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
BCBS amended the guidelines on sound management of risks related to money laundering and financing of terrorism (ML/FT).
EBA finalized the guidelines on treatment of structural foreign-exchange (FX) positions under Article 352(2) of the Capital Requirements Regulation (CRR).
FSB published a statement on the impact of COVID-19 pandemic on global benchmark transition.
IAIS published the list of Internationally Active Insurance Groups (IAIGs) publicly disclosed by group-wide supervisors.
FED has temporarily revised the reporting form on consolidated financial statements for holding companies (FR Y-9C; OMB No. 7100-0128).
EC launched a consultation on the review of the key elements of Solvency II Directive, with the comment period ending on October 21, 2020.
ECB launched a consultation on the guide that sets out supervisory approach to consolidation projects in the banking sector.
PRA published a letter that builds on the expectations set out in the supervisory statement (SS3/19) on enhancing banks' and insurers' approaches to managing the financial risks from climate change.
US Agencies (Farm Credit Administration, FDIC, FED, FHFA, and OCC) finalized changes to the swap margin rule to facilitate implementation of prudent risk management strategies at banks and other entities with significant swap activities.
IAIS published technical specifications, questionnaires, and templates for 2020 Insurance Capital Standard (ICS) and Aggregation Method data collections.