BoE has decided that it will not restart the 2019 liquidity Biennial Exploratory Scenario (BES) exercise. In March 2020, BoE paused the 2019 liquidity BES to alleviate burdens on core treasury staff at the participating banks. BoE uses the BES to explore the potential impact of risks that are not covered by the annual solvency stress tests of large UK banks. The 2019 test focused on how banks would respond to a severe liquidity stress. Insights from the liquidity BES have already helped to shape aspects of the BoE’s response to the impact of COVID-19 pandemic. In addition, HM Treasury announced that UK has joined the International Platform on Sustainable Finance (IPSF).
The UK Chancellor Rishi Sunak underscored the commitment of UK to strengthening international cooperation on environmentally sustainable finance by becoming a signatory to the Joint Statement on the IPSF. UK will contribute to the goals of IPSF to scale up the mobilization of private capital toward environmentally sustainable finance at the global level and promote integrated markets for environmentally sustainable finance, in an effort to deliver on the domestic and international commitments to tackle climate change. IPSF is a multilateral forum of dialog between policymakers that focuses on initiatives in the areas of taxonomies, disclosures, standards, and labels, which are fundamental for investors worldwide to identify and seize investment opportunities that truly contribute to climate and environmental objectives. IPSF aims to exchange and spread information to promote best practices in environmentally sustainable finance; identify barriers and opportunities to help scale up environmentally sustainable finance internationally; and enhance international coordination on sustainable finance issues, while respecting national and regional contexts.
Keywords: Europe, UK, Banking, Insurance, Securities, Sustainable Finance, IPSF, Climate Change Risk, ESG, Biennial Exploratory Scenario Exercise, Stress Testing, Liquidity Risk, BoE
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The Central Bank of the Philippines (BSP) issued communications covering developments related to online lending platforms, open finance framework and roadmap, and on the expected regulations in the area sustainable finance.
The Board of Governors of the Federal Reserve System (FED) published the final rule that amends Regulation I to reduce the quarterly reporting burden for member banks by automating the application process for adjusting their subscriptions to the Federal Reserve Bank capital stock, except in the context of mergers.
The European Banking Authority (EBA) published its assessment of risks through the quarterly Risk Dashboard and the results of the Autumn edition of the Risk Assessment Questionnaire (RAQ).
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The Hong Kong Monetary Authority (HKMA) published a circular, along with the reporting form and instructions, for self-assessment, by authorized institutions, of compliance with the Code of Banking Practice 2021.
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The European Commission (EC) published the Delegated Regulation 2022/25, which supplements the Investment Firms Regulation (IFR or Regulation 2019/2033) with respect to the regulatory technical standards specifying the methods for measuring the K-factors referred to in Article 15 of the IFR.
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The European Supervisory Authorities (ESAs) published the list of identified financial conglomerates for 2021.