On 7 June 2019, the Financial Stability Board (FSB) issued a consultation on an Evaluation of the effects of financial regulatory reforms on small and medium-sized enterprise (SME) financing. The evaluation has been delivered to G20 Finance Ministers and Central Bank Governors for their meeting in Fukuoka on 8-9 June. The evaluation examines the effects … Continue Reading
On 7 June 2019, there was published in the Official Journal of the EU (OJ): Regulation (EU) 2019/876 of the European Parliament and of the Council of 20 May 2019 amending the Capital Requirements Regulation as regards the leverage ratio, the net stable funding ratio, requirements for own funds and eligible liabilities, counterparty credit risk, … Continue Reading
On 7 June 2019, there was published in the Official Journal of the EU (OJ): Directive (EU) 2019/879 of the European Parliament and of the Council of 20 May 2019 amending the Bank Recovery and Resolution Directive as regards the loss-absorbing and recapitalisation capacity of credit institutions and investment firms and Directive 98/26/EC (BRRD II); … Continue Reading
On 4 June 2019, the Council of the EU published a progress report providing a high level overview of the work that has recently been done to strengthen Banking Union. Specifically the progress report covers: amendments to the Capital Requirements Regulation and Directive, the Bank Recovery and Resolution Directive, and the Single Resolution Mechanism Regulation; … Continue Reading
On 3 June 2019, the Financial Stability Board (FSB) published a discussion paper on the solvent wind-down of derivatives and trading portfolios. The discussion paper sets out considerations related to the solvent wind-down of the derivative portfolio activities of a global systemically important bank (G-SIB) that may be relevant for authorities and firms for both … Continue Reading
On 3 June 2019, the Financial Stability Board (FSB) published a discussion paper on public disclosures on resolution planning and resolvability. The discussion paper explores how general and firm specific disclosures on resolution planning and resolvability could be further enhanced. It focuses mainly on disclosures of resolution planning for global systemically important banks. However, many … Continue Reading
The Financial Stability Board (FSB) has published: a progress report on the implementation of its action plan to assess and address the decline in correspondent banking relationships. The decline in the number of correspondent banking relationships remains a source of concern for the international community, as the number of active correspondent banks declined by 3.4% … Continue Reading
On 29 May 2019, the European Banking Authority (EBA) published its 2018 Annual Report, which provides a detailed account of the work the European Supervisory Authority has achieved in the past year. The Annual Report also sets out the EBA’s priorities for 2019. The EBA’s focus will include sequencing the CCR 2 mandate, including developing … Continue Reading
On 28 May 2018, the Financial Stability Board (FSB) published a thematic review report on the implementation of the Legal Entity Identifier (LEI). The report is divided into the following sections: jurisdictions’ approaches and strategies to implement the LEI; LEI coverage; achievements and benefits; obstacles to adoption and implementation; and advancing LEI adoption. Key points … Continue Reading
On 23 May 2019, the European Securities and Markets Authority (ESMA) published an updated version of its Q&As on the Benchmarks Regulation (BMR). The updated Q&As provide the following new questions: What information may national competent authorities rely on in an external audit report of compliance to IOSCO Principles under Article 32(2) of BMR? What … Continue Reading
On 23 May 2019, the Financial Stability Board (FSB) launched an evaluation into the G20 post-financial crisis too-big-to-fail reforms. The summary terms of reference have also been published. The objectives of the evaluation are twofold to: assess whether the reforms for which implementation has been completed or are underway are reducing the systemic and moral … Continue Reading
On 17 May 2019, the International Swaps and Derivatives Association (ISDA) published two consultations on benchmark fallbacks – the first consultation covers adjustments that would apply to fallback rates in the event certain interbank offered rates (IBORs) are permanently discontinued, and the second consultation relates to pre-cessation issues for LIBOR and certain other IBORs. Specifically, … Continue Reading
On 14 May 2019, the European Council announced that it had adopted the European Commission’s banking package reforms (relating to the revised Capital Requirements Regulation / Directive, and the revised Bank Recovery and Resolution Directive, and Single Resolution Mechanism Directive). Our extended blog on these reforms can be found here. The proposals implement reforms agreed … Continue Reading
On 7 May 2019, the European Banking Authority (EBA) published a letter it sent to the Director General for Financial Stability at the Financial Services and Capital Markets Union (FISMA), dated 5 March 2019, regarding the European Commission’s call for advice (CFA) for the purposes of a benchmarking of national loan enforcement frameworks (including insolvency … Continue Reading
On 7 May 2019, the Basel Committee on Banking Supervision (Basel Committee) published its sixteenth progress report on the adoption of the Basel III regulatory framework. The report sets out the adoption status of the Basel III standards for each Basel Committee member jurisdiction as of end-March 2019. Key updates as regards the adoption of … Continue Reading
On 7 May 2019, the Islamic Financial Services Board (IFSB) published for consultation a draft of Guidance Note 7 (GN7) on Sharīʻah-compliant lender-of-last-resort (SLOLR) facilities. GN7 is primarily intended to serve as a benchmark for Central Banks (CBs) in establishing and operationalising an SLOLR framework that applies to full-fledged Islamic commercial banks and Islamic commercial … Continue Reading
On 30 April 2019, the European Commission adopted a technical evaluation report on the Bank Recovery and Resolution Directive (BRRD) and the Single Resolution Mechanism (SRMR). The report notes that so far, there is limited experience on the application of the BRRD and SRMR to failing or likely to fail banks. The case of Banco … Continue Reading
On 30 April 2019, the European Central Bank (ECB) set its supervisory fees at €576 million for 2019. The ECB estimates that €559 million will be spent on the prudential supervision of banks. However, the €576 million also covers a €15.3 million deficit carried forward from 2018 and owing to adjustments to individual fees, amounting … Continue Reading
On 30 April 2019, the European Systemic Risk Board (ESRB) published a report setting out its review of macro-prudential policy in the EU in 2018. The review provides an overview of the measures of macro-prudential interest that were adopted in the EU in 2018. Key messages in the review include: as there are indications that … Continue Reading
On 30 April 2019, the European Banking Authority (EBA) published its 2018 report on supervisory colleges. The core of the report focuses on some key observations regarding the 2018 cycle of supervisory colleges. These observations cover: (i) organisational aspects of the colleges’ work and interactions; (ii) colleges’ deliverables; and (iii) the key topics for supervisory … Continue Reading
On 26 April 2019, the Financial Stability Board (FSB) published a press release summarising the key areas of discussion at its plenary meeting in New York. Key takeaways from the plenary include: financial markets generally functioned well during the period of volatility at the end of 2018. Nonetheless, the FSB recognises that a more severe … Continue Reading
On 29 April 2019, the Financial Stability Board (FSB) published a report on its thematic review on bank resolution planning. The report evaluates the implementation by FSB jurisdictions of the resolution planning standard as set out in the FSB’s Key Attributes of Effective Resolution Regimes for Financial Institutions. It focuses on resolution planning for all domestically … Continue Reading
On 12 April 2019, the European Central Bank (ECB) published a speech by Andrea Enria (Chair of the ECB Supervisory Board) on the issue of cross-border banks. Mr Enria begins his speech by discussing the lessons that were learnt on crisis management during the 2008 global financial crisis. He also discusses what the ECB has … Continue Reading
On 11 April 2019, the European Banking Authority (EBA) updated the list of diversified indices, which was originally published in December 2013. The list is part of the implementing technical standards (ITS) drafted to calculate the capital requirements for position risk in equities according to the standardised rules. The list was updated according to the … Continue Reading
