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
BIS published a paper that provides an overview on the use of big data and machine learning in the central bank community.
APRA finalized the reporting standard ARS 115.0 on capital adequacy with respect to the standardized measurement approach to operational risk for authorized deposit-taking institutions in Australia.
ECB published a guide that outlines the principles and methods for calculating the penalties for regulatory breaches of prudential requirements by banks.
MAS and The Association of Banks in Singapore (ABS) jointly issued a paper that sets out good practices for the management of operational and other risks stemming from new work arrangements adopted by financial institutions amid the COVID-19 pandemic.
ACPR announced that a new data collection application, called DLPP (Datalake for Prudential), for collecting banking and insurance prudential data will go into production on April 12, 2021.
BCB announced that the Financial Stability Committee decided to maintain the countercyclical capital buffer (CCyB) for Brazil at 0%, at least until the end of 2021.
EIOPA has launched a European-wide comparative study on non-life underwriting risk in internal models, also kicking-off of the data collection phase.
SRB published an overview of the resolution tools available in the Banking Union and their impact on a bank’s ability to maintain continuity of access to financial market infrastructure services in resolution.
EBA is consulting on the implementing technical standards for Pillar 3 disclosures on environmental, social, and governance (ESG) risks, as set out in requirements under Article 449a of the Capital Requirements Regulation (CRR).
ESAs Issue Advice on KPIs on Sustainability for Nonfinancial Reporting