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Topic: Capital Adequacy

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Commission Delegated Regulation (EU) 2022/1622 on emerging markets and advanced economies

On 21 September 2022, there was published in the Official Journal of the European Union(OJ) Commission Delegated Regulation (EU) 2022/1622 of 17 May 2022 supplementing the Capital Requirements Regulation (CRR) with regard to regulatory technical standards on emerging markets and advanced economies. The RTS specify which countries constitute advanced economies for the purposes of specifying … Continue Reading

Commission Delegated Regulation (EU) 2022/1455 supplementing the IFR with regard to RTS for own funds requirement for investment firms based on fixed overheads

On 5 September 2022, there was published in the Official Journal of the European Union (OJ), Commission Delegated Regulation (EU) 2022/1455 of 11 April 2022, supplementing the Investment Firms Regulation with regard to regulatory technical standards for own funds requirement for investment firms based on fixed overheads. The RTS: Specify the deductions to be applied … Continue Reading

Corrigendum to Commission Delegated Regulation (EU) 2022/1159 of 11 March 2022 supplementing IFR with regard to RTS for public disclosure of investment policy by investment firms

On 25 August 2022, there was published in the Official Journal of the European Union a Corrigendum to Commission Delegated Regulation (EU) 2022/1159 of 11 March 2022 supplementing the Investment Firms Regulation with regard to regulatory technical standards for public disclosure of investment policy by investment firms. The Corrigendum inserts on page 15, in Annex … Continue Reading

Commission Delegated Regulation supplementing the CRR with regard to RTS specifying exotic underlyings and the instruments bearing residual risks for the purposes of the calculation of own funds requirements for residual risks

On 16 August 2022, the European Commission published Commission Delegated Regulation of 16.8.2022 supplementing the Capital Requirements Regulation (CRR) with regard to regulatory technical standards (RTS) specifying exotic underlyings and the instruments bearing residual risks for the purposes of the calculation of own funds requirements for residual risks. The final draft RTS specify what an … Continue Reading

Commission Delegated regulation specifying the calculation methods of gross jump-to-default amounts for exposure to default risk arising from certain derivative instruments, and specifying the determination of notional amounts of instruments other than the instruments referred to in Article 325w(4) of the CRR

On 11 August 2022, the European Commission published a Commission Delegated Regulation supplementing the Capital Requirements Regulation (CRR) with regard to regulatory technical standards specifying the calculation methods of gross jump-to-default (JTD) amounts for exposures to debt and equity instruments and for exposures to default risk arising from certain derivative instruments, and specifying the determination … Continue Reading

EBA consults on draft RTS on the determination by originator institutions of the exposure value of SES in securitisations

On 9 August 2022, the European Banking Authority launched a public consultation on its draft regulatory technical standards (RTS) on the determination by originator institutions of the exposure value of synthetic excess spread (SES) in securitisations. The draft RTS have been developed in accordance with Article 248(4) of Capital Requirements Regulation (CRR). The Capital Markets … Continue Reading

European Commission updated webpage on Alignment EU rules on capital requirements to international standards (prudential requirements and market discipline)

On 26 July 2022, the European Commission updated its webpage on Alignment EU rules on capital requirements to international standards (prudential requirements and market discipline). The Commission adoption feedback period has been changed from 26 September 2022 to 27 September 2022.  … Continue Reading

EBA analyses the use of specific exemptions included in the large exposures regime

On 22 July 2022, the European Banking Authority (EBA) issued a report in accordance with the mandate given to it under Article 507(1) of the Capital Requirements Regulation covering the use of some exemptions included in the large exposures regime. For the report, the EBA conducted an ad hoc data-collection exercise involving about 181 EU … Continue Reading

EBA publishes final regulatory products to harmonise the supervisory review and evaluation process of investment firms

On 21 July 2022, the European Banking Authority (EBA) and the European Securities and Markets Authority (ESMA) jointly published final guidelines on common procedures and methodologies for the supervisory review and evaluation process (SREP) for investment firms. The final guidelines set out common process and criteria for the assessment of the main SREP elements, including … Continue Reading

EBA launches discussion on 2023 EU-wide stress test methodology

On 21 July 2022, the European Banking Authority (EBA) published a draft methodology for its 2023 EU-wide stress test. The draft methodology and draft templates are the starting point for an informal discussion with banks so as to receive their input, which will be taken into account when finalising both documents. The final methodology will … Continue Reading

Basel Committee issues high-level considerations on proportionality

On 7 July 2022, the Basel Committee on Banking Supervision (Basel Committee) issued high-level considerations on proportionality that are intended to provide practical support to supervisory authorities seeking to implement proportionality into their domestic regulatory and supervisory frameworks. The high-level considerations seek to support the decision-making process of proportionality in a broad variety of jurisdictions, … Continue Reading

EBA reports on the successful mitigation of possible infection risk stemming from legacy instruments

On 7 July 2022, the European Banking Authority (EBA) published an analysis of how its October 2020 opinion on the prudential treatment of legacy instruments has been implemented across the EU. The EBA opinion noted that when reviewing EU institutions’ legacy instruments and examining the clauses that led to their grandfathering, two main issues created … Continue Reading

Basel Committee second consultation on the prudential treatment of banks’ cryptoasset exposures

On 30 June 2022, the Basel Committee on Banking Supervision (Basel Committee) issued its second public consultation paper on the prudential treatment of banks’ cryptoasset exposures. In the second consultation paper the Basel Committee continues with the basic structure outlined in its first consultation by dividing cryptoassets into two broad groups: Group 1 includes those … Continue Reading

EBA final Guidelines on data collection exercises regarding high earners

On 30 June 2022, the European Banking Authority (EBA) published updated guidelines on the data collection exercise on high earners. The updated guidelines reflects the amended remuneration framework laid down in the Capital Requirements Directive IV and the specific remuneration regime that has been introduced for investment firms under the Investment Firms Directive and Investment … Continue Reading

Commission Implementing Regulation 2022/951 amending the ITS laid down in Implementing Regulation 2016/2070

On 30 June 2022, there was published in the Official Journal of the EU (OJ), Commission Implementing Regulation 2022/951 of 24 May 2022 amending the implementing technical standards laid down in Implementing Regulation 2016/2070 as regards benchmark portfolios, reporting templates and reporting instructions to be applied in the EU for the reporting referred to in … Continue Reading

Commission Delegated Regulation (EU) 2022/1011 of 10 March 2022 supplementing the CRR with regard to RTS specifying how to determine the indirect exposures to a client arising from derivatives and credit derivatives contracts where the contract was not directly entered into with the client but the underlying debt or equity instrument was issued by that client

On 28 June 2022, there was published in the Official Journal of the European Union (OJ) Commission Delegated Regulation (EU) 2022/1011 of 10 March 2022 supplementing Regulation (EU) No 575/2013 of the European Parliament and of the Council with regard to regulatory technical standards specifying how to determine the indirect exposures to a client arising … Continue Reading

EBA draft principles assessing the representativeness of COVID-19-impacted data for banks using IRB models

On 21 June 2022, the European Banking Authority (EBA) published four draft principles to support supervisory efforts in assessing the representativeness of COVID-19–impacted data for banks, using internal ratings based (IRB) models. These principles will be part of a supervisory handbook, which the EBA will publish later this year, with the objective to ensure a … Continue Reading

Published in OJ: Commission Delegated Regulation (EU) 2022/954 of 12 May 2022 amending the RTS laid down in Delegated Regulation (EU) No 183/2014

On 21 June 2022, there was published in the Official Journal of the EU (OJ), Commission Delegated Regulation (EU) 2022/954 of 12 May 2022 amending the regulatory technical standards laid down in Delegated Regulation (EU) No 183/2014 as regards the specification of the calculation of specific and general credit risk adjustments. The Delegated Regulation adds … Continue Reading

CRR related Delegated Regulations

On 14 June 2022, the European Commission adopted a Delegated Regulation supplementing the Capital Requirements Regulation (CRR) with regard to regulatory technical standards (RTS) specifying the criteria for assessing the modellability of risk factors under the internal model approach (IMA) and specifying the frequency of that assessment under Article 325be(3) of that Regulation. The draft … Continue Reading

Commission Delegated Regulation supplementing the CRD IV with regard to RTS specifying the information to be provided by an undertaking in the application for authorisation

On 10 June 2022, the European Commission adopted a Delegated Regulation supplementing the CRD IV with regard to regulatory technical standards (RTS) specifying the information to be provided by an undertaking in the application for authorisation in accordance with Article 8a of that Directive. The Council of the EU and the European Parliament will now … Continue Reading

EBA consults on technical standards on the identification of a group of connected clients

On 8 June 2022, the European Banking Authority (EBA) launched a public consultation on draft regulatory technical standards (RTS) on the identification of a group of connected clients (GCC). The definition of group of connected clients in the CRR provides for the identification of two or more natural or legal persons who are so closely … Continue Reading

European Parliament draft reports

On 30 May 2022, the European Parliament published draft reports on: The proposal for a Regulation amending the Capital Requirements Regulation as regards requirements for credit risk, credit valuation adjustment risk, operational risk, market risk and the output floor. The proposal for a Directive amending the Capital Requirements Directive IV as regards supervisory powers, sanctions, … Continue Reading

Basel Committee finalises principals on climate-related financial risks and progresses work on specifying crypto-assets’ prudential treatment

On 27 May 2022, the Basel Committee met and approved a finalised set of principles for the effective management and supervision of climate-related financial risks. The Committee also progressed work on specifying crypto-asset prudential treatment and issuing a second consultation paper. Additionally, the Committee finalised the review of the treatment of cross-border exposures within the … Continue Reading

EBA final draft RTS to identify shadow banking entities

On 23 May 2022, the European Banking Authority (EBA) published a final report containing draft regulatory technical standards (RTS), specifying the criteria to identify shadow banking entities for the purposes of reporting large exposures. The final draft RTS, which have been prepared in accordance with Article 394(4) of the Capital Requirements Regulation (CRR),  clarify that … Continue Reading
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