MFSA Publishes Reporting and Regulatory Updates for Banks
The Malta Financial Services Authority (MFSA) published circulars that amend the Banking Rule BR/21 and the Financial Institutions Rule FIR/01, updated the guidelines on reporting through the LH Portal, highlighted the upcoming legislative developments in 2023, and published a policy and guidance note on the enforcement regime for penalties for regulatory reporting breaches.
Below are the highlights of the key recent updates:
- MFSA updated the guidelines for credit institutions and foreign bank branches to upload and review certain supervisory reporting data through the LH Portal. The revised LH Portal guidelines for credit institutions cover new data collection, processing, and validation system in line with ECB "HSA" requirements as well as inclusion of implementing technical standards version 3.2 file naming conventions, incorporating change in the European Banking Authority filing rules. The Annex I to the document includes the XML schema specification, describing the structure and content of the XML feedback document.
- Also published was a circular that amends the Banking Rule BR/21 by implementing the European Banking Authority (EBA) Guidelines on the benchmarking exercises on remuneration practices, gender pay gap, and approved higher ratios under the Capital Requirements Directive, or CRD (2013/36/EU). The circular concerns the implementation of EBA Guidelines on the data collection exercises regarding high earners under the CRD. The amendments to this Banking Rule shall apply from December 31, 2022.
- The revisions to the Financial Institutions Rule FIR/01 provide clarification in relation to the limited network exclusions under the second Payment Services Directive (PSD2) and crowdfunding services. The amendments include a new paragraph 58A, which specifies that the assessment of MFSA shall be performed on the basis of the EBA Guidelines on the limited network exclusion under PSD2 (EBA/GL/2022/02). With regard to the Crowdfunding Regulation (2020/1503), a new paragraph 15B has been inserted in the rule to remove any conflict that may arise between recital 9 of the Crowdfunding Regulation and the Financial Institutions Act. The revised rule FIR/01 shall come into force with immediate effect.
- Additionally, MFSA highlighted certain upcoming legislative developments, including developments with respect to the regulation on the Markets in Crypto-Assets (MiCA) and the Digital Operational Resilience Act (DORA), which are expected to come into force during the second and first quarters of 2023, respectively. MFSA also noted that the transposition of Non-Performing Loan, or NPL Directive (2021/2167) into the national law is in progress. MFSA notified that the final text of the Banking Package 2021 is expected to be published by June 2023, with the Capital Requirements Regulation (CRR3) becoming applicable from January 01, 2025 while 18 months are factored in for transposition of the Capital Requirements Directive (CRD6) by MFSA.
Related Links
- Supervisory Reporting Updates
- LH Portal Guidelines for Credit Institutions (PDF)
- Annex I XML Schema Specification (PDF)
- Circular on Amendments to BR/21 (PDF)
- Circular on Amendments to FIR/01 (PDF)
- Upcoming Legislation
- Policy Note on Reporting Related Breaches
Keywords: Malta, Reporting, Basel, PSD2, Remuneration Benchmarking, Crowdfunding Regulation, Regtech, MiCA Regulation, Europe, CRD, EBA, MFSA, Banking, LH Portal, DORA, CRR3, CRD6
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
CMF Sets Out Workplan for Implementation of Fintech LawRelated Articles
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.
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.
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.
DNB Publishes Multiple Reporting Updates for Banks
DNB, the central bank of Netherlands, updated the list of additional reporting requests and published additional data quality checks and XBRL-Formula linkbase documents for the first quarter of 2023.
NBB Sets Out Climate Risk Expectations, Issues Reporting Updates
The National Bank of Belgium (NBB) published a communication on climate-related and environmental risks, issued an update on XBRL reporting
EBA Updates Address Securitization Standards and DGS Guidelines
The European Banking Authority (EBA) published the final draft of the regulatory technical standards that set out conditions for assessment of homogeneity of the underlying exposures in simple, transparent, and standardized (STS) securitizations.
FSB Publishes Letter to G20, Sets Out Work Priorities for 2023
The Financial Stability Board (FSB) published a letter intended for the G20 Finance Ministers and Central Bank Governors, highlighting the work that FSB will take forward under the Indian G20 Presidency in 2023
