On 20 May 2022, the Single Resolution Board (SRB) announced an enhancement to its approach to the Public Interest Assessment (PIA) policy in resolution planning. The PIA is one of the key policies underpinning the work of the SRB. It examines whether the resolution of a particular EU bank that is failing, or likely to … Continue Reading
On 19 May 2022, HM Treasury issued a summary of the responses to its earlier access to cash consultation. The document also sets out the government’s planned approach to legislating for access to cash in the Financial Services and Markets Bill. In summary, HM Treasury intends to designate firms for the purpose of ensuring continued … Continue Reading
On 19 May 2022, the European Central Bank (ECB) updated its supervision blog by posting an update by its chair, Andrea Enria. The posting concerns Brexit and the relocation of business by international banks from London to subsidiaries in the euro area. The blog posting refers to the ECB’s supervisory work in the form of … Continue Reading
On 13 May 2022, the European Banking Authority (EBA) adopted a decision on supervisory reporting for intermediate parent undertaking (IPU) threshold monitoring for those entities belonging to third country groups (TCGs), including third country branches (TCBs). Article 21b of the Capital Requirements Directive IV (CRD IV) requires institutions belonging to TCGs to have an IPU … Continue Reading
The FCA has recently conducted a review of financial crime controls at a sample of six challenger banks in order to identify the key financial crime risks to which such banks are exposed. The review was prompted by a substantial increase in the volume of Suspicious Activity Reports (SARs) filed by challenger banks. Whilst the … Continue Reading
On 4 May 2022, the European Banking Authority (EBA) issued a report on non-bank lending. The report is in response to the European Commission’s February 2021 Call for Advice on this topic. The report is based on a survey that the EBA launched among Member State competent authorities to gather information about entities carrying out … Continue Reading
On 3 May 2022, the European Banking Authority (EBA) issued final draft implementing technical standards (ITS) to amend the Implementing Regulation on the mapping of credit assessments of External Credit Assessment Institutions (ECAIs) for securitisation positions. The changes reflect the relevant amendments introduced by the new Securitisation Framework, as well as the mappings for three … Continue Reading
On 29 April 2022, the Bank of England (BoE) issued a consultation paper seeking views on what features market participants would like to see investment in for the next stage of roadmap for Real-Time Gross Settlement (RTGS) beyond 2024. The BoE is in the process of renewing the RTGS service, with the move to enhanced … Continue Reading
On 26 April 2022, HM Treasury published a Policy Statement ‘Protecting UK wholesale cash infrastructure’. In the Policy Statement HM Treasury reports that the government intends to provide the Bank of England (BoE) with the powers to oversee the wholesale cash industry so that it remains resilient and sustainable and can continue to effectively support … Continue Reading
On 19 April 2022, the European Central Bank published: Guideline ECB/2022/8 on a new generation Trans-European Automated Real-time Gross Express Transfer system. Decision ECB/2022/22 on the terms and conditions of TARGET-ECB. The Eurosystem central banks shall comply with the Guideline from 21 November 2022. … Continue Reading
On 12 April 2022, the European Banking Authority (EBA) published final draft regulatory technical standards (RTS) on the risk retention requirements for securitisations. The draft RTS have been developed in accordance with Article 6(7) of the Securitisation Regulation (as amended), which mandates the development of RTS further specifying risk retention requirements. A substantial part of … Continue Reading
On 31 March 2022, the European Central Bank (ECB) published its 2021 Annual Report. In her foreword to the Annual Report Christine Lagarde, President of the ECB, mentions that the COVID-19 pandemic has led to more fundamental changes in the landscape in which banks operate. She states that digitisation has accelerated and the urgency to … Continue Reading
On 29 March 2022, the PRA updated its webpage concerning resolution planning by providing an update on the extension of the suspension of phase 1 reporting under Supervisory Statement 19/13 (SS19/13) until further notice. The suspension was previously extended in May 2020 to all firms in scope of the Resolution Pack Part of the PRA … Continue Reading
On 28 March 2022, the European Central Bank (ECB) published a letter that it had sent to CEOs of significant institutions that specifies its expectations regarding leveraged transactions. The letter includes an annex setting out the ECB’s observations on the overall leveraged transaction risk appetite framework design and functioning. Key points in the letter include: … Continue Reading
On 30 March 2022, Elke König, chair of the Single Resolution Board (SRB), delivered a speech at the SRB Annual Press Breakfast which focuses on resolution and financial stability in Europe. Among other things during the speech the SRB’s priorities for resolution planning are mentioned: The continued built up of adequate minimum requirement for own … Continue Reading
On 30 March 2022, there was published in the Official Journal of the European Union (OJ), Regulation (EU) 2022/504 of the European Central Bank of 25 March 2022 amending Regulation (EU) 2016/445 on the exercise of options and discretions available in Union law. The Regulation enters into force on the fifth day following its publication … Continue Reading
On 28 March 2022, the European Central Bank (ECB) published a number of instruments which relate to how it will apply options and discretions foreseen in EU banking rules. This follows on from the public consultation which ended in August 2021. The ECB has set out a number of documents regarding supervisory options and discretions … Continue Reading
On 25 March 2022, the Competition and Markets Authority (CMA) published its recommendations for the future oversight and governance of Open Banking. The CMA’s recommendations will be taken into consideration in the design of a future entity to succeed the Open Banking Implementation Entity (OBIE). The future entity would build on the significant progress made … Continue Reading
On 24 March 2022, the Bank of England (BoE) published its latest Financial Policy Summary and Record. Among other things the BoE note that Russia’s invasion of Ukraine is increasing economic uncertainty and will increase pressure on borrowers. For example, sustained increases in energy prices resulting from the conflict are likely to put pressure on … Continue Reading
On 22 March 2022, the European Central Bank (ECB) published a speech by Fabio Panetta (Executive Board member, ECB) entitled ‘Building a robust and diversified clearing ecosystem’. Key points in the speech include: When assessing the resilience of the clearing ecosystem, regulators should not focus exclusively on central counterparties (CCPs). Clearing members also need to … Continue Reading
On 18 March 2022, the European Central Bank (ECB) published a non-binding guide on the notifications of securitisation transactions. The guide sets out the notification practices that significant institutions acting as originators or sponsors of a securitisation transaction are advised to follow in order to provide the ECB with information needed for the supervision of … Continue Reading
On 18 March 2022, the Bank of England (BoE) renewed its commitment to adhere to the FX Global Code (Code) in a Statement of Commitment based on the revised Code dated July 2021. The Code sets out principles of good practice in the foreign exchange market. The BoE confirms that it acts as a market … Continue Reading
On 17 March 2022, the Single Resolution Board (SRB) published its operational guidance on the identification and mobilisation of collateral in resolution. The operational guidance complements the SRB’s Expectations for Banks document that sets out the capabilities the SRB expects Eurozone banks to demonstrate to show that they are resolvable, in providing such banks with … Continue Reading
On 16 March 2022, HM Treasury laid in Parliament the Final Report of the Ring-fencing and Proprietary Trading Independent Review. The Final Report sets out the final conclusions and recommendations of the Review Panel. Overall, the Review Panel found that the ring-fencing regime (the regime) has been successful in achieving some of its objectives of … Continue Reading
