On 29 March 2023, the European Banking Authority published a speech by its chair, José Manuel Campa, entitled Our path to the future of EU-wide stress testing. In his speech Mr Campa explains where the EBA is on the 2023 EU-wide stress test which is currently on-going. This includes some of the main changes that … Continue Reading
On 22 March 2023, there was published in the Official Journal of the European Union (OJ) Commission Delegated Regulation (EU) 2023/662 of 20 January 2023 amending Delegated Regulation (EU) 2015/63 as regards the methodology for the calculation of liabilities arising from derivatives. Regulation (EU) 2019/876 included an amendment to the Capital Requirements Regulation (CRR) which … Continue Reading
On 16 March 2023, the European Banking Authority (EBA) published a Handbook on data submissions for supervisory benchmarking of internal models. The Handbook is an online tool that provides guidance and links to relevant documents and information for the supervisory benchmarking to facilitate their accessibility. In particular, the Handbook includes overviews for all applicable Q&As … Continue Reading
On 14 March 2023, the PRA published Consultation Paper 6/23 ‘The non-performing exposures capital deduction’ (CP6/23). In CP6/23 the PRA sets out a proposal to remove the Common Equity Tier 1 (CET1) deduction requirement in the PRA Rulebook, regarding non-performing exposures (NPEs) that are treated as insufficiently covered by firms’ accounting provisions. Among other things … Continue Reading
On 27 February 2023, the PRA published Consultation Paper 4/23 ‘The Strong and Simple Framework: Liquidity and Disclosure requirements for Simpler-regime Firms’ (CP4/23). Introduction As set out in Consultation Paper 5/22 ‘The Strong and Simple Framework: a definition of a Simpler-regime Firm’ (CP4/23) and Discussion Paper 1/21 ‘A strong and simple prudential framework for non-systemic … Continue Reading
On 27 February 2023, the PRA published Consultation Paper 5/23 ‘Remuneration: Enhancing proportionality for small firms’ (CP5/23). Introduction CP5/23 sets out the PRA’s proposals to enhance the proportionality of its remuneration requirements which apply to small Capital Requirements Regulation (CRR) firms and small third country CRR firms. The PRA’s current approach to applying the remuneration … Continue Reading
On 27 February 2023, the FCA published its initial observations from the first part of a multi-firm review on firms’ progress in implementing the internal capital adequacy and risk assessment (ICARA) process and reporting requirements under the Investment Firms Prudential Regime (IFPR). The IFPR aims to streamline and simplify the prudential requirements for MiFID investment … Continue Reading
On 27 February 2023, the European Banking Authority (EBA) issued a no-action letter stating that Member State competent authorities should not prioritise any supervisory or enforcement action in relation to the new banking book – trading book boundary provisions.… Continue Reading
On 20 February 2023, the European Commission (Commission) published a letter from John Berrigan, regarding the Call for Advice it had issued to the European Banking Authority (EBA) and the European Securities and Markets Authority (ESMA) for the purposes of the reports on the prudential requirements applicable to investment firms. The letter notes that in … Continue Reading
On 1 February 2023, there was published in the Official Journal of the European Union (OJ) a Commission Delegated Regulation supplementing the Capital Requirements Regulation (CRR) with regard to regulatory technical standards (RTS) specifying the types of factors to be considered for the assessment of the appropriateness of risk weights for exposures secured by immovable … Continue Reading
On 31 January 2023, the European Banking Authority (EBA) issued a consultation on draft implementing technical standards (ITS) on supervisory reporting with respect to the IRRBB. The draft ITS have been developed in accordance with Article 430(7) of the Capital Requirements Regulation, which mandates the EBA to develop uniform formats, definitions, frequencies and reference and … Continue Reading
On 30 January 2023 the Council of the EU published a Corrigendum to Commission Delegated Regulation of 5 October 2022 supplementing the Capital Requirements Regulation with regard to regulatory technical standards specifying the types of factors to be considered for the assessment of the appropriateness of risk weights for exposures secured by immovable property and … Continue Reading
On 14 December 2022, the Financial Stability Board (FSB) published its assessment of the effectiveness of the FSB’s 2017 recommendations on liquidity mismatch in open-ended funds (OEFs). The assessment, which forms part of the FSB’s work programme to enhance the resilience of non-bank financial intermediation (NBFI), includes proposals for further policy work in this area. … Continue Reading
On 30 November 2022, there was published: HM Treasury consultation ‘Implementation of the Basel 3.1 standards’. PRA Consultation Paper 16/22 ‘Implementation of the Basel 3.1 standards’ HM Treasury consultation HM Treasury is consulting on the legislative changes necessary to facilitate the PRA’s implementation of the final set of Basel reforms, introduced following the financial crisis, … Continue Reading
On 29 November 2022, the PRA published Policy Statement 9/22: Amendments to the PRA’s approach to identifying other systemically important institutions (PS9/22). The PRA is required to identify and publish a list of other systemically important institutions (O-SIIs) under Article 32 of the Capital Requirements (Capital Buffers and Macro-prudential Measures) Regulations 2014 (the Capital Buffers … Continue Reading
On 29 November 2022, the PRA announced that, in line with previous announcements, the other systemically important institutions buffer rate will be maintained at 2019 levels.… Continue Reading
On 28 November 2022, there was published in the Official Journal of the European Union (OJ), Commission Delegated Regulation (EU) 2022/2311 of 21 October 2022, amending the regulatory technical standards laid down in Delegated Regulation (EU) No 153/2013 as regards temporary emergency measures on collateral requirements. Article 1 modifies Articles 39 and 62 of Commission … Continue Reading
On 24 November 2022, the European Commission published a Commission Delegated Regulation supplementing the Capital Requirements Regulation (CRR) with regard to regulatory technical standards (RTS) of the calculation of risk-weighted exposure amounts of collective investment undertakings (CIUs) under the mandate-based approach. The provisions in the Commission Delegated Regulation specify how institutions are to calculate the … Continue Reading
On 18 November 2022, there was published in the Official Journal of the European Union (OJ), Commission Delegated Regulation (EU) 2022/2257 of 11 August 2022, supplementing the Capital Requirements Regulation (CRR) with regard to regulatory technical standards specifying the calculation methods of gross jump-to-default amounts for exposures to debt and equity instruments and for exposures … Continue Reading
On 8 November 2022, the Council of the EU adopted its general approach on the European Commission’s (Commission) legislative package on the implementation of the final Basel III standards. The Basel III legislative package comprises of a: Commission proposal for a Regulation amending the Capital Requirements Regulation (CRR) as regards requirements for credit risk, credit valuation … Continue Reading
On 4 November 2022, the European Banking Authority (EBA) published the final methodology, draft templates and template guidance for the 2023 EU-wide stress test along with the milestone dates for the exercise. The objectives of the EU-wide stress test is to provide EU supervisors, banks and other market participants with a common analytical framework to … Continue Reading
On 20 October 2022, there was published in the Official Journal of the European Union Corrigendum to Commission Implementing Regulation (EU) 2022/389 of 8 March 2022 laying down Implementing Technical standards for the application of the Investment Firms Directive with regard to the structure, content lists and annual publication date of the information to be … Continue Reading
