On 20 May 2022, there was published in the Official Journal of the EU, Commission Delegated Regulation (EU) 2022/786 of 10 February 2022 amending Commission Delegated Regulation 2015/61 supplementing the Capital Requirements Regulation (CRR) with regard to the liquidity coverage requirement for credit institutions. Commission Delegated Regulation 2015/61 (LCR Delegated Regulation) is applicable to all … Continue Reading
On 12 May 2022, the European Commission adopted a Delegated Regulation amending the regulatory technical standards (RTS) laid down in Delegated Regulation (EU) No 183/2014, as regards the specification of the calculation of specific and general credit risk adjustment. The Delegated Regulation is intended to address an anomaly regarding the sale of defaulted exposures, where … Continue Reading
On 16 May 2022, the European Banking Authority (EBA) issued a consultation regarding draft implementing technical standards (ITS) specifying the templates to be used by credit institutions for the provision of information to credit purchasers when selling or transferring non-performing loans (NPLs) for the purposes of financial due diligence and valuation of NPLs. The data … Continue Reading
On 6 May 2022, the PRA issued a statement concerning its approach to the European Banking Authority’s (EBA) guidelines relating to the management of non-performing exposures (NPEs) and forborne exposures (FBEs). The statement provides that: The prudential aspects of the guidelines broadly represent good credit risk management standards. The guidelines may be helpful reference material … Continue Reading
On 5 May 2022, the European Banking Authority (EBA) updated its Implementing Technical Standards (ITS) that specify the data collection for the supervisory benchmarking exercise of 2023 in relation to the internal approaches used in market and credit risk and IFRS 9 accounting. The updated ITS include all benchmarking portfolios and metrics that will be … Continue Reading
On 3 May 2022, the European Banking Authority (EBA) issued a Discussion Paper on the role of environmental risks in the prudential framework for credit institutions and investment firms. The Discussion Paper initiates the discussion on the appropriateness of the current EU prudential framework to address environmental risk drivers and considers the potential justification for … Continue Reading
On 29 April 2022, the PRA published Consultation Paper 5/22 ‘The Strong and Simple Framework: a definition of a Simpler-regime Firm’ (CP5/22). In CP5/22, the PRA sets out proposals for introducing a definition of a ‘Simpler-regime firm’ and follows on from Discussion Paper 1/21. The PRA’s implementation of a definition would be the first step … Continue Reading
On 29 April 2022, the European Banking Authority (EBA) issued its response to the European Commission’s call for advice on the review of the macro-prudential framework. Article 513 of the Capital Requirements Regulation (CRR) requires the Commission to complete a review of the macro-prudential provisions in the CRR and Capital Requirements Directive IV (CRD IV) … Continue Reading
On 27 April 2022, the FCA published its latest newsletter on the Investment Firm Prudential Regime (IFPR). In this newsletter the FCA covers reporting queries focussing on: MIF001 MIF002 MIF003 MIF001 to 4 – consolidated returns MIF001 and 002 – certain rows when reporting on a consolidated basis MIF006 scheduling Other scheduling issues. The FCA … Continue Reading
On 28 April 2022, there was published in the Official Journal of the EU the Recommendation of the European Systemic Risk Board (ESRB) of 16 February 2022 amending Recommendation ESRB/2015/2 on the assessment of cross-border effects of and voluntary reciprocity for macro-prudential policy measures. The framework on voluntary reciprocity for macro-prudential policy measures set out … Continue Reading
On 26 April 2022, the Bank of England published a speech by Sam Woods (Deputy Governor for Prudential Regulation and CEO of the PRA) entitled Bufferati. In his speech, Mr Woods covers the debate currently going on amongst regulators about ‘buffer usability’ and the extent to which banks are in reality willing and able to … Continue Reading
On 26 April 2022, there was published in the Official Journal of the EU, Commission Delegated Regulation (EU) 2022/676 of 3 December 2021 supplementing the Capital Requirements Regulation with regard to regulatory technical standards specifying the conditions in accordance with which consolidation is to be carried out in the cases referred to in Article 18(3) … Continue Reading
On 25 April 2022, the European Commission published the text of Commission Delegated Regulation (EU) of 11 April 2022 supplementing the Investment Firm Regulation with regard to regulatory technical standards (RTS) for own funds requirement for investment firms based on fixed overheads. The draft RTS: Specify the deductions to be applied for the calculation from … Continue Reading
On 19 April 2022, there was published in the Official Journal of the EU (OJ) Commission Implementing Regulation (EU) 2022/631 of 13 April 2022 amending the implementing technical standards laid down in Implementing Regulation (EU) 2021/637 as regards to the disclosure of exposures to interest rate risk on positions not held in the trading book. … Continue Reading
On 12 April 2022, the Council of the EU published a corrigendum to Commission Delegated Regulation of 10 February 2022 amending Commission Delegated Regulation (EU) 2015/61 to supplement the Capital Requirements Regulation with regard to the liquidity coverage requirement for credit institutions. The main purpose of the Delegated Regulation of 10 February 2022 is to … Continue Reading
On 20 April 2022, the European Parliament’s Economic and Monetary Affairs (ECON) Committee held its first exchange of views on the European Commission’s (Commission) legislative package on the implementation of the final Basel III standards. The legislative package includes: A Commission proposal for a Regulation amending the Capital Requirements Regulation (CRR) Regulation (EU) No 575/2013 … Continue Reading
On 5 April 2022, the European Banking Authority (EBA) launched a survey for banks on their experiences with the application of the so-called infrastructure supporting factor in accordance with the Capital Requirements Regulation (CRR 2). The survey also aims to provide information on the materiality of infrastructure project loans across EU banks, irrespective of whether … Continue Reading
On 1 April 2022, the Council of the EU published a three-column table to commence trilogues on the proposed Regulation as regards the prudential treatment of global systemically important institution groups (G-SII groups) with multiple point of entry resolution strategy and a methodology for the indirect subscription of instruments eligible for meeting the minimum requirement … Continue Reading
On 31 March 2022, the PRA published Discussion Paper 1/22 ‘The prudential liquidity framework: Supporting liquid asset usability’ (DP1/22). The Liquidity Coverage Ratio (LCR) was introduced following the 2008 global financial crisis in order to promote the short-term resilience of the liquidity risk profile of banks. A net stable funding ratio was also introduced to … Continue Reading
On 31 March 2022, the European Systemic Risk Board (ESRB) published a concept note ‘Review of the EU Macroprudential Framework for the Banking Sector’. In the concept note the ESRB proposes enhancements to the existing EU macroprudential framework for the banking sector for the next decade. Table 1 in the concept note provides an overview … Continue Reading
On 24 March 2022, the European Central Bank (ECB) published an opinion on a proposal for a Regulation amending the Capital Requirements Regulation (CRR) as regards requirements for credit risk, credit valuation adjustment risk, operational risk, market risk and the output floor. The ECB has published this opinion following requests from the European Parliament and … Continue Reading
On 24 March 2022, the European Commission published the adopted text of an Implementing Regulation which amends the implementing technical standards laid down in Implementing Regulation (EU) 2016/1646 as regards the main indices and recognised exchanges in accordance with the Capital Requirements Regulation (CRR). The Implementing Regulation adopted by the Commission amends Commission Implementing Regulation … Continue Reading
What’s on the regulatory horizon for financial services firms? In the latest instalment of our Regulation Around the World series we focus on horizon scanning with members of our global financial services team exploring some of the key upcoming regulatory trends. Our global updater focussing on horizon scanning is accompanied by further analysis in our … Continue Reading
On 21 March 2022, the PRA issued a short update concerning its work on implementing the final Basel III reforms (known as Basel 3.1). The PRA explains that the timing of its work on Basel 3.1 has been uncertain for a number of reasons, including the internationally agreed delay as part of the response to … Continue Reading
