Featured Product

    ESRB Receives Notification on Level of Systemic Risk and O-SII Buffers

    July 17, 2019

    PRA, National Bank of Slovakia, FIN-FSA, and Central Bank of Hungary (MNB) have notified EBA, ECB, and ESRB about their decisions on the level of systemic risk buffers to be applied to institutions. Additionally, National Bank of Slovakia and FIN-FSA have notified these EU authorities about their decisions on the identification of other systemically important institutions (O-SII) and the activation of O-SII buffer.

    PRA notified the mentioned EU authorities about the systemic risk buffer rates for ring-fenced banks (RFBs) and large building societies. PRA has set systemic risk buffer rates for RFBs in five RFB sub-groups—Lloyds Banking Group RFB sub-group, Royal Bank of Scotland RFB sub-group, Barclays RFB sub-group, HSBC RFB sub-group, and Santander UK RFB sub-group—and these systemic risk buffer rates apply to all exposures, on a sub-consolidated basis. PRA has set a systemic risk buffer rate for the Nationwide Building Society at 1%, which applies to all exposures, on a consolidated basis. The systemic risk buffers will apply in full from July 30, 2019. This is the PRA’s first setting of the SRB rates and these rates are expected to be applied until December 31, 2020. PRA expects to review the SRB rates annually, to announce the SRB rates by December 15 of each year, and to require institutions to apply the rates on an ongoing basis by January 01 of the second year ,following the calendar year when the rates were announced. PRA will base its decision of SRB rates on the total assets of the RFB or the building society at the end of the previous calendar year.

    Additionally, FIN-FSA notified that it will continue with the existing systemic risk buffers. The systemic risk buffer applies to all credit institutions authorized in Finland at the level of 1.0 % while the systemic risk buffer has been specifically set at 3.0% for Nordea Group, 2.0% for OP-Group, and 1.5% for Municipality Finance Plc. The systemic risk buffer is applied on a consolidated level. Additionally, FIN-FSA assessed the appropriateness of the O-SII buffer as required by law and decided to maintain the level of O-SII buffer at 2.0% for Nordea Group and OP-Group and at 0.5% for Municipality Finance Plc.

     

    Related Links

    Keywords: Europe, UK, Finland, Slovakia, Hungary, Banking, Systemic Risk Buffer, O-SII, Macro-Prudential Measures, Systemic Risk, FIN-FSA, PRA, EBA, ECB, ESRB

    Featured Experts
    Related Articles
    News

    MAS Concludes Blockchain Payments Prototype Shows Commercial Potential

    MAS and Temasek jointly released a report to mark the successful conclusion of the fifth and final phase of Project Ubin, which focused on building a blockchain-based multi-currency payments network prototype.

    July 13, 2020 WebPage Regulatory News
    News

    EBA Publishes Phase 2 of Technical Package on Reporting Framework 2.10

    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.

    July 10, 2020 WebPage Regulatory News
    News

    APRA Updates Reporting Validation Rules in July 2020

    APRA updated the lists of the Direct to APRA (D2A) validation rules for authorized deposit-taking institutions, insurers, and superannuation entities.

    July 10, 2020 WebPage Regulatory News
    News

    PRA to Partly Apply EBA Guidelines on Disclosures for COVID Measures

    PRA updated the statement that provides guidance to regulated firms on implementation of the EBA guidelines on reporting and disclosure of exposures subject to measures applied in response to the COVID-19 crisis.

    July 10, 2020 WebPage Regulatory News
    News

    EBA Updates List of Correlated Currencies Under CRR

    EBA updated the 2019 list of closely correlated currencies that was originally published in December 2013.

    July 10, 2020 WebPage Regulatory News
    News

    FASB Proposes to Delay Implementation of Insurance Contracts Standard

    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).

    July 09, 2020 WebPage Regulatory News
    News

    APRA Updates Regulatory Approach to Loan Deferrals Amid COVID Crisis

    APRA updated the regulatory approach for loans subject to repayment deferrals amid the COVID-19 crisis.

    July 09, 2020 WebPage Regulatory News
    News

    BCBS and FSB Set Out Recommendations for Benchmark Transition

    BCBS and FSB published a report on supervisory issues associated with benchmark transition.

    July 09, 2020 WebPage Regulatory News
    News

    IAIS Sets Out Recommendations for Benchmark Transition for Insurers

    IAIS published a report on supervisory issues associated with benchmark transition from an insurance perspective.

    July 09, 2020 WebPage Regulatory News
    News

    ESMA Updates Reporting Manual on European Single Electronic Format

    ESMA updated the reporting manual on the European Single Electronic Format (ESEF).

    July 09, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 5469