BaFin Consults on Revision to Minimum Requirements for Risk Management
BaFin published a consultation (14/2020) that sets out amendments to the minimum requirements for risk management (MaRisk). Comments are requested until December 04, 2020. The amendments to the minimum requirements for risk management implement the EBA guidelines on management of non-performing and forborne exposures (EBA/GL/2018/06), outsourcing (EBA/GL/2019/02), and information and communication technology (ICT) and security risk management (EBA/GL/2019/04). In addition, BaFin is consulting on amendments to the circular on banking supervisory requirements for IT (BAIT). The amendments adopt the EBA guidelines on ICT and security risk management. BaFin and Bundesbank are accepting feedback until November 23, 2020.
The guidelines on management of non-performing and forborne exposures require adjustments to the minimum requirements for risk management, particularly in sections related to strategy for risk management and requirements for the process in lending business. With respect to the EBA guidelines on outsourcing, requirements for risk analysis, design of the outsourcing agreement, and controlling and monitoring the risks of outsourcing agreements have been incorporated or specified. The section on emergency management has been revised in relation to guidelines on ICT and security risk management. The effectiveness and appropriateness of the emergency plan must be checked regularly. In addition, further changes are being made to the minimum requirements for risk management where they appear necessary due to supervisory practice. Updates are made, for example, in the areas of operational risks, trading transactions, liquidity, and risk-bearing capacity.
Related Links (in German)
- Press Release on MaRisk
- Press Release on BAIT
- Consultation on MaRisk (PDF)
- Consultation on BAIT (PDF)
- Overview of Consultation on MaRisk
- Overview of Consultation on BAIT
Comment Due Date: December 04, 2020/November 23, 2020
Keywords: Europe, Germany, Banking, Outsourcing, NPL, NPE, ICT Risk, Credit Risk, EBA, BaFin
Previous Article
FASB Consults on XBRL US DQC Rules Taxonomy and Technical GuidesRelated Articles
EBA Updates Filing Rules for Supervisory Reporting
The European Banking Authority (EBA) published version 5.1 of the filing rules for supervisory reporting.
ECB Amends Guideline on Procedures for Collection of AnaCredit Data
The European Central Bank (ECB) Guideline 2021/1829 on the procedures for the collection of granular credit and credit risk data has been published in the Official Journal of European Union.
ECB Amends Guideline on Procedures for Collection of AnaCredit Data
The European Central Bank (ECB) Guideline 2021/1829 on the procedures for the collection of granular credit and credit risk data has been published in the Official Journal of European Union.
EBA Publishes Standards on Disclosure of Investment Policy Under IFR
The European Banking Authority (EBA) published the final draft regulatory technical standards on disclosure of investment policy by investment firms, under the Investment Firms Regulation (IFR).
APRA Finalizes Guidance for New Prudential Standard on Remuneration
The Australian Prudential Regulation Authority (APRA) published the prudential practice guide CPG 511 to assist banks, insurers, and superannuation licensees in meeting requirements of CPS 511, the new prudential standard on remuneration.
OCC Updated LIBOR Self-Assessment Tool for Banks
The Office of the Comptroller of the Currency (OCC) published a bulletin that provides an updated self-assessment tool for banks to evaluate their preparedness for cessation of the London Interbank Offered Rate (LIBOR).
TCFD Updates Guidance for Financial Disclosures on Climate Risk
The Financial Stability Board (FSB) published a report that examines the progress made toward disclosures aligned with recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).
BCBS Report Examines Progress on Adoption of Basel III Framework
The Basel Committee on Banking Supervision (BCBS) published the progress report on adoption of the Basel III regulatory framework in member jurisdictions.
ACPR Implements Updates Related to DPM Version 3.1
The French Prudential Supervisory Authority (ACPR) has implemented, in its information system, updates linked to the Data Point Model (DPM) version 3.1.
EBA Note Examines Transition Risks of Benchmark Rates
The European Banking Authority (EBA) published a thematic note that aims to identify and raise awareness of the transition risks of benchmark rates, as the London Interbank Offered Rate (LIBOR) and the Euro Overnight Index Average (EONIA) are close to being phased out.
