Tracker, Financial Regulation & Compliance - Banking

DOMESTIC

Central Bank of Ireland Head of Markets Policy delivers speech to Annual Collateral Forum

The Central Bank's Head of Markets Policy, Martin Moloney has delivered a speech at the 5th Annual Collateral Forum where he identified the positive potential of the emerging regulatory framework on the collateralised lending sector, including the mandatory clearing of interest rate swaps under EMIR. Two Regulatory Technical Standards relating to EMIR are currently being considered by the EU Commission -  the first concerning non-G4 currency IRSs, such as Swedish Krona, Norwegian Krone and Polish Zloty and a second relating to margin requirements for non-centrally cleared derivatives. During his speech, Mr Moloney illustrated his view that the new regulatory landscape will grow business models and is conducive to agency models like collective investment schemes and MiFID-regulated firms.

Central Bank of Ireland Director of Credit Institutions Supervision delivers a speech on his role and supervisory priorities

The Central Bank's new Director of Credit Institutions, Ed Sibley, has delivered a speech at Grant Thornton outlining his supervisory priorities as involving resolving Non-Performing Loans – with commercial and mortgage debt being a concern - , carrying out scrutiny of strategic and business model risk and dealing with matters related to governance, culture and diversity. Mr Sibley linked cultural issues to firm failures and said that the Single Supervisory Mechanism is working on undertaking behaviour and culture inspections in Irish Banks.

The Central Bank of Ireland has published statistics on Residential Mortgage Arrears and Repossessions for Q1 2016

The Central Bank's Q1 2016 statistics on residential mortgage arrears and repossessions have been published and show a fall in the number of mortgage accounts for principle dwelling houses by 11%. In addition, the number of accounts in arrears of over 90 days has decreased by 8%.  The number of buy-to-let mortgage accounts in arrears over 90 days also fell by 3.5% over Q1 of 2016.

Deputy Governor of the Central Bank of Ireland emphasises the importance of macroprudential mortgage rules

In a speech at a Centre for Economic Policy Research History Symposium Deputy Governor of the Central Bank, Sharon Donnery announced a public call for evidence by the Central Bank on the impact of its macroprudential mortgage rules The evidence can be submitted from 15 June until 10 August 2016 and will feed into a Central Bank analysis of the performance of the measures so far ahead of a review of the mortgage measures in November.  In her speech the Deputy Governor took the opportunity to highlight the original rationale for introducing these mortgage measures and stressed that the evidence threshold for any change in these measures would need to be high. Deputy Governor Donnery also gave an interview to the Sunday Independent recently echoing similar sentiments.

Central Bank publishes Policy Statement on the authorisation of non-EEA relevant credit institutions top operate a branch in Ireland

This Policy Statement applies to relevant credit institutions from non-EEA countries intending to directly establish a branch in Ireland. The Policy Statement discusses the expectations of the Central Bank in advance of authorisation (including the manner in which the Central Bank will assess the regulatory regime applicable in the credit institutions' home non-EEA state) and possible requirements post-authorisation, in addition to providing details on the Central Bank's risk appetite.

EUROPEAN

EU Commissioner for Financial Services Jonathan Hill resigns

The EU Commissioner for Financial Stability, Financial Services and Capital Markets Union, Lord Jonathan Hill has resigned from his post following the outcome of the UK referendum on EU membership. Lord Hill's portfolio has been transferred to Commission Vice-President Valadis Dombrovskis of Latvia.

European Central Bank issues statement following the UK referendum on EU membership

The European Central Bank has issued a statement following the outcome of the UK referendum stating that it is closely monitoring financial markets. In addition, the ECB made it clear that it is ready to provide additional liquidity if needed, in euro and foreign currencies. The ECB has been preparing for this 'contingency' and has assured that it considers the euro area banking area to be resilient in terms of capital and liquidity.

European Banking Authority publishes its 5th Annual Consumer Trends Report

The EBA has published its Consumer Trends Report for 2016 highlighting market issues which may affect consumers and the EBA's current issues of concern - which may be included in its work programme for 2017. The eight topics of focus identified for the year ahead are indebtedness; banking fees and costs; selling practices; foreign currency loans; innovations in payments; alternative financial services providers; virtual currencies; and innovative uses of consumer data. It is predicted that these areas of focus will be the source of some Guidelines and discussion papers – as occurred in previous years.

European Central Bank publishes Single Supervisory Mechanism supervisory statement on governance and risk appetite

An ECB report assessing governance and risk appetite in the euro area banking industry (following a thematic review conducted by the ECB) has identified elements lacking in the frameworks of many banks. In particular, the ECB identified the need for the independence of boards to be strengthened with a clear allocation of responsibilities, an increase in the collective knowledge of the board and the quality of debate on the board and allowing boards to independently challenge management. The ECB has also encouraged banks to implement risk appetite frameworks which are more consistent with their overall risk profile.

European Banking Authority seeks view on Guidelines on disclosure requirements for the EU banking sector

The EBA has launched a public consultation on a new set of Guidelines on regulatory disclosure requirements based on the revised Basel Pillar 3 requirements. The Guidelines aim to provide guidance to institutions subject to the Capital Requirements Regulation and will apply for the year-end 2017 disclosures. Submissions are sought on the consultation up to 29 September 2016.

European Banking Authority publishes Annual Report for 2015

The EBA has published its Annual Report stating that it has completed the bulk of the regulatory work toward strenthining the Single Rulebook for the EU banking sector. Monitoring work in relation to the Single Rulebook has increased in the past year and resolution regimes in the Member States have been enhanced.

For further information please contact a member of the Financial Regulation team.

Date published: 04 July 2016