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
HKMA Finalizes Policy Modules on Group-Wide Approach and Remuneration
The Hong Kong Monetary Authority (HKMA) revised the Supervisory Policy Manual module CG-5 that sets out guidelines on a sound remuneration system for authorized institutions.
EBA Guide to Monitor Threshold for Intermediate Parent Undertakings
The European Banking Authority (EBA) published the final guidelines on the monitoring of the threshold and other procedural aspects on the establishment of intermediate parent undertakings in European Union (EU), as laid down in the Capital Requirements Directive (CRD).
PRA Finalizes Approach to Supervision of International Banks
In a recent Market Notice, the Bank of England (BoE) confirmed that green gilts will have equivalent eligibility to existing gilts in its market operations.
FCA Issues PS21/9 on Implementation of Investment Firms Regime
The Financial Conduct Authority (FCA) published the policy statement PS21/9 on implementation of the Investment Firms Prudential Regime.
EBA Proposes Regulatory Standards to Identify Shadow Banking Entities
The European Banking Authority (EBA) proposed regulatory technical standards that set out criteria for identifying shadow banking entities for the purpose of reporting large exposures.
IOSCO Proposes Recommendations on ESG Ratings and Data Providers
The Board of the International Organization of Securities Commissions (IOSCO) proposed a set of recommendations on the environmental, social, and governance (ESG) ratings and data providers.
ESMA Group Issues Recommendations on RFR Switch in Interdealer Market
The European Securities and Markets Authority (ESMA) published recommendations from the Working Group on Euro Risk-Free Rates (RFR) on the switch to risk-free rates in the interdealer market.
ECB Study Assesses Impact of Basel III Finalization Package
The European Central Bank (ECB) published a paper as well as an article in the July Macroprudential Bulletin, both of which offer insights on the assessment of the impact of Basel III finalization package on the euro area.
ISDA Finds FRTB Results in Higher Capital Charges for Carbon Trading
The International Swaps and Derivatives Association (ISDA) published a paper that explores the impact of the Fundamental Review of the Trading Book (FRTB) on the trading of carbon certificates.
PRA Updates Remuneration Policy Statement Templates and Tables
The Prudential Regulation Authority (PRA) published the remuneration policy self-assessment templates and tables on strengthening accountability.
