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EBA launches 2020 transparency exercise

On 25 September 2020, the European Banking Authority (EBA) launched its 7th annual EU-wide transparency exercise, with the objective of providing market participants with updated information on the financial conditions of EU banks as of June 2020, thus assessing the preliminary impact of the COVID-19 crisis on the sector. The EBA expects to publish the … Continue Reading

EBA phases out its guidelines on legislative and non-legislative loan repayments moratoria

On 21 September 2020, the European Banking Authority (EBA) announced that it will phase out its guidelines on legislative and non-legislative payment moratoria in accordance with its end of September deadline. The EBA guidelines on legislative and non-legislative loan repayments moratoria were published on 2 April 2020 to ensure that EU banks, while maintaining comparable … Continue Reading

Securitisation Regulation – Implementing and Delegated Regulations published in the OJ

On 3 September 2020, the following Level 2 measures for the Securitisation Regulation were published in the Official Journal of the EU (OJ): Commission Implementing Regulation (EU) 2020/1227 of 12 November 2019 laying down implementing technical standards with regard to templates for the provision of information in accordance with the simple, transparent and standardised (STS) … Continue Reading

Delegated Regulation on CCP colleges under EMIR 2.2 adopted by European Commission

On 1 September 2020, the European Commission adopted a Delegated Regulation (C(2020) 5888 final) containing draft regulatory technical standards (RTS) for central counterparty colleges under EMIR 2.2. The draft RTS amends Commission Delegated Regulation 876/2013 (RTS on central counterparty colleges) and reflect the changes to Article 18(6) of EMIR (648/2012) introduced by EMIR 2.2 on … Continue Reading

EBA publish opinion on European Commission’s amendments relating to the final draft RTSs on the specification of the nature, severity and duration of an economic downturn under Articles 181(3)(a) and 182(4)(b) of the Capital Requirements Regulation

On 31 August 2020, the EBA published an opinion (EBA/Op/2020/12) on the European Commission’s amendments relating to the EBA’s final draft regulatory technical standards (RTS) on the specification of the nature, severity and duration of an economic downturn under Articles 181(3)(a) and 182(4)(b) of the Capital Requirements Regulation (575/2013). On 5 November 2018, the EBA … Continue Reading

EBA updates data for the global systemically important institutions (G-SIIs) for the 2019 period

On 20 August, the European Banking Authority (EBA) updated data relating to the 37 largest institutions in the EU whose leverage ratios exceed EUR 200 billion. This in turn will be used to identify a smaller group of banks which are considered to be global systemically important institutions (G-SIIs). This is the first year that … Continue Reading

ECB banking supervision – report on banks’ ICAAP practices

On 11 August 2020, the European Central Bank (ECB) published a report on banks’ ICAAP practices. The internal capital adequacy assessment process (ICAAP) has been and remains one of ECB banking supervision’s top supervisory priorities since they were first published in 2016. The report summarises the results of a structured analysis of ICAAP practices, describing … Continue Reading

SRB publishes guidance documents for bail-in operationalisation

On 10 August 2020, the Single Resolution Board (SRB) published the following documents designed to give banks within its remit operational guidance on the implementation of the bail-in tool: Q&A for publication of bail-in guidance. The Q&A explains that the bail-in playbook is an internal document of banks, establishing a minimum set of objectives, processes … Continue Reading

EBA updates on 2021 EU-wide stress test timeline, sample and potential future changes to its framework

On 30 July 2020, the European Banking Authority announced that it had agreed on the tentative timeline and sample of the 2021 EU-wide stress test. The stress test will be carried out at the highest level of consolidation on a sample of 51 banks, of which 39 will be from the Euro Area, covering broadly … Continue Reading

SRB operational guidance for operational continuity in resolution and FMI contingency plans

On 29 July 2020, the Single Resolution Board (SRB) published operational guidance on operational continuity in resolution (OCIR) and on financial market infrastructure (FMI) contingency plans. The guidance on OCIR provides further clarifications to banks on how to implement SRB expectations related to service identification and mapping, assessment of operational continuity risk, mitigating measures such … Continue Reading

EBA consults on technical standards on reporting of MREL decisions

On 23 July 2020, the European Banking Authority (EBA) issued a public consultation on draft Implementing Technical Standards (ITS) specifying uniform reporting templates, instructions and methodology for the identification and transmission, by Member State resolution authorities to the EBA, of information on minimum requirements for own funds and eligible liabilities (MREL). The BRRD has been … Continue Reading

EBA consults on estimation of Pillar 2 and combined buffer requirements for the purpose of setting MREL

On 23 July 2020, the European Banking Authority (EBA) issued a public consultation on its draft Regulatory Technical Standards (RTS) specifying the methodology to be used by Member State resolution authorities to estimate the Pillar 2 (P2R) and combined buffer requirements (CBR)  at resolution group level for the purpose of setting the minimum requirement for … Continue Reading

EBA consults on technical standards on impracticability of contractual recognition of bail-in

On 23 July 2020, the European Banking Authority (EBA) issued a public consultation on draft Regulatory Technical Standards (RTS) and draft Implementing Technical Standards (ITS) on the impracticality of contractual recognition of write-down and conversion powers and related notifications as laid down in the Bank Recovery and Resolution Directive (BRRD). The statutory background to the … Continue Reading

EBA final report: Guidelines on the pragmatic 2020 supervisory review and evaluation process in light of the COVID‐19 crisis

On 23 July 2020, the European Banking Authority (EBA) published guidelines that make available to Member State competent authorities a special procedure for the supervisory review and evaluation process (SREP) for the year 2020. The new guidelines identify how flexibility and pragmatism could be exercised in relation to the SREP framework in the context of … Continue Reading

Bulgaria and Croatia set to join the SRM

On 13 July 2020, the Single Resolution Board (SRB) issued a press release stating that Bulgaria and Croatia will be joining the Single Resolution Mechanism (SRM), following the decisions by the European Central Bank (ECB) to establish close cooperation with the Bulgarian National Bank and the Croatian National Bank. From 1 October 2020, the ECB … Continue Reading

ESMA consults on guidelines on calculation of positions under SFTR

On 9 July 2020, the European Securities and Markets Authority (ESMA) launched a consultation on draft guidelines on the calculation of positions by trade repositories (TRs) under the Securities Financing Transactions Regulation (SFTR). The draft guidelines set out the relevant clarification to TRs with regards to the compliance with Article 4(6) of SFTR setting out … Continue Reading

EBA calls on resolution authorities to consider the impact of COVID-19 on resolution strategies and resolvability assessments

On 9 July 2020, the European Banking Authority (EBA) published a statement on resolution planning in light of the COVID-19 pandemic. With this statement, the EBA intends to reiterate the importance of resolution planning in times of uncertainty to ensure that resolution stands as a credible option in times of stress.  In addition, the EBA … Continue Reading

FSB and Basel Committee set out supervisory recommendations for benchmark transition

On 9 July 2020, the Financial Stability Board (FSB) and the Basel Committee on Banking Supervision (Basel Committee) issued a report on supervisory issues associated with benchmark transition. The report includes insights on remaining challenges to LIBOR transition based on surveys undertaken by the FSB, the Basel Committee and the International Association of Insurance Supervisors. … Continue Reading

Basel Committee publication: Targeted revisions to the CVA risk framework

On 8 July 2020, the Basel Committee on Banking Supervision (Basel Committee) published a paper setting out the final targeted revisions to the credit valuation adjustment (CVA) risk framework. In January 2019 the Basel Committee published the revised market risk framework. In November 2019 the Basel Committee consulted on a set of targeted final revisions … Continue Reading

ECB consultation on supervisory approach to consolidation for banks in the SSM

On 1 July 2020, the European Central Bank (ECB) published for consultation a guide intended to clarify its supervisory approach to consolidation projects involving euro area banks. With the guide the ECB intends to clarify, within the current regulatory framework, the principles underpinning the prudential supervisory approach it follows when determining whether the arrangements implemented … Continue Reading

EBA discussion paper on BRRD early intervention measures

On 26 June 2020, the European Banking Authority (EBA) published a discussion paper on the application of early intervention measures (EIMs) in the EU under the Bank Recovery and Resolution Directive (BRRD). The first part of the discussion paper discusses the results of a survey on the application of the EIMs that the EBA conducted … Continue Reading

FSB evaluation finds too-big-to-fail reforms made banks more resilient and resolvable, but gaps need to be addressed

On 28 June 2020, the Financial Stability Board (FSB) published for public consultation an evaluation of too-big-to-fail (TBTF) reforms for systemically important banks. The consultation report finds that the TBTF reforms have contributed to the resilience of the global banking sector and its ability to absorb, rather than amplify, shocks. Major banks are much better … Continue Reading

COVID-19: European legislators approve CRR “quick fix”

On 18 June 2020 the European Parliament adopted its legislative report on the targeted amendments to the Capital Requirements Regulation (CRR “quick fix”). The Parliament’s position reflects a compromise agreed with Member States in informal negotiations that preceded the vote. This paves a way for a formal adoption, publication in the EU Official Journal and … Continue Reading

EBA report on the peer review of DGS stress tests and resilience

On 17 June 2020, the European Banking Authority (EBA) published its first peer review of stress tests and the resilience of deposit guarantee schemes (DGSs). The review assessed the results of 135 DGS stress tests performed by 32 DGSs from 27 EU Member States. The Deposit Guarantee Schemes Directive (DGSD) requires Member States to ‘ensure … Continue Reading
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