On 14 November 2019, the Basel Committee on Banking Supervision published a consultative document on voluntary disclosure templates related to banks’ sovereign exposures. The templates break down a bank’s sovereign exposures by country, currency and accounting treatment. The templates build upon the contents of the Basel Committee’s December 2017 discussion paper on the regulatory treatment … Continue Reading
On 14 November 2019, the Basel Committee on Banking Supervision published a consultative document setting out proposed revisions to the Pillar 3 templates for the revised market risk framework to reflect the changes introduced in the January 2019 minimum capital requirements for market risk. Among other things the Basel Committee consults on the introduction of … Continue Reading
On Tuesday, 12 November 2019, the European Commission hosted a conference titled Implementing Basel III: Challenges and impact. The event was held in the context of the ongoing Commission consultation on Basel III implementation (see our earlier post here). The opening remarks were delivered by Valdis Dombrovskis, the Commission’s Vice-President for the Euro and Social … Continue Reading
On 7 November 2019, the European Banking Authority (EBA) published the final methodology and draft templates for its 2020 EU-wide stress test along with key milestones of the exercise. The objective of the stress test is to provide EU supervisors, banks and other market participants with a common analytical framework to consistently compare and assess … Continue Reading
On 21 October 2019, the European Commission issued a consultation document on the alternative standardised approach for market risk. The Basel Committee on Banking Supervision’s fundamental review of the trading book resulted in the publication of a new framework for market risk in January 2016. In December 2017, the Group of Central Bank Governors … Continue Reading
On 16 October 2019, the European Banking Authority (EBA) issued a consultation paper containing draft Implementing Technical Standards (ITS) on public disclosures by institutions of the information referred to in Titles II and III of Part Eight of the Capital Requirements Regulation (CRR). Regulation 2019/876 (CRR2) amending the CRR mandates the EBA, in Article 434a, … Continue Reading
On 11 October 2019, the European Commission launched a public consultation on the implementation in the European Union of the December 2017 Basel Committee on Banking Supervision (BCBS) standard (Basel III: Finalising post-crisis reforms). The consultation document addresses the key elements of the BCBS standard, including revisions to the Basel III standards on credit risk, … Continue Reading
On 2 October 2019, the European Banking Authority (EBA) published two reports that monitor the impact of implementing the final Basel III reforms and the current implementation of liquidity measures in the EU. The latest EBA Basel III capital monitoring report provides an assessment of the impact of the full implementation of the final Basel … Continue Reading
On 9 September 2019, the European Banking Authority (EBA) announced that it intends to provide clarity on the appropriate treatment of legacy instruments at the end of 2021. When the Capital Requirements Regulation (CRR) entered into force, grandfathering provisions were introduced to ensure that institutions had sufficient time to meet the requirements set out by … Continue Reading
On 22 August 2019, the European Central Bank (ECB) issued a communication on supervisory expectations for non-performing exposures (NPEs). The communication begins by stating that addressing non-performing loans (NPLs) has been one of the key priorities for ECB Banking Supervision since its inception. The overall objective of developing the supervisory approach to NPLs is to … Continue Reading
On 5 August 2019, the European Banking Authority (EBA) published its report to the European Commission, following an earlier call for advice in May 2018, on the assessment of the implementation of Basel III in the EU. The advice presents the findings of the EBA’s quantitative impact assessment analysis based on data from 189 banks … Continue Reading
On 5 August 2019, the European Banking Authority (EBA) updated its Interactive Single Rulebook and Q&A tool on the Capital Requirements Regulation II (CRR II), Capital Requirements Directive V (CRD V) and Bank Recovery and Resolution Directive II (BRRD II). The update allows users to review all the EBA’s final technical standards and guidelines associated … Continue Reading
On 2 August 2019, the European Banking Authority (EBA) published a letter (dated 15 July 2019) it had received from the European Commission concerning its preparatory work for the implementation of the Basel III reforms. The Commission notes that the EBA is currently finalising its advice on the Basel III reforms in the area of … Continue Reading
On 31 July 2019, the European Banking Authority (EBA) published a consultation paper proposing draft guidelines on the determination of the weighted average maturity (WAM) of the contractual payments due under the tranche of a securitisation transaction. The framework under the Capital Requirements Regulation (CRR) for securitisations has introduced a tranche maturity as an additional … Continue Reading
On 22 July 2019, the European Banking Authority (EBA) published an updated list of Common Equity Tier 1 (CET1) instruments of EU institutions. The list is accompanied by an updated CET1 report, which includes information on the underlying objectives of the monitoring as well as on the consequences of including or excluding instruments in or … Continue Reading
On 16 July 2019, the European Banking Authority (EBA) published an update to its implementing technical standards (ITS) on benchmarking of internal approaches to reflect comments received following an earlier consultation in December 2018 (see previous blog post). The ITS include all benchmarking portfolios that will be used for the 2020 benchmarking exercise. A zip … Continue Reading
On 12 July 2019, the European Banking Authority (EBA) published its first report on the monitoring of liquidity coverage ratio (LCR) implementation in the EU. The EBA’s monitoring of the LCR contributes to a consistent application of EU law and promotes common supervisory approaches and practices in this area. In the report, the EBA has … Continue Reading
On 9 July 2019, the European Banking Authority (EBA) published a progress report on the roadmap set out in 2016 to repair internal models used to calculate own funds requirements for credit risk under the internal ratings based (IRB) approach. The EBA’s IRB roadmap was set up to address concerns about undue variability of own … Continue Reading
On 8 July 2019, the European Central Bank (ECB) published finalised chapters to its guide to internal models covering credit risk, market risk and counterparty credit risk. These risk type-specific chapters complement earlier chapters on general topics such as internal governance and audit. Articles 143, 283 and 363 of the Capital Requirements Regulation (CRR) … Continue Reading
On 3 July 2019, the Financial Stability Board (FSB) published a technical review of the implementation of the total loss-absorbing capacity (TLAC) standard for global systemically important banks (G-SIBs) in resolution. The review finds that: progress has been steady and significant in both the setting of external TLAC requirements by authorities and the issuance of … Continue Reading
The European Commission’s work on the finalisation of the Basel III reforms in the European Union is gathering pace. Following its April 2018 public consultation on an additional set of prudential reforms that will implement in European law the December 2017 Basel Committee on Banking Supervision’s standard (Basel III: Finalising post-crisis reforms), the Commission has … Continue Reading
On 25 June 2019, the European Banking Authority (EBA) published the 2020 EU-wide stress test draft methodology, templates and template guidance which will be discussed with the industry. The 2020 exercise will assess EU banks’ resilience to an adverse economic shock and inform the 2020 Supervisory Review and Evaluation Process. The final methodology will be … Continue Reading
On 26 June 2019, the Basel Committee on Banking Supervision (Basel Committee) published revisions to leverage ratio disclosure requirements by setting out additional requirements for banks to disclose their leverage ratios based on quarter-end and on daily average values of securities financing transactions. The revisions are applicable to the Pillar 3 disclosure requirements associated with … Continue Reading
On 26 June 2019, the Basel Committee on Banking Supervision (Basel Committee) published a document setting out revisions to the leverage ratio standard text that will serve to implement the treatment of client cleared derivatives. This revision will apply to the version of the leverage ratio standard that will serve as the Pillar 1 minimum … Continue Reading
