Featured Product

    ECB Publishes Results of Comprehensive Assessment of Certain EU Banks

    June 05, 2020

    ECB published the results of a comprehensive assessment of five Croatian banks, UBS Europe SE, and Bank of America Merrill Lynch International Designated Activity Company. The Croatian banks covered in the assessment are Zagrebačka banka, Privredna banka Zagreb, Erste & Steiermärkische Bank, OTP banka Hrvatska, and Hrvatska poštanska banka. The assessments, which consist of a stress test and an asset quality review (AQR), show that all the banks do not face any capital shortfall as they did not fall below the relevant thresholds used in the AQR and the stress test.

    The UBS and Bank of America (BOA) subsidiaries were required to undergo an assessment following the relocation of business activity to euro area from UK after Brexit. The relocations of UBS Europe SE and Bank of America led to both banks meeting the size criterion for being directly supervised by the ECB Banking Supervision. All banks that become, or are likely to become, subject to direct ECB supervision are required to undergo a comprehensive assessment, consisting of a stress test and an AQR. The Croatian banks underwent this assessment following a request from Croatia to establish close cooperation between ECB and the central bank of Croatia (Hrvatska narodna banka). 

    Stress test and AQR are based on the methodologies applied by ECB Banking Supervision in its regular comprehensive assessments of banks that have recently been classified as significant or could potentially become significant. AQR is a prudential, rather than an accounting, exercise and provides ECB with a point-in-time assessment of the carrying values of the assets of a bank on a particular date (June 30, 2019 in the case of the UBS and Bank of America subsidiaries). AQR also determines whether there is a need to strengthen a bank’s capital base. The AQR was complemented by a stress test exercise, which looked at how capital position of banks would evolve under a baseline scenario and an adverse scenario over the three-year period from mid-2019 to mid-2022. The assumptions used for the stress test scenarios could not take into account the current COVID-19 crisis, which only started to evolve in the first quarter of 2020. ECB is working on a consistent approach for all supervised entities to monitor the impact of the COVID-19 crisis. 


    Related Links

    Keywords: Europe, EU, Basel, Croatia, Banking, AQR, Asset Quality Review, Brexit, Stress Testing, Regulatory Capital, Banking Supervision, ECB

    Featured Experts
    Related Articles
    News

    EBA Publishes Final Regulatory Standards on STS Securitizations

    The European Banking Authority (EBA) published the final draft regulatory technical standards specifying and, where relevant, calibrating the minimum performance-related triggers for simple.

    September 20, 2022 WebPage Regulatory News
    News

    ECB Further Reviews Costs and Benefits Associated with IReF

    The European Central Bank (ECB) is undertaking the integrated reporting framework (IReF) project to integrate statistical requirements for banks into a standardized reporting framework that would be applicable across the euro area and adopted by authorities in other EU member states.

    September 15, 2022 WebPage Regulatory News
    News

    EBA Publishes Funding Plans Report, Receives EMAS Certification

    The European Banking Authority (EBA) has been awarded the top European Standard for its environmental performance under the European Eco-Management and Audit Scheme (EMAS).

    September 15, 2022 WebPage Regulatory News
    News

    MAS Launches SaaS Solution to Simplify Listed Entity ESG Disclosures

    The Monetary Authority of Singapore (MAS) set out the Financial Services Industry Transformation Map 2025 and, in collaboration with the SGX Group, launched ESGenome.

    September 15, 2022 WebPage Regulatory News
    News

    BCBS to Finalize Crypto Rules by End-2022; US to Propose Basel 3 Rules

    The Basel Committee on Banking Supervision met, shortly after a gathering of the Group of Central Bank Governors and Heads of Supervision (GHOS), the oversight body of BCBS.

    September 15, 2022 WebPage Regulatory News
    News

    IOSCO Welcomes Work on Sustainability-Related Corporate Reporting

    The International Organization of Securities Commissions (IOSCO) welcomed the work of the international audit and assurance standard setters—the International Auditing and Assurance Standards Board (IAASB)

    September 15, 2022 WebPage Regulatory News
    News

    BoE Allows One-Day Delay in Statistical Data Submissions by Banks

    The Bank of England (BoE) published a Statistical Notice (2022/18), which informs that due to the Bank Holiday granted for Her Majesty Queen Elizabeth II’s State Funeral on Monday September 19, 2022.

    September 14, 2022 WebPage Regulatory News
    News

    ACPR Amends Reporting Module Timelines Under EBA Framework 3.2

    The French Prudential Control and Resolution Authority (ACPR) announced that the European Banking Authority (EBA) has updated its filing rules and the implementation dates for certain modules of the EBA reporting framework 3.2.

    September 14, 2022 WebPage Regulatory News
    News

    ECB Paper Discusses Disclosure of Climate Risks by Credit Agencies

    The European Central Bank (ECB) published a paper that examines how credit rating agencies accepted by the Eurosystem, as part of the Eurosystem Credit Assessment Framework (ECAF)

    September 13, 2022 WebPage Regulatory News
    News

    APRA to Modernize Prudential Architecture, Reduces Liquidity Facility

    The Australian Prudential Regulation Authority (APRA) announced reduction in the aggregate Committed Liquidity Facility (CLF) for authorized deposit-taking entities to ~USD 33 billion on September 01, 2022.

    September 12, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8514