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FSB seeks feedback on its proposals for quantitative targets for enhancing cross-border payments

On 31 May 2021, the Financial Stability Board (FSB) issued a consultative document regarding targets for addressing the four challenges of cross-border payments – cost, speed, transparency and access. The FSB explains that these targets are a foundational step in the G20 Roadmap for Enhancing Cross-border Payments. The consultative document: (i) describes the principles, and … Continue Reading

ESMA consults on draft technical standards on the content and format of the STS notification for on-balance sheet securitisations under the amended Securitisation Regulation

On 27 May 2021, the European Securities and Markets Authority (ESMA) issued a consultation paper setting out draft regulatory technical standards (RTS) and implementing technical standards (ITS) specifying the content and the format of the standardised templates for simple, transparent and standardised (STS) notification of on-balance sheet (synthetic) securitisations. The draft RTS and ITS build on … Continue Reading

EBA issues report on the application of the BRRD early intervention framework

On 27 May 2021, the European Banking Authority (EBA) published a report on the application of early intervention measures (EIMs) under the Bank Recovery and Resolution Directive (BRRD). The report presents the results of a survey on the application of EIMs that the EBA conducted among Member State competent authorities in 2019. The report also … Continue Reading

SRB publishes updated MREL policy and publishes MREL dashboard Q4.2020

On 26 May 2021, the Single Resolution Board updated its ‘Minimum Requirements for Own Funds and Eligible Liabilities (MREL) Policy under the EU Banking Package’. The updated policy includes: The MREL maximum distributable amount. This allows the SRB to restrict banks’ earnings distribution if there are MREL breaches. Policy criteria to identify systemic subsidiaries for … Continue Reading

ECB Banking Supervision to supervise securitisation requirements for banks

On 14 May 2021, the European Central Bank announced its decision to start ensuring that the banks it directly supervises comply with the requirements for risk retention, transparency and resecuritisation, which are set out under Articles 6 to 8 of the EU Securitisation Regulation. The decision follows recent amendments to the Regulation which provide that … Continue Reading

EBA report on convergence of supervisory practices in 2020

On 12 May 2021, the European Banking Authority (EBA) published a report on convergence of supervisory practices in 2020. In the context of the supervisory review and evaluation process (SREP), the EBA is mandated to annually report to the European Parliament and the Council on the degree of convergence of the application of the supervisory … Continue Reading

EBA Discussion Paper – Review of the NPL transaction data templates

On 4 May 2021, the European Banking Authority (EBA) published a Discussion Paper intended to facilitate the review of the standardised non-performing loan (NPL) data templates. The EBA developed standardised NPL data templates in 2017 to help facilitate financial due diligence and the valuation of NPL transactions. These templates aimed to reduce information asymmetries and … Continue Reading

EBA report – mystery shopping activities of national authorities

On 3 May 2021, the European Banking Authority (EBA) published a report on the mystery shopping activities of Member State competent authorities (NCAs). The EBA collated mystery shopping activities by NCAs with a view to share experiences, learn lessons and identify good practices for the benefit of the EBA and NCAs that use or intend … Continue Reading

SRB issues new guidance on liquidity and funding in resolution

On 30 April 2021, the Single Resolution Board (SRB) published new guidance on liquidity and funding in resolution. In the SRB’s Expectations for Banks, banks are expected to: Develop methodologies to estimate ex-ante the liquidity needs for the implementation of the resolution strategy. Be able to measure, report and forecast their liquidity position and relevant … Continue Reading

EBA consults on guidelines on the delineation and reporting of available financial means

On 28 April 2021, the European Banking Authority (EBA) issued a consultation on draft guidelines on the delineation and reporting of available financial means of deposit guarantee schemes. Article 10(10) of the Deposit Guarantee Schemes Directive (DGSD) requires deposit guarantee schemes (DGSs) to report their available financial means (AFM) to the EBA. AFM are defined … Continue Reading

Major development in EU Securitisation reporting imminent – first Securitisation Repository likely to be authorised in June

On Monday 26 April 2021, ESMA published a press release confirming that it is in the final stages of  the process of assessing applications received from prospective Securitisation Repositories under the Securitisation Regulation (Regulation EU 2017/2402). Within 40 working days ESMA is obliged to finalise its assessment of the applications made by a prospective Securitisation … Continue Reading

Commission Delegated Regulation supplementing the BRRD with regard to RTS determining the content of the contractual terms on recognition of resolution stay powers

On 22 April 2021, the European Commission adopted a Delegated Regulation supplementing the Bank Recovery and Resolution Directive (BRRD) with regard to regulatory technical standards (RTS) determining the content of the contractual terms on recognition of resolution stay powers. Article 71a(1) BRRD provides that Member States shall require institutions and entities referred to in points … Continue Reading

SRB responses to the Commission consultation on the review of the crisis management and deposit insurance framework

On 21 April 2021, the Single Resolution Board (SRB) published its response to the European Commission’s targeted consultation on the review of the bank crisis management and deposit insurance framework. The consultation sought to gather stakeholders’ experience with the current crisis management and deposit insurance framework as well as their views on the revision of … Continue Reading

Changes to the EU Securitisation Regulation – a more liberal approach to NPE securitisations and extending the STS framework – EU/UK regulatory divergence in action?

Regulation (EU) 2021/557 and Regulation (EU) 2021/558 (together, the Regulations) were published in the Official Journal of the European Union on 6 April 2021 and came into force on 9 April 2021. Regulation (EU) 2021/557 amended European Regulation 2017/2402 (EUSR)[i] extending the Simple, Transparent and Standardised (STS) framework to on-balance sheet synthetic securitisations (previously only … Continue Reading

ECB project report on TRIM

On 19 April 2021, the European Central Bank (ECB) published a project report concerning a targeted review of internal models. The targeted review of internal models (TRIM) was a multi-year project launched by the ECB at the beginning of 2016 in close cooperation with the national competent authorities (NCAs) that are part of European banking … Continue Reading

Basel Committee publishes work programme and strategic priorities for 2021-22

On 16 April 2021, the Basel Committee on Banking Supervision (Basel Committee) published its work programme for 2021-22. The work programme focuses on three key themes: COVID-19 resilience and recovery. This includes ongoing monitoring and assessment of risks and vulnerabilities to the global banking system. Horizon scanning and mitigation of medium-term risks and trends. This … Continue Reading

Published in OJ – Updated Implementing Regulation on ITS on MREL reporting by resolution authorities

On 16 April 2021, there was published in the Official Journal of the EU (OJ) Commission Implementing Regulation (EU) 2021/622 of 15 April 2021 laying down implementing technical standards for the application of Directive 2014/59/EU of the European Parliament and of the Council with regard to uniform reporting templates, instructions and methodology for reporting on … Continue Reading

ESMA updates its LEI statement

On 13 April 2021, the European Securities and Markets Authority (ESMA) issued an updated statement on the implementation of LEI requirements for third-country issuers under the Securities Financing Transaction Regulation (SFTR) reporting regime. ESMA maintains its position regarding third-country issuer LEI reporting included in its statement published on 6 January 2020 (ESMA74-362-388) until 10 October … Continue Reading

ESMA publishes interim templates for STS synthetic securitization notifications

On 9 April 2021, the European Securities and Markets Authority (ESMA) published the interim simple, transparent and standardised (STS) notification templates for synthetic securitisations following amendments to the Securitisation Regulation. The interim templates allow originators to notify ESMA of synthetic securitisations that meet the STS criteria until the date of the application of the regulatory … Continue Reading

Latest publications in the OJ

On 6 April 2021, there was published in the Official Journal of the EU (OJ): Regulation (EU) 2021/557 of the European Parliament and of the Council of 31 March 2021 amending Regulation (EU) 2017/2402 laying down a general framework for securitisation and creating a specific framework for simple, transparent and standardised securitisation to help the … Continue Reading

Commission adopts Delegated Regulation supplementing BRRD with RTS on estimating Pillar 2 and combined buffer requirements for setting MREL

On 26 March 2021, the European Commission adopted a Delegated Regulation that specifies the methodology to be used by resolution authorities to estimate the requirement referred to in Article 104a of the Bank Recovery and Resolution Directive (BRRD) and the combined buffer requirement for resolution entities at the resolution group consolidated level for the purpose … Continue Reading

Securitisation Regulation – Q&As and opinion

On 26 March 2021, the Joint Committee of the European Supervisory Authorities (ESAs) published Q&As relating to the Securitisation Regulation. The Q&As contain answers to questions that fall outside the exclusive competence of any of the ESAs. On the same date the ESAs published a joint opinion on the jurisdictional scope of the obligations of … Continue Reading

SRB communication on approach to eligibility of UK law instruments without bail-in clauses after Brexit

On 22 March 2021, the Single Resolution Board (SRB) issued a communication on its approach to liabilities governed by UK law without a contractual bail-in recognition clause as eligible for the minimum requirement for own funds and liabilities (MREL). The SRB will consider liabilities governed by UK law without a contractual bail-in recognition clause as … Continue Reading
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