Featured Product

    FIN-FSA Amends Rules on Risk Reporting by Credit Institutions

    December 29, 2020

    FIN-FSA issued revised Regulations and Guidelines 1/2014 on risk reporting by credit institutions wherein the scope of the regulations and guidelines has been expanded to cover all credit institutions. Consequently, new reporting institution categories have been added to the credit risk reporting (S reporting) and interest rate reporting (R reporting). Submission of supervisory information using the S, R, and loan-to-value (LTC) tables has also been amended. In addition, the largest counterparty reporting (V reporting) obligations have been repealed, effective immediately, as the corresponding information is sufficiently available from the COREP 27.00 and 28.00 reports. The regulations and guidelines specify the changes that are valid from January 01, 2021 and January 01, 2022.

    New reporting institution categories added to the S reporting include categories on financing institutions, such as foreign branches (Category 210), consolidation group of financing institution (Category 214), and branch of foreign credit institutions engaged in other than deposit bank activities in Finland (Category 222). Categories 210 and 214 have been added to R reporting and Category 211 (on financing institution excluding foreign branches) to LTC reporting. Reporting institution categories of reporting obligations have been simplified and clarified such that reporting always takes place in the highest reporting institution category of a consolidation group or amalgamation. Thus, the reporting institution Category 202 on deposit banks, excluding foreign branches, has been removed from S reporting while Category 205 on consolidation group of deposit bank has been added as a new reporting institution category in R reporting. In connection with the changes, certain technical improvements have been made to the wording and systematics of the regulations and guidelines. Amendments to the submission of supervisory information using the S and R tables include the following:

    • Supervised entities must submit to FIN-FSA the S and R tables in accordance with the Financial sector’s reporting map.
    • Supervised entities must report to FIN-FSA, using the S and R tables, the information that is based on information specified in Annexes III (FINREP templates) and V (Instructions on FINREP) of the Commission Implementing Regulation 680/2014 on supervisory reporting.
    • Supervised entities that are the parent undertaking of a consolidation group must report information on a consolidation basis (reporting institution category 205 or 214). The reporting obligation does not apply to the parent undertakings of a sub-consolidation group. No other supervised entity belonging to a consolidation group need report the information.
    • If the supervised entity does not belong to a consolidation group, the supervised entity must report the information referred to on a solo basis (reporting institution category 201 or 210).
    • The central body of an amalgamation of deposit banks must report information on an amalgamation level (reporting institution category 260). No other entities belong to an amalgamation need report the information.
    • Branches of foreign credit institutions engaged in credit institution activity in Finland must report only the S reporting information. The information is reported on a solo basis (reporting institution category 221 or 222).
    • The S and R reports must be submitted on a quarterly basis, as at March 31, June 30, September 30, and December 31. S reports must be submitted to FIN-FSA within 30 business days and the R reports within 20 business days of the reporting date.

    FIN-FSA also published a summary of the feedback received about the regulations and guidelines. Based on the feedback received, FIN-FSA decided to postpone the expansion of the information content of regular LTC reporting to a later date. This way, the changes will cause as little disruption as possible to supervised entities’ information system projects.

     

    Related Links

    Effective Date: January 01, 2021/January 01, 2022

    Keywords: Europe, Finland, Banking, Reporting, Credit Risk, Interest Rate Risk, COREP, FINREP, CRR, LTV, FIN-FSA

    Featured Experts
    Related Articles
    News

    PRA and FPC Finalize Changes to Leverage Ratio Framework in UK

    The Prudential Regulation Authority (PRA) published the final policy statement PS21/21 on the leverage ratio framework in the UK. PS21/21, which sets out the final policy of both the Financial Policy Committee (FPC) and PRA

    October 08, 2021 WebPage Regulatory News
    News

    CFPB Proposes Rule on Small Business Lending Data Collection

    The Consumer Financial Protection Bureau (CFPB) proposed to amend Regulation B to implement changes to the Equal Credit Opportunity Act (ECOA) under Section 1071 of the Dodd-Frank Act.

    October 08, 2021 WebPage Regulatory News
    News

    PRA Decides to Maintain O-SII Buffers for Another Year

    The Prudential Regulation Authority (PRA) decided to maintain, at the 2019 levels, the buffer rates for the Other Systemically Important Institutions (O-SII) for another year, with no new rates to be set until December 2023.

    October 08, 2021 WebPage Regulatory News
    News

    FSB Report Assesses Implementation of Recommendations on Stablecoins

    The Financial Stability Board (FSB) published a progress report on implementation of its high-level recommendations for the regulation, supervision, and oversight of global stablecoin arrangements.

    October 07, 2021 WebPage Regulatory News
    News

    APRA Updates Loan Serviceability Expectations for Home Lending

    In a letter to the authorized deposit taking institutions, the Australian Prudential Regulation Authority (APRA) announced an increase in the minimum interest rate buffer it expects banks to use when assessing the serviceability of home loan applications.

    October 06, 2021 WebPage Regulatory News
    News

    CPMI and IOSCO Consult on Guidance on Stablecoin Arrangements

    The Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) are consulting on the preliminary guidance that clarifies that stablecoin arrangements should observe international standards for payment, clearing, and settlement systems.

    October 06, 2021 WebPage Regulatory News
    News

    EBA and EIOPA Set Out Work Priorities for 2022

    The European Banking Authority (EBA) and the European Insurance and Occupational Pensions Authority (EIOPA) have set out their respective work priorities for 2022.

    October 05, 2021 WebPage Regulatory News
    News

    MFSA Issues Reporting Updates and Guidance for Banks

    The Malta Financial Services Authority (MFSA) updated the guidelines on supervisory reporting requirements under the reporting framework 3.0, in addition to the reporting module on leverage under the common reporting (COREP) framework.

    October 05, 2021 WebPage Regulatory News
    News

    EC Publishes Decision on List of Equivalent Third Countries Under CRR

    The European Commission (EC) published the Implementing Decision 2021/1753 on the equivalence of supervisory and regulatory requirements of certain third countries and territories for the purposes of the treatment of exposures, in accordance with the Capital Requirements Regulation or CRR (575/2013).

    October 04, 2021 WebPage Regulatory News
    News

    EC Rule on Contractual Recognition of Write-Down and Conversion Powers

    EC published the Implementing Regulation 2021/1751, which lays down implementing technical standards on uniform formats and templates for notification of determination of the impracticability of including contractual recognition of write-down and conversion powers.

    October 04, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 7552