EC published the Implementing Decision (EU) 2019/536 regarding the lists of third countries and territories whose supervisory and regulatory requirements are considered equivalent for the treatment of exposures, in accordance with the Capital Requirements Regulation or CRR (EU Regulation No 575/2013). Decision 2019/536 amends the Implementing Decision 2014/908/EU. The key change involves the addition of Argentina to the lists, after EC concluded that the supervisory and regulatory requirements applied to credit institutions in Argentina are at least equivalent to those applied in EU. Decision (EU) 2019/536 shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union.
EC conducted assessments of the supervisory and regulatory arrangements applicable to credit institutions in third countries and territories. These assessments have enabled EC to evaluate the equivalence of these arrangements for the purposes of determining the treatment of the relevant categories of exposures mentioned in Articles 107, 114, 115, 116, and 142 of CRR. In its assessments, EC has considered relevant developments in the supervisory and regulatory framework since the adoption of Implementing Decision (EU) 2016/2358 and taken into account available sources of information, including the assessment made by EBA. The assessment by EBA recommended that the supervisory and regulatory frameworks applicable to credit institutions in Argentina should be considered as equivalent to the Union legal framework for the purposes of Articles 107(4), 114(7), 115(4), 116(5), and 142(1)(4)(b) of CRR.
EC concluded that Argentina has in place supervisory and regulatory arrangements that comply with a series of operational, organizational, and supervisory standards reflecting the essential elements of the Union's supervisory and regulatory arrangements applicable to credit institutions. Therefore, it is appropriate to consider the supervisory and regulatory requirements applied to credit institutions located in Argentina as at least equivalent to those applied in the Union. The Implementing Decision 2014/908/EU, therefore, has been amended to include Argentina in the relevant lists of third countries and territories whose supervisory and regulatory requirements are considered equivalent to the Union's regime for the treatment of exposures in accordance with CRR. Annexes I , IV, and V to Decision 2014/908/EU has been replaced by the text set out in the respective Annexed I, II, and III to Decision (EU) 2019/536.
The lists of third countries and territories considered to be equivalent for the relevant provisions of CRR are not exhaustive. EC, with the assistance of EBA, will continue to regularly monitor the evolution of supervisory and regulatory arrangements of third countries and territories with a view to updating, as appropriate and at least every five years, the lists of third countries and territories set out in Decision 2014/908/EU in light of the constant developments of supervisory and regulatory arrangements.
Effective Date: April 18, 2019
Keywords: Europe, EU, Argentina, Banking, CRR, Supervisory and Regulatory Requirements, Equivalence, Third Country, Decision 2019/536, EC
Previous ArticleRandal Quarles of FED Examines Approaches for Setting CCyB
PRA published a set of questions and answers (Q&A) covering common queries regarding residential and commercial property valuations, for the purpose of the Capital Requirements Regulation (CRR), during the period of disruption caused by COVID-19 pandemic.
EBA published guidelines on loan origination and monitoring, which bring together prudential standards and consumer protection obligations, along with the anti-money laundering and the Environmental, Social, and Governance (ESG) considerations.
EBA published a consultation paper on the draft amended regulatory technical standards on own funds and eligible liabilities.
EBA published a report on convergence of supervisory practices in 2019.
IOSCO proposed updates to its principles for regulated entities that outsource tasks to service providers.
MAS announced that the first phase of the Veritas initiative will commence with the development of fairness metrics in credit risk scoring and customer marketing.
BoE published the Statistical Notice 2020/4 to update the buy-to-let (BTL) Phase 2 and Phase 3 definitions for the Interest Rate Type data item.
FSI published a brief note that examines challenges facing the banking sector as a result of the payment deferral programs put in place to support borrowers affected by the COVID-19 pandemic.
RBNZ published the financial stability report for May 2020. This review of the financial system in the country highlights that the economic disruption associated with COVID-19 will present challenges to the financial system.
PRA published the policy statement PS14/20, which contains the supervisory statement SS1/20 and the feedback to responses to the consultation paper CP22/19 on expectations for investment by firms in accordance with the Prudent Person Principle, or PPP, as set out in the Investments Part of the PRA Rulebook.