On 22 September 2023, the European Banking Authority (EBA) launched its annual EU-wide transparency exercise. The exercise will disclose capital positions, financial assets, risk exposure amounts, sovereign exposures and asset quality information of the EU banking sector in the second half of 2022 and in the first half of 2023. The exercise forms part of … Continue Reading
On 1 September 2023, there was published in the Official Journal of the EU (OJ) certain European Central Bank (ECB) decisions and a Regulation concerning the Single Supervisory Mechanism:… Continue Reading
On 8 August 2023, the European Banking Authority (EBA) issued a report following a mystery shopping exercise into personal loans and payment accounts. The mystery shopping exercise supplemented the EBA’s earlier thematic report on fees and charges that was published at the end of last year. Among other things the mystery shopping exercise found that … Continue Reading
On 4 August 2023, the European Central Bank and the Single Resolution Board announced that they had signed a Memorandum of Understanding on the exchange of certain types of confidential statistical information, in order to improve analysis related to bank resolution.… Continue Reading
On 1 August 2023, the European Banking Authority (EBA) published a consultation paper on draft guidelines amending guidelines EBA/GL/2020/14 on the specification and disclosure of systemic importance indicators. The EBA methodology for identifying global systemically important institutions (G-SIIs) closely follows the approach of the Basel Committee on Banking Supervision (BCBS) for the identification of global … Continue Reading
On 28 July 2023, the European Banking Authority (EBA) published findings of an ad-hoc analysis of unrealised losses on debt securities held at amortised cost in EU banks. The ad-hoc analysis is a targeted risk assessment conducted by the EBA in collaboration with Member State competent authorities, which aims at understanding the potential evolution of … Continue Reading
On 28 July 2023, the European Central Bank (ECB) published the results of a standalone data collection exercise it conducted jointly with the European Banking Authority in Q2 this year on unrealised losses of significant institutions under its direct supervision. The purpose of the exercise was to enhance the ECB’s assessment of risk in the … Continue Reading
On 24 July 2023, the European Central Bank (ECB) launched a public consultation on its draft guide on effective risk data aggregation and risk reporting. The guide outlines prerequisites for effective risk data aggregation and risk reporting (RDARR) to assist banks in strengthening their capabilities, building on good practices observed in the industry. The aim … Continue Reading
On 19 July 2023, the European Banking Authority (EBA) published a final report containing guidelines on overall recovery capacity in recovery planning. The guidelines specify how institutions should include in the recovery and group recovery plans a summary of their overall recovery capacity (ORC) in accordance with Articles 5 and 7 and Annex, Section A, … Continue Reading
In this latest edition of Regulation Around the World we review the position regarding recovery and resolution for banks. Following the 2008 global financial crisis, the G20 leaders endorsed at the Cannes Summit in November 2011, the Financial Stability Board’s Key Attributes of Effective Resolution Regimes for Financial Institutions as the international standard for resolution … Continue Reading
On 6 July 2023, the Basel Committee on Banking Supervision (Basel Committee) published a consultive document on core principles for effective banking supervision (the Core Principles). The Core Principles are the de facto minimum standards for the sound prudential regulation and supervision of banks and banking systems. They are universally applicable and accommodate a range … Continue Reading
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 12 June 2023, the draft legislative proposal for the implementation of the Non-Performing Loans Directive (Directive (EU) 2021/2167, the NPL Directive) has been published for public consultation (the Legislative Proposal). The NPL Directive sets out a common EU framework and requirements for credit (loan) servicers and purchasers, including NPL investors. The Legislative Proposal introduces … 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 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
