The Swiss Financial Market Supervisory Authority FINMA is proposing to amend several of its circulars to implement the small banking regime. The amendments relieve small and solid banks from certain prudential rules. This consultation ends on July 12, 2019 and the effective date for the regime is expected to be January 01, 2020.
As part of this consultation, FINMA proposed adjustments to its circulars on outsourcing for banks and insurers (Circular 18/3), operational risk for banks (Circular 08/21), corporate governance by banks (Circular 17/1), and disclosures by banks (Circular 16/1) on the basis of the Capital Adequacy Regulation. Amendments have also been proposed to the circulars on risk distributions for banks (Circular 19/1) and credit risk for banks (Circular 17/7). The facilitation of the small banking regime in the areas of outsourcing and operational risks will in future also be applied to institutions with a fintech license. The consultation on the revised FINMA circulars will be conducted in parallel to the consultation on the adjustments to the own funds regulation.
To introduce the small-banking regime, the Federal Council's own funds ordinance must also be adjusted. To this end, the Federal Department of Finance has drafted a corresponding draft. The pilot operation of the small-banking regime launched in July 2018 and it enjoyed great interest, with 68 institutes in the categories 4 and 5 participating in it. These institutions are already benefiting from relief for the 2018 reporting year. FINMA will continue the pilot operation until the end of 2019. Thereafter, it is to be replaced by the definitive regime on January 01, 2020, based on the revised own funds regulation. The proposed regime is in terms of content and time in comparison with other financial centers.
Related Links (in German)
Comment Due Date: July 12, 2019
Effective Date: January 01, 2020
Keywords: Europe, Switzerland, Banking, Category 4, Category 5, Small Banks, Proportionality, capital Adequacy, Disclosures, Credit Risk, FINMA
Previous ArticleAPRA Update on Implementation of Royal Commission Recommendations
OSFI has set out the near-term priorities for federally regulated financial institutions and federally regulated private pension plans for the coming months until March 31, 2022.
Under the Italian G20 Presidency, BIS Innovation Hub and the Italian central bank BDI launched the second edition of the G20 TechSprint on the lookout for innovative solutions to resolve operational problems in green and sustainable finance.
EBA proposed the regulatory technical standards on a central database on anti-money laundering and countering the financing of terrorism (AML/CFT) in EU.
ECB published its response to the targeted EC consultation on the review of the bank crisis management and deposit insurance framework in EU.
ACPR published Version 1.0.0 of the RUBA taxonomy, which will come into force from the decree of January 31, 2022.
BCBS, CPMI, and IOSCO (the Committees) are inviting entities that participate in market infrastructures and securities markets through an intermediary as well as non-bank intermediaries to complete voluntary surveys on the use of margin calls.
ECB published Decision 2021/752 to amend Decision 2019/1311 on the third series of targeted longer-term refinancing operations or TLTRO III.
The Central Bank of Ireland published Version 2.7 of the draft credit data template and rules for monthly AnaCredit reporting by banks.
OSFI proposed revisions to the Basel Capital Adequacy Reporting (BCAR) and leverage requirements returns for the 2023 reporting, with the comment period ending on July 09, 2021.
EBA published a discussion paper on review of the standardized nonperforming loans (NPL) transaction data templates, along with the proposed revised NPL data templates.