PRA published the consultation paper CP1/18 that proposes PRA expectations for reporting on the minimum requirement for own funds and eligible liabilities (MREL) through updates to the supervisory statement SS19/13 on resolution planning. The proposals in the CP1/18 aim to provide PRA and BoE with information to monitor firms’ progress toward meeting interim MREL and their eventual compliance with end-state MREL, to ensure that the policy objectives that underpin MREL are met. The consultation closes on April 09, 2018.
Appendix to CP1/18 sets out proposed amendments to SS19/13, draft reporting templates, and instructions. CP1/18 is relevant to PRA-authorized UK banks, building societies, and UK-designated investment firms and their qualifying parent undertakings, to which the Resolution Pack Part of the PRA Rulebook applies. In particular, this would be most relevant to firms notified by the BoE that they are likely to be subject to:
- External interim and/or end-state MREL in excess of regulatory capital requirements, as articulated in the Bank’s statement of policy on its approach to setting MREL
- Internal interim and/or end state MREL in excess of regulatory capital requirements, as proposed in the BoE’s consultation paper on internal MREL
CP1/18 should be read in conjunction with the Resolution Pack Part of the PRA Rulebook, the MREL Statement of Policy, and the consultation paper on internal MREL.
Related Link: Press Release
Comment Due Date: April 09, 2018
Keywords: Europe, UK, Banking, MREL, Internal MREL, Reporting, Resolution Planning, PRA
EBA published phase 2 of the technical package on the reporting framework 2.10, providing the technical tools and specifications for implementation of EBA reporting requirements.
FASB issued a proposed Accounting Standards Update that would grant insurance companies, adversely affected by the COVID-19 pandemic, an additional year to implement the Accounting Standards Update No. 2018-12 on targeted improvements to accounting for long-duration insurance contracts, or LDTI (Topic 944).
APRA updated the regulatory approach for loans subject to repayment deferrals amid the COVID-19 crisis.
BCBS and FSB published a report on supervisory issues associated with benchmark transition.
IAIS published a report on supervisory issues associated with benchmark transition from an insurance perspective.
ESMA updated the reporting manual on the European Single Electronic Format (ESEF).
EBA published a statement on resolution planning in light of the COVID-19 pandemic.
BCBS Finalizes Revisions to Credit Valuation Adjustment Risk Framework
ECB published a guideline (2020/97), in the Official Journal of European Union, on the definition of materiality threshold for credit obligations past due for less significant institutions.
FED temporarily revised the capital assessments and stress testing reports (FR Y-14A/Q/M) to implement the changes in response to the COVID-19 pandemic.