FIN-FSA Publishes Regulations and Guidelines Related to CRR
FIN-FSA published regulations and guidelines (5/2019) related to the Capital Requirements Regulation (CRR or EU Regulation No 575/2013) and they enter into force on September 01 2019. The new regulations and guidelines consist of an update of regulations and guidelines 25/2013 on capital requirements calculation and large exposures. The objective of these regulations and guidelines is to provide supervised entities with instructions, within the limits allowed by EU regulation, on the capital adequacy and liquidity risk requirements, on large exposures, and on the disclosure of information. The instructions are related to the national application of CRR as well as regulations and guidelines of EBA and ECB.
These regulations and guidelines include the FIN-FSA regulations on options and national discretions allowed in CRR. On entry into force, the regulations and guidelines 5/2019 shall repeal Regulations and guidelines 25/2013 on Capital requirements calculation and large exposures, Regulations and guidelines 10/2014 on Disclosure of encumbered and unencumbered assets, and Regulations and guidelines 4/2013 on Calculation of Stressed VaR and Incremental Risk Charge. These regulations and guidelines also repeal the FIN-FSA statement from December 31, 2013 on the regulatory options and discretions left in CRR for the competent authority. The most material changes compared to regulations and guidelines 25/2013 include:
- Change in the scope of application
- Updated positions of FIN-FSA on options and discretions under CRR
- Addition of new chapters, specifically chapter 5 on capital adequacy treatment of qualifying holdings outside the financial sector, chapter 9 on capital requirements for counterparty risk, and chapter 14 on liquidity risk requirements
- Amendments to chapter 2 on legal framework and international recommendations, chapter 6 on capital requirements for credit risk under the standardized approach, chapter 7 on capital requirements for credit risk under the internal ratings based approach, chapter 10 on capital requirements for market risk, chapter 13 on large exposures, and chapter 15 on disclosure of capital adequacy and liquidity risk information
These regulations and guidelines are applicable to supervised entities, including credit institutions, certain investment firms, central bodies of amalgamations of deposit banks, holding companies of credit institutions, holding companies of investment firms, and parent companies of financial and insurance conglomerates. These regulations and guidelines do not apply to credit institutions, the supervision of which has been transferred to ECB in accordance with the Single Supervisory Mechanism (SSM) Regulation. Parent companies of financial and insurance conglomerates are only subject to chapter 13 of these regulations and guidelines.
Related Links
Effective Date: September 01, 2019
Keywords: Europe, Germany, Banking, Insurance, CRR, Regulations and Guideline 5/2019, Options and Discretions, ECB, FIN-FSA
Featured Experts
María Cañamero
Skilled market researcher; growth strategist; successful go-to-market campaign developer
Nicolas Degruson
Works with financial institutions, regulatory experts, business analysts, product managers, and software engineers to drive regulatory solutions across the globe.
Patrycja Oleksza
Applies proficiency and knowledge to regulatory capital and reporting analysis and coordinates business and product strategies in the banking technology area
Related Articles
BIS and Central Banks Experiment with GenAI to Assess Climate Risks
A recent report from the Bank for International Settlements (BIS) Innovation Hub details Project Gaia, a collaboration between the BIS Innovation Hub Eurosystem Center and certain central banks in Europe
Nearly 25% G-SIBs Commit to Adopting TNFD Nature-Related Disclosures
Nature-related risks are increasing in severity and frequency, affecting businesses, capital providers, financial systems, and economies.
Singapore to Mandate Climate Disclosures from FY2025
Singapore recently took a significant step toward turning climate ambition into action, with the introduction of mandatory climate-related disclosures for listed and large non-listed companies
SEC Finalizes Climate-Related Disclosures Rule
The U.S. Securities and Exchange Commission (SEC) has finalized the long-awaited rule that mandates climate-related disclosures for domestic and foreign publicly listed companies in the U.S.
EBA Proposes Standards Related to Standardized Credit Risk Approach
The European Banking Authority (EBA) has been taking significant steps toward implementing the Basel III framework and strengthening the regulatory framework for credit institutions in the EU
US Regulators Release Stress Test Scenarios for Banks
The U.S. regulators recently released baseline and severely adverse scenarios, along with other details, for stress testing the banks in 2024. The relevant U.S. banking regulators are the Federal Reserve Bank (FED), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC).
Asian Governments Aim for Interoperability in AI Governance Frameworks
The regulatory landscape for artificial intelligence (AI), including the generative kind, is evolving rapidly, with governments and regulators aiming to address the challenges and opportunities presented by this transformative technology.
EBA Proposes Operational Risk Standards Under Final Basel III Package
The European Union (EU) has been working on the final elements of Basel III standards, with endorsement of the Banking Package and the publication of the European Banking Authority (EBA) roadmap on Basel III implementation in December 2023.
EFRAG Proposes XBRL Taxonomy and Standard for Listed SMEs Under ESRS
The European Financial Reporting Advisory Group (EFRAG), which plays a crucial role in shaping corporate reporting standards in European Union (EU), is seeking comments, until May 21, 2024, on the Exposure Draft ESRS for listed SMEs.
ECB to Expand Climate Change Work in 2024-2025
Banking regulators worldwide are increasingly focusing on addressing, monitoring, and supervising the institutions' exposure to climate and environmental risks.