Featured Product

    NBB Issues Updates on CCyB, Leverage Ratio Relief, and FINREP Rules

    June 29, 2021

    The National Bank of Belgium (NBB) decided to extend the temporary exclusion of certain central bank exposures from leverage ratio until March 31, 2022 and to maintain the countercyclical buffer (CCyB) rate for credit risk exposures to the Belgian private non-financial sector at 0% for the third quarter of 2021. NBB reviews CCyB quarterly, though it is expecting the CCyB requirement to be nil at least until the first quarter of 2022. NBB also published the Circular NBB_2021_10 that specifies the Belgian rules for implementation of the ECB Regulation on reporting of supervisory financial information (ECB/2021/24). To implement FINREP on an individual basis, a mapping has been established between the Belgian banking accounting law applicable at individual level (BGAAPs) and the European framework for reporting supervisory financial information (FINREP). Circular NBB_2021_10 replaces the former Circular NBB_2020_16 for reporting, with June 30, 2021 as the first reference date.

    Under the Capital Requirements Regulation (CRR) and the EU Regulation 2021/451, Belgian credit institutions are subject to (IFRS) FINREP on a consolidated basis. EU Regulation 2021/451 lays down the implementing technical standards for application of CRR with regard to supervisory reporting of institutions. In Belgium, the impact of the new ECB Regulation is essentially that FINREP reporting is now also imposed on a solo basis for credit institutions. The new ECB Regulation does not repeal national reporting on a solo basis (Schema A), which continues to apply in addition to the FINREP reporting on an individual basis, as required by ECB. The ECB Regulation does not allow entities to choose between IFRS and national accounting standards (NGAAP). For instance, for FINREP reporting on an individual basis, Articles 6, 7, 13, and 14 of ECB Regulation provide different rules according to whether the institution is subject to IFRS or to national accounting standards. As institutions under the Belgian law are subject to BGAAP for preparing their solo annual accounts, such institutions must report FINREP information on an individual basis according to BGAAP.

    To facilitate and standardize FINREP on an individual basis in BGAAP, a mapping has been established to make the link between BGAAP data from Schema A and FINREP tables on an individual basis, as imposed by the ECB Regulation. The mapping is presented in an Excel document (Annex) accompanying the Circular 2021_10, with the mapping showing the FINREP items and the corresponding accounting data under BGAAP as well as a summary justification of the link between the two. Data shall be reported through OneGate application in EUR units, in accordance with the frequencies and formats prescribed by the ECB Regulation. The reporting remittance dates are as provided for in Article 3 of the EU Regulation 2021/451. To facilitate reporting, only the tables and cells to be reported will be available in the OneGate application.

    With respect to the update on leverage ratio relief, via Communication NBB_2021_14, NBB has announced the extension of temporary exclusion of certain central bank exposures from leverage ratio until March 31, 2022. As per the communication, NBB-supervised smaller credit institutions can exclude exposures from the measurement of total exposure under Article 429a (5) of CRR. This follows a statement, dated June 18, 2021, in which ECB confirmed that continued “exceptional circumstances” allow for the extension of the temporary exclusion of certain central bank exposures from the leverage ratio calculation; these exposures include EUR-denominated coins and banknotes as well certain deposits held at the central bank in minimum reserve accounts.

     

    Related Links

    Keywords: Europe, Belgium, Banking, CCyB, COVID-19, Reporting, IFRS, FINREP, BGAAP, CRR, Basel, OneGate, Leverage Ratio, Regulatory Capital, NBB

    Featured Experts
    Related Articles
    News

    EBA Updates Filing Rules for Supervisory Reporting

    The European Banking Authority (EBA) published version 5.1 of the filing rules for supervisory reporting.

    October 19, 2021 WebPage Regulatory News
    News

    ECB Amends Guideline on Procedures for Collection of AnaCredit Data

    The European Central Bank (ECB) Guideline 2021/1829 on the procedures for the collection of granular credit and credit risk data has been published in the Official Journal of European Union.

    October 19, 2021 WebPage Regulatory News
    News

    ECB Amends Guideline on Procedures for Collection of AnaCredit Data

    The European Central Bank (ECB) Guideline 2021/1829 on the procedures for the collection of granular credit and credit risk data has been published in the Official Journal of European Union.

    October 19, 2021 WebPage Regulatory News
    News

    EBA Publishes Standards on Disclosure of Investment Policy Under IFR

    The European Banking Authority (EBA) published the final draft regulatory technical standards on disclosure of investment policy by investment firms, under the Investment Firms Regulation (IFR).

    October 19, 2021 WebPage Regulatory News
    News

    APRA Finalizes Guidance for New Prudential Standard on Remuneration

    The Australian Prudential Regulation Authority (APRA) published the prudential practice guide CPG 511 to assist banks, insurers, and superannuation licensees in meeting requirements of CPS 511, the new prudential standard on remuneration.

    October 18, 2021 WebPage Regulatory News
    News

    OCC Updated LIBOR Self-Assessment Tool for Banks

    The Office of the Comptroller of the Currency (OCC) published a bulletin that provides an updated self-assessment tool for banks to evaluate their preparedness for cessation of the London Interbank Offered Rate (LIBOR).

    October 18, 2021 WebPage Regulatory News
    News

    TCFD Updates Guidance for Financial Disclosures on Climate Risk

    The Financial Stability Board (FSB) published a report that examines the progress made toward disclosures aligned with recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).

    October 14, 2021 WebPage Regulatory News
    News

    BCBS Report Examines Progress on Adoption of Basel III Framework

    The Basel Committee on Banking Supervision (BCBS) published the progress report on adoption of the Basel III regulatory framework in member jurisdictions.

    October 14, 2021 WebPage Regulatory News
    News

    ACPR Implements Updates Related to DPM Version 3.1

    The French Prudential Supervisory Authority (ACPR) has implemented, in its information system, updates linked to the Data Point Model (DPM) version 3.1.

    October 14, 2021 WebPage Regulatory News
    News

    EBA Note Examines Transition Risks of Benchmark Rates

    The European Banking Authority (EBA) published a thematic note that aims to identify and raise awareness of the transition risks of benchmark rates, as the London Interbank Offered Rate (LIBOR) and the Euro Overnight Index Average (EONIA) are close to being phased out.

    October 14, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 7571