DNB published the banking and insurance newsletters. The newsletters cover the Supervision Outlooks for banks and insurers, with focus in the banking sector being on business model and profitability, operational risks, digitization, the fight against financial and economic crime, and sustainability. The banking newsletter contains the updated QIS calendar for banks.
The newsletters highlight post-Brexit it remains unclear how the future relationship between the EU and the UK will be shaped after 2020. It is, therefore, important that banks and insurers to prepare for this because, from 2021, bottlenecks can arise in cross-border services between the EU and the UK. The insurance newsletter, in specific, highlights that, in 2020, DNB will conduct research into risk management by insurers in the context of Pillar 2 (governance and risk management). DNB will use the thematic review to assess whether the manner in which insurers implement the entire set of requirements from Pillar 2 of Solvency II is appropriate for their risk profile. DNB also aims to look at risks in the areas of climate change, cyber risks, and low interest rates in the 2020 study. Additionally, in 2020, DNB will strive to achieve convergence within Europe with regard to the supervision of internal models, operational and cyber risks, supervision of cross-border activities, and the use of data and technology by national supervisors.
Keywords: Europe, Netherlands, Banking, Insurance, Solvency II, Supervision Outlook 2020, Pillar 2, Brexit, DNB
HKMA urged authorized institutions to take early action to adhere to the IBOR Fallbacks Protocol, which ISDA is expected to publish soon.
FSB published a global transition roadmap for London Inter-bank Offered Rate (LIBOR).
HM Treasury published a document that summarizes the responses received from a consultation on the approach of UK to transposition of the revised Bank Resolution and Recovery Directive (BRRD2).
HM Treasury published the government response to the feedback received on the consultation for updating the prudential regime of UK before the end of the Brexit transition period.
PRA published the final policy statement PS22/20, which contains the updated supervisory statement SS12/13 on counterparty credit risk.
FSB published an update on its work to address market fragmentation. FSB is working in this area in collaboration with the other standard-setting bodies.
EBA proposed revisions to the guidelines on major incident reporting under the second Payment Service Directive (PSD2).
EBA published the final draft regulatory technical standards specifying the methodology for prudential treatment of software assets by banks.
FSB published a report presenting the roadmap to enhance cross-border payments by providing a high-level plan that sets ambitious but achievable goals and milestones in the five focus areas.
In a recent communication, EIOPA urged the insurance sector to complete its preparations for the end of the Brexit transition period on December 31, 2020.