EC Amends Rule on Internal Model Benchmarking Under CRD IV
EC published the Implementing Regulation (EU) 2019/439, which amends the Implementing Regulation 2016/2070 on benchmark portfolios, reporting templates, and reporting instructions to be applied in EU, under the Capital Requirements Directive (CRD) IV (also known as Directive 2013/36/EU). Regulation 2019/439 shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union.
Regulation 2016/2070 specifies the reporting requirements of institutions to EBA and to the competent authorities; the regulation is intended to enable EBA and the competent authorities to assess internal approaches of institutions, as part of the benchmarking exercise under CRD IV. Given that institutions must submit the results of their calculations at least annually and that the focus of the competent authorities' assessments and of EBA's reports have changed, exposures or positions that are included in the benchmark portfolios, along with the reporting requirements, need to be adapted to such changes. Consequently, Regulation 2016/2070 has been amended as follows:
- Article 3(3)(b) and Article 7 have been deleted.
- Article 4(2) has been replaced.
- Annexes I, II, III, IV, V, VI and VII to Regulation (EU) 2016/2070 have been replaced by the text set out in the respective Annexes I, II, III, IV, V, VI and VII to Regulation (EU) 2019/439
Related Links
Effective Date: April 18, 2019
Keywords: Europe, EU, Banking, Securities, Benchmark Portfolios, Reporting, CRD IV, Internal Approaches, Regulation 2019/439, Basel III, Credit Risk, Market Risk, Regulatory Capital, EBA, EC
Featured Experts
María Cañamero
Skilled market researcher; growth strategist; successful go-to-market campaign developer
Nicolas Degruson
Works with financial institutions, regulatory experts, business analysts, product managers, and software engineers to drive regulatory solutions across the globe.
Patrycja Oleksza
Applies proficiency and knowledge to regulatory capital and reporting analysis and coordinates business and product strategies in the banking technology area
Related Articles
BIS and Central Banks Experiment with GenAI to Assess Climate Risks
A recent report from the Bank for International Settlements (BIS) Innovation Hub details Project Gaia, a collaboration between the BIS Innovation Hub Eurosystem Center and certain central banks in Europe
Nearly 25% G-SIBs Commit to Adopting TNFD Nature-Related Disclosures
Nature-related risks are increasing in severity and frequency, affecting businesses, capital providers, financial systems, and economies.
Singapore to Mandate Climate Disclosures from FY2025
Singapore recently took a significant step toward turning climate ambition into action, with the introduction of mandatory climate-related disclosures for listed and large non-listed companies
SEC Finalizes Climate-Related Disclosures Rule
The U.S. Securities and Exchange Commission (SEC) has finalized the long-awaited rule that mandates climate-related disclosures for domestic and foreign publicly listed companies in the U.S.
EBA Proposes Standards Related to Standardized Credit Risk Approach
The European Banking Authority (EBA) has been taking significant steps toward implementing the Basel III framework and strengthening the regulatory framework for credit institutions in the EU
US Regulators Release Stress Test Scenarios for Banks
The U.S. regulators recently released baseline and severely adverse scenarios, along with other details, for stress testing the banks in 2024. The relevant U.S. banking regulators are the Federal Reserve Bank (FED), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC).
Asian Governments Aim for Interoperability in AI Governance Frameworks
The regulatory landscape for artificial intelligence (AI), including the generative kind, is evolving rapidly, with governments and regulators aiming to address the challenges and opportunities presented by this transformative technology.
EBA Proposes Operational Risk Standards Under Final Basel III Package
The European Union (EU) has been working on the final elements of Basel III standards, with endorsement of the Banking Package and the publication of the European Banking Authority (EBA) roadmap on Basel III implementation in December 2023.
EFRAG Proposes XBRL Taxonomy and Standard for Listed SMEs Under ESRS
The European Financial Reporting Advisory Group (EFRAG), which plays a crucial role in shaping corporate reporting standards in European Union (EU), is seeking comments, until May 21, 2024, on the Exposure Draft ESRS for listed SMEs.
ECB to Expand Climate Change Work in 2024-2025
Banking regulators worldwide are increasingly focusing on addressing, monitoring, and supervising the institutions' exposure to climate and environmental risks.