Featured Product

    DFSA Consults on Guidelines on Capital Adequacy and Liquidity Risk

    November 09, 2021

    The Danish Financial Supervisory Authority (DFSA) proposed to amend guidelines on capital adequacy and solvency requirements for credit institutions, with the consultation period ending on November 09, 2021. The proposed changes relate to the credit and market risk sections. DFSA also proposed to amend guidelines on liquidity risk management for banks and "mortgage-credit institutes," with the consultation ending on November 12, 2021. In another update, the Central Bank of Denmark (Danmarks Nationalbank) announced that it will start publishing the Denmark Short-Term Rate (DESTR) on April 04, 2022. The first publication will reflect trading activity on April 01, 2022 and thus the DESTR will be available for use in financial contracts with effect from April 01, 2022.

    The Central Bank of Denmark also published methodology and policies for DESTR. Furthermore, the Central Bank of Denmark will publish a compounded DESTR index beginning on April 04, 2022. The index will ensure the possibility of calculating compounded average rates for all periods. A similar index is published by other central banks as well. In January 2021, the Central Bank of Denmark established a working group on short-term reference rate with participation from the Danish financial sector. The working group has recommended DESTR as the preferred short-term reference rate in Danish kroner and proposed a transition away from the Tom/Next rate to DESTR. The Central Bank of Denmark supports the working group's recommendation on the transition from Tom/Next rate to DESTR as well as the cessation of the Tom/Next rate and will assist in calculating the realized spread between the Tom/Next rate and pre-DESTR.

     

    Related Links (in Danish)

    Comment Due Date: November 09, 2021 (Capital Adequacy)/November 12, 2021 (Liquidity Risk)

    Keywords: Europe, Denmark, Banking, Regulatory Capital, Liquidity Risk, DESTR, Benchmark Reforms, Basel, Market Risk, Credit Risk, DFSA, Central Bank of Denmark

    Featured Experts
    Related Articles
    News

    OSFI Discusses Benchmark Rate Transition, Sets Out Work Priorities

    The Office of the Superintendent of Financial Institutions (OSFI) published the strategic plan for 2022-2025 and the departmental plan for 2022-23.

    May 17, 2022 WebPage Regulatory News
    News

    EBA Proposes Standards to Support Secondary NPL Markets

    The European Banking Authority (EBA) is consulting, until August 31, 2022, on the draft implementing technical standards specifying requirements for the information that sellers of non-performing loans (NPLs) shall provide to prospective buyers.

    May 17, 2022 WebPage Regulatory News
    News

    EU Confirms Agreement on Rules on Cybersecurity and Banking Resolution

    The European Council and the Parliament reached an agreement on the revised Directive on security of network and information systems (NIS2 Directive).

    May 13, 2022 WebPage Regulatory News
    News

    EBA Issues Standards for Crowdfunding Service Providers Under ECSPR

    The European Banking Authority (EBA) published the final draft regulatory technical standards specifying information that crowdfunding service providers shall provide to investors on the calculation of credit scores and prices of crowdfunding offers.

    May 13, 2022 WebPage Regulatory News
    News

    EU Confirms Agreement on Rules on Cybersecurity and Banking Resolution

    The European Securities and Markets Authority (ESMA) published a paper that examines the systemic risk posed by increasing use of cloud services, along with the potential policy options to mitigate this risk.

    May 12, 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

    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

    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

    SNB Updates NSFR Forms and FINMA Consults on Operational Risk Circular

    The Swiss National Bank (SNB) published Version 1.2 of the reporting forms (NSFR_G and NSFR_P) on the net stable funding ratio (NSFR) of banks, along with the associated documentation.

    May 10, 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
    RESULTS 1 - 10 OF 8191