Featured Product

    ECB Agrees to Capital Buffer Changes Notified by National Authorities

    April 15, 2020

    ECB supports the measures taken by euro area macro-prudential authorities to address the impact of COVID-19 outbreak on the financial sector. ECB has assessed the notifications submitted by national macro-prudential authorities for each proposed measure provided for in the Capital Requirements Regulation and Directive and has issued a non-objection decision endorsing these measures. The measures include releases or reductions of the countercyclical capital buffer, systemic risk buffer, and buffers for other systemically important institutions. In addition, some authorities have postponed or revoked earlier announced measures to avoid placing pressure on banks to accumulate capital buffers in a downturn.

    The measures announced by national macro-prudential authorities since March 11, 2020 will free up more than EUR 20 billion of Common Equity Tier 1 capital held by euro area banks. These macro-prudential actions complement and reinforce the measures announced by ECB Banking Supervision since March 12, 2020. The following are the key developments in this area:

    • Among the seven euro area countries with positive rates, authorities in France, Ireland, and Lithuania reduced the countercyclical capital buffer to 0% and those in Belgium and Germany revoked the previously announced countercyclical capital buffer activations. In turn, euro area banks have seen their requirements reduced by the countercyclical capital buffer reductions in Denmark, Hong Kong, Iceland, Norway, Sweden, and UK.
    • The authorities in Estonia and Finland dropped the systemic risk buffer to 0% while the authority in the Netherlands reduced the existing 3% systemic risk buffer for three institutions.
    • In combination with the reductions in the systemic risk buffer, Finland and the Netherlands also decided to lower the other systemically important institution buffer for one bank each. For the institutions in Finland this ensures that the combined structural buffers are effectively reduced by 1% of risk-weighted assets.
    • Cyprus announced that it will delay the phase-in of other systemically important institution buffers by one year, while the Netherlands postponed the introduction of capital surcharges on domestic mortgage loan exposures under Article 458 of the Capital Requirements Regulation.

    Related Links

    Keywords: Europe, EU, Banking, COVID-19, CCyB, SRB, O-SII, CRR/CRD, Systemic Risk, Basel III, Regulatory Capital, ECB

    Featured Experts
    Related Articles

    FINMA Approves Merger of Credit Suisse and UBS

    The Swiss Financial Market Supervisory Authority (FINMA) has approved the takeover of Credit Suisse by UBS.

    March 21, 2023 WebPage Regulatory News

    BOE Sets Out Its Thinking on Regulatory Capital and Climate Risks

    The Bank of England (BOE) published a working paper that aims to understand the climate-related disclosures of UK financial institutions.

    March 13, 2023 WebPage Regulatory News

    OSFI Finalizes on Climate Risk Guideline, Issues Other Updates

    The Office of the Superintendent of Financial Institutions (OSFI) is seeking comments, until May 31, 2023, on the draft guideline on culture and behavior risk, with final guideline expected by the end of 2023.

    March 12, 2023 WebPage Regulatory News

    APRA Assesses Macro-Prudential Policy Settings, Issues Other Updates

    The Australian Prudential Regulation Authority (APRA) published an information paper that assesses its macro-prudential policy settings aimed at promoting stability at a systemic level.

    March 07, 2023 WebPage Regulatory News

    BIS Paper Examines Impact of Greenhouse Gas Emissions on Lending

    BIS issued a paper that investigates the effect of the greenhouse gas, or GHG, emissions of firms on bank loans using bank–firm matched data of Japanese listed firms from 2006 to 2018.

    March 03, 2023 WebPage Regulatory News

    HMT Mulls Alignment of Ring-Fencing and Resolution Regimes for Banks

    The HM Treasury (HMT) is seeking evidence, until May 07, 2023, on practicalities of aligning the ring-fencing and the banking resolution regimes for banks.

    March 02, 2023 WebPage Regulatory News

    MFSA Sets Out Supervisory Priorities, Issues Reporting Updates

    The Malta Financial Services Authority (MFSA) outlined its supervisory priorities for 2023

    March 02, 2023 WebPage Regulatory News

    German Regulators Issue Multiple Reporting Updates for Banks

    Deutsche Bundesbank published the nationally deactivated validation rules for the German Commercial Code (HGB) users on the taxonomy 3.2, which became valid from December 31, 2022

    March 02, 2023 WebPage Regulatory News

    BCBS Report Examines Impact of Basel III Framework for Banks

    The Basel Committee on Banking Supervision (BCBS) published results of the Basel III monitoring exercise based on the June 30, 2022 data.

    February 28, 2023 WebPage Regulatory News

    PRA Consults on Prudential Rules for "Simpler-Regime" Firms

    Among the recent regulatory updates from UK authorities, a key development is the first-phase consultation, from the Prudential Regulation Authority (PRA), on simplifications to the prudential framework that would apply to the simpler-regime firms.

    February 28, 2023 WebPage Regulatory News
    RESULTS 1 - 10 OF 8806