EC published the Commission Implementing Regulation (EU) 2018/688 that amends the Implementing Regulation (EU) 2016/2070 on benchmarking portfolios, reporting templates, and reporting instructions. This Regulation shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union.
Regulation (EU) 2016/2070 specifies the information that institutions must report to EBA and to competent authorities to enable the assessments of internal approaches for calculating own funds requirements (benchmarking exercise) in accordance with Article 78 of the Capital Requirements Directive (CRD) IV. Considering that the benchmarking exercise is of at least annual duration and that the focus of the competent authorities' assessments and of EBA's reports may change over time, exposures or positions that are included in the benchmarking portfolios, and therefore also reporting requirements, need to be regularly adapted accordingly. Therefore, it is appropriate to amend Annexes I to VI to Implementing Regulation (EU) 2016/2070. Regulation (EU) 2016/2070 has been amended as follows:
- Article 7(3) is replaced by the following: “3. By way of derogation from Article 2 and until May 31, 2018, institutions shall not be required to report column 180 of templates 102 and 103 of Annex III where they do not compute the own funds requirements for credit risk resulting from the application of the standardized approach.”
- Annex I has been replaced by the text set out in Annex I to this Regulation
- Annex II has been replaced by the text set out in Annex II to this Regulation
- Annex III has been replaced by the text set out in Annex III to this Regulation
- Annex IV has been replaced by the text set out in Annex IV to this Regulation
- Annex V has been replaced by the text set out in Annex V to this Regulation
- Annex VI has been replaced by the text set out in Annex VI to this Regulation
Institutions should be given sufficient time from the entry into force of this Regulation to report results of the benchmarking exercise to the competent authorities. Consequently, the deadline set out in Article 4(2) of Regulation (EU) 2016/2070 should not apply with respect to the reporting in 2018. This regulation is based on the draft implementing technical standards submitted by EBA to EC.
Related Link: Regulation (EU) 2018/688
Effective Date: June 07, 2018
Keywords: Europe, EU, Banking, Regulation 2018/688, CRD IV, Benchmarking Portfolios, Reporting, EC
Next ArticleEBA Single Rulebook Q&A: First Update for May 2018
APRA updated the lists of the Direct to APRA (D2A) validation and derivation rules for authorized deposit-taking institutions, insurers, and superannuation entities.
EC adopted a package that includes the digital finance and retail payments strategies and the legislative proposals for regulatory frameworks on crypto-assets and digital operational resilience.
ECB published an opinion (CON/2020/22) on proposals for regulations amending the securitization framework of EU, in response to the COVID-19 pandemic.
FCA is consulting on its approach to the authorization and supervision of international firms operating in UK.
MAS published amendments to Notice 637 on the risk-based capital adequacy requirements for reporting banks incorporated in Singapore.
FCA announced that it will move firms to RegData from Gabriel in the coming months in stages, based on the reporting requirements of firms.
ISDA issued a letter to regulators to flag that it now expects the supplement to the 2006 ISDA Definitions and the Interbank Offered Rate (IBOR) Fallbacks Protocol to be effective around mid- to late-January 2021.
APRA has concluded its review of the comprehensive plans of authorized deposit-taking institutions for the assessment and management of loans with repayment deferrals.
ESAs (EBA, EIOPA, and ESMA) published the first joint report that assesses risks in the financial sector since the outbreak of the COVID-19 pandemic.
BoE and HM Treasury confirmed that the COVID Corporate Financing Facility (CCFF) will close for new purchases of commercial paper, with effect from March 23, 2021.