andrea Enria, at the first ordinary hearing in 2019 at the European Parliament’s Economic and Monetary Affairs Committee. Among other things, the statement lists the ECB’s work and priorities for the near future. In particular, the ECB will: … Continue Reading

Banking Standards Board publishes final Statement of Good Practice

On 3 September 2019, the Banking Standards Board (BSB) published the final version of its Statement of Good Practice (Statement) on the certification regime and regulatory references. The Statement is intended to help firms implement the regulatory reference requirement of the Senior Managers and Certification Regime (SMCR) by providing a high-level set of principles and … Continue Reading

EBA adds Securitisation Regulation to its online Interactive Single Rulebook and Q&A tools

On 2 September 2019, the European Banking Authority (EBA) updated its Interactive Single Rulebook and Q&A tool on the “simple, transparent and standardised” (STS) Securitisation Regulation. The update allows users to review all the EBA’s final technical standards and guidelines associated with the Securitisation Regulation by navigating through the legislation on an article by article … Continue Reading

ECB decisions on adopting decisions on passporting, acquisition of qualifying holdings and withdrawal of authorisations of credit institutions

On 28 August 2019, there was published in the Official Journal of the EU, the following decisions relating to the Regulation on the Single Supervisory Mechanism (SSM): Decision (EU) 2019/1376 of the European Central Bank (ECB) on delegation of the power to adopt decisions on passporting, acquisition of qualifying holdings and withdrawal of authorisations of … Continue Reading

EBA reports on funding plans and asset encumbrance

On 28 August 2019, the European Banking Authority (EBA) published the following: a report on funding plans. The purpose of the report is to assess the feasibility of EU banks’ funding plans submitted for the banking system in the EU. The EBA’s findings include, among other things, that the total assets of banks increased in … Continue Reading

ECB decision on oversight of systemically important payment systems

On 16 August 2019, there was published in the Official Journal of the EU (OJ), the European Central Bank (ECB) decision of 26 July 2019 on the procedure and conditions for exercise by a Member State competent authority of certain powers in relation to the oversight of systemically important payment systems (SIPs). In April 2012, … Continue Reading

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
LexBlog