FINMA announced that 64 banks meet the criteria for participation in the voluntary small banks regime in Switzerland. Under the small banks regime, small, particularly liquid and well-capitalized institutions, are relieved of certain regulatory requirements. In addition, FINMA has streamlined auditing for all institutions: small institutions without observable increased risks can now request two- or three-yearly auditing by their audit firm instead of annual auditing. FINMA has so far granted reduced audit frequency to 56 smaller institutions, 19 of which are also participating in the small banks regime.
Nearly 200 banks and securities firms fall in the supervisory categories 4 and 5 in Switzerland and these can apply to participate in the small banks regime. Some banks are voluntarily foregoing participation while others do not meet the required criteria. FINMA does not publish a list of participants in the small banks regime. FINMA launched the small banks regime in 2018. Seventy banks have applied to register since the conclusion of the 18-month pilot project and the registration deadline at the end of January 2020. Sixty-four of these banks fulfill the criteria to take part and are being admitted to the small banks regime retroactively from the beginning of 2020. FINMA expects the institutions participating in the small banks regime to be able to save costs directly and indirectly, owing to the quantitative and qualitative exemptions and relaxations. They will be able, for example, to forego the calculation of risk-weighted assets and the structural liquidity ratio and have reduced disclosure obligations.
Related Links (in German)
Keywords: Europe, Switzerland, Banking, Small Banks Regime, Regulatory Capital, Disclosure, FINMA
HKMA announced that enhancements will be made to the Special 100% Loan Guarantee of the SME Financing Guarantee Scheme (SFGS) and the application period will be extended to December 31, 2021.
EBA launched consultations on the regulatory and implementing technical standards on cooperation and information exchange between competent authorities involved in prudential supervision of investment firms.
BoE has set out a three-phased plan to transform data collection from the UK financial sector over the next decade.
BIS recently made a couple of announcements with respect to the planned and ongoing work in the area of financial technology.
ESRB updated the list of national macro-prudential measures applied by each member state in the European Economic Area.
BoE has set out results of a survey on the impact of COVID-19 events on the use of machine learning and data science.
In response to a request from the European Council and Parliament, ECB published an opinion on the proposed regulation on markets in crypto-assets.
APRA announced the updated aggregate amounts for the 2021 Committed Liquidity Facility (CLF) established between the Reserve Bank of Australia (RBA) and certain locally incorporated authorized deposit-taking institutions that are subject to the Liquidity Coverage Ratio (LCR).
ECB published supervisory Memorandums of Understanding (MoUs) with UK as well as other European and non-European authorities.
EIOPA identified business model sustainability and adequate product design as the two EU-wide strategic supervisory priorities.