On 6 July 2023, the European Central Bank (ECB) published an Opinion on amendments to the EU crisis management and deposit insurance framework. The European Commission has proposed that the ECB be consulted in the proposed amendments to the Single Resolution Mechanism Regulation (SRMR), the proposed amendments to the Bank Recovery and Resolution Directive (BRRD) … Continue Reading
On 28 June 2023, the PRA published Consultation Paper 10/23: Solvent exit planning for non-systemic banks and building societies (CP10/23). In CP10/23 the PRA sets out proposals for non-systemic banks and building societies in the UK to prepare, as part of their business-as-usual activities, for an orderly ‘solvent exit’, and if needed, to be able … Continue Reading
On 26 June 2023, the FCA updated its webpage on The future of open banking and the Joint Regulatory Oversight Committee (JROC). The updated webpage includes a new section on the set up of the variable recurring payments (VRP) working group and the future entity working group.… Continue Reading
On 26 June 2023, the Joint Regulatory Oversight Committee (JROC), which is co-chaired by the FCA and the Payment Systems Regulator (PSR), published a joint paper on principles for commercial frameworks for premium application programming interfaces (APIs). The paper sets out five high-level principles for banks and registered third parties to follow when agreeing a … Continue Reading
On 19 June 2023, the Bank of England (BoE) launched its first system-wide exploratory scenario (SWES) exercise. The SWES exercise aims to improve the BoE’s understanding of the behaviours of banks and non-bank financial institutions (NBFIs) in stressed financial market conditions and how those behaviours might interact to amplify shocks in UK financial markets that … Continue Reading
On 16 June 2023, the Single Resolution Board (SRB) issued new guidance on liquidity in resolution data for EU banks under its direct remit. The guidance covers the liquidity aspect of the SRB’s ‘Expectations for banks’ (EfB) which seeks to enhance banks’ resolvability and preparedness for a potential resolution. The guidance focuses on three objectives, … Continue Reading
On 13 June 2023, the European Banking Authority (EBA) published final guidelines amending its guidelines on improving resolvability for institutions and resolution authorities under Articles 15 and 16 of the Bank Recovery and Resolution Directive. The guidelines: The guidelines will be translated into the official EU languages and published on the EBA website. The deadline … Continue Reading
In many jurisdictions there has been heightened regulatory scrutiny on how financial institutions are dealing with borrowers in financial difficulty. When looking at the statements and criticisms’ that the regulators have made and what institutions themselves have self-identified, the issues may revolve around five key themes – vulnerable customers, due diligence/understanding customers, forbearance, communications and … Continue Reading
On 9 June 2023, the European Banking Authority (EBA) published the 2023 update of the list of closely correlated currencies, originally published in December 2013. The list is part of the implementing technical standards (ITS) that were drafted for calculating the capital requirements for foreign-exchange risk according to the standardised rules. The list was updated … Continue Reading
On 7 June 2023, the European Securities and Markets Authority (ESMA) published updated Questions and Answers (Q&As) on the Securities Financing Transactions Regulation (SFTR) data reporting. ESMA has now added a Q&A on ‘Reporting of SFTs concluded by IORPs and pension funds’.… Continue Reading
On 7 June 2023, the Bank for International Settlements (BIS) issued a press release concerning the meeting that the Basel Committee on Banking Supervision (Basel Committee) had on 6 June 2023. At this meeting the Basel Committee took stock of recent market developments and risks to the global banking system. It also discussed various policy … Continue Reading
On 6 June 2023, the FCA announced that the Joint Regulatory Oversight Committee (JROC) has set out the next steps to help UK open banking grow. The programme of work, set forth by the JROC, involves setting up dedicated work streams to action the key themes and priorities outlined in the recommendations that were issued … Continue Reading
On 5 June 2023, the European Banking Authority (EBA) published final draft implementing technical standards (ITS) on supervisory benchmarking for the 2024 exercise. The EBA benchmarking exercise ensures consistent monitoring of the variability of own funds requirements resulting from the application of internal models, as well as of the impact of several supervisory and regulatory … Continue Reading
On 2 June 2023, the European Banking Authority (EBA) published a document following a targeted review of governance and risk management of counterparty credit risk (CCR) at 23 institutions that were materially active in derivatives and securities financing transactions with non-banking counterparties. The document provides a collection of good practices in CCR governance and management … Continue Reading
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
