BaFin Announces Supervisory Priorities for 2019
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)
- Notification
- Priorities of BaFin
- Supervisory Priorities for Banking
- Supervisory Priorities for Insurance
- Supervisory Priorities for Securities
Keywords: Europe, Germany, Banking, Insurance, Securities, Supervisory Priorities, Regtech, Brexit, Stress Testing, Solvency II, BaFin
Previous Article
BoE and PRA Consult on Resolvability Assessment FrameworkRelated Articles
|
News
PRA Finalizes Reporting Amendments to Pillar 2 Liquidity FrameworkPRA published the final Policy Statement PS13/19 on regulatory reporting amendments and clarifications to the Pillar 2 liquidity framework for banks in UK.
June 17, 2019
WebPage
Regulatory News
|
|
News
IAIS Consults on Revisions to IAIS Supervisory MaterialIAIS has launched a public consultation on revisions to the IAIS supervisory material.
June 14, 2019
WebPage
Regulatory News
|
|
News
IMF Paper on Implementing Prudential Standards in Developing EconomiesIMF published a working paper that provides practical guidance on how developing economies, including non-Basel Committee member countries, could incorporate international standards into their prudential framework.
June 14, 2019
WebPage
Regulatory News
|
|
News
EBA Single Rulebook Q&A: Second Update for June 2019EBA published answers to five questions under the Single Rulebook question and answer (Q&A) updates for this week.
June 14, 2019
WebPage
Regulatory News
|
|
News
FSB Releases Update on Meeting of Regional Consultative Group for AsiaFSB published an update on the meeting of its Regional Consultative Group (RCG) for Asia.
June 14, 2019
WebPage
Regulatory News
|
|
News
BoE, FCA, and MAS Announce Collaboration on Cyber SecurityMAS and UK financial authorities (BoE and FCA) announced that they will work together to strengthen cyber security in their financial sectors.
June 13, 2019
WebPage
Regulatory News
|
|
News
CBIRC Advisory Committee Holds Meeting, Discusses Regulatory IssuesThe first meeting of the International Advisory Committee (IAC) of CBIRC was held in Shanghai from June 11 to 12, 2019.
June 13, 2019
WebPage
Regulatory News
|
|
News
ECB and EIOPA Publish Common Minimum Standards for Data Revision in EUECB and EIOPA published the common minimum standards for supervisory and statistical reporting data by the undertakings in EU.
June 13, 2019
WebPage
Regulatory News
|
|
News
IMF Reports on 2019 Article IV Consultation with Czech RepublicIMF published its staff report and selected issues report under the 2019 Article IV consultation with Czech Republic.
June 13, 2019
WebPage
Regulatory News
|
|
News
APRA Response to Proposal on Revisions to Capital Framework for BanksAPRA published a paper in response to the first round of consultation on proposed changes to the capital framework for authorized deposit-taking institutions.
June 12, 2019
WebPage
Regulatory News
|
