Featured Product

    EBA Discussion Paper on Implementing Revised Market Risk Framework

    December 18, 2017

    EBA published a discussion paper on the implementation of the revised market risk and counterparty credit risk frameworks in the EU—also known as the Fundamental Review of the Trading Book (FRTB) and the Standardized Approach for Counterparty Credit Risk (SA-CCR), respectively. The discussion paper discusses key technical and operational challenges to implement the FRTB and SA-CCR in the EU. The paper provides preliminary views on the addressal of these implementation issues and seeks early feedback from the stakeholders on the proposals. The paper also puts forward a roadmap for the development of the regulatory deliverables on the FRTB and SA-CCR, which have been included in the second Capital Requirements Regulation (CRR2) proposal. The consultation runs until March 15, 2018.

    EC published CRR2 legislative proposal published on November 23, 2016, which proposes, inter alia, to transpose—into EU law—the FRTB and SA-CCR developed by BCBS. The successful implementation of these frameworks in the EU will represent an important collective challenge over the next years. EBA is, therefore, of the view that an open discussion on how to jointly address this challenge is necessary. Without preempting the outcome of ongoing legislative discussions with respect to the CRR2 legislative proposal, with this discussion paper, EBA intends to provide preliminary views on how to address some of the most important implementation issues related to the FRTB and SA-CCR. The discussion paper covers eight implementation issues—two on SA-CCR and six on the FRTB; the paper also requests stakeholder views on additional implementation issues that they may have identified and that are not included in the scope of the paper. 
     
    In addition, the discussion paper outlines a roadmap and prioritization for the development of the regulatory deliverables on FRTB and SA-CCR. The roadmap provides a clear indication of intent of how EBA is prioritizing its future work in this area, although priorities may change as part of the ongoing considerations of legislators. The paper will, therefore, contribute to the timely implementation of the revised standards in the EU, as planned by the international standard-setters, while remaining independent of the final FRTB calibration, which will be agreed upon by BCBS. 

     

    Related Link: Press Release and Discussion Paper

    Comment Due Date: March 15, 2018

    Keywords: Europe, EU, Banking, SA-CCR, FRTB, Credit Risk, Market Risk, CRR2, EBA

    Related Articles
    News

    APRA Publishes Approach to Regulating and Supervising GCRA Risks

    APRA published an information paper that sets out a more intensive regulatory approach to transform governance, culture, remuneration, and accountability (GCRA) practices across the prudentially regulated financial sector.

    November 19, 2019 WebPage Regulatory News
    News

    IAIS Publishes Application Paper on Recovery Planning

    IAIS published the final application paper on recovery planning, along with the resolution of comments on the draft application paper.

    November 18, 2019 WebPage Regulatory News
    News

    FSB Publishes Summary of November Meeting of RCG for MENA Region

    FSB published a summary of the November meeting of the Regional Consultative Group (RCG) for Middle East and North Africa (MENA).

    November 17, 2019 WebPage Regulatory News
    News

    EBA Single Rulebook Q&A: Second Update for November 2019

    EBA updated the Single Rulebook question and answer (Q&A) tool with answers to eight questions that relate to the Bank Resolution and Recovery Directive (BRRD) and the Capital Requirements Regulation and Directive (CRR and CRD).

    November 15, 2019 WebPage Regulatory News
    News

    FASB Delays Effective Dates for CECL, Leases, and Hedging Standards

    FASB issued two Accounting Standards Updates finalizing the delays in effective dates for standards on current expected credit losses (CECL), leases, hedging, and long-duration insurance contracts.

    November 15, 2019 WebPage Regulatory News
    News

    ESMA Updates Q&A on Securitization Regulation in November 2019

    ESMA updated questions and answers (Q&A) on the Securitization Regulation (Regulation 2017/2402).

    November 15, 2019 WebPage Regulatory News
    News

    HKMA Announces Finalization of Banking Liquidity Amendment Rules 2019

    HKMA issued a letter informing all authorized institutions that negative vetting of the Banking (Liquidity) (Amendment) Rules 2019 (BLAR) has now expired. Thus, the BLAR will now come into operation from January 01, 2020.

    November 15, 2019 WebPage Regulatory News
    News

    FSI Examines Use of Red Team Testing to Enhance Cyber Resilience

    The Financial Stability Institute (FSI) of BIS published a paper that examines the contribution of red team testing frameworks toward enhancing cyber resilience.

    November 15, 2019 WebPage Regulatory News
    News

    BCBS Consults on Revised Disclosures for Market Risk Framework

    BCBS launched a consultation on the revised disclosure requirements for the market risk framework for banks.

    November 14, 2019 WebPage Regulatory News
    News

    BCBS Consults on Disclosure Templates of Sovereign Exposures of Banks

    BCBS published a consultation on the voluntary disclosure templates related to sovereign exposures of banks.

    November 14, 2019 WebPage Regulatory News
    RESULTS 1 - 10 OF 4164