Featured Product

    German Regulators Issue Multiple Updates for Financial Sector Entities

    The Deutsche Bundesbank has published its first climate-related report while the Federal Financial Supervisory Authority of Germany (BaFin) published circulars on additional liquidity outflows and on stable funding requirements. BaFin also welcomed the agreement reached on the Corporate Sustainability Reporting Directive (CSRD) as well as on proposals for regulations on markets in crypto assets (MiCA) and digital operational resilience (Digital Operational Resilience Act or DORA) in the European Union.

    Below are key highlights of the recent updates:

    • BaFin published a circular on additional liquidity outflows in connection with products and services in accordance with Article 23 of Delegated Regulation (EU) 2015/61 on liquidity coverage requirement. The circular specifies the prudential procedure for the application of Article 23 of Regulation (EU) 2015/61 and the corresponding provisions in Implementing Regulation (EU) No 2021/451 which is related to technical standards on reporting of liquidity coverage requirement. Among other things, the categories of products and services are specified and their liquidity outflows determined. In addition, the circular specifies the annual reporting requirement for the products and services for which the probability and the potential extent of liquidity outflows are significant. The circular comes into force upon publication.
    • BaFin published a circular to facilitate determination of the required stable funding factors to be applied to off-balance-sheet exposures in accordance with Articles 428p (10) and 428aq (10) of the Capital Requirements Regulation (CRR). These CRR articles set out provisions for calculation of the required stable funding. The circular is intended to apply to institutions to which Article 6 (4) of the CRR applies and which are classified as less significant institutions (LSIs) in accordance with Article 6 (4) of the Single Supervisory Mechanism Regulation. It also applies to all institutions that are treated as CRR credit institutions in accordance with section 1a of the German Banking Act.
    • The Bundesbank report on climate risk disclosures outlines how Bundesbank incorporates climate-related risks into individual areas of activity within its mandate. The report is structured around the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD). With this report, Bundesbank is disclosing the climate impact of its euro-denominated portfolio (euro portfolio), which does not serve monetary policy purposes. This portfolio is used for the investment of certain equity positions, reserves, and provisions. At a market value of EUR 10.4 billion (as at December 31, 2021), this portfolio is invested exclusively in covered bonds. Greenhouse gas emissions and other climate-related metrics were calculated as part of the analysis of this euro portfolio. However, the metrics for greenhouse gas emissions only incorporate the emissions caused by the covered bond issuers. The greenhouse gas emissions financed by the covered bonds are not included because data are currently lacking on these emissions. As the data situation improves and allows the financed greenhouse gas emissions to be accounted for, the resulting climate-related metrics calculated for the euro portfolio are likely to be significantly higher.


    Related Links (in English and German)




    Keywords: Europe, Germany, Banking, Climate Change Risk, ESG, Disclosures, TCFD, Covered Bonds, Green Finance, Additional Liquidity Outflows, LCR, Liquidity Risk, CRR, Basel, NSFR, Reporting, MiCA, DORA, CSRD, Bundesbank, BaFin

    Featured Experts
    Related Articles

    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

    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

    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
    RESULTS 1 - 10 OF 8699