BaFin published a new general order, which regulates how newly issued shares in cooperative banks with the permission of BaFin can be classified as common equity tier 1 (CET 1) instruments. The general decree applies until the end of 2019. It only concerns cooperative banks that are not subject to the direct supervision of ECB.
This announcement of the general order is pursuant to certain articles in the Capital Requirements Regulation or CRR (575/2013) on prudential requirements for credit institutions and investment firms. It is also related to amending the European Markets Infrastructure Regulation or EMIR (648/2012) and Article 32 ( 2) of the Delegated Regulation No 241/2014 of EC, supplementing CRR with regard to the regulatory technical standards for own funds requirements for institutions. The previous general ruling on CET 1 instruments at cooperative banks was limited until December 31, 2018.
Related Links (in German)
Keywords: Europe, Germany, Banking, CET 1, Regulatory Capital, Own Funds Requirement, CRR, BaFin
Previous ArticlePRA Updates Reporting Forms and Instructions, Effective January 2019
BCBS is consulting on the principles for operational resilience and the revisions to the principles for sound management of operational risk for banks.
The Financial Stability Institute (FSI) of BIS published a brief note that examines the supervisory challenges associated with certain temporary regulatory relief measures introduced by BCBS and prudential authorities in response to the COVID-19 pandemic.
HKMA, together with the Banking Sector Small and Medium-Size Enterprise (SME) Lending Coordination Mechanism, announced a ninety-day repayment deferment for trade facilities under the Pre-approved Principal Payment Holiday Scheme.
The Advisory Scientific Committee of ESRB published a response, in the form of an Insights Paper, to the EBA proposals for reforms to the stress testing framework in EU.
MAS announced several initiatives to support adoption of the Singapore Overnight Rate Average (SORA), which is administered by MAS.
BoE updated the reporting template for Form ER as well as the Form ER definitions, which contain guidance on the methodology to be used in calculating annualized interest rates.
PRA published the policy statement PS19/20 on the final policy for extending coverage under the Financial Services Compensation Scheme (FSCS) for Temporary High Balance.
EBA published the final draft implementing technical standards for disclosures and reporting on the minimum requirements for own funds and eligible liabilities (MREL) and the total loss-absorbing capacity (TLAC) requirements in EU.
EBA published an erratum for the phase 2 of technical package on the reporting framework 2.10.
EC published the Implementing Regulation 2020/1145, which lays down technical information for calculation of technical provisions and basic own funds.