Tracker, Financial Services Regulation & Compliance - Banking


Central Bank identifies weaknesses in lenders’ compliance with the Code of Conduct on Mortgage Arrears (CCMA)

The Central bank published the findings of its themed inspection of compliance with the statutory Code of conduct on Mortgage Arrears. While the seven lenders investigated had implemented frameworks as required by the CCMA, weaknesses of varying degrees were identified across all four areas: resolution of arrears in a timely manner; transparency of borrowers' communications; fair processes; and process improvement and controls. The Central Bank has imposed timelines for remediation of breaches. However, David Hall, chief executive of the Irish Mortgage Holders Organisation (IMHO), said it was "deeply concerning" that the banks were not named by the regulator alongside their breaches.

IBRC Commission of Investigation (Revised Draft Terms of Reference)

The Government has established a Commission of Investigation under Section 3 of the Commission of Investigations Act 2004 to investigate certain matters of significant public concern regarding certain decisions, transactions and activities entered into by IBRC between the period 21 January 2009 and 7 February 2013 as necessary. The investigation's terms of reference were amended to encompass a determination of the appropriateness of the Department of Finance's actions in light of the information provided to them by IBRC and an express reference to the performance of the staff in IBRC's wealth management unit.

European Union (Credit Institutions: Financial Statements) Regulations 2015

These Regulations revoked the European Communities (Credit Institutions: Accounts) Regulations 1992 and provide that a similar accounting requirements for credit institutions, to those in Part 6 of the Companies Act 2014. The Regulations contain provisions governing the preparation of accounts, including group accounts, the content of those accounts, their format and the valuation of items to be included, and the information to be included in the notes to the accounts.



European Banking Authority (EBA) updates its risk dashboard for EU banking sector

This version of the EBA's periodic risk dashboard outlines the main risks and vulnerabilities in the EU banking sector from its review of 55 banks in fourth quarter of 2014.  A positive trend noted is the fact that EU's banks' capital positions remain strong and balance sheet and loan volumes were in general back to modest growth. However, while profitability and return on equity increased they remain at quite low levels.

EBA issues technical advice to the Commission on contributions to the Single Resolution Fund

European Banking Authority (EBA) provided technical advice on the criteria and principles that will be used to determine the uniform level of contributions by banks in the participating EU Member States to the Single Resolution Fund. The EBA's technical advice will inform a delegated act to be adopted by the Commission on the initial period for the contributions to the Single Resolution Fund.

EBA issues amended technical standards on reporting of liquidity coverage ratio under the CRD IV

The EBA updated its Implementing Technical Standards (ITS) on supervisory reporting of liquidity coverage ratios (LCR) for EU credit institutions. The updated ITS includes new templates and instructions for credit institutions so as to ensure compliance with the European Commission's Delegated Act adopted in October 2014. In addition the ITS outline all the necessary steps needed for the calculation of the ratio. The amended ITS are only applicable to credit institutions and not to investment firms and will only become applicable following publication in the EU Official Journal.

EBA issues final guidelines and its opinion on mortgage creditworthiness assessments and arrears and foreclosure

These Guidelines support the national implementation by Member States of the forthcoming Mortgage Credit Directive (MCD). The Guidelines apply from 21 March 2016, the transposition date of the MCD. As a further support to the implementation of the MCD, the EBA has also published the Opinion on Good Practices for Mortgage Creditworthiness Assessments and Arrears and Foreclosure, including expected mortgage payment difficulties. Both Guidelines ensure that national authorities implement the MCD consistently across the EU, by providing greater detail on how creditors should give effect to the relevant MCD provisions.

EBA publishes its annual report for 2014

The Annual Report provides a detailed account of all the work the Authority achieved in 2014 and anticipates the key areas of focus in the coming years. During 2014, the EBA made significant progress and continued its crucial role in safeguarding the integrity and stability of the EU banking sector. Among notable achievements were the further development of the Single Rulebook in banking, the continued promotion of supervisory convergence and the assessment of risks, as well as continued work to provide transparency into the EU banking sector. In addition, the EBA carried on with its mandates related to protecting consumers and monitoring financial innovation.

European Commission extends transitional period for capital requirements for banks' exposures to Central Counterparties (CCPs)

The Commission adopted an implementing act that will extend the transitional period for capital requirements for EU banking groups' exposures to central counterparties (CCPs) for six months until 15 December 2015.

Basel Committee consults on interest rate risk in the banking book

The Basel Committee on Banking Supervision issued a consultative document on the risk management, capital treatment and supervision of interest rate risk in the banking book (IRRBB). This consultative document expands upon and is intended to ultimately replace the Basel Committee's 2004 Principles for the management and supervision of interest rate risk. Two options for the capital treatment of interest rate risk in the banking book are proposed and comments are invited until 11 September 2015.

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

Date published: 03 July 2015