EC published the Implementing Regulation (EU) 2019/482, which amends the Regulation (EU) 2016/1368 that establishes a list of critical benchmarks used in financial markets pursuant to Benchmarks Regulation, or BMR (EU 2016/1011). The key change involves the addition of Warsaw Interbank Offered Rate (WIBOR) to the list of critical benchmarks pursuant to BMR. Regulation (EU) 2019/482 shall enter into force on the day following that of its publication in the Official Journal of the European Union.
On October 10, 2018, the Polish competent authority, Komisja Nadzoru Finansowego (KNF), notified ESMA of its proposal to recognize the Warsaw Interbank Offered Rate (WIBOR) as a critical benchmark, under point (b) of Article 20(1) of BMR, because it is critical in Poland and it is based on submissions of contributors, all of which are located in Poland. WIBOR is a reference rate based on an average of the interest rates at which banks operating in the Polish money market are willing to lend unsecured funds to each other at different maturities. As of October 10, 2018, eleven banks participate in the WIBOR panel, all of which are located in Poland.
In its assessment submitted to ESMA, the KNF concluded that the cessation of WIBOR, or its provision on the basis of input data or of a panel of contributors that are no longer representative of the underlying market or economic reality, could have a significant adverse impact on the functioning of financial markets in Poland. On November 08, 2018, ESMA sent EC its opinion setting out that KNF had taken into consideration all the elements and criteria included in Article 20(3) of BMR and that it had provided quantitative data to support the case for the recognition of WIBOR as a critical benchmark, as well as analytical reasoning highlighting the crucial role of WIBOR in the Polish economy. Therefore, the Regulation (EU) 2016/1368 has been amended accordingly. The Annex to Implementing Regulation (EU) 2016/1368 has been replaced by the text in the Annex to Regulation (EU) 2019/482.
Effective Date: March 26, 2019
Keywords: Europe, EU, Poland, Banking, Securities, WIBOR, Regulation 2019/482, Regulation 2016/1368, Benchmarks Regulation, Critical Benchmarks, Interest Rate Benchmarks, ESMA, EC
The Australian Prudential Regulation Authority (APRA) has published the findings of its latest climate risk self-assessment survey conducted across the banking, insurance, and superannuation industries.
The French Prudential Supervisory Authority (ACPR) published a notice related to the methods for calculating and publishing prudential ratios under the Capital Requirements Directive (CRD IV) and the minimum requirement for own funds and eligible liabilities (MREL).
The Financial Stability Institute (FSI) of the Bank for International Settlements recently published a paper proposing a framework for classifying financial stability regulation as either entity-based or activity-based.
The European Insurance and Occupational Pension Authority (EIOPA) published the risk dashboard based on Solvency II data and the final version of the application guidance on climate change materiality assessments and climate change scenarios in the Own Risk and Solvency Assessment (ORSA).
The European Banking Authority (EBA) and the European Central Bank (ECB) published their responses to the consultations of the International Sustainability Standards Board (ISSB) and the European Financial Reporting Advisory Group (EFRAG) on sustainability-related disclosure standards.
A Consultative Group on Risk Management (CGRM) at the Bank for International Settlements (BIS) published a report that examines incorporation of climate risks into the international reserve management framework.
The European Banking Authority (EBA) published the final guidelines on liquidity requirements exemption for investment firms, updated version of its 5.2 filing rules document for supervisory reporting, and Single Rulebook Question and Answer (Q&A) updates in July 2022.
The European Insurance and Occupational Pensions Authority (EIOPA) published Version 2.8.0 of the Solvency II data point model (DPM) and XBRL taxonomy.
The European Union published, in the Official Journal of the European Union, an opinion from the European Economic and Social Committee (EESC); the opinion is on the proposal for a regulation to amend the Capital Requirements Regulation (CRR).
HM Treasury published a draft statutory instrument titled “The Financial Services (Miscellaneous Amendments) (EU Exit) Regulations 2022,” along with the related explanatory memorandum and impact assessment.