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Published in OJ – Commission Delegated Regulation supplementing BRRD with RTS on estimating Pillar 2 and combined buffer requirements for setting MREL

On 8 July 2021, there was published in the Official Journal of the EU Commission Delegated Regulation (EU) 2021/118 of 26 March 2021 supplementing the Bank Recovery and Resolution Directive (BRRD) with regard to regulatory technical standards (RTS) specifying the methodology to be used by resolution authorities to estimate the requirement referred to in Article … Continue Reading

EBA consults on technical standards on risk retention requirements under the Securitisation Regulation

On 30 June 2021, the European Banking Authority (EBA) issued a consultation paper on draft regulatory technical standards (RTS) specifying the requirements for originators, sponsors, original lenders and servicers related to risk retention, in line with the Securitisation Regulation. The draft RTS have been developed in accordance with Article 6(7) of the Securitisation Regulation, as … Continue Reading

Commission Implementing Regulation amending ITS as regards the disclosure of indicators of global systemic importance

On 24 June 2021, there was published in the Official Journal of the EU Commission Implementing Regulation (EU) 2021/1018 of 22 June 2021 amending the implementing technical standards laid down in Implementing Regulation (EU) 2021/7637 as regards the disclosure of indicators of global systemic importance, and repealing Implementing Regulation (EU) No 1030/2014. Article 131 of … Continue Reading

EBA proposes to further harmonise EU law applicable to branches of third country credit institutions

On 23 June 2021, the European Banking Authority (EBA) issued a report on the treatment of incoming third country branches (TCB) under the national law of Member States. The report is based on Article 21b(10) of the Capital Requirements Directive IV which mandates the EBA to submit a report to the European Parliament, the Council … Continue Reading

SRB approach for notifying impracticability to include bail-in recognition clauses in contracts

On 21 June 2021, the Single Resolution Board (SRB) published its policy on how banks can notify resolution authorities when bail-in recognition clauses cannot be added to contracts under third country law. In accordance with Article 55(2) of the Bank Recovery and Resolution Directive (BRRD), banks may determine that it is legally or otherwise impracticable … Continue Reading

Commission consults on improving transparency and efficiency in secondary markets for non-performing loans

On 16 June 2021, the European Commission issued a targeted consultation designed to gather evidence on improving transparency and efficiency in secondary markets for non-performing loans (NPLs). The Commission notes that one of the key actions in fostering secondary markets for NPLs is to improve the quantity, quality and comparability of NPL data. Secondary markets … Continue Reading

EBA updates list of risk indicators and analysis tools

On 7 June 2021, the European Banking Authority (EBA) issued an updated list of indicators for risk assessment and risk analysis tools, together with the accompanying methodological guide. This guidance, which describes how risk indicators are computed in EBA publications, allows Member State competent authorities and users of EBA data to interpret key bank figures … Continue Reading

Non-performing loans: deal struck on EU rules for selling NPLs to third parties

On 7 June 2021, the European Parliament (EP) issued a press release stating that EP negotiators and the Council of the EU have agreed on the proposed Directive on credit servicers, credit purchasers and the recovery of collateral. The Directive dates back to 2018, and is intended to help lenders free their balance sheets from … Continue Reading

Basel Committee discusses effects of Covid-19 on banks, assesses post-crisis reforms and agrees public consultation on cryptoassets

On 7 June 2021, the Basel Committee on Banking Supervision (Basel Committee) issued a press release following its meeting on 4 June 2021. During this meeting the Basel Committee took stock of COVID-19 risks to the banking system and discussed policy and supervisory initiatives. In terms of crypto-assets the press release notes that the Basel … Continue Reading

EBA makes recommendations for reducing supervisory reporting costs

On 7 June 2021, the European Banking Authority (EBA) published a report that analyses EEA credit institutions’ experience with the EBA’s supervisory reporting requirements and processes. The EBA is mandated by Article 430(8) of the Capital Requirements Regulation to measure the costs institutions incur when complying with the reporting requirements set out in the EBA’s … Continue Reading

ECB opinion on draft Regulation on digital operational resilience for the financial sector

On 4 June 2021, the European Central Bank issued an opinion on the proposed Regulation on operational resilience for the financial sector. In its opinion the ECB provides both general and specific observations on the proposed Regulation. In its general observations the ECB welcomes the proposed Regulation which aims to enhance cyber security and operational … Continue Reading

ESMA consults on draft technical standards on the content and format of the STS notification for on-balance sheet securitisations under the amended Securitisation Regulation

On 27 May 2021, the European Securities and Markets Authority (ESMA) issued a consultation paper setting out draft regulatory technical standards (RTS) and implementing technical standards (ITS) specifying the content and the format of the standardised templates for simple, transparent and standardised (STS) notification of on-balance sheet (synthetic) securitisations. The draft RTS and ITS build on … Continue Reading

EBA issues report on the application of the BRRD early intervention framework

On 27 May 2021, the European Banking Authority (EBA) published a report on the application of early intervention measures (EIMs) under the Bank Recovery and Resolution Directive (BRRD). The report presents the results of a survey on the application of EIMs that the EBA conducted among Member State competent authorities in 2019. The report also … Continue Reading

SRB publishes updated MREL policy and publishes MREL dashboard Q4.2020

On 26 May 2021, the Single Resolution Board updated its ‘Minimum Requirements for Own Funds and Eligible Liabilities (MREL) Policy under the EU Banking Package’. The updated policy includes: The MREL maximum distributable amount. This allows the SRB to restrict banks’ earnings distribution if there are MREL breaches. Policy criteria to identify systemic subsidiaries for … Continue Reading

ECB Banking Supervision to supervise securitisation requirements for banks

On 14 May 2021, the European Central Bank announced its decision to start ensuring that the banks it directly supervises comply with the requirements for risk retention, transparency and resecuritisation, which are set out under Articles 6 to 8 of the EU Securitisation Regulation. The decision follows recent amendments to the Regulation which provide that … Continue Reading

EBA report on convergence of supervisory practices in 2020

On 12 May 2021, the European Banking Authority (EBA) published a report on convergence of supervisory practices in 2020. In the context of the supervisory review and evaluation process (SREP), the EBA is mandated to annually report to the European Parliament and the Council on the degree of convergence of the application of the supervisory … Continue Reading

EBA Discussion Paper – Review of the NPL transaction data templates

On 4 May 2021, the European Banking Authority (EBA) published a Discussion Paper intended to facilitate the review of the standardised non-performing loan (NPL) data templates. The EBA developed standardised NPL data templates in 2017 to help facilitate financial due diligence and the valuation of NPL transactions. These templates aimed to reduce information asymmetries and … Continue Reading

EBA report – mystery shopping activities of national authorities

On 3 May 2021, the European Banking Authority (EBA) published a report on the mystery shopping activities of Member State competent authorities (NCAs). The EBA collated mystery shopping activities by NCAs with a view to share experiences, learn lessons and identify good practices for the benefit of the EBA and NCAs that use or intend … Continue Reading

SRB issues new guidance on liquidity and funding in resolution

On 30 April 2021, the Single Resolution Board (SRB) published new guidance on liquidity and funding in resolution. In the SRB’s Expectations for Banks, banks are expected to: Develop methodologies to estimate ex-ante the liquidity needs for the implementation of the resolution strategy. Be able to measure, report and forecast their liquidity position and relevant … Continue Reading

EBA consults on guidelines on the delineation and reporting of available financial means

On 28 April 2021, the European Banking Authority (EBA) issued a consultation on draft guidelines on the delineation and reporting of available financial means of deposit guarantee schemes. Article 10(10) of the Deposit Guarantee Schemes Directive (DGSD) requires deposit guarantee schemes (DGSs) to report their available financial means (AFM) to the EBA. AFM are defined … Continue Reading

Major development in EU Securitisation reporting imminent – first Securitisation Repository likely to be authorised in June

On Monday 26 April 2021, ESMA published a press release confirming that it is in the final stages of  the process of assessing applications received from prospective Securitisation Repositories under the Securitisation Regulation (Regulation EU 2017/2402). Within 40 working days ESMA is obliged to finalise its assessment of the applications made by a prospective Securitisation … Continue Reading

Commission Delegated Regulation supplementing the BRRD with regard to RTS determining the content of the contractual terms on recognition of resolution stay powers

On 22 April 2021, the European Commission adopted a Delegated Regulation supplementing the Bank Recovery and Resolution Directive (BRRD) with regard to regulatory technical standards (RTS) determining the content of the contractual terms on recognition of resolution stay powers. Article 71a(1) BRRD provides that Member States shall require institutions and entities referred to in points … Continue Reading
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