ESRB Announces Updates on Macro-Prudential Measures in March 2021
ESRB updated the list of national macro-prudential measures applied by each member state in the European Economic Area. These national macro-prudential measures include capital conservation buffer, countercyclical capital buffer, systemic risk buffer, and global and other systemically important (G-SII and O-SII) buffers, reciprocation measures, and borrower-based measures. Also published was a notification from the Minister of Finance of Poland, to ECB and ESRB, about the decision to reduce risk-weights from 100% to 50% for exposures secured by mortgages on commercial immovable property. The 100% risk-weight still applies for other commercial properties. The regulation on this decision entered into force on October 16, 2020. In another development, the Bank of Slovenia notified EBA, ECB, and ESRB about its decision on the identification of O-SIIs and the activation of O-SII buffers.
The institutions that are designated as O-SIIs in Slovenia include NLB, NKBM, SID, SKB, Unicredit, and Intesa Sanpaolo. Banks were obliged to implement the buffer requirement from January 01, 2019 onward. Due to the increase in capital buffer requirement following the 2018 assessment, SID bank has been obliged to implement the increased buffer requirement gradually, from January 01, 2020 onward (0.25% from January 01, 2019 and 0.50% from January 01, 2020). Intesa Sanpaolo will be obliged to implement the buffer requirement from January 01, 2021 onward. Following the 2020 assessment, the requirement for the SID was reduced to 0.25% whereas the requirement for NKBM was increased to 0.50%. NKBM is obliged to build the buffer from January 01, 2022 onward.
Related Links
- List of Macro-Prudential Measures (XLSX)
- Poland Notification (PDF)
- Bank of Slovenia Notification (PDF)
- Overview of Macro-Prudential Measures
Keywords: Europe, EU, Poland, Slovenia, Banking, Macro-Prudential Measures, Borrower Based Measures, Systemic Risk, Regulatory Capital, Basel, Credit Risk, ESRB
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.
Trevor Howes
IFRS 17 technical advisor; AXIS actuarial modeling system expert; extensive experience in life insurance and life reinsurance, with focus on modeling, valuation, and financial reporting
Previous Article
EC Revises Standards on Methodology for G-SII IdentificationRelated Articles
PRA Finalizes Supervisory Approach for Non-Systemic Banks in UK
PRA published the policy statement PS8/21, which contains the final supervisory statement SS3/21 on the PRA approach to supervision of the new and growing non-systemic banks in UK.
EBA Finalizes Standards on Methods of Prudential Consolidation
EBA published a report that sets out the final draft regulatory technical standards specifying the conditions according to which consolidation shall be carried out in line with Article 18 of the Capital Requirements Regulation (CRR).
EBA Updates List of Other Systemically Important Institutions in EU
EBA updated the list of other systemically important institutions (O-SIIs) in EU.
BCBS Report Concludes Basel Risk Categories Can Capture Climate Risks
BCBS published two reports that discuss transmission channels of climate-related risks to the banking system and the measurement methodologies of climate-related financial risks.
UK Authorities Welcome FSB Review of their Remuneration Regime
UK Authorities (FCA and PRA) welcomed the findings of FSB peer review on the implementation of financial sector remuneration reforms in the UK.
PRA and FCA Letter on Addressing Risks from Use of Deposit Aggregators
PRA and FCA jointly issued a letter that highlights risks associated with the increasing volumes of deposits that are placed with banks and building societies via deposit aggregators and how to mitigate these risks.
MFSA to Amend Banking Act and Rules in Coming Months to Transpose CRD5
MFSA announced that amendments to the Banking Act, Subsidiary Legislation, and Banking Rules will be issued in the coming months, to transpose the Capital Requirements Directive (CRD5) into the national regulatory framework.
EC Delegated Regulation on Specialized Lending Exposures Under CRR
EC finalized the Delegated Regulation 2021/598 that supplements the Capital Requirements Regulation (CRR or 575/2013) and lays out the regulatory technical standards for assigning risk-weights to specialized lending exposures.
OSFI Proposes to Enhance Assurance Expectations for Basel Returns
OSFI launched a consultation to explore ways to enhance the OSFI assurance over capital, leverage, and liquidity returns for banks and insurers, given the increasing complexity arising from the evolving regulatory reporting framework due to IFRS 17 (Insurance Contracts) standard and Basel III reforms.
ECB Issues Results of Benchmarking Analysis of Recovery Plans of Banks
ECB published results of the benchmarking analysis of the recovery plan cycle for 2019.
