BaFin published a general order to lower the countercyclical capital buffer (CCyB) from 0.25% to 0% as of April 01, 2020. This reduction aims to strengthen the resilience of the banking system in the light of COVID-19. A possible increase in the domestic countercyclical capital buffer is likely not expected before January 01, 2021. In line with the ECB decision on dividends, BaFin has also stated that banks should not distribute dividends and profits. BaFin Executive Director Raimund Röseler said, "We expect that the institutions that are under our direct supervision (Less Significant Institutions) will not pay any dividends or distribute profits until at least October 2020." Additionally, BaFin updated its frequently asked questions on banking and securities supervision in response to COVID-19.
Related Links (in German)
Keywords: Europe, Germany, Banking, Securities, COVID-19, CCyB, FAQs, Dividend Distribution, Less Significant Institutions, Regulatory Capital, BaFin
Previous ArticleHKMA Announces Liquidity Measures in Response to COVID-19 Outbreak
The European Banking Authority (EBA) launched the 2023 European Union (EU)-wide stress test, published annual reports on minimum requirement for own funds and eligible liabilities (MREL) and high earners with data as of December 2021.
The European Banking Authority (EBA) proposed implementing technical standards on the interest rate risk in the banking book (IRRBB) reporting requirements, with the comment period ending on May 02, 2023.
The U.S. Federal Reserve Board (FED) set out details of the pilot climate scenario analysis exercise to be conducted among the six largest U.S. bank holding companies.
The Board of Governors of the Federal Reserve System (FED) adopted the final rule on Adjustable Interest Rate (LIBOR) Act.
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.
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.
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.
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.
The Hong Kong Monetary Authority (HKMA) made announcements to address sustainability issues in the financial sector.
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.