Featured Product

    FINMA Consults on Changes to Circular on Liquidity Risks for Banks

    May 04, 2020

    FINMA issued a consultation on amendments to the circular (2015/2) on liquidity risks for banks. The amendments relate to the technical implementing provisions and refinements to the new requirements for net stable funding ratio (NSFR), as set out in the Liquidity Ordinance. FINMA is introducing general adjustments to the qualitative requirements and to the liquidity coverage ratio (LCR), constituting clarifications and editing changes to the previous regulation. The consultation takes into account the timetable for adoption of the Liquidity Ordinance. The consultation period will run until July 13, 2020 while the corresponding changes are due to enter into force on July 01, 2021.

    In November 2019, the Swiss Federal Council had decided to introduce NSFR for banks by mid-2021 and to make the corresponding adjustments to the Liquidity Ordinance. This also necessitated changes to the FINMA supervisory practice, as set out in the circular (2015/2) on liquidity risks for banks. As required in the Basel III minimum standards, banks must meet stricter liquidity requirements and fulfill internationally harmonized funding requirements. The Federal Council had adapted the Liquidity Ordinance in 2017 in line with these international rules, but had postponed the introduction of NSFR. FINMA had also adjusted the circular on liquidity risks for banks at that time and ran a consultation exercise. The present consultation, therefore, only concerns a number of clarifications and editing changes. 

     

    Related Links

    Comment Due Date: July 13, 2020

    Effective Date: July 01, 2021

    Keywords: Europe, Switzerland, Banking, LCR, NSFR, Liquidity Risk, Liquidity Ordinance, Circular 2015/2, Basel III, Swiss Federal Council, FINMA

    Featured Experts
    Related Articles
    News

    HKMA Announces Repayment Deferment Under Payment Holiday Scheme

    HKMA, together with the Banking Sector Small and Medium-Size Enterprise (SME) Lending Coordination Mechanism, announced a ninety-day repayment deferment for trade facilities under the Pre-approved Principal Payment Holiday Scheme.

    August 05, 2020 WebPage Regulatory News
    News

    ESRB Paper Presents Alternative Approach to EBA Stress Test Proposal

    The Advisory Scientific Committee of ESRB published a response, in the form of an Insights Paper, to the EBA proposals for reforms to the stress testing framework in EU.

    August 05, 2020 WebPage Regulatory News
    News

    MAS Announces Key Initiatives to Support Adoption of SORA

    MAS announced several initiatives to support adoption of the Singapore Overnight Rate Average (SORA), which is administered by MAS.

    August 05, 2020 WebPage Regulatory News
    News

    BoE Updates Template and Definitions for Form ER

    BoE updated the reporting template for Form ER as well as the Form ER definitions, which contain guidance on the methodology to be used in calculating annualized interest rates.

    August 05, 2020 WebPage Regulatory News
    News

    PRA to Extend Temporary High Balance Coverage Amid COVID Crisis

    PRA published the policy statement PS19/20 on the final policy for extending coverage under the Financial Services Compensation Scheme (FSCS) for Temporary High Balance.

    August 04, 2020 WebPage Regulatory News
    News

    EBA Publishes Standards on Disclosure and Reporting of MREL and TLAC

    EBA published the final draft implementing technical standards for disclosures and reporting on the minimum requirements for own funds and eligible liabilities (MREL) and the total loss-absorbing capacity (TLAC) requirements in EU.

    August 03, 2020 WebPage Regulatory News
    News

    EBA Releases Erratum for Phase 2 Package on Reporting Framework 2.10

    EBA published an erratum for the phase 2 of technical package on the reporting framework 2.10.

    August 03, 2020 WebPage Regulatory News
    News

    EC Sets Out Updated Technical Information for Solvency II Calculations

    EC published the Implementing Regulation 2020/1145, which lays down technical information for calculation of technical provisions and basic own funds.

    August 03, 2020 WebPage Regulatory News
    News

    US Agencies Issue Statement on Additional COVID-19 Loan Accommodations

    FFIEC, on behalf of its members that include US Agencies such as CFPB, FDIC, FED, NCUA, and OCC, issued a joint statement that sets out prudent risk management and consumer protection principles for financial institutions to consider while working with borrowers.

    August 03, 2020 WebPage Regulatory News
    News

    PRA Consults on Implementation of Certain Provisions of CRD5

    PRA, via the consultation paper CP12/20, proposed changes to its rules, supervisory statements, and statements of policy to implement certain elements of the Capital Requirements Directive (CRD5).

    July 31, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 5625