Featured Product

    FI Issues Regulatory Updates for Banks and Investment Firms

    June 28, 2021

    The Swedish Financial Supervisory Authority (FI) has updated validation rules for reporting according to the EBA taxonomy via the new reporting system Fidac. Also updated was the list of deactivated EBA validation rules for periodic reporting via Fidac for banks and investment firms. FI has decided to reciprocate the decision of the Norwegian Ministry of Finance to implement an average risk-weight floor of 20% for retail exposures and of 35% for corporate exposures collateralized by real estate in Norway; the decision shall apply from September 30, 2021 until December 31, 2022.

    The decision is applicable for Swedish credit institutions that have branches or other exposures in Norway and are authorized to use an internal ratings-based approach for the calculation of their capital requirement for credit risks. FI will apply the threshold of NOK 32.3 billion for retail exposures collateralized by real estate and NOK 6.7 billion for corporate exposures collateralized by real estate, as stated by the Norwegian Ministry of Finance. Given the measures being decided now, the existing Pillar 2 add-on for Norwegian mortgages that was previously communicated in a memorandum will no longer be applied by FI as of September 30, 2021. FI is postponing its decision on reciprocating the Norwegian systemic risk buffer of 4.5% for Norwegian exposures until more information is available on how the fifth Capital Requirements Directive (CRD5) will be implemented in Norway. 

    Finally, FI issued a statement on classification of small and non-complex institutions. The amendments to the Capital Requirements Regulation (CRR) that certain credit institutions and securities companies may be classified as small and non-complex institutions came into effect on June 28, 2021. A company that wants to be classified as a small and non-complex institution must submit a report to FI, wherein the company must state how it fulfills the required conditions in CRR. FI may make a different assessment of the classification if an analysis of the size, connections, complexity. or risk profile shows that the company cannot be considered as such an institution. A small and non-complex institution may be authorized to apply a simplified calculation of the net stable funding ratio (NSFR). An undertaking wishing to apply simplified NSFR is required to submit a separate application for authorization under Article 428a of CRR. It is the company's responsibility to continuously ensure that it meets the conditions for classification as a small and non-complex institution. The company must inform FI if it no longer meets these conditions.

     

    Related Links (in Swedish)

    Effective Date: September 30, 2021 (Risk-Weight Decision)

    Keywords: Europe, Sweden, Banking, Securities, Investment Firms, Reporting, Validation Rules, FIDAC, Norway, Risk Weight Floor, Internal Ratings Based Approach, Regulatory Capital, CRR, CRD5, Basel, Small Banks, NSFR, Proportionality, FI

    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