Featured Product

    EC Amends Implementing Standards on Supervisory Reporting Under CRR

    EC published Regulation 2020/429 that amends the Regulation 680/2014, which sets out implementing technical standards on supervisory reporting of institutions under the Capital Requirements Regulation or CRR (575/2013). The key amendments in Regulation 2020/429 relate to reporting on securitization positions, IFRS 16 on leases, non-performing exposures, and liquidity. This Regulation is based on the draft implementing technical standards submitted by EBA to EC. Regulation 2020/429 shall enter into force on the day following that of its publication in the Official Journal of the European Union.

    Regulation 2017/2402 had set up a new framework for securitization, including a specific framework for simple, transparent, and standardized (STS) securitizations. It established preferential treatment for STS securitizations and certain micro, small, and medium-size enterprise (SME) synthetic securitizations. Regulation 2017/2042 also set out a framework for a more risk-sensitive regulatory treatment of exposures to securitizations. Regulation 2020/429 is now amending Regulation 680/2014 to accommodate the reporting on securitization positions to this new securitization framework. The new EU securitization framework became fully applicable on January 01, 2020 after the expiration of transitional provisions. Therefore, the revised reporting requirements on own funds and own funds requirements set out in Regulation 2020/429 shall apply from March 30, 2020. The revised reporting requirements set out in Annexes III to V of Regulation 2020/429 shall apply from June 01, 2020. Additional amendments to Regulation 680/2014 include the following:

    • Regulation 1126/2008 was amended by Regulation 2017/1986 to bring it in line with the IFRS 16 on leases and Regulation 680/2014 is now being amended to reflect those amendments. 
    • Regulation 2020/429 is revising the reporting requirements for nonperforming exposures with the aim to strengthen the ability of competent authorities to assess and monitor non-performing exposures by collecting more granular information on those exposures on a recurring basis and to close identified data gaps. 
    • Regulation 680/2014 is being amended to reflect, in the reporting framework, amendments of the liquidity coverage requirements for credit institutions. The provisions of Regulation 2020/429 concerning liquidity reporting shall apply from April 01, 2020. 
    • Templates and instructions of Regulation 680/2014 have been reviewed to reassess the convenience and appropriateness of the memo items included in the templates and instructions during the early years of implementation of the regulation as well as to correct typos, erroneous references, and formatting inconsistencies that were discovered in the course of its application.

     

    Related Links

    Effective Date: March 31, 2020

    Keywords: Europe, EU, Banking, Securities, Securitization, Reporting, CRR, NPE, STS Securitization, Regulation 2020/429, Regulation 680/2014, Basel, IFRS 16, Leases, Liquidity Risk, EC

    Featured Experts
    Related Articles
    News

    EBA Examines Supervisory Practices, Issues Deposits Reporting Template

    The European Banking Authority (EBA) published its annual report on convergence of supervisory practices for 2021. Additionally, following a request from the European Commission (EC),

    May 11, 2022 WebPage Regulatory News
    News

    EC Mandates ESAs to Propose Amendments to SFDR Technical Standards

    The European Commission (EC) has issued two letters mandating the European Supervisory Authorities (ESAs) to jointly propose amendments to the regulatory technical standards under Sustainable Finance Disclosure Regulation or SFDR.

    May 11, 2022 WebPage Regulatory News
    News

    EC Consults on PSD2 and Open Finance; EU Reaches Agreement on DORA

    The European Commission (EC) published a public consultation on the review of revised payment services directive (PSD2) and open finance.

    May 11, 2022 WebPage Regulatory News
    News

    US Agency Publications Address Basel, Reporting, and CECL Developments

    The Farm Credit Administration published, in the Federal Register, the final rule on implementation of the Current Expected Credit Losses (CECL) methodology for allowances

    May 09, 2022 WebPage Regulatory News
    News

    SEC Extends Comment Period on Climate Risk Disclosures

    The U.S. Securities and Exchange Commission (SEC) looks set to intensify focus on crypto-assets and cyber risk and extended the comment period on the proposed rules to enhance and standardize climate-related disclosures for investors.

    May 09, 2022 WebPage Regulatory News
    News

    APRA Reduces Committed Liquidity Facility, Issues Other Updates

    The Australian Prudential Regulation Authority (APRA) announced reduction in the aggregate Committed Liquidity Facility and issued an update on the operational preparedness for zero and negative market interest rates.

    May 09, 2022 WebPage Regulatory News
    News

    EIOPA Responds to Stakeholder Views on Blockchain in Insurance

    The European Insurance and Occupational Pensions Authority (EIOPA) published a feedback statement on the responses received to the consultation on blockchain and smart contracts in insurance.

    May 06, 2022 WebPage Regulatory News
    News

    HKMA Announces Decisions on CCyB and Loan Guarantee Scheme

    The Hong Kong Monetary Authority (HKMA) announced that the applicable jurisdictional countercyclical capital buffer (CCyB) ratio for Hong Kong remains unchanged at 1.0%

    May 06, 2022 WebPage Regulatory News
    News

    CMF Consults on Basel Rules, Presents Roadmap to Address Climate Risks

    The Commission for the Financial Market (CMF) in Chile published capital adequacy ratios (as of February 2022, January 2022, and December 2021) for 17 banks and for the banking system.

    May 06, 2022 WebPage Regulatory News
    News

    PRA Issues Statement on NPEs and Policy on Trading Activity Wind-Down

    The Prudential Regulation Authority (PRA) issued a statement on the European Banking Authority (EBA) guidelines on management of non-performing exposures (NPEs) and forborne exposures.

    May 06, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8168