ESAs Publish Joint Committee Annual Report for 2018
ESAs published the Joint Committee annual report for 2018. The report provides a detailed account of the joint achievements in the past year. The report highlights the continued efforts of ESAs in overseeing market developments and cross-sectoral risks, including those posed by Brexit. The focus of the Committee on Brexit-related issues increased, as ESAs continued the preparation for withdrawal of UK from EU.
The report notes that the Joint Committee continued as an important forum for discussions on market developments and in-depth analysis of emerging risks, helping to identify the main areas of supervisory concern across EU. As uncertainties regarding the withdrawal of UK from EU grew, the impact of a potential cliff-edge scenario, ongoing supervisory matters, and future cooperation with UK authorities became focal points for the Joint Committee. These escalating uncertainties were reflected in the Joint Committee’s biannual risk reports, which also addressed other necessary measures to ensure consistent EU supervisory oversight in light of Brexit. The report further noted that ESAs focused on ensuring the smooth implementation of the new rules related to the Packaged Retail and Insurance-based Investment Products (PRIIPs) Regulation. To this end, additional questions and answers were published to clarify the application of the rules and to promote common supervisory approaches and practices.
In the field of financial innovation, the Joint Committee published a report on use of Big Data; the report presented the benefits and risks of allowing the development of products tailored to consumer needs in recurring to big data analytics and processes. The Joint Committee also conducted a monitoring exercise on the evolution of automation in financial advice. The report highlights that ESAs also began working on several joint actions under FinTech Action Plan. The first joint deliverable from this Action Plan was the joint report on Regulatory Sandboxes and Innovation Hubs, which set out a comparative analysis of the innovation facilitators established to date in EU and outlined observed practices for the design and operation of innovation facilitators.
In addition, the annual report provides a detailed account of the two joint draft regulatory technical standards by ESAs to amend the standards on clearing obligation and risk mitigation techniques for non-cleared over-the-counter (OTC) derivatives. These standards extend the special treatment associated with covered bonds to simple, transparent and standardized (STS) securitizations, to ensure a level playing field with covered bonds. The report also provides information related to Implementing Regulations on credit assessments by External Credit Assessment Institutions (ECAIs).
Related Links
Keywords: Europe, EU, Banking, Insurance, Securities, Brexit, Fintech, Securitization, PRIIPs, Annual Report, ESAs
Previous Article
IMF Report Examines Developments in Banking Sector in GhanaRelated Articles
BIS and Central Banks Experiment with GenAI to Assess Climate Risks
A recent report from the Bank for International Settlements (BIS) Innovation Hub details Project Gaia, a collaboration between the BIS Innovation Hub Eurosystem Center and certain central banks in Europe
Nearly 25% G-SIBs Commit to Adopting TNFD Nature-Related Disclosures
Nature-related risks are increasing in severity and frequency, affecting businesses, capital providers, financial systems, and economies.
Singapore to Mandate Climate Disclosures from FY2025
Singapore recently took a significant step toward turning climate ambition into action, with the introduction of mandatory climate-related disclosures for listed and large non-listed companies
SEC Finalizes Climate-Related Disclosures Rule
The U.S. Securities and Exchange Commission (SEC) has finalized the long-awaited rule that mandates climate-related disclosures for domestic and foreign publicly listed companies in the U.S.
EBA Proposes Standards Related to Standardized Credit Risk Approach
The European Banking Authority (EBA) has been taking significant steps toward implementing the Basel III framework and strengthening the regulatory framework for credit institutions in the EU
US Regulators Release Stress Test Scenarios for Banks
The U.S. regulators recently released baseline and severely adverse scenarios, along with other details, for stress testing the banks in 2024. The relevant U.S. banking regulators are the Federal Reserve Bank (FED), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC).
Asian Governments Aim for Interoperability in AI Governance Frameworks
The regulatory landscape for artificial intelligence (AI), including the generative kind, is evolving rapidly, with governments and regulators aiming to address the challenges and opportunities presented by this transformative technology.
EBA Proposes Operational Risk Standards Under Final Basel III Package
The European Union (EU) has been working on the final elements of Basel III standards, with endorsement of the Banking Package and the publication of the European Banking Authority (EBA) roadmap on Basel III implementation in December 2023.
EFRAG Proposes XBRL Taxonomy and Standard for Listed SMEs Under ESRS
The European Financial Reporting Advisory Group (EFRAG), which plays a crucial role in shaping corporate reporting standards in European Union (EU), is seeking comments, until May 21, 2024, on the Exposure Draft ESRS for listed SMEs.
ECB to Expand Climate Change Work in 2024-2025
Banking regulators worldwide are increasingly focusing on addressing, monitoring, and supervising the institutions' exposure to climate and environmental risks.