Featured Product

    EBA to Delay Certain Technical Standards Under Risk Reduction Package

    June 11, 2020

    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.

     

    Related Links

    Keywords: Europe, EU, Banking, CRR2, CRD5, BRRD2, Basel, Reporting, Risk Reduction Package, COVID-19, Single Rulebook, Large Exposures, IRRBB, MREL, EBA

    Featured Experts
    Related Articles
    News

    LEI ROC Confirmed as Governance Body for OTC Derivatives Identifiers

    FSB confirmed the Regulatory Oversight Committee (ROC) of the Global Legal Entity Identifier System (GLEIS) as the International Governance Body for the globally harmonized identifiers used to track over-the-counter (OTC) derivatives transactions, with effect from October 01, 2020.

    September 25, 2020 WebPage Regulatory News
    News

    FCA Consults on Regulation of International Firms in UK

    FCA is consulting on its approach to the authorization and supervision of international firms operating in UK.

    September 25, 2020 WebPage Regulatory News
    News

    EBA Launches Transparency Exercise for Banks in EU

    EBA launched the seventh annual transparency exercise for banks in EU.

    September 25, 2020 WebPage Regulatory News
    News

    EBA Publishes Single Rulebook Q&A Updates in September 2020

    The EBA Single Rulebook question and answer (Q&A) tool updates for this month include answers to 32 questions.

    September 25, 2020 WebPage Regulatory News
    News

    MAS Amends Notices on NSFR and Single Counterparty Credit Exposures

    MAS published amendments to the Notice 652 on net stable funding ratio (NSFR), along with the related reporting template.

    September 24, 2020 WebPage Regulatory News
    News

    EC Publishes Action Plan for Capital Markets Union in EU

    EC published the action plan to enhance the Capital Markets Union in EU over the coming years.

    September 24, 2020 WebPage Regulatory News
    News

    EC Proposes Frameworks for Crypto-Assets and Operational Resilience

    EC adopted a package that includes the digital finance and retail payments strategies and the legislative proposals for regulatory frameworks on crypto-assets and digital operational resilience.

    September 24, 2020 WebPage Regulatory News
    News

    ECB Publishes Opinion on Proposals to Amend Securitization Framework

    ECB published an opinion (CON/2020/22) on proposals for regulations amending the securitization framework of EU, in response to the COVID-19 pandemic.

    September 24, 2020 WebPage Regulatory News
    News

    APRA Updates Validation and Derivation Rules in September 2020

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

    September 24, 2020 WebPage Regulatory News
    News

    MAS Amends Notice on Capital Adequacy Requirements of Banks

    MAS published amendments to Notice 637 on the risk-based capital adequacy requirements for reporting banks incorporated in Singapore.

    September 23, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 5845