BNM issued exposure draft on the recovery and resolution planning framework for financial institutions. To facilitate a systematic approach for financial institutions to conduct assessments or provide material information within the recovery planning process, the policy document is accompanied by a set of reporting templates listed in Appendix 1. As per the proposal, a financial institution shall submit its first recovery plan within 12 months from the date it receives a request from BNM. The comment period for this draft ends on March 31, 2020.
The recovery and resolution planning framework seeks to put in place an effective and efficient process to enhance supervisability, recoverability, and resolvability of financial institutions. The framework will incorporate the essential elements of the FSB's "Key Attributes of Effective Resolution Regime for Financial Institutions" into the domestic regulatory, supervisory, and resolution regimes. Under the proposed framework, each financial institution will be required to identify and plan for the execution of a suite of recovery options to restore its long-term viability under a range of idiosyncratic and system-wide stress events. For the purpose of this draft, a financial institution refers to a banking institution and financial holding company, wherein a banking institution refers to a licensed bank, a licensed Islamic bank, and/or a licensed investment bank. The requirements set out in this proposed policy document shall apply to financial institutions on a consolidated basis. For the purpose of this proposed policy document, this shall include the global operations of the financial institution and all its financial and non-financial subsidiaries, including insurance and/or takaful subsidiaries.
Keywords: Asia Pacific, Malaysia, Banking, Recovery Planning, Recovery and Resolution Framework, Reporting, BNM
EBA finalized the two sets of draft regulatory technical standards on the identification of material risk-takers and on the classes of instruments used for remuneration under the Investment Firms Directive (IFD).
EC published, in the Official Journal of the European Union, a notification that the European Court of Auditors (ECA) has published a special report on resolution planning in the Single Resolution Mechanism.
BoE published a scenario against which it will be stress testing banks in 2021, in addition to setting out the key elements of the 2021 stress test, guidance on the 2021 stress test, and the variable paths for the 2021 stress test.
PRA published a consultation paper (CP3/21) proposes rules regarding the timing of identity verification required for eligibility of depositor protection under the Financial Services Compensation Scheme (FSCS).
FSB published the work program for 2021, which reflects a strategic shift in priorities in the COVID-19 environment.
FCA announced that 50% firms have started using the new data collection platform RegData, which is slated to replace the existing platform known Gabriel.
Bundesbank published Version 5.0 of the derivation rules for completeness check at the form level, with respect to the data quality of the European harmonized reporting system.
FED finalized a rule that updates capital planning requirements to reflect the new framework from 2019 that sorts large banks into categories, with requirements that are tailored to the risks of each category.
ECB published results of the quarterly lending survey conducted on 143 banks in the euro area.
ESAs published the final draft implementing technical standards on reporting of intra-group transactions and risk concentration of financial conglomerates subject to the supplementary supervision in EU.