On 18 December 2023, the Bank of England (BoE) published its supervision of financial market infrastructures (FMIs) annual report for 2023. The report highlights the crucial role of FMIs in the smooth operation of the UK financial system and the broader economy. It sets out how the BoE has exercised its responsibilities in respect of … Continue Reading
On 10 January 2024, the European Central Bank (ECB) published a guide on financial conglomerate reporting of significant risk concentrations and intragroup transactions. The guide is relevant for financial conglomerates that are headed by a credit institution which the ECB has classified as a significant institution. The guide is intended to provide transparency regarding the approach … Continue Reading
On 9 January 2024, the European Banking Authority published final draft regulatory technical standards (RTS) and final draft implementing technical standards (ITS) on the functioning of supervisory colleges under the Capital Requirements Directive (CRD) IV. Commission Delegated Regulation (EU) 2016/98 and Commission Implementing Regulation (EU) 2016/99 specify the functioning of supervisory colleges. The final draft … Continue Reading
On 4 January 2024, the European Central Bank (ECB) published the latest version of its Supervisory Manual. The Supervisory Manual describes the organisational set-up of the Single Supervisory Mechanism (SSM) and defines the methodologies, processes and procedures for banking supervision in the euro area. It also covers how the SSM cooperates with other authorities in … Continue Reading
On 20 December 2023, the European Banking Authority (EBA) published a final report updating its existing guidelines on the specification and disclosure of systemic importance indicators. The guidelines define uniform requirements for disclosing the values used during the identification and scoring process of global systemically important institutions (G-SIIs), in line with internationally agreed standards developed … Continue Reading
On 21 December 2023, the European Securities and Markets Authority (ESMA) issued a consultation paper on the securitisation disclosure templates under Article 7 of the Securitisation Regulation. Article 7 of the Securitisation Regulation sets out the transparency requirements for all types of securitisations. These requirements include the disclosure of information related to the structure of … Continue Reading
On 19 December 2023, the FCA published a new webpage, Expectations of firms selling client banks. On the webpage the FCA explains that a client bank is the name for a list of clients or accounts maintained by someone who provides financial services. It may include all clients the firms has worked with in the … Continue Reading
On 19 December 2023, the European Central Bank (ECB) published the results of its 2023 Supervisory Review and Evaluation Process (SREP) and its supervisory priorities for 2024 – 2026. The SREP is an annual exercise in which ECB supervisors examine EU banks’ risks and produce capital requirements and guidance for each individual bank (which is … Continue Reading
On 19 December 2023, the European Banking Authority (EBA) published a report on the deposit coverage level and coverage of public authorities’ deposits, in response to a call for advice by the European Commission. The report presents the EBA’s analysis of the data collected from 28 EEA countries covering the period between January 2022 and … Continue Reading
On 18 December 2023, the Payment Systems Regulator (PSR) published a consultation paper, CP23/12, on expanding variable recurring payments (VRPs). In CP23/12, which has been published alongside a progress update from the Joint Regulatory Oversight Committee (JROC), the PSR is consulting on changes to Faster Payments to enable a phased expansion of VRPs. In particular, … Continue Reading
On 18 December 2023, the Joint Regulatory Oversight Committee (JROC), which is co-chaired by the FCA and the Payment Systems Regulator (PSR), published an update on the progress it has made since it outlined its open banking vision in April 2023 and set out its plans to deliver a new generation of payment products and … Continue Reading
On 15 December 2023, the Bank of England (BoE) updated its ‘Approach to Resolution’ document, known as the Purple Book. The document is the third edition of the Purple Book and updates the 2017 version. Part 1 outlines the key features of the UK resolution regime. Part 2 looks at how the BoE would be … Continue Reading
On 14 December 2023, the Single Resolution Board (SRB) issued a consultation on the future of the minimum requirements for own funds and eligible liabilities (MREL). The consultation is part of the SRB’s strategic review to ensure that it remains optimally equipped for the future, building on lessons learned from earlier bank failures and SRB … Continue Reading
On 13 December 2023, the European Commission published Commission Delegated Regulation (EU) of 13.12.2023 supplementing the Securitisation Regulation with regard to regulatory technical standards (RTS) specifying the performance-related triggers and the criteria for the calibration of those triggers. The RTS specify the two mandatory triggers under point (a) of Article 26c(5), third subparagraph of the … Continue Reading
On 7 December 2023, the Basel Committee on Banking Supervision (Basel Committee) published a press release following the outcome of a meeting held virtually on 5 and 7 December 2023. The headlines from the press release are that the Basel Committee:… Continue Reading
On 7 December 2023, the FCA published Consultation Paper CP23/29: Access to Cash (CP23/29), setting out its proposals for how it supports access to cash in an increasingly digital world. The FCA is proposing a new regulatory regime, which would require banks and building societies designated by the Government to assess and fill gaps, or … Continue Reading
On 6 December 2023, the Council of the EU and the European Parliament reached a provisional political agreement on the so called Daisy Chains proposal which amends the Bank Recovery and Resolution Directive and the Single Resolution Mechanism Regulation to include targeted proportionality requirements to the treatment of internal MREL in bank resolution groups. The … Continue Reading
On 6 December 2023, the Council of the EU and the European Parliament reached a provisional political agreement on the so called Daisy Chains proposal which amends the Bank Recovery and Resolution Directive and the Single Resolution Mechanism Regulation to include targeted proportionality requirements to the treatment of internal MREL in bank resolution groups. The … Continue Reading
On 5 December 2023, the Prudential Regulation Authority (PRA) published Consultation Paper CP23/23 – Identification and management of step-in risk, shadow banking entities and groups of connected clients. In CP23/23, the PRA sets out proposed rules requiring Capital Requirements Regulation (CRR) firms that are not small domestic deposit takers (SDDTs) and CRR consolidation entities that … Continue Reading
On 30 November 2023, the Bank of England (BoE) issued a consultation paper on codes of practice for wholesale cash distribution market oversight. Legislation provides that the BoE must consult on codes of practice that it wishes to publish under the wholesale cash distribution oversight regime. The BoE consulted on its statement of policy and … Continue Reading
On 30 November 2023, the Single Resolution Board (SRB) published its Annual Work Programme for 2024. The Annual Work Programme 2024 will be completed early next year with a multi-annual work programme for the SRB, based on the 2023 strategic review of SRB and Single Resolution Mechanism (SRM) operations, which will be launched early next … Continue Reading
On 27 November 2023, the Financial Stability Board (FSB) published the 2023 list of global systemically important banks (G-SIBs). FSB member authorities apply the following to G-SIBs: high capital buffer, total loss-absorbing capacity, group wide resolution planning and regular resolvability assessments and higher supervisory expectations including for risk management functions. The new list of G-SIBs … Continue Reading
On 27 November 2023, the Basel Committee on Banking Supervision published material related to the identification of the 2023 global systemically important banks (G-SIB), including updated denominators used to calculate banks’ scores, the thresholds used to allocate the banks to buckets and the values of the 13 high-level indicators of all banks in the main … Continue Reading
On 27 November 2023, the Basel Committee on Banking Supervision (Basel Committee) published a supervisory newsletter on the adoption of the Principles for Operational Resilience (POR) and the revised Principles for the Sound Management of Operational Risk (PSMOR). The newsletter reports on the Basel Committee’s evaluation of the POR and the PSMOR in early 2023 … Continue Reading