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