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

    EBA Publishes Final Regulatory Standards on STS Securitizations

    The European Banking Authority (EBA) published the final draft regulatory technical standards specifying and, where relevant, calibrating the minimum performance-related triggers for simple.

    September 20, 2022 WebPage Regulatory News
    News

    ECB Further Reviews Costs and Benefits Associated with IReF

    The European Central Bank (ECB) is undertaking the integrated reporting framework (IReF) project to integrate statistical requirements for banks into a standardized reporting framework that would be applicable across the euro area and adopted by authorities in other EU member states.

    September 15, 2022 WebPage Regulatory News
    News

    EBA Publishes Funding Plans Report, Receives EMAS Certification

    The European Banking Authority (EBA) has been awarded the top European Standard for its environmental performance under the European Eco-Management and Audit Scheme (EMAS).

    September 15, 2022 WebPage Regulatory News
    News

    MAS Launches SaaS Solution to Simplify Listed Entity ESG Disclosures

    The Monetary Authority of Singapore (MAS) set out the Financial Services Industry Transformation Map 2025 and, in collaboration with the SGX Group, launched ESGenome.

    September 15, 2022 WebPage Regulatory News
    News

    BCBS to Finalize Crypto Rules by End-2022; US to Propose Basel 3 Rules

    The Basel Committee on Banking Supervision met, shortly after a gathering of the Group of Central Bank Governors and Heads of Supervision (GHOS), the oversight body of BCBS.

    September 15, 2022 WebPage Regulatory News
    News

    IOSCO Welcomes Work on Sustainability-Related Corporate Reporting

    The International Organization of Securities Commissions (IOSCO) welcomed the work of the international audit and assurance standard setters—the International Auditing and Assurance Standards Board (IAASB)

    September 15, 2022 WebPage Regulatory News
    News

    BoE Allows One-Day Delay in Statistical Data Submissions by Banks

    The Bank of England (BoE) published a Statistical Notice (2022/18), which informs that due to the Bank Holiday granted for Her Majesty Queen Elizabeth II’s State Funeral on Monday September 19, 2022.

    September 14, 2022 WebPage Regulatory News
    News

    ACPR Amends Reporting Module Timelines Under EBA Framework 3.2

    The French Prudential Control and Resolution Authority (ACPR) announced that the European Banking Authority (EBA) has updated its filing rules and the implementation dates for certain modules of the EBA reporting framework 3.2.

    September 14, 2022 WebPage Regulatory News
    News

    ECB Paper Discusses Disclosure of Climate Risks by Credit Agencies

    The European Central Bank (ECB) published a paper that examines how credit rating agencies accepted by the Eurosystem, as part of the Eurosystem Credit Assessment Framework (ECAF)

    September 13, 2022 WebPage Regulatory News
    News

    APRA to Modernize Prudential Architecture, Reduces Liquidity Facility

    The Australian Prudential Regulation Authority (APRA) announced reduction in the aggregate Committed Liquidity Facility (CLF) for authorized deposit-taking entities to ~USD 33 billion on September 01, 2022.

    September 12, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8514