ESRB published a recommendation on the exchange and collection of information for macro-prudential purposes. This information is for the branches of credit institutions that have their head office in another member state or in a third country (ESRB/2019/18). The recommendations are related to the cooperation and exchange of information on a need-to-know basis, changes to the Union legal framework, and guidelines form and the monitoring of, the exchange of information.
Recommendation A on cooperation and exchange of information on a need-to-know basis. It is recommended that the relevant authorities exchange information deemed necessary for the discharge of their tasks related to the adoption and/or activation of macro-prudential policy measures or for other financial stability tasks, in an effective and efficient manner. It is also recommended that the relevant authorities establish memoranda of understanding or other forms of voluntary arrangements for cooperation and exchange of information among themselves—or with a relevant authority of a third country—where considered necessary and appropriate by all parties involved to facilitate the exchange of information.
Recommendation B on changes to the Union legal framework. It is recommended that EC assess whether any impediments exist in Union legislation, which prevent authorities entrusted with the adoption and/or activation of macro-prudential policy measures or with other financial stability tasks from having or obtaining the necessary information on branches to carry out those functions or fulfill those tasks. It is recommended that EC propose that Union legislation be amended to remove any such impediments, where EC concludes, as a result of its assessment, that such impediments exist.
Recommendation C on guidelines for and the monitoring of exchange of information. It is recommended that EBA issue guidelines in accordance with Recommendation A for the exchange of information between relevant authorities regarding branches of credit institutions having their head office in another member state, which should include a list of information to be exchanged, as a minimum, on a need-to-know basis, and within the limits of applicable Union and national laws. The list should include, as a minimum, information items from each of the following categories:
- At the branch level—Assets and exposures with breakdowns, breakdowns of assets regarding borrower-based measures, liabilities with breakdowns, intra-financial sector exposures, and information necessary to identify other systemically important institutions (O-SIIs)
- At the parent group or parent institution level—Own funds and leverage; funding and liquidity; and relevant information on branches, such as business strategy and certain elements of recovery plans of credit institutions and supervisory assessments that are relevant.
It is also recommended that EBA monitor on a regular basis, in cooperation with ESRB, the effectiveness and efficiency of the exchange of information between relevant authorities. By December 31, 2023, EBA is requested to deliver to ESRB and to the European Council a report on the implementation of Recommendation C.
Keywords: Europe, EU, Banking, Recommendation, ESRB 2019/18, Systemic Risk, Macro-Prudential Policy, Own Funds, Recovery Plans, EC, EBA
Previous ArticleOSFI Consults on Regulatory Forms and Instructions for IFRS 17
The Bank of England (BoE) published the Statistical Notice 2021/09 requiring additional information from firms and software vendors to assist in the onboarding and testing phases for migrating statistical reporting to the BEEDS portal.
The Financial Conduct Authority (FCA) published the final rules on the Investment Firms Prudential Regime (IFPR) to streamline and simplify the prudential requirements for solo-regulated UK firms authorized under the Markets in Financial Instruments Directive (MiFID).
The working groups of the Climate Financial Risk Forum (CFRF) published a second round of guides (or Session 2 guides), written by the industry for the industry, to help financial firms manage climate-related financial risks.
The Prudential Regulation Authority (PRA) published the final Policy Statement PS24/21 that contains the new Non-Performing Exposures Securitization Part of the PRA Rulebook and an updated Supervisory Statement SS10/18 on the general requirements and capital framework with respect to securitizations.
The European Banking Authority (EBA) published version 5.1 of the filing rules for supervisory reporting.
The European Central Bank (ECB) Guideline 2021/1829 on the procedures for the collection of granular credit and credit risk data has been published in the Official Journal of European Union.
The European Banking Authority (EBA) published the final draft regulatory technical standards on disclosure of investment policy by investment firms, under the Investment Firms Regulation (IFR).
The European Council adopted conclusions inviting the European Union (EU) and the member states to further develop the cybersecurity crisis management framework.
The European Commission (EC) adopted the work program for 2022.