EC Amends Regulation Establishing the List of Critical Benchmarks
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 The Annex to Implementing Regulation (EU) 2016/1368 has been replaced by the text in the Annex to Regulation (EU) 2019/482.
Related Links
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
Previous Article
PRA Published CP7/17 on Data Collection of Market Risk SensitivitiesRelated Articles
|
News
HKMA Decides to Maintain Countercyclical Capital Buffer at 2.5%HKMA announced that, in accordance with the Banking (Capital) Rules, the countercyclical capital buffer (CCyB) ratio for Hong Kong remains at 2.5%.
April 16, 2019
WebPage
Regulatory News
|
|
News
EP Approves Agreement on Package of CRD 5, CRR 2, BRRD 2, and SRMR 2The European Parliament (EP) approved the final agreement on a package of reforms proposed by EC to strengthen the resilience and resolvability of European banks.
April 16, 2019
WebPage
Regulatory News
|
|
News
FDIC Consults on Approach to Resolution Planning for IDIsFDIC approved an Advance Notice of Proposed Rulemaking (ANPR) and is seeking comment on ways to tailor and improve its rule requiring certain insured depository institutions (IDIs) to submit resolution plans.
April 16, 2019
WebPage
Regulatory News
|
|
News
EP Resolution on Proposal for Sovereign Bond Backed SecuritiesThe European Parliament (EP) published adopted text on the proposal for a regulation of the European Parliament and of the Council on sovereign bond-backed securities (SBBS).
April 16, 2019
WebPage
Regulatory News
|
|
News
PRA Seeks Input and Issues Specifications for Insurance Stress TestsPRA announced that it will conduct an insurance stress test for the largest regulated life and general insurers from July to September 2019.
April 15, 2019
WebPage
Regulatory News
|
|
News
PRA Finalizes Policy on Approach to Managing Climate Change RisksPRA published the policy statement PS11/19, which contains final supervisory statement (SS3/19) on enhancing banks’ and insurers’ approaches to managing the financial risks from climate change (Appendix).
April 15, 2019
WebPage
Regulatory News
|
|
News
EBA Single Rulebook Q&A: First Update for April 2019EBA published answers to nine questions under the Single Rulebook question and answer (Q&A) updates for this week.
April 12, 2019
WebPage
Regulatory News
|
|
News
EIOPA Statement on Application of Proportionality in SCR SupervisionEIOPA published a supervisory statement on the application of proportionality principle in the supervision of the Solvency Capital Requirement (SCR) calculated in accordance with the standard formula.
April 11, 2019
WebPage
Regulatory News
|
|
News
FED Updates Form and Supplemental Instructions for FR Y-9C ReportingFED updated the form and supplemental instructions for FR Y-9C reporting. FR Y-9C is used to collect data from domestic bank holding companies, savings and loan holding companies, U.S intermediate holding companies, and securities holding companies with total consolidated assets of USD 3 billion or more.
April 11, 2019
WebPage
Regulatory News
|
|
News
OSFI Finalizes Guidelines on Liquidity Adequacy and NSFR DisclosuresOSFI published the final Liquidity Adequacy Requirements (LAR) guideline and the net stable funding ratio (NSFR) disclosure requirements guideline.
April 11, 2019
WebPage
Regulatory News
|
