German Regulators Issue Several Updates for Financial Sector Entities
Deutsche Bundesbank published a reporting update for banks while the Federal Financial Supervisory Authority of Germany (BaFin) published a question and answer (Q&A) document on the Sustainable Finance Disclosure Regulation or SFDR (EU 2019/2088). In addition, BaFin published a circular on the minimum resolvability requirements for resolution planning as well as a draft order on the reciprocity of the macro-prudential policy measure of Netherlands.
- As part of the reporting update for banks, Bundesbank published the XBRL taxonomy 3.2, pursuant to the EBA implementing technical standards on supervisory reporting. The taxonomy version 3.2 contains forms with the German header information.
- The circular on resolution planning defines the minimum requirements that institutions or group companies must meet to be considered resolvable with regard to the categories pursuant to Article 26 (3) of Regulation (EU) 2016/1075 on recovery and resolution planning. The minimum requirements for improving the resolvability of companies are structured according to seven dimensions, which are governance, loss-absorbing and recapitalization capacity, liquidity and funding, operational continuity and access to financial market infrastructure services, information systems and data requirements, communication, and separability and restructuring. The concerned institutions must implement the minimum requirements by January 01, 2024.
- BaFin published a draft order to recognize and apply a Dutch residential property-related measure. The measure provides for a minimum average risk-weight to be adhered to by institutions using the internal ratings based (IRB) approach in relation to their portfolios of exposures to natural persons secured by residential property located in the Netherlands. The order is intended to implement a recommendation, by the European Systemic Risk Board (ESRB), on the assessment of cross-border effects of and voluntary reciprocity for macro-prudential policy measures. BaFin is requesting comments on the draft order by September 12, 2022.
Related Links (in German)
- BaFin Press Release on Q&A on SFDR
- BaFin Q&A on SFDR
- BaFin Press Release on Minimum Resolvability Requirements
- BaFin Circular on Minimum Resolvability Requirements
- BaFin Press Release on Macro-prudential Measure
- BaFin Draft Order on Macro-Prudential Measure
- Bundesbank on XBRL Taxonomy 3.2
Keywords: Europe, Germany, Netherlands, Banking, SFDR, Sustainable Finance, ESG, Disclosures, Q A, Reporting, Resolution Planning, Resolution Framework, Resolvability, Recovery and Resolution, XBRL, Reporting Framework 3 2, Taxonomy, IRB Approach, Macro Prudential Measures, Bundesbank, ESRB, EBA, BaFin
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