FIN-FSA Makes Several Regulatory Announcements
FIN-FSA announced that Version 20.0.8 of the FIN-FSA Reporting Application (XBRL/XML) and the new Excel workbooks for EBA, EIOPA, and AIFMD data collections are available for download in the Jakelu Distribution Service. Workbooks for the EBA DPM Version 2.10 have been released in the reporting application. For remuneration reporting, the new REM and REM HE modules have been introduced. Other recent regulatory updates from FIN-FSA address loan cap and countercyclical capital buffer (CCyB) requirements for banks, recommendation on distribution of bank profits, reporting compliance breach by Aktia Bank Plc, and the foreseeable stringency in information security requirements as part of the operational risk supervision.
The following are the key highlights of these recent regulatory developments:
- FIN-FSA decided to maintain the housing loan cap (a maximum of 90% for other than first-home loans and 95% for first-home loans) at its standard level and will not impose a CCyB requirement on banks and other credit institutions.
- FIN-FSA recommended that credit institutions under its direct supervision should exercise extreme prudence in profit distribution paid in cash until September 31, 2021. The recommendation also applies to buy-backs and redemptions of shares in circumstances where the purpose of such buy-backs and redemptions would be the distribution of profits. The recommendation applies to credit institutions on their highest consolidation level. The decision is based on a recommendation issued by ECB on December 15, 2020.
- FIN-FSA imposed an administrative fine of EUR 40,000 on Aktia Bank Plc. This is because, during October 01, 2017 to March 31, 2019, the company reported incorrect information (FINREP F19 report) on forbearance exposures in accordance with the EU Capital Requirements Regulation and the Commission Regulation adopted pursuant thereto. In addition, there have been inaccuracies in FINREP reports F20.4 Geographical breakdown of assets by residence of the counterparty and F20.5 Geographical breakdown of off-balance sheet exposures by residence of the counterparty.
- Fin-FSA highlighted that it assesses information security in financial sector entities in several stages and the related regulation is likely to become more stringent as part of its operational risk supervision of the financial sector. In this context, Fin-FSA pointed out that, on September 24, 2020, EC issued a comprehensive Digital Finance Package containing, among others, a proposal for a regulation on digital operational resilience, the Digital Operational Resilience Act (DORA). If implemented, the Act would, for example, impose an obligation to conduct information security tests covering the ICT function. The proposed Act envisages the establishment of a separate oversight framework for critical ICT third-party service providers and supervision of outsourcing would be further tightened. The EU Directive on Security of Networks and Information systems (NIS Directive) is also under review at present.
Related Links
- Press Release on Reporting Updates
- Press Release on Macro-Prudential Policy
- Press Release on Profit Distribution
- Press Release on Compliance Breach
- Press Release on Operational Resilience
Keywords: Europe, Finland, Banking, Reporting, Jakelu Distribution Service, FINREP, Regulatory Capital, Basel, CRR, Reporting Framework 2.10, Dividend Distribution, Macro-Prudential Policy, CCyB, Aktia Bank, 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
Previous Article
FED Releases Results of Second Round of Bank Stress Test for 2020Related Articles
FINMA Approves Merger of Credit Suisse and UBS
The Swiss Financial Market Supervisory Authority (FINMA) has approved the takeover of Credit Suisse by UBS.
BOE Sets Out Its Thinking on Regulatory Capital and Climate Risks
The Bank of England (BOE) published a working paper that aims to understand the climate-related disclosures of UK financial institutions.
OSFI Finalizes on Climate Risk Guideline, Issues Other Updates
The Office of the Superintendent of Financial Institutions (OSFI) is seeking comments, until May 31, 2023, on the draft guideline on culture and behavior risk, with final guideline expected by the end of 2023.
APRA Assesses Macro-Prudential Policy Settings, Issues Other Updates
The Australian Prudential Regulation Authority (APRA) published an information paper that assesses its macro-prudential policy settings aimed at promoting stability at a systemic level.
BIS Paper Examines Impact of Greenhouse Gas Emissions on Lending
BIS issued a paper that investigates the effect of the greenhouse gas, or GHG, emissions of firms on bank loans using bank–firm matched data of Japanese listed firms from 2006 to 2018.
HMT Mulls Alignment of Ring-Fencing and Resolution Regimes for Banks
The HM Treasury (HMT) is seeking evidence, until May 07, 2023, on practicalities of aligning the ring-fencing and the banking resolution regimes for banks.
MFSA Sets Out Supervisory Priorities, Issues Reporting Updates
The Malta Financial Services Authority (MFSA) outlined its supervisory priorities for 2023
German Regulators Issue Multiple Reporting Updates for Banks
Deutsche Bundesbank published the nationally deactivated validation rules for the German Commercial Code (HGB) users on the taxonomy 3.2, which became valid from December 31, 2022
BCBS Report Examines Impact of Basel III Framework for Banks
The Basel Committee on Banking Supervision (BCBS) published results of the Basel III monitoring exercise based on the June 30, 2022 data.
PRA Consults on Prudential Rules for "Simpler-Regime" Firms
Among the recent regulatory updates from UK authorities, a key development is the first-phase consultation, from the Prudential Regulation Authority (PRA), on simplifications to the prudential framework that would apply to the simpler-regime firms.
