Featured Product

    EBA Updates Guides on Risk and Financial Soundness Indicators

    April 20, 2020

    EBA published a revised methodological guide on how to compile risk indicators and detailed risk analysis tools, along with an updated a guide on how to report the IMF-Financial Soundness Indicators (FSIs). EBA also published a list of risk indicators, a detailed risk analysis tool, and the IMF-FSIs mapping to the data from technical standards on supervisory reporting. These updates are mainly driven by the recently published 2019 IMF-FSIs Guide and by the review of the EBA reporting framework, which entails, among others, changes in securitization information and in non-performing and forborne exposures.

    The methodological guide on risk indicators describes how the indicators are computed in EBA publications, thus allowing competent authorities and users of EBA data to interpret key bank figures and to have a consistent approach in their risk assessments. In addition, it provides information on indicators’ concepts, data sources, and computation techniques, along with a clarity on methodological issues that may assist in their accurate interpretation and use. The guide also enables other competent authorities to compute indicators following the same methodology and thus compare, in a consistent manner, indicators for different samples of banks as well as for the EU aggregates. In the guide, each risk indicator has been allocated either to one of the nine categories, depending on the type of risk addressed (liquidity, funding, asset quality, profitability, concentration, solvency, operational, market, and sovereign risks) or to the dedicated category for small and medium enterprise monitoring.

    The IMF-FSIs guide provides a mapping of the IMF-FSIs to the implementing technical standards on supervisory reporting, ensuring a harmonized methodology in reporting. It aims at providing guidance on how to compute FSIs for deposit takers, using the already available statistical inputs, derived from the EBA technical standards on supervisory reporting. FSIs provide insight into the financial health and soundness of countries’ financial institutions as well as corporate and household sectors, thus supporting the economic and financial stability analysis.

     

    Related Links

    Keywords: Europe, EU, Banking, Risk Indicators, Financial Soundness Indicators, Reporting, Risk Analysis Tool, Statistics, EBA

    Featured Experts
    Related Articles
    News

    EBA Issues Erratum for Phase 2 Package of Reporting Framework 3.0

    EBA published an erratum for the technical package on phase 2 of the reporting framework 3.0.

    April 08, 2021 WebPage Regulatory News
    News

    EBA Updates Lists of Entities for Use in Capital Calculations under SA

    EBA published an erratum for the technical package on phase 2 of the reporting framework 3.0.

    April 08, 2021 WebPage Regulatory News
    News

    MAS Amends Notice on Related Party Transactions of Banks

    MAS amended Notice 643A that addresses requirements for banks to prepare statements of exposures and credit facilities to related concerns or parties.

    April 08, 2021 WebPage Regulatory News
    News

    ECB Amends Guideline on Euro Short-Term Rate

    ECB has published, in the Official Journal of the European Union, the Guideline 2021/565 on the euro short-term rate (€STR) and this guideline amends the previous ECB Guideline 2019/1265.

    April 07, 2021 WebPage Regulatory News
    News

    EBA Consults on Standards Related to FRTB-SA

    EBA launched a consultation on the draft regulatory technical standards on the list of countries with an advanced economy for calculating the equity risk under the alternative standardized approach (FRTB-SA).

    April 07, 2021 WebPage Regulatory News
    News

    PRA Proposes Rules Related to IRB Approach for Credit Risk

    PRA is proposing, via CP7/21, the approach to implementing new requirements related to the specification of the nature, severity, and duration of an economic downturn in the internal ratings-based (IRB) approach to credit risk.

    April 07, 2021 WebPage Regulatory News
    News

    BoE Outlines Regulatory Treatment of Recovery Loan Scheme of UK

    The UK government launched the Recovery Loan Scheme (RLS) as part of its continued COVID-19 support for UK businesses, as announced by HM Treasury on March 03, 2021.

    April 06, 2021 WebPage Regulatory News
    News

    FSB Addresses G20 on COVID Measures, TBTF Reforms, and Climate Risks

    FSB published a letter, from its Chair Randal K. Quarles, to the G20 Finance Ministers and Central Bank Governors, ahead of their virtual meeting on April 07, 2021.

    April 06, 2021 WebPage Regulatory News
    News

    OSFI Unwinds Temporary Increase to Covered Bond Limit for Banks

    OSFI issued a letter to the deposit-taking institutions issuing covered bonds and announced the unwinding of the temporary increase to the covered bond limit for deposit-taking institutions, effective immediately.

    April 06, 2021 WebPage Regulatory News
    News

    EU Amends CRR and Securitization Regulation in Response to Pandemic

    To support recovery from the COVID-19 crisis, EU has published two regulations to amend the securitization framework, as set out in the Securitization Regulation (2017/2402) and the Capital Requirements Regulation or CRR (575/2013).

    April 06, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 6826