Featured Product

    German Regulators Publish Updates for Financial Sector Entities

    April 01, 2022

    German regulatory authorities launched the 2022 stress test for less significant institutions, published a supporting document on AnaCredit reporting, issued general decrees on systemic risk buffer and interest rate risks in the banking book (IRRBB), and announced discontinuation of COVID-relief measures.

    Below are the key details of the recent updates:

    • The Deutsche Bundesbank and the Federal Financial Supervisory Authority of Germany (BaFin) announced launch of their fifth stress test to assess the earnings situation and resilience of less significant institutions. As with the previous stress tests for less significant institutions, the results are to be used to determine the supervisory capital adequacy recommendation. The design of the stress test for 2022 is similar to that of the stress test for 2019, with the far-reaching consideration of proportionality being a key difference. If institutions do not exceed supervisory thresholds in individual risk categories, they do not have to fill out the questionnaire in full. This will relieve the institutions that are classified as small and non-complex institutions. Banks must submit the data collected in the stress test to the regulator by the end of May 2022. Bundesbank and BaFin are expected to publish the results at the end of September 2022.
    • Bundesbank published a document specifying the method for identifying institutions with reduced reporting requirements under the AnaCredit regulation.
    • BaFin published a general decree introducing a sectoral systemic risk buffer of 2.0% for risk-weighted assets on loans secured by residential real estate as of April 01, 2022. Banks have until February 01, 2023 to meet the buffer requirement.
    • BaFin issued a general decree revoking the earlier 2016 decree on capital requirements for IRRBB. The 2016 general decree is no longer necessary, as BaFin has now defined an individual assessment and capital requirement for all institutions under its Supervisory Review and Evaluation Process.
    • BaFin announced that it will end most of its COVID relief measures on June 30, 2022. In March 2020, BaFin had decided to use the flexibility of the existing regulations to temporarily adapt some of its requirements to the special circumstances of the pandemic. However, an examination by BaFin has shown that most of the relief measures are no longer required, as the effects of the COVID-19 crisis on the supervised companies and financial stability can now be managed. However, some of the relief measures will continue for the time. These are related to government subsidy programs, supervisory requirements for trading from home, exceptions to on-site audits permitted under certain circumstances, and amended rules on trades for investment funds.


    Related Links (in German)


    Keywords: Europe, Germany, Banking, Stress Testing, Less Significant Institutions, AnaCredit, Reporting, Systemic Risk, Systemic Risk Buffer, Regulatory Capital, Basel, IRRBB, Covid-19, SREP, Bundesbank, BaFin

    Featured Experts
    Related Articles

    US Agencies Issue Several Regulatory and Reporting Updates

    The Board of Governors of the Federal Reserve System (FED) adopted the final rule on Adjustable Interest Rate (LIBOR) Act.

    January 04, 2023 WebPage Regulatory News

    ECB Issues Multiple Reports and Regulatory Updates for Banks

    The European Central Bank (ECB) published an updated list of supervised entities, a report on the supervision of less significant institutions (LSIs), a statement on macro-prudential policy.

    January 01, 2023 WebPage Regulatory News

    HKMA Keeps List of D-SIBs Unchanged, Makes Other Announcements

    The Hong Kong Monetary Authority (HKMA) published a circular on the prudential treatment of crypto-asset exposures, an update on the status of transition to new interest rate benchmarks.

    December 30, 2022 WebPage Regulatory News

    EU Issues FAQs on Taxonomy Regulation, Rules Under CRD, FICOD and SFDR

    The European Commission (EC) adopted the standards addressing supervisory reporting of risk concentrations and intra-group transactions, benchmarking of internal approaches, and authorization of credit institutions.

    December 29, 2022 WebPage Regulatory News

    CBIRC Revises Measures on Corporate Governance Supervision

    The China Banking and Insurance Regulatory Commission (CBIRC) issued rules to manage the risk of off-balance sheet business of commercial banks and rules on corporate governance of financial institutions.

    December 29, 2022 WebPage Regulatory News

    HKMA Publications Address Sustainability Issues in Financial Sector

    The Hong Kong Monetary Authority (HKMA) made announcements to address sustainability issues in the financial sector.

    December 23, 2022 WebPage Regulatory News

    EBA Updates Address Basel and NPL Requirements for Banks

    The European Banking Authority (EBA) published regulatory standards on identification of a group of connected clients (GCC) as well as updated the lists of identified financial conglomerates.

    December 22, 2022 WebPage Regulatory News

    ESMA Publishes 2022 ESEF XBRL Taxonomy and Conformance Suite

    The General Board of the European Systemic Risk Board (ESRB), at its December meeting, issued an updated risk assessment via the quarterly risk dashboard and held discussions on key policy priorities to address the systemic risks in the European Union.

    December 22, 2022 WebPage Regulatory News

    FCA Sets up ESG Committee, Imposes Penalties, and Issues Other Updates

    The Financial Conduct Authority (FCA) is seeking comments, until December 21, 2022, on the draft guidance for firms to support existing mortgage borrowers.

    December 20, 2022 WebPage Regulatory News

    FSB Reports Assess NBFI Sector and Progress on LIBOR Transition

    The Financial Stability Board (FSB) published a report that assesses progress on the transition from the Interbank Offered Rates, or IBORs, to overnight risk-free rates as well as a report that assesses global trends in the non-bank financial intermediation (NBFI) sector.

    December 20, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8697