ECB published results of the benchmarking analysis of the recovery plan cycle for 2018. The results provide a horizontal overview of key characteristics of the plans and identify key focus points for improvements. The benchmarking exercise encompasses plans assessed until July 2019. Overall, 91 recovery plans were received and assessed in the role of ECB as the consolidating supervisor in the cycle. The core analysis is based on the standardized reporting templates of 85 recovery plans, unless marked otherwise. For six banks, the standardized reporting templates could not be used either due to data quality issues or timing aspects.
The analysis highlights that banks have reduced their overall recovery capacity figures compared to last year, but numbers are still rather high. The document also outlines the following key focal points of ECB work in 2020:
- Increase usability of plans in crisis situations
- Ensure that banks can react to fast-moving liquidity events/cyber scenarios
- Achieve a more realistic view on the overall recovery capacity of institutions—that is, their resilience in crisis situations
- Work on integrating the overall recovery capacity into the Supervisory Review and Evaluation Process (SREP), in line with the revised EBA guidelines
- Explore the topic of Intra Group Financial Support Agreements
Related Link: Benchmarking of Recovery Plans (PDF)
Keywords: Europe, EU, Banking, Resolution Planning, Recovery Planning, Benchmarking, SREP, Reporting, ECB
US Agencies (FDIC, FED, and OCC) finalized two rules, which are either identical or substantially similar to the interim final rules in effect and issued earlier this year.
EIOPA is consulting on a supervisory statement on the use of risk mitigation techniques by insurance and reinsurance undertakings.
APRA announced that it is resuming consultation on the confidentiality of data submitted to APRA by the authorized deposit-taking institutions.
BoE and FCA are supporting and encouraging liquidity providers in the sterling swaps market to adopt new quoting conventions for inter-dealer trading based on SONIA, instead of LIBOR, from October 27, 2020.
Deutsche Bundesbank published special schema files for securities holdings statistics (SHS), along with a document on the XML format description.
EC adopted a decision determining, for a limited period of time, that the regulatory framework applicable to central counterparties, or CCPs, in the UK and Northern Ireland is equivalent to the requirements laid down in the European Market Infrastructure Regulation (EMIR or Regulation 648/2012).
ESMA announced that it will recognize three central counterparties (CCPs) established in the UK as third-country CCPs, from January 01, 2021.
PRA published Version 02.04 of the PRA110 liquidity metric monitoring tool (PRA110 LMM tool).
FSB confirmed the Regulatory Oversight Committee (ROC) of the Global Legal Entity Identifier System (GLEIS) as the International Governance Body for the globally harmonized identifiers used to track over-the-counter (OTC) derivatives transactions, with effect from October 01, 2020.
FCA is consulting on its approach to the authorization and supervision of international firms operating in UK.