NBB Issues Multiple Regulatory and Reporting Updates for Banks
The Board of the National Bank of Belgium (NBB) renewed O-SII designation of eight Belgian banks. Additionally, NBB launched a climate risk dashboard, issued updates on reporting, and published circulars and communication related to benchmarking exercises on remuneration practices, the gender pay gap and approved higher ratios, and high earners data collection.
Below are the key highlights of these recent updates:
- The NBB Board, as part of its annual review of the designations of domestic systemically important banks, has renewed the other systemically important institution (O-SII) designation of eight Belgian banks that were designated as O-SIIs in 2021. These banks are KBC Group, BNP Paribas Fortis, ING Belgium, Belfius Bank, Euroclear Holding, The Bank of New York Mellon, Investeringsmaatschappij Argenta, and Crelan. For each O-SII, the NBB Board decided to maintain the capital surcharges announced in 2015. From January 01, 2023, the level of the surcharges for KBC Group, BNP Paribas Fortis, ING Belgium, and Belfius Bank has been set at 1.5% while the surcharge level for Euroclear Holding, The Bank of New York Mellon, Investeringsmaatschappij Argenta, and Crelan has been set at 0.75%.
- NBB launched a Climate Dashboard to provide the broader public with more information on the consequences of climate change and the transition to net zero emissions for the economy and the financial system. The dashboard was created by the Climate Hub, a group within NBB that is responsible for coordinating activities related to climate change and sustainable finance. The Climate Hub facilitates cooperation and the exchange of information between departments in these areas. The dashboard, which is in the form of a PowerPoint presentation, highlights key messages related to global green house gas emissions, carbon pricing, and transition toward climate-neutrality.
- With regard to XBRL reporting, NBB published the Belgian extension to the FINREP DataPoints taxonomy of the European Central Bank (ECB), which will be used from reference date December 31, 2022 onward. NBB also published Communication NBB_2022_30 to inform financial holding companies and mixed financial holding companies governed by Belgian law, as well as their accredited statutory auditors, of their reporting obligations following the modification of their supervisory regime provided for in the Banking Law. The reports referred to in this communication must be submitted via the OneGate application or the NBB Supervision portal. The Communication would be applicable with immediate effect and the reports listed in Annexes 1 and 2 must be submitted from January 01, 2023 for the year 2022. The Communication replaces the eCorporate Circular 2009_21 as regards only the reporting expected from financial holding companies and mixed financial holding companies.
- NBB published Circular NBB_2022_28 on transposing two sets of Guidelines of the European Banking Authority (EBA) of June 30, 2022 on the benchmarking exercises on remuneration practices, the gender pay gap and approved higher ratios under the Capital Requirements Directive, or CRD (2013/36/EU), and the Investment Firms Directive, or IFD (2019/34) into the Belgian prudential framework. The financial institutions subject to this Circular are required to provide NBB with quantitative information on their remuneration practices and gender pay gap in their workforce. NBB uses this information to compare remuneration and gender pay gap trends and practices at the Belgian level and forwards this data to the EBA, which uses it to compare trends at the European Economic Area level. The remuneration benchmarking data should be reported annually, the gender pay gap benchmarking data every three years and the approved higher ratio data every two years. The new template for remuneration benchmarking should be submitted to the NBB for the year 2022, by August 31, 2023 (transitional system) and in subsequent years, the reporting should take place annually by June 15. The new template for gender pay gap benchmarking should be submitted to the NBB for the year 2023, by June 15, 2024 and in subsequent years, the reporting should take place every three years by June 15. Also, the aggregate information on approved higher ratios should be submitted to the NBB for the year 2022, by June 15, 2023 and in subsequent years, the reporting should take place every two years by June 15. This Circular will replace the Circular NBB_2014_09 with immediate effect.
- NBB published Circular NBB_2022_29 on transposing the EBA Guideline, dated June 30, 2022, on the data collection exercises regarding high earners under the Capital Requirements Directive, or CRD (2013/36/EU) and the Investment Firms Directive, or IFD (2019/34) into the Belgian prudential framework. The financial institutions subject to this Circular are required to provide NBB with information on the number of natural persons in the institution that are remunerated EUR 1 million or more per financial year. NBB will then forward this information to EBA, which uses it to compare trends at the European Economic Area level and publishes it on an aggregate home member state basis. The high-earner data are collected annually. The new templates should be reported to NBB for the first time for the year 2022, by June 15, 2023 and in subsequent years, the reporting should take place on the same date each time. This Circular will replace the Circular NBB_2014_08 with immediate effect.
- Re-Designation of O-SIIs and Capital Surcharge
- Launch of Climate Dashboard
- Update on XBRL Reporting
- Communication on Reporting Obligations
- Circular on Remuneration and Gender Pay Gap
- Circular on High Earners Data Collection
Keywords: Europe, Belgium, Banking, Reporting, O-SII, Basel, Regulatory Capital, CRD, IFD, Systemic Risk, Climate Dashboard, Climate Change Risk, Sustainable Finance, FINREP, Benchmarking Exercise, Remuneration Benchmarking, High Earners Data, Onegate, ECB, EBA, NBB
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