Featured Product

    BaFin Announces Supervisory Priorities for 2019

    December 18, 2018

    BaFin published the supervisory priorities for 2019. In 2019, the ongoing digitization and the exit of the United Kingdom from EU will be the focus areas of the oversight activities of BaFin. BaFin has identified several areas of action for both issues.

    The supervisory priorities related to the digitization will involve addressing the digitization-related market changes through supervision and regulation; ensuring that the innovative technologies, IT systems, and data used by the supervised entities are safe; and transforming itself—internally and as an interface to the market—in the face of advancing digitization. Additionally, as Brexit affects all of the business areas of BaFin, dealing with the consequences of Brexit represents a supervisory focus for 2019 via the following key actions:

    • Dealing with the consequences of the removal of the EU passport for new and existing business
    • Arrangements to continue cooperation with the UK supervisory authorities in supervisory and regulatory areas of responsibility
    • Maintaining and intensifying the (public) communication on Brexit

    The supervisory priorities for banking include performing the less significant institution (LSI) Stress Test 2019 to review the impact on earnings and interest rate risk. The 2019 priorities for the activities related to securities markets include reviewing implementation of Markets in Financial Instruments Directive and regulation (MiFID II/MiFIR) and Packaged Retail and Insurance-Based Investment Products (PRIIPs) Regulation as well as preparing for the implementation of EU Prospectus Regulation. Additionally, the key priorities for the insurance sector involve the following: 

    • Focusing on sustainability in the investment of insurance companies and pension funds
    • Intensifying the monitoring of the premium situation of reinsurers in the non-life sector
    • Examining "hidden" cyber risks in insurance policies
    • Conducting tests of stochastic valuation models of standard insurance life insurance companies
    • Performing in-depth study on how insurance companies using the standard formula deal with economic scenario generators (ESGs) in the evaluation
    • Conducting audit and quality assurance of technical provisions in the solvency overview of property and casualty insurance companies
    • Preparing for the efficient identification of risk-adequate capital backing through the use of the capital add-ons capital surcharge
    • Preparing for Solvency II Review Procedures (Long Term Guarantees Review, Solvency II Review 2020)

     

    Related Links (in German)

    Keywords: Europe, Germany, Banking, Insurance, Securities, Supervisory Priorities, Regtech, Brexit, Stress Testing, Solvency II, BaFin

    Featured Experts
    Related Articles
    News

    OCC Revises Minimum Threshold for Banks to Conduct Stress Tests

    OCC issued the final rule that amends its company-run stress testing requirements under the 12 CFR 46 in Code of Federal Regulations.

    October 10, 2019 WebPage Regulatory News
    News

    US Agencies Update Management Interlock Rules Under DIMIA

    US Agencies (FDIC, FED, and OCC) issued a final rule that increases the thresholds in the major assets prohibition for management interlocks for purposes of the Depository Institution Management Interlocks Act (DIMIA).

    October 10, 2019 WebPage Regulatory News
    News

    US Agencies Finalize Rules to Closely Match Bank Risk Profiles

    US Agencies (OCC, FED, and FDIC) finalized rules that tailor the regulations for domestic and foreign banks to more closely match their risk profiles.

    October 10, 2019 WebPage Regulatory News
    News

    CPMI-IOSCO and FSB on Governance Arrangements for OTC Derivatives

    CPMI and IOSCO published a report that identifies key criteria, functions, and bodies for the governance arrangements.

    October 09, 2019 WebPage Regulatory News
    News

    EIOPA Launches Field Test on Templates Under 2020 Solvency II Review

    EIOPA, as part of the 2020 Solvency II reporting and disclosure review, launched a field test on the revised and newly proposed reporting templates.

    October 09, 2019 WebPage Regulatory News
    News

    US Agencies Adopt Rule on Appraisals for Real Estate Transactions

    US Agencies (FDIC, FED, and OCC) adopted the final rule to amend regulations requiring appraisals of real estate for certain transactions

    October 08, 2019 WebPage Regulatory News
    News

    US Agencies Finalize Amendments to Simplify Volcker Rule

    US Agencies (CFTC, FDIC, FED, OCC, and SEC) finalized amendments to the regulations implementing section 13 of the Bank Holding Company Act, also known as the Volcker Rule.

    October 08, 2019 WebPage Regulatory News
    News

    EC Report Explores Application and Challenges of Blockchain Technology

    The Joint Research Center of EC published a report exploring the challenges and impact of distributed ledger technologies.

    October 08, 2019 WebPage Regulatory News
    News

    BIS and SNB Sign Agreement on Innovation Hub Center in Switzerland

    BIS and SNB signed an operational agreement on the BIS Innovation Hub Center in Switzerland.

    October 08, 2019 WebPage Regulatory News
    News

    ECB Issues Results of Sensitivity Analysis of Liquidity Risk for Banks

    ECB published results of 2019 stress test on sensitivity analysis of liquidity risk.

    October 07, 2019 WebPage Regulatory News
    RESULTS 1 - 10 OF 3958