On 27 November 2023, the FCA published the final report on its multi-firm review into firms’ progress in implementing the internal capacity adequacy and risk assessment (ICARA) process and reporting requirements under the Investment Firms Prudential Regime (IFPR). The multi-firm review aims to assist firms in understanding and meeting the requirements and enhancing their processes. … Continue Reading
On 22 November 2023, the European Banking Authority (EBA) published a final report on the draft regulatory technical standards (RTS) on the assessment methodology under which Member State competent authorities verify an institution’s compliance with the internal model approach as per Article 325az(8) of the Capital Requirements Regulation (CRR). The draft RTS have been developed … Continue Reading
On 20 November 2023, there was published in the Official Journal of the European Union (OJ) Commission Implementing Regulation (EU) 2023/2526 of 17 November 2023 amending the Implementing Technical Standards (ITS) laid down in Implementing Regulation (EU) 2022/389 as regards the content lists of the information on individual data to be disclosed by Member State … Continue Reading
On 13 November 2023, the Prudential Regulation Authority (PRA) published Policy Statement PS14/23: The non-performing exposures (NPEs) capital deduction (PS14/23). In PS14/23, the PRA provides feedback to responses to its earlier consultation on the topic, CP6/23. It also contains the PRA’s final policy, in the form of amendments to the Own Funds and Eligible Liabilities … Continue Reading
On 31 October 2023, the Prudential Regulation Authority (PRA) published Discussion Paper DP3/23 – Securitisation: capital requirements (DP3/23). DP23/2 is intended to prepare for the PRA’s planned consultation on draft rules to replace firm-facing requirements in Part Three, Title II, Chapter 5 (the ‘Securitisation Chapter’) of the Capital Requirements Regulation – subject to HM Treasury … Continue Reading
On 20 October 2023, the European Central Bank (ECB) published a report on sound practices in counterparty credit risk (CCR) governance and management. The report presents the findings of the targeted review performed in the second half of 2022 on how banks govern and manage CCR. It highlights sounds practices and points to areas where … Continue Reading
On 12 October 2023, the European Banking Authority (EBA) published a report on the role of environmental and social risks in the prudential framework. The report follows a discussion paper that the EBA published in May 2022 which initiated the discussion on the role of environmental and social risks in the prudential framework for credit … Continue Reading
On 10 October 2023, the Bank of England (BoE) published Financial Stability in Focus (FSIF): The FPC’s approach to assessing risks in market-based finance. This latest edition of the FSIF sets out the Financial Policy Committee’s (FPC’s) approach to assessing risks in market-based finance (MBF) and ways it intends to develop this approach. It is … Continue Reading
On 2 October 2023, the European Systemic Risk Board (ESRB) published its response to the European Securities and Markets Authority’s (ESMA) final report on extending emergency measures on central counterparty (CCP) collateral requirements. On 14 October 2022, ESMA published a final report on emergency measures on collateral requirements. Previously, the European Commission asked ESMA to … Continue Reading
On 27 September 2023, there was published in the Official Journal of the European Union (OJ) Commission Implementing Regulation (EU) 2023/2056 of 26 September 2023 amending the implementing technical standards laid down in Commission Implementing Regulation (EU) No 945/2014 as regards an update of the list of relevant appropriately diversified indices in accordance with the … Continue Reading
On 27 September 2023, the European Systemic Risk Board (ESRB) published advice on the prudential treatment of environmental and social risks. The advice highlights the specificity of risks related to climate change, which can be expected to become an important driver of broader environmental and social risks, and the challenges of tackling such risks in … Continue Reading
On 27 September 2023, the Prudential Regulation Authority (PRA) announced two updates on its proposed timings for Basel 3.1 implementation in the UK. The PRA’s proposals for rules covering the remaining Basel III standards that are yet to be implemented in the UK were set out in Consultation Paper 16/22 (CP16/22), published in November 2022. … Continue Reading
On 27 September 2023, the Prudential Regulation Authority (PRA) published Consultation Paper 17/23: Capitalisation of foreign exchange positions for market risk (CP17/23). In CP17/23, the PRA sets out its proposed clarifications and amendments when capitalising foreign exchange exposures under the market risk capital framework. It also sets out the process for seeking permission to exclude … Continue Reading
On 31 August 2023, there was published in the Official Journal of the European Union (OJ), Commission Delegated Regulation (EU) 2023/1668 of 25 May 2023 supplementing the Investment Firms Directive with regard to regulatory technical standards specifying the measurement of risks or elements of risks not covered or not sufficiently covered by the own funds … Continue Reading
On 7 August 2023, the European Banking Authority (EBA) updated its roadmap for the implementation of internal ratings based (IRB) model requirements to limit compliance costs for institutions. In July 2019, the EBA issued a progress report and set a new timeline for the implementation of the requirements of its so called ‘IRB repair program’. … Continue Reading
On 7 August 2023, the European Banking Authority (EBA) published its Decision to run an ad-hoc data collection of institutions’ interest rate risk in the banking book (IRRBB) data. The data collection will provide the EBA and Member State competent authorities with data to monitor risks arising from interest rate changes and the implementation of … Continue Reading
On 3 August 2023, the European Banking Authority (EBA) published a consultation paper on draft regulatory technical standards (RTS) on extraordinary circumstances for continuing the use of an internal model of discarding certain back-testing overshootings under Article 325az(9) of the Capital Requirements Regulation (CRR). Per Article 325az(9) of the CRR the draft RTS specify the … Continue Reading
On 1 August 2023, there was published in the Official Journal of the European Union (OJ) Commission Delegated Regulation 2023/1578 of 20 April 2023 supplementing the Capital Requirements Regulation with regard to regulatory technical standards specifying the requirements for the internal methodology or external sources used under the internal default risk model for estimating default … Continue Reading
On 1 August 2023, there was published in the Official Journal of the European Union (OJ), Commission Delegated Regulation (EU) 2023/1557 of 20 April 2023 supplementing the Capital Requirements Regulation with regard to regulatory technical standards on the calculation of the own funds requirements for market risk for non-trading book positions subject to foreign exchange … Continue Reading
On 31 July 2023, the European Banking Authority (EBA) published a Final Report proposing amendments to the implementing technical standards (ITS) on supervisory reporting regarding interest rate risk in the banking book (IRRBB) reporting requirements. This new harmonised reporting aims to bring the data quality required for assessing IRRBB risks on an appropriate scale of … Continue Reading
On 25 July 2023, the European Banking Authority (EBA) published a consultation paper setting out draft guidelines on the application of the group capital test for investment firm groups in accordance with Article 8 of the Investment Firms Regulation (IFR). The guidelines aim to set harmonised criteria to address the observed diversity in the application … Continue Reading
On 24 July 2023, the European Banking Authority (EBA) published its report on the treatment of interdependent assets and liabilities in the net stable funding ratio (NSFR). The report assesses the conditions under which assets and liabilities can be treated as interdependent in the NSFR and the description of the list of activities that are … Continue Reading
On 21 July 2023, the European Banking Authority (EBA) published a report which provides an update on the monitoring of Additional Tier 1 (AT1), Tier 2 and total loss-absorbing capacity / minimum requirement for own funds and eligible liabilities (TLAC/MREL) instruments of EU institutions. The report merges the contents of the AT1 monitoring report published … Continue Reading
On 19 June 2023, the Prudential Regulation Authority (PRA) published Consultation Paper 14/23 (CP14/23), setting out its proposals to enhance Pillar 3 remuneration disclosure requirements by reducing the number of such disclosures that are required for many smaller banks and building societies. The consultation follows on from the PRA’s February 2023 consultations CP4/23 (on liquidity … Continue Reading
