On 25 July 2023, the European Banking Authority (EBA) published a consultation paper setting out draft guidelines on the application of the group capital test for investment firm groups in accordance with Article 8 of the Investment Firms Regulation (IFR). The guidelines aim to set harmonised criteria to address the observed diversity in the application … Continue Reading
On 24 July 2023, the European Banking Authority (EBA) published its report on the treatment of interdependent assets and liabilities in the net stable funding ratio (NSFR). The report assesses the conditions under which assets and liabilities can be treated as interdependent in the NSFR and the description of the list of activities that are … Continue Reading
On 21 July 2023, the European Banking Authority (EBA) published a report which provides an update on the monitoring of Additional Tier 1 (AT1), Tier 2 and total loss-absorbing capacity / minimum requirement for own funds and eligible liabilities (TLAC/MREL) instruments of EU institutions. The report merges the contents of the AT1 monitoring report published … Continue Reading
On 4 July 2023, the European Systemic Risk Board (ESRB) published a compliance report, which provides an assessment of the implementation of its Recommendation of 7 December 2017 on liquidity and leverage risks in investment funds. The Recommendation is addressed to the European Commission and the European Securities and Markets Authority. It aims to address … Continue Reading
On 4 July 2023, the European Systemic Risk Board (ESRB) published a compliance report, which provides an assessment of the implementation of its Recommendation of 7 December 2017 on liquidity and leverage risks in investment funds. The Recommendation is addressed to the European Commission and the European Securities and Markets Authority. It aims to address … Continue Reading
On 27 June 2023, the Council of the EU announced that a provisional agreement has been reached on the implementation of Basel III reforms through amendments to the Capital Requirements Regulation (CRR) and the Capital Requirements Directive (CRD IV). Negotiators from the Council presidency and the European Parliament provisionally agreed on the following: The agreement … Continue Reading
On 22 June 2023, the European Central Bank (ECB) launched a consultation on its revised guide to internal models. The ECB’s guide to internal models provides transparency on how the ECB understands and applies Articles 143, 283 and 363 of the Capital Requirements Regulation (CRR). These Articles require the ECB to grant permission to use … Continue Reading
On 15 June 2023, the European Banking Authority (EBA) published a report on the monitoring of the implementation of the liquidity coverage ratio (LCR) and net stable funding ratio (NSFR) in the EU. The EBA has already published two monitoring reports which aim to foster a higher degree of harmonisation in the implementation of the … Continue Reading
On 25 May 2023, the European Commission published Commission Delegated Regulation (EU) of 25 May 2023 supplementing the Investment Firms Directive with regard to regulatory technical standards specifying the measurement of risks or elements of risks not covered or not sufficiently covered by the own funds requirements set out in parts three and four of … Continue Reading
On 17 May 2023, the European Commission published Commission Delegated Regulation (EU) /… supplementing the Investment Firms Directive with regard to regulatory technical standards for the specific liquidity measurement of investment firms under Article 42(6) of that Directive. The technical standards under the draft Delegated Regulation have been developed in accordance with Article 42(6) of … Continue Reading
On 16 May 2023, the European Banking Authority (EBA) issued a report on the holdings by EU banks of the minimum requirement for own funds and eligible liabilities (MREL) instruments issued by the most systemic European banks. As of 31 December 2021, the report shows that these holdings appear small and the direct spill over … Continue Reading
On 16 May 2023, the European Central Bank (ECB) published a manual with information necessary to execute Phase 2 of the asset quality review (AQR). The ECB and Member State competent authorities responsible for conducting banking supervision carry out AQRs of banks in accordance with the Single Supervisory Mechanism Regulation. Following completion of the AQR, … Continue Reading
On 15 May 2023, the Single Resolution Board issued a press release stating that it was maintaining its policy on the calibration of the minimum requirement for own funds and eligible liabilities (MREL) with minimal changes this year. The press release adds that the only change concerns the scope of entities subject to internal MREL … Continue Reading
On 12 May 2023, the European Banking Authority (EBA) issued a final report containing draft regulatory technical standards (RTS) on the scope and methods for consolidation of an investment firm group under the Investment Firms Regulation (IFR). The final report follows a consultation paper that the EBA published in June 2020 which included draft RTS … Continue Reading
On 5 May 2023, the Council of the EU published the following information notes which set out the opening position of the three institutions prior to the commencement of the trilogue phase:… Continue Reading
On 25 April 2023, the European Banking Authority (EBA) published a report containing final draft regulatory technical standards (RTS) that specify how originator institutions are to determine the exposure value referred to in Article 248(1)(e) of the Capital Requirements Regulation (CRR) (as amended by Regulation 2021/558), taking into account the relevant losses expected to be … Continue Reading
On 19 April 2023, there was published in the Official Journal of the European Union (OJ), Commission Delegated Regulation (EU) 2023/827 of 11 October 2022 laying down regulatory technical standards amending Delegated Regulation (EU) No 241/2014 as regards the prior permission to reduce own funds and the requirements related to eligible liabilities instruments. The Delegated … Continue Reading
On 17 April 2023, the European Central Bank (ECB) published a report containing the results of an external assessment of the Supervisory Review and Evaluation Process (SREP), which includes recommendations to make the SREP more efficient and effective. The report of the assessment was drafted by a group of independent experts. The report: The ECB’s … Continue Reading
On 3 April 2023, HM Treasury published a Call for Evidence (CfE) on the UK Investment Research Review. As part of the Edinburgh Reforms,the Chancellor of the Exchequer announced that he would be launching an independent review of financial services investment research and its contribution to UK capital markets competitiveness. The review has been … Continue Reading
On 29 March 2023, the European Banking Authority published a speech by its chair, José Manuel Campa, entitled Our path to the future of EU-wide stress testing. In his speech Mr Campa explains where the EBA is on the 2023 EU-wide stress test which is currently on-going. This includes some of the main changes that … Continue Reading
On 22 March 2023, there was published in the Official Journal of the European Union (OJ) Commission Delegated Regulation (EU) 2023/662 of 20 January 2023 amending Delegated Regulation (EU) 2015/63 as regards the methodology for the calculation of liabilities arising from derivatives. Regulation (EU) 2019/876 included an amendment to the Capital Requirements Regulation (CRR) which … Continue Reading
On 16 March 2023, the European Banking Authority (EBA) published a Handbook on data submissions for supervisory benchmarking of internal models. The Handbook is an online tool that provides guidance and links to relevant documents and information for the supervisory benchmarking to facilitate their accessibility. In particular, the Handbook includes overviews for all applicable Q&As … Continue Reading
On 27 February 2023, the European Banking Authority (EBA) issued a no-action letter stating that Member State competent authorities should not prioritise any supervisory or enforcement action in relation to the new banking book – trading book boundary provisions.… Continue Reading
On 20 February 2023, the European Commission (Commission) published a letter from John Berrigan, regarding the Call for Advice it had issued to the European Banking Authority (EBA) and the European Securities and Markets Authority (ESMA) for the purposes of the reports on the prudential requirements applicable to investment firms. The letter notes that in … Continue Reading
