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Topic: Banking

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Priorities for 2022 – the SRB’s view

On 18 January 2022, the Single Resolution Board (SRB), issued a new webpage mentioning its priorities for 2022. The SRB remains focussed on building resolvability in all banks under its remit, as set out in its 2022 work programme and multi-annual programme for 2021-23. Three key priorities are: Build-up of the minimum requirement for own … Continue Reading

ECB opinion on a proposal to amend the CRR with respect to resolution

On 17 January 2022, the European Central Bank (ECB) issued an opinion on a proposal to amend the Capital Requirements Regulation (CRR) with respect to resolution. The ECB supports the proposed regulation, which ensures better alignment between the provisions of the CRR and the Bank Recovery and Resolution Directive following the entry into force of … Continue Reading

EBA confirms the continued application of COVID-19 related reporting and disclosure requirements until further notice

On 17 January 2022, the European Banking Authority (EBA) issued a press release confirming that the guidelines on the reporting and disclosure of exposures subject to measures applied in response to the COVID-19 crisis adopted on 2 June 2020 continue to apply. Unless instructed otherwise by their relevant Member State competent authorities, credit institutions are … Continue Reading

EBA publishes Guidelines for institutions and resolution authorities on improving banks’ resolvability and consults on transferability

On 13 January 2022, the European Banking Authority issued final guidelines for institutions and resolution authorities on improving banks’ resolvability. The guidelines take stock of the best practices developed so far by EU resolution authorities on resolvability topics and set-out requirements to improve resolvability in the areas of operational continuity in resolution, access to financial … Continue Reading

The Council of the IFSB has adopted two new standards

On 10 December 2021, the Council of the Islamic Financial Services Board (IFSB) adopted two new standards: IFSB-23: Revised Capital Adequacy Standard for Institutions offering Islamic Financial Services (IIFS). IFSB-23 was developed to align the IFSB’s guidance on capital adequacy for the banking sector with the latest updates to global capital standards, particularly those issued … Continue Reading

FSB global monitoring report on non-bank financial intermediation

On 16 December 2021, the Financial Stability Board (FSB) published the Global Monitoring Report on Non-Bank Financial Intermediation 2021. The report presents the results of the FSB’s annual monitoring exercise to assess global trends and risks in non-bank financial intermediation (NBFI). In contrast to the trend over the past decade, the NBFI sector grew less … Continue Reading

FSB illustrates practical approaches to the execution of bail-in

On 13 December 2021, the Financial Stability Board (FSB) published a paper on the execution of bail-in. Bail-in is at the core of resolution strategies for global systemically important banks (G-SIBs). Set out in the Key Attributes of Effective Resolution Regimes for Financial Institutions, it is an important tool enabling an orderly resolution that minimises … Continue Reading

Public consultation on draft Fit and Proper Guide and new Fit and Proper Questionnaire

On 8 December 2021, the European Central Bank (ECB) issued an updated guide to fit and proper assessments, an updated fit and proper questionnaire and a feedback statement to its earlier consultation on these materials. The objective of the updated guide, which replaces the previous version, last updated in May 2018, is to explain in … Continue Reading

ECB supervisory priorities for 2022-2024

On 7 December 2021, the European Central Bank (ECB) published its supervisory priorities for 2022-2024. The ECB has identified three key priorities: Addressing the adverse impacts of the COVID-19 pandemic and ensuring that the banking sector stays resilient. Planned supervisory activities include targeted reviews in the area of credit risk identification, monitoring and assessment, as … Continue Reading

FSB 2021 Resolution Report: “Glass half-full or still half-empty?”

On 7 December 2021, the Financial Stability Board (FSB) published its 2021 Resolution Report. The Resolution Report takes stock of the progress made in implementing the FSB resolution policies and enhancing resolvability across the banking, financial market infrastructure, and insurance sectors. It also sets out the FSB’s priorities in the resolution area going forward. Looking … Continue Reading

European Commission call for evidence for the EU banking sector to review macroprudential rules to limit systemic risk

On 1 December 2021, the European Commission published a call for evidence regarding a review of macroprudential rules for the EU banking sector to limit systematic risk. The Commission has issued the call to collect evidence on how the EU’s macroprudential framework is functioning for the banking sector and on ways to improve it. The … Continue Reading

Solvent wind-down of trading books – SRB guidance for banks 2022

On 1 December 2021, the Single Resolution Board (SRB) published guidance on solvent wind-down of derivatives and trading books in resolution. This guidance was released in line with the SRB’s Expectations for Banks (EfB) document which was published in April 2020. The guidance builds on the principles in the EfB and provides banks with details … Continue Reading

SRB 2022 work programme

On 26 November 2021, the Single Resolution Board (SRB) published it 2022 Annual Work Programme, setting out its objectives and priorities for 2022. The SRB is committed to making banks fully resolvable by the end of 2023. In 2022, the SRB will work on enforcing and operationalising the guiding principles in the SRB’s Expectations for … Continue Reading

2021 list of G-SIBs

On 23 November 2021, the Financial Stability Board (FSB) published the 2021 list of global systematically important banks (G-SIBs) using end-2020 data and an assessment methodology designed by the Basel Committee on Banking Supervision (Basel Committee). FSB member authorities apply the following requirements to G-SIBs: Higher capital buffer. The G-SIBs have been allocated to buckets … Continue Reading

Basel Committee consults on ‘Principles for the effective management and supervision of climate-related financial risks’

On 16 November 2021, the Basel Committee on Banking Supervision (BCBS) issued a public consultative document titled Principles for the effective management and supervision of climate-related financial risks. The BCBS reports that a review of the existing Basel Framework has concluded that while the ‘Core Principles for Effective Banking Supervision’ (Core Principles) and the ‘Supervisory … Continue Reading

ECB consults on its draft guide on the notification of securitisation transactions

On 15 November 2021, the European Central Bank (ECB) issued a consultation on a draft guide on the notification of securitisation transactions for directly supervised banks. The consultation follows the ECB’s announcement of its decision in May 2021 to ensure that directly supervised banks comply with the requirements for risk retention, transparency and resecuritisation for … Continue Reading

EBA publishes ESEP and EREP for 2022

On 12 November 2021, the European Banking Authority (EBA) published its European Supervisory Examination Programme (ESEP) for 2022. The EBA are required to contribute to enhancing supervisory convergence across the internal market. They have an active role in building a common supervisory culture and consistent supervisory practices throughout the European Union. The ESEP is designed … Continue Reading

EBA publishes guidelines on recovery plan indicators

On 9 November 2021, the European Banking Authority (EBA) published a final report containing guidelines on recovery plan indicators. The purpose of the guidelines is to establish a common EU approach for developing the framework of recovery plan indicators, providing additional guidance on indicators’ calibration, monitoring and breaches notification. Under the mandate of Article 9(2) … Continue Reading

FSB progress report ‘Enhancing the Resilience of Non-Bank Financial Intermediation’

On 1 November 2021, the Financial Stability Board (FSB) published its progress report, ‘Enhancing the Resilience of Non-Bank Financial Intermediation’, which was delivered to G20 Leaders ahead of their Summit last weekend. This report details the progress over the past year and the planned work set out by the FSB alongside, standard-setting bodies and other … Continue Reading

European Commission publish a banking package for 2021, implementing new EU rules to strengthen banks’ resilience and better prepare for the future

On 27 October 2021, the European Commission published a new banking package. Adopting a review of EU banking rules (the Capital Requirements Regulation and the Capital Requirements Directive). The new rules will ensure that EU banks become more resilient to potential future economic shocks, while helping towards Europe’s recovery from COVID-19 and the transition to … Continue Reading

Final Draft Regulatory Technical Standards on gross JTD amounts under Article 325w(8) of Regulation (EU) No 575/2013

On 22 October 2021, the European Banking Authority (EBA) published its final draft Regulatory Technical Standards (RTS) on gross jump-to-default (JTD) amounts and on residual risk add-on (RRAO). These final drafts provide specifications for implementing these two elements of the alternative standardised approach for market risk. Institutions using this approach are required to compute, on … Continue Reading

EBA replies to the European Commission’s call for advice on funding in resolution and insolvency as part of the review of the crisis management and deposit insurance framework

On 22 October 2021, The European Banking Authority (EBA) published its advice to the EU Commission on funding in resolution and insolvency as part of the review of the crisis management and deposit insurance (CMDI) framework. In 2020, the European Commission (EC) initiated a review of the EU CMDI framework, which lays out rules for … Continue Reading

ECB speech – Overcoming the tragedy of the horizon: requiring banks to translate 2050 targets into milestones

On 20 October 2021, Frank Elderson, Member of the Executive Board of the European Central Bank (ECB) gave a keynote speech at the Financial Market Authority’s Supervisory Conference, regarding the need for banks to translate their 2050 carbon-neutral targets into milestones. Key points in the speech include: Banks can no longer simply declare their intention … Continue Reading

FSB speech – Financial stability and coordination in times of crisis

On 18 October 2021, the Financial Stability Board (FSB) published a speech by its chair, Randal K Quarles, titled ‘Financial Stability and Coordination in Times of Crisis’. In his speech, Mr Quarles focuses on four areas: Reacting and responding to crisis: Leveraging cooperation to ensure stability and contain spill- During the decade between the global … Continue Reading
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