Tracker, Financial Services Regulation & Compliance - Banking
Central Bank publishes account of meeting no. 3 of the Macroprudential Measures Committee on 1 November 2016
The meeting focused on proposed changes to Macroprudential Regulations for Housing Loan Requirements including the length of the two month valuation period and the definition of buy to let as well as recent dynamics in housing transactions in Ireland.
Department of Finance announces opening of the European Investment Bank’s first permanent office in Ireland
The new EIB Group office in Ireland represents the first ever permanent presence of both the European Investment Bank and European Investment Fund in Ireland. Prior to the formal opening of the European Investment Bank Dublin office on 9 December 2016, Minister Noonan chaired the first meeting of a new EIB-Ireland Financing Group, to steer future European Investment Bank investment activity in Ireland.
Ed Sibley, Central Bank Director of Credit Institutions Supervision, discusses the Central Bank (Variable Rate Mortgages) Bill (the Bill)
In a speech before the Joint Committee on Finance, Public Expenditure and Reform, and Taoiseach, Mr. Sibley, discussed some of the main features of the Irish private dwelling home (PDH) mortgage market, outlined how some of the associated issues are impacting mortgage pricing in Ireland, demonstrated that there has been significant progress in addressing these issues and summarised why the Bill may not achieve its stated aims and may have negative unintended consequences.
Philip R. Lane, Governor of the Central Bank of Ireland addresses the Joint Committee on Finance, Public Expenditure and Reform, and Taoiseach
In a speech on 20 December 2016, Governor Philip R. Lane stated that while the banking sector has undergone considerable restructuring since the onset of the crisis, managing the legacy effects of the crisis continues to be a major priority for the Central Bank. He also stated that further development of the European Banking Union has great potential to deliver a fundamentally more stable banking system over the medium term.
Central Bank publishes Corporate Governance Requirements for Credit Institutions 2015 - Guidelines on the Compliance Statement in accordance with Section 26
The guidelines are provided to assist credit institutions and directors in preparing the Compliance Statement which is required by Section 26 of the Corporate Governance Requirements for Credit Institutions 2015. The Guidelines provide a Compliance Statement and an overview of the board and sub-committees which credit institutions must, at a minimum, complete.
Central Bank publishes Frequently Asked Questions on corporate governance requirements for credit institutions
The Frequently Asked Questions (‘FAQ’) document takes effect from 11 January 2016 and is to be read in conjunction with the Corporate Governance Requirements for Credit Institutions 2015.
Central Bank publishes Risk-Based Contributions to the Irish Deposit Guarantee Scheme (DGS)
The Central Bank outlines the methodology employed to calculate DGS contributions from member institutions, describes annual target level requirements, outlines aggregate risk-score calculations, explains the process of assigning aggregate risk-weights to member institutions and outlines how the final contributions due are calculated.
European Commission issues publication showing the current state of play in respect of the implementation of the Capital Requirements Regulation and the Capital Requirements Directive
On 6 December, the European Commission published a table showing the current state of play in respect of the implementation of the CRR (Regulation (EU) 575/2013) and CRD IV (Directive 2013/36/EU. The table shows that there are only six Implementing Technical Standards (ITS) yet to be adopted by the Commission. Of the six outstanding ITS, five are works in progress with only the ITS in relation to "Principles for business line mapping" yet to be started.
European Systemic Risk Board publishes macro-prudential commentary on the implementation of the countercyclical capital buffer regime in the EU
The ESRB has published the eighth issue of its macro-prudential commentaries. This issue deals with the implementation of the countercyclical capital buffer regime in the EU.
European Banking Authority makes final recommendations for strengthening loss-absorbing capacity of banks in Europe
The report focused on the implementation and design of the minimum requirement for own funds and eligible liabilities (MREL) and recommended a number of changes to reinforce the MREL framework and integrate the international standards on total loss-absorbing capacity in the EU's MREL.
European Banking Authority publishes final draft technical standards on cooperation and exchange of information for passporting under the revised Payment Services Directive (PSD2)
The draft technical standards set out a harmonised framework for cooperation and exchange of information between Competent Authorities to facilitate cross-border provision of payment services in the EU internal market.
European Banking Authority publishes Guidelines on revised Pillar 3 disclosures requirements
Pillar 3 requirements were updated by the Basel Committee in January 2015. The Guidelines apply to globally and other systemically important institutions. The Guidelines do not change the substance of the required regulatory disclosures, instead, the Guidelines introduce specific guidance on the presentation and formats for Pillar 3 disclosures.
European Banking Authority publishes Guidelines on remuneration policies and practices
The Guidelines, published on 13 December 2016, specify requirements for the design and implementation of remuneration policies and practices related to the provision and sale of retail banking products and services. The Guidelines will apply from 18 January 2018.
European Banking Authority publishes its Report on cyclicality of banks' capital requirements
The Report's aim was to clarify whether risk-sensitive bank capital requirements as laid down in the Capital Requirements Regulation (CRR) and Capital Requirements Directive (CRD) create unintended pro-cyclical effects. The Report concluded that there was limited evidence of any significant pro-cyclical effect induced by the regulatory framework on the real economy and that the EU retains its current risk-sensitive framework.
European Banking Authority publishes its third impact assessment Report for the liquidity coverage ratio (LCR), together with a review of its phasing-in period
The Report shows a constant improvement of the average LCR across EU banks since 2011. No strong evidence was found suggesting that the EBA should recommend an extension of the phasing-in period of the LCR.
European Banking Authority to run its next EU-wide stress test in 2018
The stress test exercise will also include an assessment of the impact of IFRS 9, which will be implemented on 1 January 2018. The last stress test carried out by the EBA was in 2016.
European Banking Authority publishes a consultation on its draft Guidelines on the supervision of significant branches
The draft Guidelines provide a framework for the identification of ‘significant-plus’ branches and propose a set of principles that Competent Authorities should comply with in the performance of risk assessments, exchange of supervisory intelligence and information, planning of supervisory activities, carrying out on-the-spot checks and inspections, application of supervisory and precautionary measures and allocation of tasks between authorities in relation to such ‘significant-plus’ branches.
European Banking Authority publishes a Report on Covered Bonds
The EBA's Report recommended a harmonised EU-wide framework for covered bonds based on ‘three step approach'. First, a new covered bond directive should be developed to provide a definition of the covered bond and specify structural quality requirements. Second, the Capital Requirements Regulation should be amended to strengthen conditions for those covered bonds that seek preferential capital treatment. Third, convergence of national frameworks should be encouraged on a voluntary basis.
International Banking Federation writes to the G20 on the finalisation of the BCBS Basel III Framework
In a letter to the G20, IBFed stated that careful calibration of the final rules of the BCBS Basel III Framework will be crucial to ensuring that the capital standards do not have a counterproductive effect on further improvement in economic growth.
For further information please contact a member of the Financial Regulation team.
Date published: 06 Jan 2017