BaFin published a statement on operational simplifications for credit institutions (in Germany), classified as small and non-complex institutions according to the Capital Requirements Regulation (CRR). The statement addresses the application of simplified Net Stable Funding Ratio (sNSFR) and reduced scope and frequency of disclosure and reporting requirements. For the Additional Monitoring Metrics (AMM) liquidity report, small and non-complex institutions will be required to submit a quarterly report, instead of the monthly report that other institutions must submit.
BaFin had, in November 2020, published the requirements for an entity's qualification as a small and non-complex institution, in accordance with CRR. Nearly 1,150 credit institutions in Germany can now take advantage of these operational simplifications. Overall, about 88% of all German non-significant institutions have been classified as small and non-complex institutions, in accordance with Article 4 of the CRR. The institutions that are classified as small and not complex in Germany and that are allowed to avail themselves of the facilities have been identified by the Bundesbank in coordination with BaFin. BaFin states that small and non-complex institutions should benefit from reduced reporting requirements in the future too. An EBA cost-benefit analysis, which was published on June 07, 2021, puts these conceivable savings at 15% to 24% of the costs of European banking supervisory reporting. For small, non-complex institutions in EU, this equates to cost savings of between EUR 188 and EUR 288 million.
In addition, BaFin has issued a circular on the application of the EBA guidelines on tri-party repurchase agreements (EBA/GL/2021/01). The EBA guidelines specify conditions for the application of the alternative treatment of exposures related to tri-party repurchase agreements for large exposure purposes, as set out in the CRR. BaFin incorporated the guidelines into its administrative practice on June 28, 2021.
Related Links (in German)
- Press Release on Operational Relief
- Qualification as a Small Institution, November 2020
- Notification on Application of EBA Guidelines
- Circular on Application of EBA Guidelines
Keywords: Europe, Germany, Banking, CRR, Basel, Small Banks, SNSFR, Reporting, Disclosures, Liquidity Risk, Repurchase Agreement, Large Exposures, Credit Risk, Proportionality, BaFin, EBA
Previous ArticlePRA Amends Policy on Internal Ratings-Based Mortgage Risk-Weights
Next ArticleFINMA Issues Guidance on LIBOR Replacement
The European Commission (EC) published the Delegated Regulation 2022/786 with regard to the liquidity coverage requirements for credit institutions under the Capital Requirements Regulation (CRR).
The European Banking Authority (EBA) published the final draft regulatory technical standards specifying the criteria to identify shadow banking entities for the purposes of reporting large exposures.
The Office of the Superintendent of Financial Institutions (OSFI) published the strategic plan for 2022-2025 and the departmental plan for 2022-23.
The European Banking Authority (EBA) is consulting, until August 31, 2022, on the draft implementing technical standards specifying requirements for the information that sellers of non-performing loans (NPLs) shall provide to prospective buyers.
The European Council and the Parliament reached an agreement on the revised Directive on security of network and information systems (NIS2 Directive).
The European Banking Authority (EBA) published the final draft regulatory technical standards specifying information that crowdfunding service providers shall provide to investors on the calculation of credit scores and prices of crowdfunding offers.
The European Council published a draft Commission Delegated Regulation to amend the regulatory technical standards on specification of the calculation of specific and general credit risk adjustments.
The European Securities and Markets Authority (ESMA) published a paper that examines the systemic risk posed by increasing use of cloud services, along with the potential policy options to mitigate this risk.
The Monetary Authority of Singapore (MAS) published amendments to Notice 635, which sets out requirements that a bank in Singapore has to comply with when granting an unsecured non-card credit facility to individuals.
The European Commission (EC) published a public consultation on the review of revised payment services directive (PSD2) and open finance.