On 17 January 2019, the European Banking Authority (EBA) published its final report on the guidelines on specification of types of exposures to be associated with high risk under Article 128(3) of the Capital Requirements Regulation (CRR). Article 128(3) CRR provides a mandate to the EBA to draft guidelines that specify which types of exposures, … Continue Reading
On 10 January 2019, the European Central Bank (ECB) published a recommendation on dividend distribution policies. The ECB has also published a letter that it has sent to credit institutions concerning variable remuneration policy. The letter note that, as with dividend distribution policies in the recommendation, an institution’s variable remuneration policy may have a significant … Continue Reading
On 10 January 2019, the European Banking Authority (EBA) published two reports on the consistency of risk weighted assets across all EU institutions authorised to use internal approaches for the calculation of capital requirements. The reports cover credit risk for high and low default portfolios, as well as market risk. The results confirm previous findings, … Continue Reading
On 18 December 2018, the European Banking Authority (EBA) issued a consultation paper on proposed amendments to the European Commission’s Implementing Regulation on the benchmarking of internal models. The proposed amendments seek to adjust the benchmarking portfolios and reporting requirements in view of the benchmarking exercise that will be carried out in 2020. The proposed … Continue Reading
On 17 December 2018, the European Banking Authority (EBA) published final guidelines on disclosure of non- performing and forborne exposures. The aims of the guidelines are to ensure the provision of meaningful information to market participants on credit institutions’ asset quality and to gain a better insight into the distribution and level of collateralisation of … Continue Reading
On 13 December 2018, the Basel Committee on Banking Supervision (Basel Committee) issued a consultative document seeking potential revisions to the disclosure requirements for the leverage ratio. The Basel Committee is particularly concerned about “window-dressing”, in the form of temporary reductions of transaction volumes in key financial markets around reference dates resulting in the reporting … Continue Reading
On 11 December 2018, the Basel Committee on Banking Supervision (Basel Committee) published its final standards on the updated framework for Pillar 3 disclosure requirements (the Standards). The Basel Committee has updated the Pillar 3 disclosure requirements following a consultation that took place between 27 February 2018 and 25 May 2018. The updated Pillar 3 … Continue Reading
On 29 November 2018, the Basel Committee on Banking Supervision (Basel Committee) issued a press release following its meeting on 26 – 27 November 2018. At this meeting the Basel Committee: agreed to a set of targeted revisions to the market risk framework which will enhance the risk sensitivity of the standardised approach, revise the … Continue Reading
On 30 November 2018, the European Banking Authority EBA published an updated overview of Member States implementation and transposition of the CRD IV and CRR. It also provides a detailed picture of the use of options and national discretions by each Member State competent authority as well as information on the general criteria and methodologies … Continue Reading
On 26 November 2018, there was published in the Official Journal of the EU, Regulation (EU) 2018/1845 of the European Central Bank (ECB) of 21 November 2018 on the exercise of the discretion under Article 178(2)(d) of the Capital Requirements Regulation in relation to the threshold for assessing the materiality of credit obligations past due. … Continue Reading
On 12 November 2018, the European Central Bank (ECB) published its expectations regarding institutions’ internal capital and liquidity adequacy assessment processes. Two guides were published: ECB guide to the internal capital adequacy assessment process (ICAAP); and ECB guide to the internal liquidity adequacy assessment process (ILAAP). The purpose of both guides are to provide transparency … Continue Reading
On 9 November 2018, there was published in the Official Journal of the EU (OJ), Commission Implementing Regulation (EU) 2018/1627 of 9 October 2018 amending Implementing Regulation (EU) No. 680/2014 as regards prudent valuation for supervisory reporting. Commission Implementing Regulation (EU) No. 680/2014 specifies the modalities according to which institutions are required to report information … Continue Reading
On 31 October 2018, the European Banking Authority (EBA) published final guidelines on management of non-performing and forborne exposures. The guidelines are intended to ensure that EU credit institutions have adequate prudential tools and frameworks in place to manage effectively their non-performing exposures (NPEs) and to achieve a sustainable reduction on their balance sheets. The … Continue Reading
On 30 October 2018, there was published in the Official Journal of the European Union (OJ) Commission Delegated Regulation (EU) 2018/1620 of 13 July 2018 amending Delegated Regulation (EU) 2015/61 to supplement Regulation (EU) No 575/2013 of the European Parliament and the Council with regard to the liquidity coverage requirement for credit institutions. The Delegated … Continue Reading
On 26 October 2018, the Joint Committee of the European Supervisory Authorities (the Committee) comprised of ESMA, the EBA and EIOPA, published a consultation paper (the Consultation) on the draft implementing technical standards (ITS) amending the implementing regulation (the Implementing Regulation) on the mapping of external credit assessment institutions (ECAI) under the Capital Requirements Regulation … Continue Reading
On 22 October 2018, there was published in the Official Journal of the European Union (OJ) Commission implementing regulation (EU) 2018/1580 of 19 October 2018 amending Implementing Regulation (EU) 2015/2197 laying down implementing technical standards with regard to closely correlated currencies in accordance with Regulation (EU) No 575/2013 of the European Parliament and of the … Continue Reading
On 18 October 2018, the Basel Committee on Banking Supervision (Basel Committee) issued a statement on ‘leverage ratio window-dressing behaviour’. This is a form of temporary reductions of transaction volumes in key financial markets around reference dates resulting in the reporting and public disclosure of elevated leverage ratios. The Basel Committee states that window dressing … Continue Reading
On 18 October 2018, the Basel Committee on Banking Supervision (Basel Committee) issued a consultative document seeking views on whether a targeted and limited revision of the leverage ratio’s treatment of client cleared derivatives may be warranted. The leverage ratio complements the risk-based capital requirements by providing a safeguard against levels of leverage and by … Continue Reading
On 17 October 2018, the Basel Committee on Banking Supervision (Basel Committee) published stress testing principles that replace the 2009 Principles for sound stress testing practices and supervision. The principles are guidelines that focus on the core elements of stress testing frameworks. These include the objectives, governance, policies, processes, methodology, resources and documentation that guide … Continue Reading
On 4 October 2018, the European Banking Authority (EBA) published a report on liquidity measures under Article 509(1) of the Capital Requirements Regulation (CRR). As part of its mandate under the CRR, the EBA monitors and evaluates the liquidity coverage requirements on an annual basis. In this regard, the EBA takes into account the potential … Continue Reading
On 4 October 2018, the European Banking Authority (EBA) published a report that presents the estimated impact of the Basel reform package on European banks as agreed in December 2017 by the Group of Central Bank Governors and Heads of Supervision. The assessment of the final package includes the revisions to the internal ratings-based (IRB) … Continue Reading
On 28 September 2018, the European Parliament’s Committee on Economic and Monetary Affairs (ECON) published two reports concerning the legislative package on the prudential regulation of investment firms: report on the proposal for a Regulation of the European Parliament and of the Council on the prudential requirements of investment firms and amending Regulations (EU) No … Continue Reading
On 7 September 2018, the European Central Bank (ECB) published a draft version of the risk-type-specific chapters for the ECB guide to internal models (the Guide) for consultation. The CRR permits credit institutions to use internal models for risk when the requirements set out in the corresponding chapters of the CRR are met. The Guide … Continue Reading
On 28 August 2018, the European Banking Authority (EBA) published three consultation papers concerning Implementing Technical Standards (ITS) on supervisory reporting by firms subject to the Capital Requirements Regulation (CRR). Consultation paper on draft ITS amending Implementing Regulation (EU) 2016/322 with regard to LCR for liquidity reporting (Paper 1). On 13 July 2018 the European … Continue Reading
