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
    News

    EBA Launches Stress Tests for Banks, Issues Other Updates

    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.

    January 31, 2023 WebPage Regulatory News
    News

    EBA Proposes Standards for IRRBB Reporting Under Basel Framework

    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.

    January 31, 2023 WebPage Regulatory News
    News

    FED Issues Further Details on Pilot Climate Scenario Analysis Exercise

    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.

    January 17, 2023 WebPage Regulatory News
    News

    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
    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
    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
    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
    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
    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
    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
    RESULTS 1 - 10 OF 8700