Tracker, Financial Services Regulation & Compliance - Banking


DOMESTIC:

Central Bank of Ireland demands increased effectiveness in IT and cyber risk management

The Central Bank's director of Policy & Risk, Gerry Cross, speaking at the Association of Compliance Officers in Ireland (ACOI) Annual Conference on 8 November 2016 stated that, in general, financial firms have insufficient awareness and understanding of IT and cybersecurity risks and stated that supervisory oversight by the Central Bank will intensify in this area.

Director of Credit Institutions of the Central Bank of Ireland address the Institute of Banking

On 17 November, the Director of Credit Institutions of the Central Bank, Ed Sibley, addressed the Institute of Banking. The speech focused on governance and culture, the Central Bank's supervisory approach and the need for diversity and an inclusive culture to avoid the pitfalls of group think.

Central Bank of Ireland Director of Policy & Risk addresses the Corporate Treasury & Cash Management Conference on the topic of European regulation and impacts for Irish financial firms

On 16 November 2016, the Central Bank's Director of Policy & Risk, Gerry Cross addressed the Corporate Treasury & Cash Management Conference on the topic of European regulation and impacts for Irish financial firms, focusing on the cumulative effects of post-crisis financial regulation.

Central Bank of Ireland announces outcome of annual review of macroprudential capital buffers for banks

The review concerned the Other Systemically Important Institutions (O-SII) framework for banks in Ireland. Seven institutions are identified as systemically important in Ireland as a result of the 2016 review.     

Central Bank of Ireland publishes notes on compilation which set out the statistical reporting requirements for credit institutions reporting the Interest Rate Return (MR1) to the Central Bank

The notes, published on 10 November 2016, are designed to help reporting agents complete the return. The MR1 return satisfies reporting requirements as laid down in Regulation (EC) No 1072/2013 as amended concerning statistics on interest rates applied by monetary financial institutions to deposits and loans vis-à-vis households and non-financial corporations.

Central Bank of Ireland publishes the outcome of its Review of Residential Mortgage Lending Requirements

The Central Bank has published a report on the outcome of its Review of Residential Mortgage Lending Requirements. The report discusses the first review of the requirements in relation to residential mortgage lending introduced by the Central Bank (Supervision and Enforcement) Act 2013 (Section 48) (Housing Loan Requirements) Regulations 2015 (the 2015 Regulations). The report was accompanied by a statement by Philip R. Lane, Governor of the Central Bank, announcing the outcome of the review, along with an FAQ document on "the Outcome of the Review of Mortgage Measures".

Central Bank (Supervision and Enforcement) Act 2013 (Section 48) (Housing Loan Requirements) (Amendment) Regulations 2016 published

On 25 November, the Central Bank (Supervision and Enforcement) Act 2013 (Section 48) (Housing Loan Requirements) (Amendment) Regulations 2016 (SI No. 568/2016) were published in Iris Oifigiuil. These Regulations make some amendments to the 2015 Regulations including an amendment to the definition of "consumer".  

 

EUROPEAN:

European Banking Authority publishes Consultation Paper on Draft Regulatory Technical Standards and Implementing Technical Standards under CRD IV

On 8 November, the EBA published a Consultation Paper on draft RTS under Article 8(2) of Directive 2013/36/EU (CRD IV) on the information to be provided for the authorisation of credit institutions, the requirements applicable to shareholders and members with qualifying holdings and obstacles which may prevent the effective exercise of supervisory powers and Draft Implementing Technical Standards under Article 8(3) of Directive CRD IV on standard forms, templates and procedures for the provision of the information required for the authorisation of credit institutions. The Consultation Paper invites submissions on the proposals put forward in the paper by 8 February 2017.

European Banking Authority publishes a report on the impact of two new international frameworks proposed by the Basel Committee on Banking Supervision

The EBA has published a report on the impact of two new international frameworks proposed by the Basel Committee on Banking Supervision; (i) a new standardised framework for counterparty risk, and (ii) a new market risk (MKR) framework. The report considers the potential introduction of greater proportionality, impact monitoring and regulatory fine-tuning, introducing a threshold for small derivative business and increasing the threshold for small trading book business.

European Banking Authority publishes its final Guidelines on the collection of information related to the internal capital adequacy assessment process (ICAAP) and the internal liquidity adequacy assessment process (ILAAP)

The Guidelines specify information that Competent Authorities should collect from institutions in order to perform ICAAP and ILAAP framework assessments and capital and liquidity estimates. The Guidelines, published on 3 November 2016, were developed in accordance with Article 16 of Regulation (EU) No 1093/2010 establishing a European Supervisory Authority (European Banking Authority).

European Banking Authority launches Consultation Paper on its draft Guidelines on the information to be provided for the authorisation of payment institutions and e-money institutions and for the registration as account information service providers

The purpose of the Guidelines is to support the transposition of Directive (EU) 2015/2366 on Payment Services in the Internal Market (PSD2). The draft Guidelines proposed in the Consultation Paper specify the type of information that applicants are required to submit in fulfilment of the requirements set out in PSD2. The consultation will run until 3 February 2017.

Andrea Enria, Chairperson of the European Banking Authority addresses the 3rd IIF European Banking Union Conference on regulatory reforms and financial integration

The speech, which took place on 2 November 2016, focused on improving cross-border banking after the financial crisis by means of  strong international standards, a Single Rulebook in the EU and progressive convergence in supervisory practices.

EBA publishes a statement by Andrea Enria, Chairperson of the EBA in relation to the proposed reform of global prudential standards that the Basel Committee intends to finalise by year end

The statement, which was made to the Committee on Economic and Monetary Affairs (ECON) of the European Parliament, focused on the merits of the reform proposal as well the EBA's submission that elements of the reform proposal should be revised to ensure that there is no significant increase in capital requirements and that capital requirements are justified on the basis of the underlying risks.

European Banking Authority launches Consultation on draft Implementing Technical Standards in relation to additional monitoring metrics for liquidity.

The aim of these ITS is to provide competent authorities with harmonised information on institutions’ liquidity risk profile. The consultation will run until 2 January 2017.

Vice-President of the Commission Valdis Dombrovskis set out his approach to regulating Europe's banking sector.

In a speech at Bruegel, on 15 November, Vice-President of the Commission Valdis Dombrovskis stated that the European Commission is focused on maintaining a regulatory framework that encourages a banking sector that is stable, sustainable, diverse and integrated. Areas of focus for the Commission include Fintech, mitigating systemic risk, revising the Capital Requirements Regulation and Directive, helping banks support deeper and more liquid capital markets and the completion of the Banking Union.

European Parliament publishes a briefing on third-country equivalence in EU banking legislation

This briefing, published on 7 November 2016, focuses on the concept of equivalence in EU banking legislation and on the difference between “passporting” rights and “third-country equivalence” rights.

European Central Bank publishes Guidelines on the approach for the recognition of institutional protection schemes for prudential purposes by national competent authorities under the Capital Requirements Regulation

The Guidelines ((EU) 2016/1994) published on 4 November 2016 are made pursuant to Article 6(1) and Article 6(5)(a) the CRR (Regulation (EU) No 575/2013).

European Central Bank publishes Guidelines on the coordination of the assessment under the Capital Requirements Regulation

The Guidelines ((EU) 2016/1993) lay down the principles for the coordination of the assessment pursuant to the CRR (Regulation (EU) No 575/2013) and the monitoring of institutional protection schemes including significant and less significant institutions.

European Parliament issues Press Release on Basel III Revision

On 23 November, the European Parliament issued a Press Release titled " Basel III revision: EU banking model must not be penalised, say MEPs". The Press Release outlines that MEPs expressed concerns over the proposed revision of the Basel III rules on risk weighted assets. They are concerned that the extra capital that would be required to be set aside would reduce banks' ability to lend.

European Banking Authority publishes final draft Regulatory Technical Standards on assessment methodology to validate market risk models under the Capital Requirements Regulation

On 22 November, the EBA published its final draft RTS that specify the conditions under which Competent Authorities assess the significance of positions included in the scope of market risk internal models, and the methodology they must apply when assessing an institution's compliance with the requirements to use an Internal Model Approach for market risk. These draft RTS are published under the CRR (Regulation (EU) 575/2013) and apply to national competent authorities under that Regulation.

European Banking Authority publishes list of public sector entities for the calculation of capital requirements

The EBA has published a list of public sector entities that may be treated as regional governments, local authorities or central governments for the purposes of the CRR (Regulation (EU) 575/2013). The list was compiled using the information provided by national competent authorities and will assist institutions in determining capital requirements.

European Banking Authority announces timing for publication of 2016 EU-wide transparency exercise data

On 24 November, the EBA announced that the annual risk assessment report will be published on 2 December. The risk assessment report will be published along with individual data for each of the banks participating in the 2016 EU-wide transparency exercise.

European Commission publishes report on the impact of the Capital Requirements Regulation on the access to finance for business and long-term investments

On 21 November, the European Commission published the final report on the impact of the CRR (Regulation (EU) 575/2013) on the access to finance for business and long-term investments. The report was prepared by London Economics (LE) Europe.

European Banking Authority publishes additional information on the proportionate application of remuneration requirements across the EU

The EBA has published additional information on the application of the proportionality principle to the remuneration provisions contained in the CRR (Regulation (EU) 575/2013) in response to a request for advice from the European Commission. 

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

Date published: 06 Dec 2016