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
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