On 30 May 2023, the European Banking Authority (EBA) published a peer review report on excluding transactions with non-financial counterparties established in a third country from credit valuation adjustment (CVA) risk. The global financial crisis of 2007-2008 revealed that CVA risk was a source of unexpected losses. Robust CVA management mitigates against losses and helps … Continue Reading
On 30 May 2023, the European Banking Authority (EBA) published a consultation paper containing draft technical standards which replace those contained in Commission Delegated Regulation (EU) 2016/98 and Commission Implementing Regulation (EU) 2016/99 specifying the functioning of supervisory colleges. The technical standards are being updated given that the legal framework for banks and investment firms … Continue Reading
On 25 May 2023, the European Banking Authority (EBA) published a Consultation Paper containing draft implementing technical standards amending Implementing Regulation 2016/1799 on the mapping of External Credit Assessment Institutions (ECAIs) credit assessments under Article 136(1) and (3) of the Capital Requirements Regulation. The proposed amendments reflect the outcome of a monitoring exercise on the … Continue Reading
On 25 May 2023, a group of central banks, together with the Bank for International Settlements, published a paper on central bank digital currencies (CBDC): ongoing policy perspectives. Since publishing (i) a report in October 2020 setting out the common foundational principles and core features of a CBDC, and (ii) an executive summary and three … Continue Reading
On 23 May 2023, the European Central Bank (ECB) published a guide on qualifying holding procedures. Article 4(1)(c) of the Regulation establishing the Single Supervisory Mechanism (SSM Regulation) gives the ECB exclusive competence to assess acquisitions and increases of qualifying holdings in credit institutions in the countries participating in the SSM. Article 6(4) of the … Continue Reading
On 10 May 2023, HM Treasury published a draft of The Amendments of the Law (Resolution of Silicon Valley Bank UK Limited) (No. 2) Order 2023, along with a draft explanatory memorandum. The draft statutory instrument (SI) makes certain amendments to the law in order to enable powers under Part 1 of the Banking Act … Continue Reading
On 10 May 2023, HM Treasury published a letter from the Economic Secretary, Andrew Griffiths, to the Chair of the House of Lords Economic Affairs Committee, regarding further adjustments to the ring-fencing regime in connection with the resolution of Silicon Valley Bank UK (SVB UK). The letter notes that the draft Amendments of the Law … Continue Reading
On 16 May 2023, the FCA published a speech given by its Chair, Ashley Alder, at the Managed Funds Associations’ Global Summit in Paris, on the drive for data in non-bank financial intermediation (NBFI). In the speech, Mr Alder explores the global debate on NBFI (which used to be referred to as ‘shadow banking’). Mr … Continue Reading
On 15 May 2023, the European Banking Authority (EBA) published a final report on revised guidelines on methods for calculating contributions to deposit guarantee schemes under the Deposit Guarantee Schemes (DGS) Directive. The report is dated 21 February 2023. The revised guidelines, which replace the existing guidelines (EBA/GL/2015/10), improve the method on how to calculate … Continue Reading
On 18 April 2023, the European Commission (Commission) published its crisis management and deposit insurance (CMDI) legislative package. The legislative package contains amending proposals to the EU regime for the recovery and resolution of credit institutions. The legislative package consists of the following legislative proposals: The BRRD established a framework for the recovery and resolution … Continue Reading
On 27 April 2023, the European Banking Authority (EBA) published an opinion in response to an earlier letter from the European Commission which notified the European Supervisory Authority that it would be adopting, with amendments, the final draft Regulatory Technical Standards (RTS) specifying supervisory shock scenarios, common modelling and parametric assumptions and what constitutes a … Continue Reading
On 24 April 2023, the FCA announced a series of measures designed to reduce the risk of money laundering via the Post Office. The FCA brought together partners, including the National Economic Crime Centre, industry and government to strengthen controls whilst seeking to ensure that legitimate customers can continue to use the Post Office for … Continue Reading
On 21 April 2023, the European Banking Authority (EBA) published a Consultation Paper on guidelines on the simple, transparent and standardised (STS) criteria for on-balance-sheet securitisation under Article 26a(2) of the Securitisation Regulation. The main objective of the guidelines is to provide a single point of consistent interpretation of those criteria and ensure a common … Continue Reading
On 19 April 2023, there was published the official translations of the joint European Banking Authority and European Securities and Markets Authority guidelines on common procedures and methodologies for the supervisory review and evaluation process (SREP). The guidelines apply from 19 June 2023. They are immediately applicable to the SREP exercises initiated in 2023.… Continue Reading
On 18 April 2023, the European Commission (Commission) published a report to the European Parliament and the Council on the single supervisory mechanism (SSM) established pursuant to Regulation (EU) No 1024/2013 (SSM Regulation). The SSM was established in November 2014 as a key first step towards EU Banking Union to ensure high-quality supervision of credit … Continue Reading
On 18 April 2023, the European Banking Authority (EBA) published a consultation paper on draft guidelines on the resubmission of historical data under the EBA reporting framework. The proposed guidelines set out a common approach to the resubmission by financial institutions of historical data to Member State competent and resolution authorities in case there are … Continue Reading
On 12 April 2023, the Financial Stability Board (FSB) published a letter from its Chair, Klaas Knot, to G20 Finance Ministers and Central Bank Governors, ahead of their meeting on 12-13 April. The letter discusses the recent turmoil in the banking sector and touches on its recommendations to address increasing cyber threats. Mr Knot notes … Continue Reading
On 6 April 2023, the International Capital Market Association (ICMA) published the ninth update to its recommendations for reporting under SFTR. These ICMA recommendations for reporting under the EU Securities Financing Transactions Regulation (SFTR) have been created to support ICMA members in their efforts to implement and apply the complex SFTR reporting requirements. They offer … Continue Reading
On 3 April 2023, the FCA announced that it has decided to require LIBOR’s administrator, ICE Benchmark Administration Limited (IBA), to continue the publication of the 1-, 3- and 6-month US dollar LIBOR settings for a short period after 30 June 2023, using an unrepresentative ‘synthetic’ methodology (‘synthetic US dollar LIBOR’). The decision follows the … Continue Reading
On 3 April 2023, the Prudential Regulation Authority (PRA) published Feedback Statement 1/23: The prudential liquidity framework: supporting liquid asset usability (FS1/23). FS1/23 provides a summary of the responses to the Bank of England (BoE) and PRA Discussion Paper 1/22: The prudential liquidity framework: supporting liquid asset usability (DP1/22), which was published on 31 March … Continue Reading
On 30 March 2023, the Basel Committee on Banking Supervision published updated a Technical Amendment document containing various technical amendments and FAQs. The Technical Amendment document contains proposed amendments to the Basel Framework relating to the: The deadline for comments on the proposed amendments is 15 May 2023. The Basel Committee has also finalised a … Continue Reading
On 27 March 2023 both SIFMA and AFME submitted letters of comment to the US Securities and Exchange Commission (the SEC) responding to the SEC’s Release No. 33-11151 proposing new Rule 192 (Rule 192), seeking to implement a prohibition as required by Section 27B of the Securities Act of 1933 (as inserted in that Act by … Continue Reading
Introduction: what are the facts? The Bank of England (BoE) has a number of resolution tools at its disposal which are provided for in legislation following the 2008 global financial crisis. These tools are designed to protect and enhance UK financial stability, protect public funds and ensure the continuity of banking services. These tools have … Continue Reading
On 23 March 2023, the Basel Committee on Banking Supervision (Basel Committee) announced a range of policy and supervisory initiatives, following a meeting on 14 March and 22-23 March to take stock of recent market developments and risks to the global banking system. Following the meeting, the Basel Committee announced the following:… Continue Reading
