On 5 December 2018, the European Parliament announced that it had reached agreement with the European Council of the EU on the Banking Package – the Capital Requirements Directive V (CRD V), Capital Requirements Regulation II (CRR II), Bank Recovery and Resolution Directive II (BRRD II) and the Single Resolution Mechanism Regulation II (SRMR II). … Continue Reading
On 3 December 2018, the Council of the EU published a note (the Note) from its Permanent Representatives Committee (COREPER) regarding the ‘Banking Package’ comprising of legislative amendments to the Capital Requirements Regulation, Capital Requirements Directive IV, the Bank Recovery and Resolution Directive and the Single Resolution Mechanism Regulation. The Note states that the Austrian … Continue Reading
On 28 November 2018, the European Commission published its third progress report on the reduction of non-performing loans (NPL) and further risk reduction in the Banking Union (the Report). The Report notes that NPL ratios continued to decline in the first half of 2018. This followed the overall trend of improvement over recent years. The … Continue Reading
On 27 November 2018, the Financial Stability Board (FSB) published a letter to G20 leaders on its progress made during 2018. The letter is structured along the priorities of the G20 Argentine Presidency: addressing emerging vulnerabilities while harnessing the benefits of innovation. The FSB has continued to be vigilant in containing the risks of non-bank … Continue Reading
On 26 November 2018, the Financial Stability Board (FSB) appointed Randal K Quarles (Governor and Vice Chairman for Supervision at the US Federal Reserve) as its new Chair and Klaas Knot (President of De Nederlandsche Bank) as Vice Chair, for a three year term starting on 2 December 2018. After the three year term Mr … Continue Reading
On 23 November 2018, the European Central Bank (ECB) published a speech from its chair, Danièle Nouy (DN), entitled From a wish list to a to-do list: how supervisors can help banks prepare for crises. In her speech DN states that “finishing the work on NPLs [non-performing loans] is at the top of our to-do … Continue Reading
On 23 November 2018, the Basel Committee on Banking Supervision (Committee) published a report summarising the steps taken by its members to adopt the Basel III standards, banks’ progress in bolstering their capital and liquidity positions, the consistency of implementation in jurisdictions since the Committee’s last report and the Committee’s implementation work plan. The report … Continue Reading
On 23 November 2018, the European Banking Authority published a draft handbook on valuation for purposes of resolution, with a view to operationalising the valuation process in order to facilitate its implementation by resolution authorities in case of crisis. The handbook is addressed to resolution authorities and aims to be a useful non-exhaustive support document … Continue Reading
On 22 November 2018, the European Investment Bank (EIB) published the fourth edition of its banking in Africa report. This latest report, Banking in Africa: Delivering on Financial Inclusion, Supporting Financial Stability, includes the results of the EIB’s survey of banking groups operating in Africa. It also contains three thematic chapters which address the challenges … Continue Reading
On 20 November 2018, the Single Resolution Board (SRB) published its 2018 minimum requirement for own funds and eligible liabilities (MREL) policy for the first wave of resolution plans. This document aims to make the public in general, and institutions in particular, aware of the SRB MREL policy as well as the process currently being … Continue Reading
On 20 November 2018, the European Central Bank (ECB) published a speech given by Daniele Nouy, Chair of the Supervisory Board of the ECB, at an ordinary hearing for the European Parliament’s Committee on Economic and Monetary Affairs. The speech is focused around four areas: key developments and risks in the euro banking area: euro … Continue Reading
On 14 March 2018, the European Commission published a package of measures targeting non-performing loans (NPLs). Among these measures was a proposal for a Directive on credit servicers, credit purchasers and the recovery of collateral (the draft Directive). The aim of the draft Directive is to increase the efficiency of debt recovery procedures through the … Continue Reading
Under the advanced internal ratings-based (IRB) approach, institutions determine their own funds requirements for credit risk taking into account their own loss given default (LGD) and conversion factor (CF) estimates. According to Article 181(1)(b) of the Capital Requirements Regulation, institutions shall estimate LGDs that are appropriate for an economic downturn and according to Article 182(1)(b) … Continue Reading
On 16 November 2018, there was published in the Official Journal of the EU (OJ) the Regulation that moves the seat of the European Banking Authority to Paris (Regulation (EU) 2018/1717 of the European Parliament and of the Council of 14 November 2018 amending Regulation (EU) No 1093/2010 as regards the location of the seat … Continue Reading
On 16 November 2018, the Financial Stability Board (FSB) published its 2018 list of global systemically important banks (G-SIBs) The overall number of G-SIBs has fallen from 30 to 29, with the Royal Bank of Scotland and Nordea being removed, and Groupe BPCE being added to the list. The ‘buckets’ to which each bank has … Continue Reading
On 16 November 2018, the Financial Stability Board (FSB) published its progress report (the Report) to the G20 November summit on its action plan to assess and address the decline in correspondent banking. The FSB launched in November 2015 an action plan to address the decline in correspondent banking relationships, centred around: examining the dimensions … Continue Reading
On 15 November 2018, the European Central Bank (ECB) has published the general topics chapter of its guide to internal models (the Guide), together with a feedback statement to the ECB’s March consultation on the chapter (the Statement). The Guide provides transparency on how the ECB understands the general (i.e. non-model-specific) topics for internal models, … Continue Reading
On 14 November 2018, the Financial Stability Board (FSB) published a progress report on reforms to the major interest rate benchmarks (the Report). The Report follows up on the recommendations of the FSB’s 2014 report on the same topic which set out a series of recommendations for strengthening existing benchmarks for key interbank offered rates … Continue Reading
On 13 November 2018, the European Securities and Markets Authority (ESMA) published two final reports relating to the Securitisation Regulation: Securitisation Regulation technical standards on securitisation repository application requirements, operational standards, and access conditions (the Technical Standards); and ESMA’s technical advice to the European Commission on fees for securitisation repositories under the Securitisation Regulation (the … Continue Reading
On 12 November 2018, the Single Resolution Board (SRB) published its work programme for 2019. The SRB is the central resolution authority within the EU. Together with the national resolution authorities of participating Member States, it forms the Single Resolution Mechanism. The SRB’s mission is to ensure an orderly resolution of failing banks with minimum … Continue Reading
On 9 November 2018, there was published in the Official Journal of the EU (OJ) the following European Central Bank (ECB) documents on amending TARGET 2: Decision (EU) 2018/1625 of the European Central Bank of 8 October 2018 amending Decision ECB/2007/7 concerning the terms and conditions of TARGET2-ECB (ECB/2018/24) (the Decision). The Decision is amended … Continue Reading
On 8 November 2018, the European Banking Authority (EBA) published its final report on confidentiality regimes of third countries with respect to Article 116(6) of the Capital Requirements Directive IV. The results of the EBA’s assessment of third country confidentiality regimes were first published in recommendations in 2015 (EBA/REC/2015/01), however as the assessment is an … Continue Reading
On 7 November 2018, there was published in the Official Journal of the EU (OJ) Commission Implementing Regulation 2018/1624 laying down implementing technical standards with regard to procedures and standard forms and templates for the provision of information for the purposes of resolution plans for credit institutions and investment firms, under the Bank Recovery and … Continue Reading
On 5 November 2018, the European Banking Authority (EBA) published the results of its 2018 EU-wide stress test, together with frequently asked questions. The stress test covered a sample of 48 banks in 15 countries in the EU and EEA at the highest level of consolidation. One of the main features of the stress test … Continue Reading
