CSSF published a Law dated May 20, 2021 that transposes the fifth Capital Requirements Directive (CRD5) and the second Bank Recovery and Resolution Directive (BRRD2) as well as implements the revised Capital Requirements Regulation (CRR2). It also amends the Law dated December 18, 2015 on resolution, reorganization, and liquidation measures for credit institutions and certain investment firms as well as deposit guarantee and investor compensation systems. In addition, CSSF published Circular 21/772, which amends Circular 18/703, on the introduction of a semi-annual reporting of borrower-related residential real estate indicators. Circular 21/772 also updates the data collection template and becomes applicable as of its publication date.
The objective of the circular is to introduce a macro-prudential risk monitoring framework for the residential real estate sector in Luxembourg, based on a recommendation by ESRB. The report aims to collect indicators on lending standards in the residential real estate market. The circular introduces definitions of these indicators that are collected via a dedicated template. The scope of the data collection refers to loans taken to purchase residential real estate in Luxembourg and loans that are secured by real estate collateral located in Luxembourg. This circular specifies the residential real estate data that will be collected through a dedicated residential real estate data template. The data will be collected by the CSSF semi-annually in the months of April and October each year. The reference date for the data collection will be the December 31 and June 30 respectively. Lenders that are active in the residential real estate sector are expected to be able to produce the requested data at a semi-annual frequency.
Effective Date: May 10, 2021 (Circular 21/772)
Keywords: Europe, Luxembourg, Banking, Reporting, CRR2, CRD5, BRRD2, Basel, Investment Firms, Residential Real Estate, Data Collection, Credit Risk, CSSF
The European Banking Authority (EBA) published four draft principles to support supervisory efforts in assessing the representativeness of COVID-19-impacted data for banks using the internal ratings based (IRB) credit risk models.
The Bank for International Settlements (BIS) Innovation Hub updated its work program, announcing a set of projects across various centers.
Certain members of the U.S. Senate Committee on Banking, Housing, and Urban Affairs issued a letter to the Securities and Exchange Commission (SEC)
The European Insurance and Occupational Pensions Authority (EIOPA) published a consultation paper on the advice on the review of the securitization prudential framework in Solvency II.
The Prudential Regulation Authority (PRA) issued a statement on PRA buffer adjustment while the Bank of England (BoE) published a notice on the statistical reporting requirements for banks.
The Federal Financial Supervisory Authority of Germany (BaFin) proposed to amend the “Capital Investment Conduct And Organization Ordinance” and issued a draft circular on the minimum resolvability requirements for resolution planning.
The European Banking Authority (EBA) proposed guidelines, for the resolution authorities, on the publication of the write-down and conversion and bail-in exchange mechanic, with the comment period ending on September 07, 2022.
The Financial Services Authority of Indonesia (OJK) is strengthening cooperation with the Australian Prudential Regulation Authority (APRA) and the Japanese Financial Services Agency (JFSA)
The European Parliament and the Council published Regulation 2022/868 on European data governance (Data Governance Act).
The European Banking Authority (EBA) published phase 2 of its reporting framework 3.2. The technical package supports the implementation of the updated reporting framework by providing standard specifications