Featured Product

    German Regulators Publish Updates for Financial Sector Entities

    April 01, 2022

    German regulatory authorities launched the 2022 stress test for less significant institutions, published a supporting document on AnaCredit reporting, issued general decrees on systemic risk buffer and interest rate risks in the banking book (IRRBB), and announced discontinuation of COVID-relief measures.

    Below are the key details of the recent updates:

    • The Deutsche Bundesbank and the Federal Financial Supervisory Authority of Germany (BaFin) announced launch of their fifth stress test to assess the earnings situation and resilience of less significant institutions. As with the previous stress tests for less significant institutions, the results are to be used to determine the supervisory capital adequacy recommendation. The design of the stress test for 2022 is similar to that of the stress test for 2019, with the far-reaching consideration of proportionality being a key difference. If institutions do not exceed supervisory thresholds in individual risk categories, they do not have to fill out the questionnaire in full. This will relieve the institutions that are classified as small and non-complex institutions. Banks must submit the data collected in the stress test to the regulator by the end of May 2022. Bundesbank and BaFin are expected to publish the results at the end of September 2022.
    • Bundesbank published a document specifying the method for identifying institutions with reduced reporting requirements under the AnaCredit regulation.
    • BaFin published a general decree introducing a sectoral systemic risk buffer of 2.0% for risk-weighted assets on loans secured by residential real estate as of April 01, 2022. Banks have until February 01, 2023 to meet the buffer requirement.
    • BaFin issued a general decree revoking the earlier 2016 decree on capital requirements for IRRBB. The 2016 general decree is no longer necessary, as BaFin has now defined an individual assessment and capital requirement for all institutions under its Supervisory Review and Evaluation Process.
    • BaFin announced that it will end most of its COVID relief measures on June 30, 2022. In March 2020, BaFin had decided to use the flexibility of the existing regulations to temporarily adapt some of its requirements to the special circumstances of the pandemic. However, an examination by BaFin has shown that most of the relief measures are no longer required, as the effects of the COVID-19 crisis on the supervised companies and financial stability can now be managed. However, some of the relief measures will continue for the time. These are related to government subsidy programs, supervisory requirements for trading from home, exceptions to on-site audits permitted under certain circumstances, and amended rules on trades for investment funds.

     

    Related Links (in German)

     

    Keywords: Europe, Germany, Banking, Stress Testing, Less Significant Institutions, AnaCredit, Reporting, Systemic Risk, Systemic Risk Buffer, Regulatory Capital, Basel, IRRBB, Covid-19, SREP, Bundesbank, BaFin

    Featured Experts
    Related Articles
    News

    EU Agencies Update LCR Rule and Macro-Prudential Policy Recommendation

    The European Commission (EC) published the Delegated Regulation 2022/786 with regard to the liquidity coverage requirements for credit institutions under the Capital Requirements Regulation (CRR).

    May 23, 2022 WebPage Regulatory News
    News

    EBA Publishes Regulatory Standards to Identify Shadow Banking Entities

    The European Banking Authority (EBA) published the final draft regulatory technical standards specifying the criteria to identify shadow banking entities for the purposes of reporting large exposures.

    May 23, 2022 WebPage Regulatory News
    News

    EIOPA Examines Physical Climate Risk Exposure, SII Non-Compliance

    The European Insurance and Occupational Pensions Authority (EIOPA) published a report assessing insurers' exposure to physical climate change risks

    May 20, 2022 WebPage Regulatory News
    News

    NGFS Report Explores Quantification of Climate Risk Differentials

    The Network for Greening the Financial System (NGFS) published two reports to aid central banks and regulators in their oversight of the financial sector and in their central bank operations

    May 19, 2022 WebPage Regulatory News
    News

    EC Publishes Results on Review of Web Accessibility Directive

    The European Commission (EC) published the results of a public consultation, held in October 2021, on the review of the Web Accessibility Directive.

    May 19, 2022 WebPage Regulatory News
    News

    MAS Consults on Adjustment Spreads for Conversion of SOR Contracts

    The Monetary Authority of Singapore (MAS) and the SC-STS are jointly consulting, until June 10, 2022, on setting adjustment spreads for the conversion of legacy SOR contracts to SORA reference rate.

    May 18, 2022 WebPage Regulatory News
    News

    OSFI Discusses Benchmark Rate Transition, Sets Out Work Priorities

    The Office of the Superintendent of Financial Institutions (OSFI) published the strategic plan for 2022-2025 and the departmental plan for 2022-23.

    May 17, 2022 WebPage Regulatory News
    News

    EBA Proposes Standards to Support Secondary NPL Markets

    The European Banking Authority (EBA) is consulting, until August 31, 2022, on the draft implementing technical standards specifying requirements for the information that sellers of non-performing loans (NPLs) shall provide to prospective buyers.

    May 17, 2022 WebPage Regulatory News
    News

    EU Confirms Agreement on Rules on Cybersecurity and Banking Resolution

    The European Council and the Parliament reached an agreement on the revised Directive on security of network and information systems (NIS2 Directive).

    May 13, 2022 WebPage Regulatory News
    News

    EBA Issues Standards for Crowdfunding Service Providers Under ECSPR

    The European Banking Authority (EBA) published the final draft regulatory technical standards specifying information that crowdfunding service providers shall provide to investors on the calculation of credit scores and prices of crowdfunding offers.

    May 13, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8206