Tag: Banking

Futures: German regulator prohibits marketing to retail clients

The German Federal Financial Supervisory Authority (Bundes­anstalt für Finanz­dienst­leistungs­aufsicht – BaFin) makes use of its product intervention powers under the European Markets in Financial Instruments Regulation (MiFIR): Under a general administrative act (All­ge­mein­ver­fügung) dated 30 September 2022 (link to English convenience translation), BaFin prohibited the marketing, distribution and sale of futures to retail clients domiciled in … Continue Reading

ECB guidelines on transferability to support the resolvability assessment for transfer strategies

On 28 September 2022, the European Banking Authority (EBA) published final guidelines on transferability to support the resolvability assessment for transfer strategies. The guidelines complement the EBA resolvability guidelines as regards resolution tools other than bail-in. They assess the feasibility and credibility of transfer strategies and encompass requirements relating to the implementation of transfer tools … Continue Reading

ECB consults on guide of how to assess buyers of qualifying stakes in banks

On 28 September 2022, the European Central Bank (ECB) issued a public consultation on a draft guide which seeks to clarify how it assesses applications to acquire qualifying holdings in banks. The ECB intends for the guide to function as a user-friendly handbook. The guide explains who is obliged to undergo qualifying holding assessments, the … Continue Reading

ICMA publishes updated version of its SFTR reporting recommendations

On 23 September 2022, the International Capital Market Association (ICMA) published an updated version of its detailed recommendations for reporting under SFTR. The updated guidance includes six new questions and numerous further updates, reflecting new insights as well as additional guidance from the European Securities and Markets Authority (ESMA), e.g. regarding the reporting of central … Continue Reading

EBA publishes final draft RTS specifying the performance-related triggers pursuant to the Securitisation Regulation

On 20 September 2022, the European Banking Authority (EBA) published final draft Regulatory Technical Standards (RTS) specifying the minimum performance-related triggers for simple, transparent and standardised (STS) on-balance-sheet securitisations that feature non-sequential amortisation. The draft RTS have been developed in accordance with Article 26c(5) of the Securitisation Regulation (as amended by Regulation 2021/557), which requests … Continue Reading

BCBS reaffirms Basel III implementation expectations and work priorities

On 13 September 2022, the Basel Committee on Banking Supervision (BCBS) published a press release following a meeting of the Group of Central Bank Governors and Heads of Supervision (GHOS) reaffirming their expectation to implement Basel III in full and work as fast as possible; provide direction on future work on climate-related financial risks and … Continue Reading

ECB appoints five experts to re-evaluate annual supervisory review process

On 1 September 2022, the European Central Bank (ECB) announced the appointment of five experts on banking supervision to review the effectiveness and efficiency of the Supervisory Review and Evaluation process (SREP) and how it relates to other supervisory processes. The expert group will engage with major relevant stakeholders and other international experts to gather … Continue Reading

US Second Circuit limits jurisdictional reach over foreign banks

Banks around the world routinely transmit money into and out of New York, a global financial and commercial center.  The Second Circuit’s recent opinion in Daou v. BLC Bank, S.A.L. serves as a reminder that New York courts will not open their doors and exercise personal jurisdiction over foreign banks absent a specific connection between … Continue Reading

House of Commons Research briefing on the future of local banking services and access to cash

On 9 August 2022, the House of Commons published a research briefing on the future of local banking services and access to cash. The research briefing provides an overview of the policy relating to the closure of bank and building society branches and to efforts to protect access to cash. In particular: The Government announced a … Continue Reading

EBA consults on revised Guidelines on methods for calculating contributions to deposit guarantees schemes

On 29 July 2022, the European Banking Authority (EBA) launched a public consultation on its draft revised Guidelines on deposit guarantee schemes (DGS) contributions. The revised Guidelines are aimed at enhancing the proportionality between the risk of a credit institution and its contributions to the DGS, and at streamlining and simplifying the original Guidelines. In … Continue Reading

EBA publishes Consultation Paper on Draft Regulatory Technical Standards on the homogeneity of the underlying exposures in STS securitisation under Articles 20(14), 24(21) and 26b (13) of Regulation (EU) 2017/2402, as amended by Regulation (EU) 2021/557

On 28 July 2022, the European Banking Authority (EBA) published a Consultation Paper on Draft Regulatory Technical Standards (RTS) on the homogeneity of the underlying exposures in STS securitisation under Articles 20(14), 24(21) and 26b(13) of Regulation (EU) 2017/2402, as amended by Regulation (EU) 2021/557. These draft RTS will be amending the Commission Delegated Regulation … Continue Reading

EBA releases Consultation Paper: Supervisory handbook on the validation of rating systems under the Internal Ratings Based approach

On 28 July 2022, the European Banking Authority (EBA) published a Consultation Paper on its supervisory handbook for the validation of internal ratings based systems. This handbook clarifies the role of the validation function as part of corporate governance, in particular in terms of scope of work and interaction with the credit risk control unit. … Continue Reading

ECB publishes Working Paper on the optimal quantity of CBDC in a bank-based economy

On 28 July 2022, the European Central Bank (ECB) published a Working Paper on the optimal quantity of CBDC in a bank based economy. The paper provides evidence on the estimated effects of digital euro news on bank valuations and lending and finds that they depend on deposit reliance and design features aimed at calibrating … Continue Reading

ECB publishes Working Paper on voluntary support and ring-fencing in cross-border banks

On 28 July 2022, the European Central Bank (ECB) published a Working Paper on voluntary support and ring-fencing in cross-border banks. The paper provides a theoretical contribution to the ring-fencing debate in the context of supervisory intervention in an impaired subsidiary of a cross-border bank (CBB). Amongst other things, the paper addresses the following questions: … Continue Reading

Financial Ombudsman Service publishes new guidance for consumers and businesses regarding complaints that involve gambling-related harm

On 27 July 2022, the Financial Ombudsman service (FOS) announced that it has published two new webpages on the subject of complaints that involve gambling-related harm. One page is directed at consumers and the other is directed at businesses.  Key points on the page directed at businesses include that: The FOS has been contacted by … Continue Reading

Departmental Minute from HM Treasury: UK Infrastructure Bank Guarantees

On 25 July 2022, HM Treasury published a Departmental Minute on Notification of the parameters and contingent liability arising from the UK Infrastructure Bank’s (UKIB) guarantees. The Minute sets out, amongst other things, that: (i) It is normal practice when a government department proposes to undertake a contingent liability in excess of £300,000, for which … Continue Reading

New PRA webpage – Prudential and Resolution Policy Index

On 19 July 2022, the Prudential Regulation Authority (PRA) published a new webpage called ‘Prudential and Resolution Policy Index’. The Index is intended to help firms identify which policies are relevant for their particular areas of business. It does this by grouping policies into sectors and topic area pages. For each topic area, the Index … Continue Reading

ESMA statement on the implementation of LEI requirements for third-country issuers

On 12 July 2022, the European Securities and Markets Authority (ESMA) issued a statement on the implementation of Legal Entity Identifier (LEI) requirements for third country issuers under the Securities Financing Transactions Regulation (SFTR) reporting regime. Key points in the statement include: The ESMA acknowledges the potential reporting implementation issue with respect to securities financing … Continue Reading

BoE Financial Stability Report

On 5 July 2022, the Bank of England (BoE) published its Financial Policy Committee’s (FPC) latest Financial Stability Report. The Financial Stability Report sets out the FPC’s view of the outlook for UK financial stability, including its assessment of the resilience of the UK financial system and the main risks to UK financial stability, and … Continue Reading

ECB Governing Council statement on the treatment of the European banking union in the assessment methodology for global systemically important banks

On 27 June 2022, the European Central Bank issued a statement containing details of the methodology that will be used for exercising supervisory discretion regarding cross-border intra-European Banking Union (EBU) exposures in the global systemically important bank (G-SIB) assessment framework. The Basel Committee on Banking Supervision (Basel Committee) has completed a targeted review of the … Continue Reading

Commission Delegated Regulation supplementing the CRD IV with regard to RTS specifying the information to be provided in the application for the authorisation as a credit institution

On 17 June 2022, the European Commission published a Delegated Regulation supplementing the Capital Requirements Directive IV (CRD IV) with regard to regulatory technical standards (RTS) specifying the information to be provided in the application for authorisation as a credit institution, and specifying the obstacles which may prevent the effective exercise of supervisory functions of … Continue Reading
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