ECB finalized the guide to on-site inspections and internal model investigations, following a public consultation. The guide, which was drafted in close cooperation with the national competent authorities, explains how ECB Banking Supervision conducts inspections and provides a useful document for banks subject to such inspections. ECB also published the comments received to the consultation on this guide, along with the feedback statement on these comments.
The guide provides an overview of the general framework under which inspections are conducted, describes the different inspection phases, and sets out the principles for inspections to be followed by both banks and inspection teams. Inspections are a critical tool for banking supervision worldwide. Banks are inspected to provide an in-depth analysis of different risks, internal control systems, business models, or governance. Inspections have a predefined scope and timeframe and take place on the premises of the inspected bank or a related legal entity. Inspections should be intrusive while adhering to the principle of proportionality and aim to provide a detailed snapshot of the situation of a given bank, including a forward-looking analysis.
Keywords: Europe, EU, Banking, On-Site Inspections, Internal Model Investigations, Guide, ECB
Previous ArticleFASB Proposes Taxonomy Improvements for ASU on Credit Losses
EBA issued a revised list of validation rules with respect to the implementing technical standards on supervisory reporting.
EBA published its response to the call for advice of EC on ways to strengthen the EU legal framework on anti-money laundering and countering the financing of terrorism (AML/CFT).
NGFS published a paper on the overview of environmental risk analysis by financial institutions and an occasional paper on the case studies on environmental risk analysis methodologies.
MAS published the guidelines on individual accountability and conduct at financial institutions.
APRA published final versions of the prudential standard APS 220 on credit quality and the reporting standard ARS 923.2 on repayment deferrals.
SRB published two articles, with one article discussing the framework in place to safeguard financial stability amid crisis and the other article outlining the path to a harmonized and predictable liquidation regime.
FSB hosted a virtual workshop as part of the consultation process for its evaluation of the too-big-to-fail reforms.
ECB updated the list of supervised entities in EU, with the number of significant supervised entities being 115.
OSFI published the key findings of a study on third-party risk management.
FSB is extending the implementation timeline, by one year, for the minimum haircut standards for non-centrally cleared securities financing transactions or SFTs.