On 24 January 2024, the European Commission (Commission) published its report to the European Parliament and the Council on the macroprudential review for credit institutions, the systemic risks relating to Non-Bank Financial Intermediaries (NBFIs) and their interconnectedness with credit institutions, under Article 513 of the Capital Requirements Regulation (CRR). The report is required by Article … Continue Reading
On 23 January 2024, the European Commission published Commission Implementing Regulation of 19 January 2024, amending implementing technical standards laid down in Commission Implementing Regulation (EU) 2016/2070 as regards benchmark portfolios, reporting templates and reporting instructions for the reporting referred to in Article 78(2) of the Capital Requirements Directive IV together with annexes. The amendments … Continue Reading
On 18 January 2024, the European Banking Authority (EBA) issued a consultation on draft guidelines on the management of environmental, social and governance (ESG) risks. The EBA has developed these draft guidelines in line with its roadmap on sustainable finance and they address the mandate specified in letters a, b, and c of Article 87(a)5 … Continue Reading
On 16 January 2024, the European Banking Authority (EBA) published a report on specific aspects of the net stable funding ratio (NSFR) framework. The report has been prepared in accordance with the mandates set out in Article 510 (4), (6) and (9) of the Capital Requirements Regulation (CRR). These commit the EBA to evaluate the … Continue Reading
On 11 January 2024, the European Banking Authority (EBA) issued a final report containing draft implementing technical standards (ITS) amending Commission Implementing Regulation (EU) 2021/451 with regard to reporting requirements for market risk and repealing Commission Implementing Regulation (EU) 2021/453. The draft ITS set out the frame and details for expanding the Fundamental Review of … Continue Reading
On 20 December 2023, the European Banking Authority (EBA) published a final report on draft implementing technical standards (ITS) amending the ITS on disclosures and reporting on MREL and TLAC with regard to the disclosures and reporting of information in daisy chains and prior permissions. The amendments reflect the new requirement to deduct investments in … Continue Reading
On 19 December 2023, the Financial Services and Markets Act 2023 (Benchmarks and Capital Requirements) (Amendment) Regulations 2023 (SI 2023/1409) (the Regulations) were published, along with an explanatory memorandum. The Financial Services and Markets Act 2023 (FSMA 2023) repeals retained EU law (REUL) relating to financial services, to enable the Government to deliver its Smarter … Continue Reading
On 19 December 2023, the European Securities and Markets Authority (ESMA) published a final report on the guidelines on stress test scenarios under the Money Market Funds Regulation (MMF Regulation). Article 28 of the MMF Regulation mandates ESMA to develop guidelines establishing common reference parameters of stress test scenarios to be included in the stress … Continue Reading
On 19 December 2023, the Prudential Regulation Authority (PRA) published a policy statement, PS19/23, providing responses to proposed minor amendments in consultation papers CP8/23, Chapter 11 of CP12/23 and CP22/23. In the three consultation papers, the PRA proposed to make minor amendments to rules and a statement of policy (SoP). PS19/23 provides feedback to responses … Continue Reading
On 19 December 2023, the Prudential Regulation Authority (PRA) published a consultation paper, CP28/23, on the leverage ratio treatment of omnibus account reserves and minor amendments to the leverage ratio framework. CP28/23 sets out the PRA’s proposals to: The proposals are relevant to Capital Requirements Regulation (CRR) firms and CRR consolidation entities on an individual, consolidated, … Continue Reading
On 14 December 2023, the European Banking Authority (EBA) issued two consultation papers which contain amendments to the regulatory technical standards (RTS) on the fundamental review of the trading book (FRTB) and on the standardised approach for counterparty credit risk (SA-CCR). The proposed amendments are part of the roadmap on the EU Banking Package and … Continue Reading
On 14 December 2023, the European Banking Authority (EBA) published a discussion paper on the centralisation of EEA banks Pillar 3 disclosures in the EBA Pillar 3 data hub. The Capital Requirements Regulation 3 introduces a new mandate for the EBA to centralise institutions’ prudential disclosures and make prudential information readily available through a single … Continue Reading
On 14 December 2023, the European Banking Authority (EBA) issued a consultation paper on draft implementing technical standards (ITS) amending Commission Implementing Regulation (EU) 2021/637 on public disclosures by institutions of the information referred to in Titles II and III of Part Eight of the Capital Requirements Regulation (CRR). The consultation concerns changes to the … Continue Reading
On 14 December 2023, the European Banking Authority published its roadmap on the EU Banking Package, which implements the final Basel 3 reforms in the EU. The EBA expects to finalise the most significant components of its mandates ahead of the application date, on 1 January 2025.… Continue Reading
On 13 December 2023, the European Commission published Commission Delegated Regulation (EU) of 13.12.2023 amending Delegated Regulation (EU) 2015/63 as regards the calculation of eligible liabilities and the transitional regime. The Commission Delegated Regulation: The Commission Delegated Regulation enters into force on the day following its publication in the Official Journal of the EU (OJ). … Continue Reading
On 12 December 2023, the Basel Committee on Banking Supervision (Basel Committee) published a consultation on targeted adjustment to its standard on interest rate risk in the banking book (IRRBB). The IRRBB standard requires banks to calculate measures of interest rate risk for their banking book exposures. These measures are based on a specified set … Continue Reading
On 12 December 2023, the Prudential Regulation Authority (PRA) published the first of two near-final policy statements covering the implementation of the Basel 3.1 standards for market risk, credit valuation adjustment risk, counterparty credit risk and operational risk. The policy statement, PS17/23, takes account of feedback the PRA received to its consultation paper CP16/22 on … Continue Reading
On 5 December 2023, the Prudential Regulation Authority (PRA) published Policy Statement PS15/23 – The Strong and Simple Framework: Scope criteria, liquidity and disclosure requirements (PS15/23). In PS15/23, the PRA provides feedback to responses to consultation papers CP4/23 – The Strong and Simple Framework: Liquidity and Disclosure requirements for Simpler-regime Firms and CP14/23 – Pillar 3 remuneration disclosure. In … 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 1 December 2023, the European Commission published a draft Delegated Regulation supplementing the Capital Requirements Directive IV (CRD IV) with regard to regulatory technical standards (RTS) specifying the supervisory shock scenarios, the common modelling and parametric assumptions and what constitutes a large decline together with an annex. The draft Delegated Regulation been prepared in … Continue Reading
On 1 December 2023, the European Commission published a draft Delegated Regulation supplementing the Capital Requirements Directive IV (CRD IV) with regard to regulatory technical standards (RTS) specifying a standardised methodology to evaluate the risks arising from potential changes in interest rates that affect both the economic value of equity and the net interest income … Continue Reading
On 29 November 2023, the European Banking Authority (EBA) published a consultation paper on draft regulatory technical standards (RTS) on the conditions for assessing the materiality of extensions and changes to the use of alternative internal models and changes to the subset of the modellable risk factors referred to in Article 325bc under Article 325az(8)(a) … Continue Reading
On 28 November 2023, the FCA published its latest IFPR newsletter. At the start of the newsletter the FCA refers to its earlier publication of its observations from the multi-firm review into firms’ progress in implementing the internal capital adequacy and risk assessment (ICARA) process and reporting requirements under the Investment Firms Prudential Regime (IFPR). … Continue Reading