EU & UK Reg Round Up: 17/07/2023
European Banking Authority
The EBA publishes the final amending ITS on supervisory disclosure under CRD
21 June 2023
The European Banking Authority (EBA) published its final draft amending Implementing Technical Standards (ITS) on supervisory disclosures, which specify the format, structure, contents list and annual publication date of the supervisory information to be disclosed by competent authorities. The amended draft ITS incorporate the changes to the EU legal framework, in particular the changes related to supervisory reporting and investment firms.
EBA reports on the LCR and NSFR implementation in the EU in the context of the new economic environment and TLTRO repayment
15 June 2023
The European Banking Authority (EBA) published its third Report on the monitoring of liquidity coverage ratio (LCR) and net stable funding ratio (NSFR) implementation in the EU. This Report assesses the potential impact on LCR and NSFR levels of the upcoming central bank funding repayment (mainly repayments of the targeted longer-term refinancing operations - TLTRO) as well as of a potential scenario of higher liquidity risk, particularly affecting government bonds, derivatives and repo markets, in the context of a higher interest rate environment, inflation and recession risks.
ESMA
ESMA launches Data Strategy for the next five years
15 June 2023
The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, has today published its Data Strategy for 2023-2028.
Over the coming five years, ESMA will work to facilitate the use of new data-related technologies, reduce reporting compliance costs by regulated entities, enable the effective use of data at both EU and national level; and make data more broadly available to the public.
Bank of England
Bank of England launches first system-wide exploratory scenario exercise
19 June 2023
The Bank of England (the Bank) has launched its first system-wide exploratory scenario (SWES) exercise. The exercise aims to improve understanding of the behaviours of banks and non-bank financial institutions (NBFIs) in stressed financial market conditions. It will explore how those behaviours might interact to amplify shocks in UK financial markets that are core to UK financial stability.
Bank Rate increased to 5% - June 2023
22 June 2023
The Bank of England’s Monetary Policy Committee (MPC) sets monetary policy to meet the 2% inflation target, and in a way that helps to sustain growth and employment. At its meeting ending on 21 June 2023, the MPC voted by a majority of 7–2 to increase Bank Rate by 0.5 percentage points, to 5%.
Deutsche Bundesbank Euro system
Announcement of the basic rate of interest as of 1 July 2023: adjustment to 3.12%
27 June 2023
The Deutsche Bundesbank calculates the basic rate of interest pursuant to Section 247(1) of the German Civil Code (Bürgerliches Gesetzbuch) and publishes its current level in the Federal Gazette (Bundesanzeiger) pursuant to Section 247(2) of the German Civil Code.
Financial Conduct Authority
FCA welcomes launch of ISSB standards
26 June 2023
The FCA welcomes the International Sustainability Standards Board (ISSB) launch of its first sustainability-related reporting standards: the General Requirements for Disclosure of Sustainability-related financial information (IFRS S1), and the requirements for Climate-related Disclosures (IFRS S2).
Joint Regulatory Oversight Committee publishes commercial pricing principles for open banking
26 June 2023
The Joint Regulatory Oversight Committee (JROC) has published a joint paper setting out five high-level principles for banks and registered third parties to follow when agreeing a premium API (Application Programming Interface) commercial model.