Latest news of financial regulation
FRB approves final rule requiring largest, most systemically important US bank holding companies to further strengthen capital positions
20 July 2015
The Federal Reserve Board approved a final rule requiring the largest, most systemically important U.S. bank holding companies to further strengthen their capital positions.
The final rule establishes the criteria for identifying a GSIB and the methods that those firms will use to calculate a risk-based capital surcharge, which is calibrated to each firm's overall systemic risk.
The surcharges will be phased in beginning on 1 January 2016, becoming fully effective on 1 January 2019.
The BCBS and the IOSCO release final criteria for identifying simple, transparent and comparable securitisations
23 July 2015
The Basel Committee on Banking Supervision (BCBS) and the International Organization of Securities Commissions (IOSCO) released final criteria for identifying simple, transparent and comparable securitisations. The purpose of these criteria is to assist in the financial industry's development of simple, transparent and comparable securitisation structures.
PRA publishes supervisory statement setting out the specific liquidity coverage requirement reporting arrangements
20 July 2015
The Prudential Regulation Authority (PRA) published supervisory statement setting out the specific liquidity coverage requirement reporting arrangements which the PRA expects firms to follow on an interim basis in the period between 1 October 2015, the date the LCR standard applies in accordance with the European Commission’s delegated act with regard to the LCR for credit institutions, and the introduction of mandatory reporting of the new LCR return following adoption of the amending implementing technical standard on liquidity reporting by the Commission.
Prudential Requirements: EBA proposes corrections to the adopted technical standards on non-delta risk options and identified staff
The European Banking Authority (EBA) issued amendments to the adopted regulatory technical standards (RTS) on the treatment of non-delta risk of options in the standardised market risk approach and to the RTS on the criteria to identify categories of staff whose professional activities have a material impact on an institution's risk profile.
Prudential Requirements: EBA updates on the status of its final draft technical standards on additional liquidity monitoring metrics
17 July 2015
The European Banking Authority (EBA), following requests from stakeholders, published an update on the application date of its final draft Implementing Technical Standards (ITS) on additional liquidity monitoring metrics.
EBA publishes final product oversight and governance requirements for manufactures and distributors of retail banking products
16 July 2015
The European Banking Authority (EBA) published its final guidelines on product oversight and governance (POG) arrangements for retail banking products. These Guidelines set out requirements for manufacturers and distributors when designing and bringing to market mortgages, personal loans, deposits, payment accounts, payment services and electronic money.
The Guidelines will apply from 03 January 2017.
BCBS publishes a progress report on the implementation of principles for effective supervisory colleges
16 July 2015
The Basel Committee on Banking Supervision (BCBS) published a progress report on the implementation of principles for effective supervisory colleges. The purpose of supervisory colleges is to more effectively supervise global systemically important banks (G-SIBs) and other internationally active banking groups by strengthening information-sharing among supervisors, helping the development of a common understanding of risk in banking groups, promoting a shared agenda for addressing risks and vulnerabilities, and providing a platform for communicating key supervisory messages among college members.
16 July 2015
The Basel Committee on Banking Supervision (BCBS)published the final guidelines for identifying and dealing with weak banks. Weak banks are a worldwide phenomenon. They pose a continuing challenge for bank supervisors and resolution authorities in all countries, regardless of the political structure, financial system and level of economic and technical development. All bank supervisors should be prepared to mitigate the incidence of weak banks and deal with them when they occur.
Anti – Money Laundering: BCBS issues for public consultation a revised version of the general guide to account opening
16 July 2015
The Basel Committee on Banking Supervision (BCBS) issued for public consultation a revised version of the general guide to account opening, which was first published in February 2003. The proposed guide aims to support banks in implementing the Financial Action Task Force standards and guidance, which requires the adoption of specific policies and procedures, in particular on account opening.
Consultation will run until 22 October 2015.
European Commission launches a consultation on possible impact of the CRR and CRD IV on bank financing of the economy
15 July 2015
In the wake of the financial crisis the EU, like many other jurisdictions, introduced stricter rules on capital requirements for banks. The Commission started a consultation on how some of those rules have worked in practice – for example, whether they have affected lending to small businesses and financing of infrastructure projects.
Capital Requirements for banks are set out in the Capital Requirements Regulation (CRR) and Capital Requirements Directive (CRD IV).
Questions the consultation is seeking to answer include:
- To what extent have CRR and CRD IV affected the level of capital held by banks?
- Are all the new requirements under all circumstances proportionate to the risks they were meant to address?
- What impact are the rules having on lending to smaller businesses, and to infrastructure projects?
- Could some of the rules be simplified or differentiated by risk or size, without compromising on their objectives of financial soundness and stability of banks?
Consultation will run until 7 October 2015.
13 July 2015
The European Securities and Markets Authority (ESMA) published an update of itslist of central clearinghouses (CCPs)which are authorised under the European Markets Infrastructure Regulation (EMIR) and itsPublic Register for the Clearing Obligation.
10 July 2015
Bank of England and Prudential Regulation Authority (PRA) published a consultation paper on implementing a UK leverage ratio framework. The consultation sets out the PRA’s proposed approach in relation to the implementation of a domestic leverage ratio framework and its key components, such as scope of application, minimum leverage ratio requirement, leverage ratio buffers, definitions and reporting and disclosure requirements.
The consultation closes on Monday 12 October 2015.
10 July 2015
The European Insurance and Occupational Pensions Authority (EIOPA) published a note which purposes to stress the importance of high quality public information and the relevant use of external audit services in relation to Solvency II public disclosures. In the Note EIOPA points out that public disclosure under Solvency II can be considered as a paradigm shift in communication between (re)insurance companies and their stakeholders.
09 July 2015
The European Banking Authority (EBA) published final draft Regulatory Technical Standards (RTS) and Guidelines on the provision of group financial support, as well as final draft Implementing Technical Standards (ITS) detailing the disclosure requirements of these activities. These Technical Standards and Guidelines specify the conditions under which one entity of a banking group can provide support to another entity of the same group in financial difficulties. These have been developed within the framework established by the Bank Recovery and Resolution Directive (BRRD) and aim at strengthening integrated risk management in EU banking groups by removing possible uncertainties around supporting entities in distress within the same group.
09 July 2015
The FSB published an interim progress report on reforms to existing major interest rate benchmarks (such as LIBOR, EURIBOR and TIBOR, collectively the “IBORs”) and in the development and introduction of alternative near risk-free interest rate benchmarks (termed “RFRs”). The report examines progress toward the FSB’s recommendations for reforms in this area, developed by the Official Sector Steering Group (OSSG) and published in July 2014.
09 July 2015
The Basel Committee issued corporate governance principles for banks. This set of principles supersedes guidance published by the Committee in 2010. The revised guidance emphasises the critical importance of effective corporate governance for the safe and sound functioning of banks. It stresses the importance of risk governance as part of a bank's overall corporate governance framework and promotes the value of strong boards and board committees together with effective control functions.
09 July 2015
The Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) announced that they have started the first Level 3 assessment of the implementation of the Principles for financial market infrastructures (PFMI), the international standards for financial market infrastructures (FMIs). This review will examine consistency in the outcomes of PFMI Principles implementation and is part of the CPMI-IOSCO's monitoring of full, timely and consistent implementation of the PFMI.
07 July 2015
The European Banking Authority (EBA) published its final Guidelines and final draft Implementing Technical Standards (ITS) relating to the eligibility of institutions for simplified obligations in the context of recovery planning, resolution planning and resolvability assessments. The EBA also issued final draft ITS on the procedures, forms and templates for submitting information on resolution plans.
08 July 2015
The Basel Committee on Banking Supervision (BCBS) published a document setting out the first and second set of Frequently Asked Questions (FAQs) that relate to the Basel III leverage ratio framework.
The questions and answers are grouped according to different relevant areas:
criteria for the recognition of cash variation margin associated with derivative exposures;
centrally cleared client derivative exposures;
exposures and netting of securities financing transactions (SFTs);
the treatment of netting of SFTs and derivatives under a cross-product netting agreement;
the exposure measure under the additional treatment for credit derivatives;
the treatment of long settlement transactions and failed trades.
EIOPA publishes the technical information on the symmetric adjustment of the equity capital charge for Solvency II
07 July 2015
The European Insurance and Occupational Pensions Authority (EIOPA) published the technical information on the symmetric adjustment of the equity capital charge for Solvency II with reference to the end of June 2015.
- Last Update: Tuesday 28 July 2015, 16:14.