In a letter to the Directorate-General of EC (DG FISMA), EBA communicated the new deadlines within which it plans to submit certain regulatory and implementing technical standards under the risk reduction measures package. This package covers the amended Capital Requirements Directive and Regulation (CRD 5 and CRR 2) and the amended Bank Recovery and Resolution Directive (BRRD 2). The letter sets out new deadlines for certain technical standards that are due to be delivered by December 2019 and June 2020. Beyond the risk reduction measures package mandates, EBA also communicated about the delay in a mandate, stemming from European Markets Infrastructure Regulation or EMIR, for the regulatory technical standards on initial margin model validation.
In the letter, EBA highlights that these are only a few deviations beyond the deadlines set out in the roadmap on risk reduction measures package, despite the COVID-19 pandemic. The EBA roadmap on the risk reduction measures package, on November 21, 2019, stated that there are contingencies that may limit the ability of EBA to deliver all mandates on time. This is because a small number of mandates have a deadline of 6-9 months only after the entry into force. Additionally, EBA already expected, at the date of the publication of roadmap, some delays on a limited number of mandates in the areas of large exposures, interest rate risk in the banking book (IRRBB), minimum requirements for own funds and eligible liabilities (MREL), and bail-in due to the complexity and contingency to progress in other areas.
In accordance with Article 10(2) regarding regulatory technical standards and Article 15(2) regarding implementing technical standards under the EBA Founding Regulation, EC may request the submission of such technical standards within a new time limit where draft technical standards have not been submitted within the deadlines provided in the legislation. EBA is, therefore informing in the letter that it plans to submit technical standards due to be delivered by December 2019 and June 2020 within the new deadlines set out in the letter, most of which have been set out accordingly in the EBA roadmap on the risk reduction measures package. EBA highlights that it remains committed to accomplish its pending mandates within the deadlines, while the utmost attention will continue to be given to the quality of the Single Rulebook.
Keywords: Europe, EU, Banking, CRR2, CRD5, BRRD2, Basel, Reporting, Risk Reduction Package, COVID-19, Single Rulebook, Large Exposures, IRRBB, MREL, EBA
Previous ArticleECB Examines Cross-Border Effects of Macro-Prudential Policies
The European Banking Authority (EBA) published four draft principles to support supervisory efforts in assessing the representativeness of COVID-19-impacted data for banks using the internal ratings based (IRB) credit risk models.
The European Council and the European Parliament (EP) reached a provisional political agreement on the Corporate Sustainability Reporting Directive (CSRD).
The Prudential Regulation Authority (PRA) launched a consultation (CP6/22) that sets out proposal for a new Supervisory Statement on expectations for management of model risk by banks.
The European Commission (EC) published the Delegated Regulation 2022/954, which amends regulatory technical standards on specification of the calculation of specific and general credit risk adjustments.
The Bank for International Settlements (BIS) Innovation Hub updated its work program, announcing a set of projects across various centers.
The European Insurance and Occupational Pensions Authority (EIOPA) published two consultation papers—one on the supervisory statement on exclusions related to systemic events and the other on the supervisory statement on the management of non-affirmative cyber exposures.
Certain members of the U.S. Senate Committee on Banking, Housing, and Urban Affairs issued a letter to the Securities and Exchange Commission (SEC)
The European Insurance and Occupational Pensions Authority (EIOPA) published a consultation paper on the advice on the review of the securitization prudential framework in Solvency II.
The Bank for International Settlements (BIS) published bulletins on lending in decentralized finance (DeFi) system, on blockchain scalability and fragmentation of crypto, and on extractable value and market manipulation in crypto and decentralized finance.
The Prudential Regulation Authority (PRA) issued a statement on PRA buffer adjustment while the Bank of England (BoE) published a notice on the statistical reporting requirements for banks.