FIN-FSA Maintains CCyB at 0%, Launches Reporting System Reform
FIN-FSA decided to maintain the countercyclical capital buffer (CCyB) requirement for credit institutions at 0% and the maximum loan-to-collateral ratio at the statutory standard level of 90% for residential mortgage loans other than first-home loans. The FIN-FSA Board also decided not to extend validity of the risk-weight floor requirement for housing loans, which expires on January 01, 2021. The minimum risk-weight level of 15% was set in June 2017. However, at present, average risk-weights on residential mortgage loans of Finnish banks exceed the 15% limit, which is why it was decided not to extend the validity of the risk-weight floor. According to another announcement, FIN-FSA launched a reform of the reporting system for the financial standing and risks of supervised entities. The tendering phase for the reporting system is underway, with the system supplier expected to be selected during Spring 2021.
The reporting system reform will cover data collections for EBA, EIOPA, ESMA, and national (Virati) requirements. The data collections will be transferred gradually to the new reporting system during 2022–2023. A more detailed schedule will be known after the system vendor has been selected. In the new reporting system, reporters will have access to a "reporter portal," in which Finnish and foreign reporters will be authenticated and authorized via the suomi.fi service. The reporting obligations for each reporter will be visible in the "reporter portal." It will also be possible to submit reports to the FIN-FSA via an interface (A2A) provided for the reporter. Reporting feedback on a submitted report will be provided via both the "reporter portal" and the interface (A2A). In the new Reporting System, national reporting will continue to be in CSV format. In a separate statement on the use of testing environment for reporting, FIN-FSA notified that reporters may submit their reports to the testing environment, provided by FIN-FSA, for checking before submitting the official report to the FIN-FSA. It is possible for reporters to receive automatic feedback from the testing environment on format errors present in reports and on reporting that violates EBA and EIOPA filing rules. It is also possible to receive feedback from the testing environment about incorrect validations.
Related Links
- Press Release on Macro-Prudential Decisions
- Press Release on Reporting System Reform
- Press Release on Testing Environment for Reporting
Keywords: Europe, Finland, Banking, Insurance, Securities, Reporting, CCyB, Loan to Collateral Ratio, Systemic Risk, Regulatory Capital, Macro-Prudential Policy, Basel, FIN-FSA
Featured Experts
María Cañamero
Skilled market researcher; growth strategist; successful go-to-market campaign developer
Nicolas Degruson
Works with financial institutions, regulatory experts, business analysts, product managers, and software engineers to drive regulatory solutions across the globe.
Nick Jessop
Scenario modeling expert; risk management specialist; quantitative financial modeler
Related Articles
EU Agencies Update LCR Rule and Macro-Prudential Policy Recommendation
The European Commission (EC) published the Delegated Regulation 2022/786 with regard to the liquidity coverage requirements for credit institutions under the Capital Requirements Regulation (CRR).
EBA Publishes Regulatory Standards to Identify Shadow Banking Entities
The European Banking Authority (EBA) published the final draft regulatory technical standards specifying the criteria to identify shadow banking entities for the purposes of reporting large exposures.
OSFI Discusses Benchmark Rate Transition, Sets Out Work Priorities
The Office of the Superintendent of Financial Institutions (OSFI) published the strategic plan for 2022-2025 and the departmental plan for 2022-23.
EBA Proposes Standards to Support Secondary NPL Markets
The European Banking Authority (EBA) is consulting, until August 31, 2022, on the draft implementing technical standards specifying requirements for the information that sellers of non-performing loans (NPLs) shall provide to prospective buyers.
EU Confirms Agreement on Rules on Cybersecurity and Banking Resolution
The European Council and the Parliament reached an agreement on the revised Directive on security of network and information systems (NIS2 Directive).
EBA Issues Standards for Crowdfunding Service Providers Under ECSPR
The European Banking Authority (EBA) published the final draft regulatory technical standards specifying information that crowdfunding service providers shall provide to investors on the calculation of credit scores and prices of crowdfunding offers.
EU to Amend Credit Risk Adjustment Rules; ESAs Submit Queries on SFDR
The European Council published a draft Commission Delegated Regulation to amend the regulatory technical standards on specification of the calculation of specific and general credit risk adjustments.
EU Confirms Agreement on Rules on Cybersecurity and Banking Resolution
The European Securities and Markets Authority (ESMA) published a paper that examines the systemic risk posed by increasing use of cloud services, along with the potential policy options to mitigate this risk.
MAS Amends Notice 635 and Issues Second Proposal on Green Taxonomy
The Monetary Authority of Singapore (MAS) published amendments to Notice 635, which sets out requirements that a bank in Singapore has to comply with when granting an unsecured non-card credit facility to individuals.
EC Consults on PSD2 and Open Finance; EU Reaches Agreement on DORA
The European Commission (EC) published a public consultation on the review of revised payment services directive (PSD2) and open finance.
