EBA Calls for More Action in Brexit-Related Communication to Customers
In the context of Brexit, EBA is reminding affected financial institutions to maintain their efforts in effective contingency planning and to increase their efforts in communicating to customers. EBA urges such institutions to take its Opinion, dated June 2018, into careful consideration and to swiftly proceed with advising customers on the specific implications stemming from the UK withdrawal from the EU.
In the follow-up monitoring of the June 2018 Opinion on financial institutions' preparedness for the UK withdrawal from the EU, EBA has observed continued progress in contingency planning. However, little evidence exists on effective communications from financial institutions to their customers on how they may be affected by the UK withdrawal and on any relevant actions undertaken by such institutions as part of their contingency planning that may affect those customers' contractual or statutory rights. EBA is, therefore, calling on all financial institutions affected by the UK withdrawal from EU, directly or indirectly, to take the EBA June Opinion into careful consideration. On that basis, EBA calls on financial institutions to engage with their customers and provide adequate information on the risks and mitigating measures being taken. EBA urges financial institutions to engage with their customers on this as soon as possible, providing the customers with at least the information specified in the EBA June 2018 Opinion. EBA also notes that, the customers that have concerns about whether they may be impacted by the UK withdrawal from the EU and that have not been contacted by their financial service providers by the end of 2018 might wish to contact the financial institutions directly.
The June 2018 Opinion of EBA focused on the risks posed by the seeming lack of adequate contingency preparations by financial institutions, with a view to ensure that they establish whether they have direct or indirect exposures to the UK and consider the risks concerned, along with the associated mitigating action and contingency plans.
Related Links
Keywords: Europe, EU, Banking, Brexit, Opinion, Contingency Planning, Call for Action, EBA
Previous Article
FED Proposes to Revise Several Reporting Forms Including FR Y-9CRelated 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.
