EBA launched a consultation on the guidelines about the types of exposures that are to be associated with high risk under the Capital Requirements Regulation (CRR). The guidelines specify which types of exposures, other than those mentioned in Article 128 (2) CRR, are to be associated with particularly high risk and under which circumstances. The guidelines also clarify the notion of investments in venture capital firms and private equity. The consultation runs until July 17, 2018.
In line with the mandate for EBA in Article 128 (3) of the CRR, this consultation paper is seeking views on the exposure classes that could contain high-risk items. In addition, it specifies the method that institutions can use to inform supervisors about the occurrence of high-risk items in their portfolios, which are considered as structurally different from common exposures of the same asset class. EBA also included a clarification about the notion of investments in venture capital firms and private equity. The aim is to provide guidance and ensure harmonization of the type of exposures considered as investments in venture capital firms and private equity.
Comment Due Date: July 17, 2018
Keywords: Europe, EU, Banking, CRR, High-risk Exposures, EBA
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.