NBB Maintains CCyB for Banks at 0%, Issues Other Updates
The National Bank of Belgium (NBB) decided to maintain the countercyclical buffer (CCyB) rate at 0% for the first quarter of 2023 and updated the “fit & proper” manual, which sets out the prudential standards to be met by all financial institutions under its supervision. Additionally, NBB and the Financial Services and Markets Authority (FSMA) published an update of the report on asset management and non-bank financial intermediation in Belgium.
The updated “fit and proper” manual follows a number of regulatory developments at the national and international levels and sets out a list of events that should trigger a reassessment of the individual or collective suitability of directors, senior managers (in particular members of the management committee), and persons responsible for independent control functions. The updated manual raises the supervisory expectations regarding time commitment (recommending that members of the management committee and persons responsible for control functions perform their duties full-time), independence of mind (ability to ask questions, challenge proposals, resist groupthink and not be subject to conflicts of interest), and collective suitability (highlighting areas related to technology security, environmental and climate risks, prevention of money laundering and terrorist financing and diversity in the composition of management bodies of banks). One of the main changes is the reclassification of the suitability assessment criteria in five components: managers must possess knowledge, experience, and skills; have professional integrity; act with independence of mind; be able to commit sufficient time to their position; and have a profile that adequately complements that of their colleagues on the management body. In addition, a number of new requirements have been clarified at the organizational level, which include the development of a suitability and diversity policy as well as the implementation of procedures and processes for the selection and succession planning of managers.
The updated report on asset management and non-bank financial intermediation forms part of the periodic monitoring of financial intermediation activities and analyzes the national and international developments in the non-bank financial intermediation sector. The report is intended to stay on top of the risks associated with these activities and their interconnectedness with other sectors. The report finds that the Belgian non-bank financial intermediation sector that undertakes "credit intermediation involving entities and activities outside the regular banking system and therefore lacking a formal safety net" has been relatively stable in recent years. The report highlights that no material risks (that threaten financial stability) have been identified in relation to asset management and non-bank financial intermediation in Belgium. However, the development of those two activities in Belgium and their linkages with other sectors of the economy, including possible reputational risk in financial services groups, should be closely monitored.
Related Links
- Press Release on CCyB
- Fit and Proper Manual
- Press Release on Asset Management and NBFI
- Report on Asset Management and NBFI (PDF)
Keywords: Banking, CCyB, Basel, Regulatory Capital, NBB, Europe, Non Bank Financial Intermediation, Belgium, Financial Stability
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
IASB Issues Update on Post-Implementation Review of IFRS 9Related 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.
