BaFin published a general order to lower the countercyclical capital buffer (CCyB) from 0.25% to 0% as of April 01, 2020. This reduction aims to strengthen the resilience of the banking system in the light of COVID-19. A possible increase in the domestic countercyclical capital buffer is likely not expected before January 01, 2021. In line with the ECB decision on dividends, BaFin has also stated that banks should not distribute dividends and profits. BaFin Executive Director Raimund Röseler said, "We expect that the institutions that are under our direct supervision (Less Significant Institutions) will not pay any dividends or distribute profits until at least October 2020." Additionally, BaFin updated its frequently asked questions on banking and securities supervision in response to COVID-19.
Related Links (in German)
Keywords: Europe, Germany, Banking, Securities, COVID-19, CCyB, FAQs, Dividend Distribution, Less Significant Institutions, Regulatory Capital, BaFin
Previous ArticleCentral Bank of Ireland Updates Notes on AnaCredit Reporting
PRA, via the consultation paper CP12/20, proposed changes to its rules, supervisory statements, and statements of policy to implement certain elements of the Capital Requirements Directive (CRD5).
EIOPA published the financial stability report that provides detailed quantitative and qualitative assessment of the key risks identified for the insurance and occupational pensions sectors in the European Economic Area.
EBA published its risk dashboard for the first quarter of 2020 together with the results of the risk assessment questionnaire.
EBA announced that the next stress testing exercise is expected to be launched at the end of January 2021 and its results are to be published at the end of July 2021.
PRA published the consultation paper CP11/20 that sets out its expectations and guidance related to auditors’ work on the matching adjustment under Solvency II.
MAS published a statement guidance on dividend distribution by banks.
APRA updated its capital management guidance for banks, particularly easing restrictions around paying dividends as institutions continue to manage the disruption caused by COVID-19 pandemic.
FSB published a report that reviews the progress on data collection for macro-prudential analysis and the availability and use of macro-prudential tools in Germany.
EBA issued a statement reminding financial institutions that the transition period between EU and UK will expire on December 31, 2020; this will end the possibility for the UK-based financial institutions to offer financial services to EU customers on a cross-border basis via passporting.
SRB published guidance on operational continuity in resolution and financial market infrastructure (FMI) contingency plans.