BaFin published the updated interpretative guidance on Article 2 of the German Act on ring-fencing and recovery and resolution planning for credit institutions and financial groups—also known as the Bank Separation Act. The guidance has been updated in light of the additional questions that have been raised on implementation of the Bank Separation Act and on application of the interpretative guidance. The issues addressed in the updated version of the interpretative guidance essentially cover the scope of the Bank Separation Act, the determination of thresholds for the subjective scope of application, the scope of the risk analysis, prohibitions and provisions on exemptions from prohibitions, and regulatory provisions for financial trading institutions. BaFin also published a comparative version of the guidance to illustrate the changes made.
The interpretative guidance, which has been jointly developed by BaFin and Deutsche Bundesbank, is designed to help institutions falling under the scope of application of the Bank Separation Act on how to adjust their previously conducted risk analyses in the subsequent compliance process. The interpretative guidance is also intended to assist law enforcement agencies in terms of their legal assessment of matters covered by the Bank Separation Act. To ensure that all institutions have the same information at their disposal, BaFin has now decided to make the interpretative guidance publicly available in the form of general questions and answers. In addition, the interpretative guidance has been divided into modules to make it more user-friendly and to enable BaFin to make subsequent amendments more easily, if required. The updated version replaces the previous version of the interpretative guidance, which was published on December 14, 2016. BaFin will amend this interpretative guidance, if necessary, particularly if the legal framework or supervisory standards change or if such amendments are required due to findings in supervisory practice.
- Press Release
- Interpretative Guidance (PDF)
- Comparative Version of the Guidance (PDF in German)
- Overview of Interpretative Guidance
Keywords: Europe, Germany, Banking, Recovery and Resolution, CRR, Ring Fencing, Bank Separation Act, Resolution Framework, Basel, BaFin
Previous ArticleOSFI Provides Update on Implementation of IFRS 17 in Canada
PRA proposed rules (in CP12/21) for the application of existing consolidated prudential requirements to financial holding companies and mixed financial holding companies that have been approved or designated in accordance with Part 12B of the Financial Services and Markets Act 2000 (FSMA).
ECB Banking Supervision announced that euro area banks it directly supervises may continue to exclude certain central bank exposures from the leverage ratio until March 2022.
OSFI decided to increase the Domestic Stability Buffer from 1.00% to 2.50% of total risk-weighted assets, with effect from October 31, 2021.
HKMA is requesting banks to participate in a tech baseline assessment, which forms part of the HKMA Fintech 2025 strategy.
OSFI published two documents to consult on the management of operational risk capital data for institutions required, or for those applying, to use the Basel III standardized approach for operational risk capital in Canada.
The NGFS Study Group on Biodiversity and Financial Stability published a Vision paper exploring the case for action in addressing the financial stability concerns arising from biodiversity loss.
ACPR published the final version of CREDITIMMO 2.3.0 taxonomy for the decree of October 31, 2021.
EC, has approved, under the EU State Aid rules, the fourth prolongation of the Italian guarantee scheme to facilitate the securitization of non-performing loans.
ECB published Guideline 2021/975, which amends Guideline ECB/2014/31, on the additional temporary measures relating to Eurosystem refinancing operations and eligibility of collateral.
EIOPA published a report, from the Consultative Expert Group on Digital Ethics, that sets out artificial intelligence governance principles for an ethical and trustworthy artificial intelligence in the insurance sector in EU.