MAS issued a statement highlighting that the EC decision to repeal the equivalence status for credit rating agencies (CRAs) in Singapore does not impact the operations of CRAs in Singapore. As confirmed by EC, CRAs in Singapore will continue to be able to access the EU market through the endorsement regime. Under this regime, ratings issued by CRAs in Singapore are endorsed by their related entities in EU and can continue to be recognized and used for regulatory purposes in EU.
There are two existing regimes for CRAs outside of EU to have their ratings recognized and used for regulatory purposes in the EU, namely certification through the equivalence regime or endorsement. While Singapore’s regulatory regime for CRAs no longer has equivalence status, Singapore continues to be on the list of countries that ESMA has deemed as meeting the legal and supervisory framework for the endorsement regime.
Keywords: Europe, Asia Pacific, EU, Singapore, Banking, CRAs, Endorsement Regime, Equivalence Regime, Credit Ratings, Credit Risk, ESMA, EC, MAS
Previous ArticleIASB Publishes Work Plan and Meeting Updates for July 2019
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.
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.
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.
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.
EBA published the annual report on asset encumbrance of banks in EU.
FCA proposed two sets of guidance on the approaches to mortgage repossessions and consumer credit repossessions, with comment period ending on January 18, 2021.