DFSA Proposes Orders on Designation of SIFIs and Impaired Liabilities
The Danish Financial Supervisory Authority (DFSA) issued a proposal for an executive order on the calculation of indicators and factors for the designation of systemically important financial institutions or SIFIs. The executive order is proposed to be revised to reflect the new rules for the designation of systemically important financial institutions. Two significant changes are being proposed compared to the previous set of rules, as part of which the definition and method for calculating certain indicators are being added and deleted. The executive order is expected to enter into force on January 01, 2022. DFSA has requested comments on the draft until October 26, 2021.
Additionally, DFSA issued a draft executive order on requirements for write-down liabilities, which lays down more detailed rules for the calculation of the requirement for impaired liabilities. The requirement for impaired liabilities is intended to ensure that a company has sufficient liabilities for loss absorption and recapitalization if the company becomes distressed or expected to be distressed and has to be wound up or restructured. The executive order is expected to enter into force on January 01, 2022. The consultation was open for comments until October 18, 2021.
Related Links (in Danish)
- Proposed Order on Systemic Entity Designation
- Draft Order on Requirements for Write-Down Liabilities
Comment Due Date: October 26, 2021/October 18, 2021
Effective Date: January 01, 2022
Keywords: Europe, EU, Banking, CRD, CRR, AML, Regulatory Capital, Governance, Basel, Bank Licenses, EBA
Featured Experts
María Cañamero
Skilled market researcher; growth strategist; successful go-to-market campaign developer
Nicolas Degruson
Works with financial institutions, regulatory experts, business analysts, product managers, and software engineers to drive regulatory solutions across the globe.
Nick Jessop
Scenario modeling expert; risk management specialist; quantitative financial modeler
Previous Article
FSB Report Assesses Implementation of Recommendations on StablecoinsRelated Articles
BIS and Central Banks Experiment with GenAI to Assess Climate Risks
A recent report from the Bank for International Settlements (BIS) Innovation Hub details Project Gaia, a collaboration between the BIS Innovation Hub Eurosystem Center and certain central banks in Europe
Nearly 25% G-SIBs Commit to Adopting TNFD Nature-Related Disclosures
Nature-related risks are increasing in severity and frequency, affecting businesses, capital providers, financial systems, and economies.
Singapore to Mandate Climate Disclosures from FY2025
Singapore recently took a significant step toward turning climate ambition into action, with the introduction of mandatory climate-related disclosures for listed and large non-listed companies
SEC Finalizes Climate-Related Disclosures Rule
The U.S. Securities and Exchange Commission (SEC) has finalized the long-awaited rule that mandates climate-related disclosures for domestic and foreign publicly listed companies in the U.S.
EBA Proposes Standards Related to Standardized Credit Risk Approach
The European Banking Authority (EBA) has been taking significant steps toward implementing the Basel III framework and strengthening the regulatory framework for credit institutions in the EU
US Regulators Release Stress Test Scenarios for Banks
The U.S. regulators recently released baseline and severely adverse scenarios, along with other details, for stress testing the banks in 2024. The relevant U.S. banking regulators are the Federal Reserve Bank (FED), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC).
Asian Governments Aim for Interoperability in AI Governance Frameworks
The regulatory landscape for artificial intelligence (AI), including the generative kind, is evolving rapidly, with governments and regulators aiming to address the challenges and opportunities presented by this transformative technology.
EBA Proposes Operational Risk Standards Under Final Basel III Package
The European Union (EU) has been working on the final elements of Basel III standards, with endorsement of the Banking Package and the publication of the European Banking Authority (EBA) roadmap on Basel III implementation in December 2023.
EFRAG Proposes XBRL Taxonomy and Standard for Listed SMEs Under ESRS
The European Financial Reporting Advisory Group (EFRAG), which plays a crucial role in shaping corporate reporting standards in European Union (EU), is seeking comments, until May 21, 2024, on the Exposure Draft ESRS for listed SMEs.
ECB to Expand Climate Change Work in 2024-2025
Banking regulators worldwide are increasingly focusing on addressing, monitoring, and supervising the institutions' exposure to climate and environmental risks.
