Reg Round Up: installment 3
European Banking Authority
14 June 2023 - EBA updates list of risk indicators and analysis tools
The European Banking Authority (EBA) published an updated list of indicators for risk assessment and risk analysis tools, together with the accompanying methodological guide. Without adding any reporting burden neither on reporting institutions nor on competent authorities, this guidance describes how risk indicators are computed in EBA publications. It will allow competent authorities and users of EBA data to interpret key bank figures in a consistent fashion when conducting their risk assessments and analyses.
13 June 2023 - EBA and EIOPA publish Data Point Modelling Standard 2.0 to foster collaboration and harmonisation in the field of supervisory reporting
The DPM Standard 2.0 issued enhances the methodology that is at the core of the EBA and EIOPA’s reporting process, creating a fully consistent approach for modelling reporting requirements. The new DPM supports the whole reporting lifecycle, from data definition to data exploration, and aims to reap the benefits of stronger collaboration and higher harmonisation while also improving the digital processing of regulatory data required by the authorities.
13 June 2023 - EBA published its final resolvability testing Guidelines
The European Banking Authority (EBA) today published its Guidelines addressed to institutions and resolution authorities on resolvability testing. The Guidelines aim to set-out a framework to ensure that resolvability capabilities developed to comply with the resolvability and transferability Guidelines are fit for purpose and effectively maintained.
12 June 2023 - EBA issues revised list of ITS validation rules
The European Banking Authority (EBA) today issued a revised list of validation rules in its Implementing Technical Standards (ITS) on supervisory reporting, highlighting those, which have been deactivated either for incorrectness or for triggering IT problems. Competent Authorities throughout the EU are informed that data submitted in accordance with these ITS should not be formally validated against the set of deactivated rules.
12 June 2023 - EBA updates list of other systemically important institutions
The European Banking Authority (EBA) updated the list of other systemically important institutions (O-SIIs) in the EU, which, together with global systemically important institutions (G-SIIs), are identified as systemically important by the relevant authorities according to harmonised criteria laid down in the EBA Guidelines. This list is based on year-end-2022 data and includes the overall score calculated according to the EBA Guidelines and the capital buffer rate that the relevant authorities have set for the identified O-SIIs. The list is available also in a user-friendly visualisation tool.
09 June 2023 - EBA updates list of correlated currencies
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 according to the procedure and methodology laid down in the ITS and submitted to the European Commission for endorsement.
05 June 2023 - EBA publishes final draft technical standards specifying the data collection for the benchmarking exercise in 2024
The European Banking Authority (EBA) published its final draft Implementing Technical Standards (ITS) on the benchmarking of credit risk, market risk and IFRS9 models for the 2024 exercise. The most significant change, compared to the data collection of 2023, is the roll out for the benchmarking of accounting metrics (IFRS9) to high default portfolios (HDP). For market risk, new templates are added for the collection of additional information, notably the Default Risk Charge (DRC) and the Residual Risk Add-On (RRAO). For credit risk, only minor changes have been made.
02 June 2023 - EBA releases the technical package for phase 1 of its 3.3 reporting framework
The European Banking Authority (EBA) published the technical package for phase 1 of version 3.3 of its reporting framework. The technical package provides standard specifications and includes the validation rules, the Data Point Model (DPM) and the XBRL taxonomies for this phase of version 3.3.
ESMA
12 June 2023 - UBS completes Credit Suisse takeover to become wealth management behemoth
UBS (UBSG.S) completed its emergency takeover of embattled local rival Credit Suisse (CSGN.S) on Monday, forging a Swiss banking and wealth management giant with a $1.6 trillion balance sheet.
06 June 2023 - Money market funds stress tests – overall resilience whilst LVNAVs exceed threshold in liquidity and credit risk scenarios
The European Securities and Markets Authority (ESMA), the EU’s financial markets and securities regulator, has published an article on the results of the Money Market Funds (MMFs) stress tests reported to ESMA.
Bank of England
06 June 2023 - Asset Purchase Facility: Bank of England concludes corporate bond sales programme – Market Notice 6 June 2023
The Bank has concluded its corporate bond sales programme. As previously announced, a small number of very short maturity bonds will continue to be held in the portfolio, maturing fully by 5 April 2024.
Financial Conduct Authority
06 June 2023 - Joint Regulatory Oversight Committee sets out next steps to help UK open banking grow
The Joint Regulatory Oversight Committee (JROC) has set out an ambitious programme of work to take forward recommendations for the next phase of open banking in the UK.
Federal Reserve
01 June 2023 - Federal Reserve Board announces consent order against Silvergate Capital Corporation and Silvergate Bank to facilitate the voluntary self-liquidation that Silvergate announced on March 8, 2023
The Federal Reserve Board on Thursday announced a consent order against Silvergate Capital Corporation and Silvergate Bank, both of La Jolla, California, to facilitate the voluntary self-liquidation that Silvergate announced on March 8, 2023. The Federal Reserve's order ensures Silvergate will implement its previously announced plan for winding down the bank's operations in a manner that protects the bank's depositors and the Deposit Insurance Fund. Silvergate is also prohibited from making capital distributions, dissipating cash assets, and engaging in certain other activities without regulatory approval.
Office of the Comptroller of the currency
06 June 2023 - Agencies Issue Final Guidance on Third-Party Risk Management
Federal bank regulatory agencies issued final joint guidance designed to help banking organizations manage risks associated with third-party relationships, including relationships with financial technology companies.
02 June 2023 - OCC Releases CRA Evaluations for 21 National Banks and Federal Savings Associations
The Office of the Comptroller of the Currency (OCC) released a list of Community Reinvestment Act (CRA) performance evaluations that became public during the period of May 1, 2023, through May 31, 2023. The list contains only national banks, federal savings associations, and insured federal branches of foreign banks that have received ratings. The possible ratings are outstanding, satisfactory, needs to improve, and substantial noncompliance.
Monetary Authority of Singapore
12 June 2023 - UBS and Credit Suisse operations in Singapore to continue without interruption following legal completion of takeover
The Monetary Authority of Singapore (MAS) said that the day-to-day operations of the Singapore entities of UBS Group AG (UBS) and Credit Suisse Group AG (CS) will not be interrupted by the legal completion of the takeover.
12 June 2023 - MAS Launches AI in Finance Challenge for the 2023 Global FinTech Hackcelerator
The Monetary Authority of Singapore (MAS) launched the 8th edition of the Global FinTech Hackcelerator, titled “Artificial Intelligence (AI) in Finance Global Challenge”, to produce innovative and market-ready AI solutions that can transform the financial services industry. The competition is conducted in partnership with AI Singapore (AISG) and powered by Oliver Wyman.
08 June 2023 - MAS to Set Expectations on Credible Transition Planning by Financial Institutions
The Monetary Authority of Singapore (MAS) announced that it will set supervisory expectations to steer financial institutions’ transition planning processes to facilitate credible decarbonisation efforts by their clients.