ESRB updated the overview of national macro-prudential and capital-based measures applied by each member state in the European Economic Area. The overview of national macro-prudential measures covers several measures, including capital buffers, reciprocation measures, and borrower-based measures. The list of capital-based measures includes the combined capital buffer requirements of individual banks, including capital conservation buffer, countercyclical capital buffer, systemic risk buffer, and global and other systemically important buffers (G-SII and O-SII).
The combined buffer requirement is calculated according to Article 128(1)(6) of the Capital Requirements Directive (CRD IV) but excludes mandatory or voluntary reciprocity of foreign macro-prudential measures according to recommendation ESRB/2015/2. It consists of common equity tier 1 (CET1) capital and comes in addition to a minimum requirement of 8% total capital (4.5% CET1 + 1.5% AT1 + 2% T2). Pillar 2 measures are not included. The minimum combined buffer requirement at country level corresponds to a bank not subject to any individual bank-level structural buffer (G-SII, O-SII, SRB). Additionally, ESRB periodically publishes an overview of the national capital-based measures and an overview of the national macro-prudential measures, which includes all types of current and past measures. National authorities are required to notify ESRB about their macro-prudential measures in accordance with the Capital Requirements Directive (CRD IV), the Capital Requirements Regulation (CRR), and various ESRB recommendations.
- Overview of Macro-Prudential Measures (XLSX)
- Overview of Capital-Based Measures (XLSX)
- Overview of Macro-Prudential Measures
Keywords: Europe, EU, Banking, Capital Based Measures, Macro-Prudential Measures, Systemic Risk, Regulatory Capital, Basel, CRR/CRD, ESRB
BIS published the September issue of the Quarterly Review, which contains special features that analyze the rapid rise in equity funding for financial technology firms, the effectiveness of policy measures in response to pandemic, and the evolution of international banking.
The Basel Committee for Banking Supervision (BCBS) met in September 2021 and reviewed climate-related financial risks, discussed impact of digitalization, and welcomed efforts by the International Financial Reporting Standards (IFRS) Foundation to develop a common set of sustainability reporting standards
The Office of the Comptroller of the Currency (OCC) issued a Cease and Desist Order against MUFG Union Bank for deficiencies in technology and operational risk governance.
The European Commission (EC) published the Delegated Regulation 2021/1527 with regard to the regulatory technical standards for the contractual recognition of write down and conversion powers.
In a response to the questions posed by a member of the European Parliament, the President Christine Lagarde highlighted the commitment of the European Central Bank (ECB) to an ambitious climate-related action plan along with a roadmap, which was published in July 2021.
The Single Resolution Board (SRB) published a Communication on the application of regulatory technical standard provisions on prior permission for reducing eligible liabilities instruments as of January 01, 2022.
The Australian Prudential Regulation Authority (APRA) published a new set of frequently asked questions (FAQs) to provide guidance to authorized deposit-taking institutions on the interpretation of APS 120, the prudential standard on securitization.
The French Prudential Control and Resolution Authority (ACPR) published the corrective version of the RUBA taxonomy Version 1.0.1, which will come into force from the decree of January 31, 2022.
The European Commission (EC) announced that Nordea Bank has signed a guarantee agreement with the European Investment Bank (EIB) Group to support the sustainable transformation of businesses in the Nordics.
The Australian Prudential Regulation Authority (APRA) published a new set of frequently asked questions (FAQs) to clarify the regulatory capital treatment of investments in the overseas deposit-taking and insurance subsidiaries.