Developments at a meeting of the Financial Stability Committee of BaFin indicate that the Committee does not intend to increase the countercyclical capital buffer (CCyB) from 0% until the end of 2021. BaFin had reduced the buffer from 0.25% to 0% in April 2020 to ease the challenging situation stemming from the pandemic.
Another development at the meting involves the Committee's support of the recommendations of the responsible supervisory authorities to the financial sector to suspend or severely limit the distribution of profits and share buybacks. In addition, the national CCyB methodology will be reviewed this year, using the experiences of past years at the national, European, and international levels. Among other things, the Committee will deal with a more flexible use of the buffer and weigh whether higher buffers should be built up in the future in good economic times to be able to release them in a crisis.
Related Link: Press Release (in German)
Keywords: Europe, Germany, Banking, CCyB, Regulatory Capital, Basel, COVID-19, BaFin
The European Commission (EC) published a public consultation on the review of revised payment services directive (PSD2) and open finance.
The European Commission (EC) has issued two letters mandating the European Supervisory Authorities (ESAs) to jointly propose amendments to the regulatory technical standards under Sustainable Finance Disclosure Regulation or SFDR.
The European Banking Authority (EBA) published its annual report on convergence of supervisory practices for 2021. Additionally, following a request from the European Commission (EC),
The Farm Credit Administration published, in the Federal Register, the final rule on implementation of the Current Expected Credit Losses (CECL) methodology for allowances
The U.S. Securities and Exchange Commission (SEC) looks set to intensify focus on crypto-assets and cyber risk and extended the comment period on the proposed rules to enhance and standardize climate-related disclosures for investors.
The Australian Prudential Regulation Authority (APRA) announced reduction in the aggregate Committed Liquidity Facility and issued an update on the operational preparedness for zero and negative market interest rates.
The Commission for the Financial Market (CMF) in Chile published capital adequacy ratios (as of February 2022, January 2022, and December 2021) for 17 banks and for the banking system.
The Prudential Regulation Authority (PRA) issued a statement on the European Banking Authority (EBA) guidelines on management of non-performing exposures (NPEs) and forborne exposures.
The European Banking Authority (EBA) updated the implementing technical standards that specify the data collection for the 2023 supervisory benchmarking exercise in relation to the internal approaches used in market risk, credit risk, and IFRS 9 accounting.
The European Insurance and Occupational Pensions Authority (EIOPA) published a feedback statement on the responses received to the consultation on blockchain and smart contracts in insurance.