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
EBA finalized the two sets of draft regulatory technical standards on the identification of material risk-takers and on the classes of instruments used for remuneration under the Investment Firms Directive (IFD).
EC published, in the Official Journal of the European Union, a notification that the European Court of Auditors (ECA) has published a special report on resolution planning in the Single Resolution Mechanism.
BoE published a scenario against which it will be stress testing banks in 2021, in addition to setting out the key elements of the 2021 stress test, guidance on the 2021 stress test, and the variable paths for the 2021 stress test.
PRA published a consultation paper (CP3/21) proposes rules regarding the timing of identity verification required for eligibility of depositor protection under the Financial Services Compensation Scheme (FSCS).
FSB published the work program for 2021, which reflects a strategic shift in priorities in the COVID-19 environment.
FCA announced that 50% firms have started using the new data collection platform RegData, which is slated to replace the existing platform known Gabriel.
Bundesbank published Version 5.0 of the derivation rules for completeness check at the form level, with respect to the data quality of the European harmonized reporting system.
FED finalized a rule that updates capital planning requirements to reflect the new framework from 2019 that sorts large banks into categories, with requirements that are tailored to the risks of each category.
ECB published results of the quarterly lending survey conducted on 143 banks in the euro area.
ESAs published the final draft implementing technical standards on reporting of intra-group transactions and risk concentration of financial conglomerates subject to the supplementary supervision in EU.