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.
- 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
EBA published a report analyzing the impact of the unwind mechanism of the liquidity coverage ratio (LCR) for a sample of European banks over a three-year period, from the end of 2016 to the first quarter of 2020.
In response to questions from a member of the European Parliament, the ECB President Christine Lagarde issued a letter clarifying the possibility of amending the AnaCredit Regulation and making targeted longer-term refinancing operations (TLTROs) dependent on the climate-related impact of bank loans.
IASB started the post-implementation review of the classification and measurement requirements in IFRS 9 on financial instruments and added the review as a project to its work plan.
FSB published a report that examines progress in implementing policy measures to enhance the resolvability of systemically important financial institutions.
EBA published a report on the benchmarking of national loan enforcement frameworks across 27 EU member states, in response to the call for advice from EC.
FSB published a letter from its Chair Randal K. Quarles, along with two reports exploring various aspects of the market turmoil resulting from the COVID-19 event.
RBNZ launched a consultation on the details for implementing the final Capital Review decisions announced in December 2019.
The Trustees of the IFRS Foundation, which are responsible for the governance and oversight of IASB, have announced the appointment of Dr. Andreas Barckow as the IASB Chair, effective July 2021.
HKMA issued a letter to consult the banking industry on a full set of proposed draft amendments to the Banking (Capital) Rules for implementing the Basel standard on capital requirements for banks’ equity investments in funds in Hong Kong.
ESRB published an opinion assessing the decision of Swedish Financial Supervisory Authority (FSA) to extend the application period of a stricter measure for residential mortgage lending, in accordance with Article 458 of the Capital Requirements Regulation (CRR).