Featured Product

    ECB President Answers Queries on Application of EU Taxonomy

    January 22, 2021

    ECB published a letter in which the President Christine Lagarde answered questions, from a Member of the European Parliament, on the application of the EU taxonomy on sustainable finance. In response to the question on the use of the EU taxonomy to estimate the volume of outstanding taxonomy-aligned loans, the ECB President stated that, at present, no infrastructure for collecting and reporting this information exists. In this context, she highlighted that the overall framework of the EU taxonomy is still incomplete and, therefore, not yet ready for use by corporates and banks. The delegated acts outlining the methodologies for calculating and disclosing the alignment with the taxonomy criteria will be gradually adopted in the coming months and the framework will only enter into full force in 2023.

    The second question answered by Ms. Lagarde in the letter concerns what further changes in ECB instruments, EU legislation, or national legislation would be needed to ensure usability of the taxonomy at the loan level. The ECB President highlighted that finalization of the delegated acts of EC on the taxonomy, along with the ongoing work of EBA and Platform on sustainable finance, should provide the main forum to address the most urgent challenges related to the application of the taxonomy to loans and potentially advise on possible future legislative changes. Ms. Lagarde also mentioned that she had discussed the possible use of AnaCredit to collect information on the environmental characteristics of bank loans in her letter to Ernest Urtasun, a Member of the European Parliament. However, AnaCredit constitutes only one of the tools at the disposal of ECB to collect information on the taxonomy-alignment of banks’ lending activities and—depending on the purpose of this data—might not be the most appropriate one. ECB is closely monitoring gaps in the data and possible additional data requirements, while being fully mindful of the need to ensure consistency and avoid unnecessary reporting burdens in the context of a rapidly evolving regulatory framework. While the process of mainstreaming the EU taxonomy across the financial sector is at its inception, ECB is committed to do its part in taking this process forward. As the EU taxonomy framework is implemented and the related data become available, ECB stands ready to make the relevant statistics available to the public. 

    Additionally, in a separate joint statement, EC and ECB highlighted that, following the conclusion of the consultation on January 12, 2021 and a period of preparatory work, ECB will consider whether to start a digital euro project toward mid-2021.

     

    Related Links

    Keywords: Europe, EU, Banking, Sustainable Finance, Taxonomy, ESG, Climate Change Risk, AnaCredit, Taxonomy Regulation, Reporting, Credit Risk, EC, ECB

    Featured Experts
    Related Articles
    News

    FDIC Proposes Amendments to Real Estate Lending Standards

    FDIC is seeking comments on a rule to amend the interagency guidelines for real estate lending policies—also known as the Real Estate Lending Standards.

    June 15, 2021 WebPage Regulatory News
    News

    ISDA Consults on Implementation of Fallbacks for Certain Swap Rates

    ISDA is consulting on the implementation of fallbacks for the sterling LIBOR ICE Swap Rate and for the USD LIBOR ICE Swap Rate.

    June 11, 2021 WebPage Regulatory News
    News

    BIS and BoE Launch Innovation Hub in London

    BIS and BoE launched the BIS Innovation Hub Center in London, which is the fourth new Innovation Hub Centre to be opened in the past two years.

    June 11, 2021 WebPage Regulatory News
    News

    ESRB Recommends Reciprocation of Certain Macroprudential Measures

    ESRB published recommendations on the reciprocation of macro-prudential measures in Belgium, France, Luxembourg, Norway, and Sweden.

    June 11, 2021 WebPage Regulatory News
    News

    US Agencies Set Out Unified Agenda for Planned Regulatory Actions

    SEC announced that the Office of Information and Regulatory Affairs released the Spring 2021 Unified Agenda of Regulatory and Deregulatory Actions.

    June 11, 2021 WebPage Regulatory News
    News

    EC Publishes Regulation on Key Aspects of Implementation of SA-CCR

    EC published the Delegated Regulation 2021/931, which supplements the Capital Requirements Regulation (CRR or Regulation 575/2013) with regard to the regulatory technical standards specifying the method for identifying derivative transactions with one or more than one material risk driver.

    June 10, 2021 WebPage Regulatory News
    News

    BCBS Consults on Prudential Treatment of Cryptoasset Exposures

    BCBS is consulting on preliminary proposals for the prudential treatment of cryptoasset exposures of banks.

    June 10, 2021 WebPage Regulatory News
    News

    EBA Revises List of Validation Rules for Reporting

    EBA issued a revised list of validation rules under the implementing technical standards on supervisory reporting.

    June 10, 2021 WebPage Regulatory News
    News

    Banking Authorities and Private Sector Collaborate on Wholesale CBDC

    BIS Innovation Hub, BDF, and SNB announced that, together with a private-sector consortium led by Accenture, they will conduct an experiment using wholesale central bank digital currency (wCBDC) for cross-border settlement.

    June 10, 2021 WebPage Regulatory News
    News

    ESAs Publish Amended Implementing Standards on Mapping of ECAIs

    ESAs published two amended implementing technical standards on the mapping of credit assessments of External Credit Assessment Institutions (ECAIs).

    June 10, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 7093