Featured Product

    ESRB Amends Recommendation Related to Macro-Prudential Policy Measures

    March 20, 2019

    ESRB published the Recommendation ESRB/2019/1, which amends Recommendation ESRB/2015/2 on the assessment of cross-border effects of, and voluntary reciprocity for, macro-prudential policy measures. To ensure effective and consistent national macro-prudential policy measures, it is important to complement the mandatory reciprocity required under Union law with voluntary reciprocity. The framework on voluntary reciprocity for macro-prudential policy measures set out in Recommendation ESRB/2015/2 aims to ensure that all exposure-based macro-prudential policy measures activated in one member state are reciprocated in the other member states.

    In April 2018, in accordance with Article 133(10)(b) of Capital Requirements Directive (CRD IV: Directive 2013/36/EU), Bank of Estonia reviewed the systemic risk buffer and reset the systemic risk buffer rate applicable to the domestic exposures of all credit institutions authorized in Estonia at 1%. Following the request by Bank of Estonia to ESRB, the General Board of ESRB has decided to recommend a maximum materiality threshold of EUR 250 million of exposures located in Estonia to steer the application of the de minimis principle by the reciprocating member state to the reciprocation of the 1% systemic risk buffer set by Estonia, which was recommended for reciprocation by ESRB pursuant to Recommendation ESRB/2016/4.

    Furthermore, from December 31, 2018, credit institutions authorized in Sweden and using the Internal Ratings Based Approach for calculating regulatory capital requirements are subject to a credit institution-specific floor of 25% for the exposure-weighted average of the risk-weights applied to the portfolio of retail exposures to obligors residing in Sweden secured by immovable property. Following the request by Financial Supervisory Authority in Sweden (Finansinspektionen) to ESRB, the General Board of ESRB has decided to include this measure in the list of macro-prudential policy measures that are recommended to be reciprocated under Recommendation ESRB/2015/2. The General Board of ESRB has also decided to recommend a maximum materiality threshold of SEK 5 billion of exposures to obligors residing in Sweden secured by immovable property to steer the application of the de minimis principle by the reciprocating member state. Therefore, Recommendation ESRB/2015/2 has been amended as follows:

    • In Section 1, sub-recommendation C(1) has been replaced.
    • Annex to Recommendation ESRB/2015/2 has been replaced by Annex to Recommendation ESRB/2019/1.

     

    Related Links 

    Keywords: Europe, EU, Sweden, Estonia, Banking, Macro-Prudential Policy Measures, ESRB/2019/1, ESRB/2015/2, Voluntary Reciprocity, Systemic Risk Buffer, CRD IV, ESRB

    Featured Experts
    Related Articles
    News

    BCBS Consults on Principles for Operational Risk and Resilience

    BCBS is consulting on the principles for operational resilience and the revisions to the principles for sound management of operational risk for banks.

    August 06, 2020 WebPage Regulatory News
    News

    FSI Note Discusses Challenges Associated with COVID Relief Measures

    The Financial Stability Institute (FSI) of BIS published a brief note that examines the supervisory challenges associated with certain temporary regulatory relief measures introduced by BCBS and prudential authorities in response to the COVID-19 pandemic.

    August 06, 2020 WebPage Regulatory News
    News

    HKMA Announces Repayment Deferment Under Payment Holiday Scheme

    HKMA, together with the Banking Sector Small and Medium-Size Enterprise (SME) Lending Coordination Mechanism, announced a ninety-day repayment deferment for trade facilities under the Pre-approved Principal Payment Holiday Scheme.

    August 05, 2020 WebPage Regulatory News
    News

    ESRB Paper Presents Alternative Approach to EBA Stress Test Proposal

    The Advisory Scientific Committee of ESRB published a response, in the form of an Insights Paper, to the EBA proposals for reforms to the stress testing framework in EU.

    August 05, 2020 WebPage Regulatory News
    News

    MAS Announces Key Initiatives to Support Adoption of SORA

    MAS announced several initiatives to support adoption of the Singapore Overnight Rate Average (SORA), which is administered by MAS.

    August 05, 2020 WebPage Regulatory News
    News

    BoE Updates Template and Definitions for Form ER

    BoE updated the reporting template for Form ER as well as the Form ER definitions, which contain guidance on the methodology to be used in calculating annualized interest rates.

    August 05, 2020 WebPage Regulatory News
    News

    PRA to Extend Temporary High Balance Coverage Amid COVID Crisis

    PRA published the policy statement PS19/20 on the final policy for extending coverage under the Financial Services Compensation Scheme (FSCS) for Temporary High Balance.

    August 04, 2020 WebPage Regulatory News
    News

    EBA Publishes Standards on Disclosure and Reporting of MREL and TLAC

    EBA published the final draft implementing technical standards for disclosures and reporting on the minimum requirements for own funds and eligible liabilities (MREL) and the total loss-absorbing capacity (TLAC) requirements in EU.

    August 03, 2020 WebPage Regulatory News
    News

    EBA Releases Erratum for Phase 2 Package on Reporting Framework 2.10

    EBA published an erratum for the phase 2 of technical package on the reporting framework 2.10.

    August 03, 2020 WebPage Regulatory News
    News

    EC Sets Out Updated Technical Information for Solvency II Calculations

    EC published the Implementing Regulation 2020/1145, which lays down technical information for calculation of technical provisions and basic own funds.

    August 03, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 5635