SNB updated forms (LER_K Version 1.1 and LER_U Version 1.1) and the related documentation for large exposure reporting on group and parent company basis. The forms are in accordance with the large exposure rules and FINMA Circular 19/1 "Risk diversification – banks."
The changes cover quarterly or semi-annual reporting of large exposures of positions listed in the Capital Adequacy Ordinance (CAO) Article 100 Paragraph 4 and CAO Article 102. When completing the forms, banks can disregard intragroup positions with total exposure (column AE of form LER_[U/K]02) of less than 2% of their capital base (as defined for large exposures purposes). As per the updates, lower limit of 2% applies only to the intra-group positions rather than to all counterparties with total exposure of less than 2% of their capital base for calculation of the limit to large exposures (as stated in Version 1.0). The reporting frequency for LER_U is quarterly, with the form being valid from March 31, 2019. The reporting frequency for LER_K is semi-annual, with the date of validity being June 30, 2019. Data are collected by SNB in cooperation with the Swiss Financial Market Supervisory Authority FINMA.
Keywords: Europe, Switzerland, Banking, Reporting, Basel III, Large Exposures, SNB
Previous ArticleIMF Publishes Reports on the 2018 Article IV Consultation with Chile
EU published Directive 2021/338, which amends the Markets in Financial Instruments Directive (MiFID) II and the Capital Requirements Directives (CRD 4 and 5) to facilitate recovery from the COVID-19 crisis.
The Standing Committee of the European Free Trade Association (EFTA) recommended that a systemic risk buffer level of 4.5% for domestic exposures can be considered appropriate for addressing the identified systemic risks to the stability of the financial system in Norway.
In a recent statement, PRA clarified its approach to the application of certain EU regulatory technical standards and EBA guidelines on standardized and internal ratings-based approaches to credit risk, following the end of the Brexit transition.
In a recently published letter addressed to the G20 finance ministers and central bank governors, the FSB Chair Randal K. Quarles has set out the key FSB priorities for 2021.
EU published, in the Official Journal of the European Union, a corrigendum to the revised Capital Requirements Regulation (CRR2 or Regulation 2019/876).
ESAs published a joint supervisory statement on the effective and consistent application and on national supervision of the regulation on sustainability-related disclosures in the financial services sector (SFDR).
EC published a public consultation on the review of crisis management and deposit insurance frameworks in EU.
HKMA announced that enhancements will be made to the Special 100% Loan Guarantee of the SME Financing Guarantee Scheme (SFGS) and the application period will be extended to December 31, 2021.
EBA launched consultations on the regulatory and implementing technical standards on cooperation and information exchange between competent authorities involved in prudential supervision of investment firms.
BoE issued a letter to the CEOs of eight major UK banks that are in scope of the first Resolvability Assessment Framework (RAF) reporting and disclosure cycle.