PRA disclosed information on its supervisory practices in the banking sector. The public disclosures cover application of rules and guidance, options and discretions, and supervisory review and evaluation process or SREP, in addition to the aggregate statistical data as at December 31, 2019. PRA also submitted this information to EBA, in line with Article 143 of the Capital Requirements Directive (CRD IV) and the Commission Implementing Regulation 650/2014. This information is intended to enable a comparison of the approaches adopted by the competent authorities of different member states in EU.
The disclosed supervisory practices include the way in which UK exercises the options and national discretions available in the banking legislation in EU and the general criteria and methodologies used by national authorities in the supervisory review and evaluation process. The document on disclosures of options and discretions presents information on the exercise of options and discretions set out in CRD IV, CRR, and LCR Delegated Regulation (EU 2015/61); transitional options and discretions set out in CRD IV and CRR; and variable elements of remuneration (in Article 94 of CRD IV).
PRA published the policy statement PS8/21, which contains the final supervisory statement SS3/21 on the PRA approach to supervision of the new and growing non-systemic banks in UK.
EBA published a report that sets out the final draft regulatory technical standards specifying the conditions according to which consolidation shall be carried out in line with Article 18 of the Capital Requirements Regulation (CRR).
EBA updated the list of other systemically important institutions (O-SIIs) in EU.
BCBS published two reports that discuss transmission channels of climate-related risks to the banking system and the measurement methodologies of climate-related financial risks.
UK Authorities (FCA and PRA) welcomed the findings of FSB peer review on the implementation of financial sector remuneration reforms in the UK.
PRA and FCA jointly issued a letter that highlights risks associated with the increasing volumes of deposits that are placed with banks and building societies via deposit aggregators and how to mitigate these risks.
MFSA announced that amendments to the Banking Act, Subsidiary Legislation, and Banking Rules will be issued in the coming months, to transpose the Capital Requirements Directive (CRD5) into the national regulatory framework.
EC finalized the Delegated Regulation 2021/598 that supplements the Capital Requirements Regulation (CRR or 575/2013) and lays out the regulatory technical standards for assigning risk-weights to specialized lending exposures.
OSFI launched a consultation to explore ways to enhance the OSFI assurance over capital, leverage, and liquidity returns for banks and insurers, given the increasing complexity arising from the evolving regulatory reporting framework due to IFRS 17 (Insurance Contracts) standard and Basel III reforms.
ECB published results of the benchmarking analysis of the recovery plan cycle for 2019.