Featured Product

    FINMA Proposes Updates to Circulars on Credit Risk and Leverage Ratio

    December 22, 2017

    FINMA proposed updates to the banking circulars on credit risk (Circular 2017/7) and leverage ratio (Circular 2015/3), with the aim to reflect the amended Capital Adequacy Ordinance. The consultation period for the proposed changes to these circulars will end on February 15, 2018.

    The Federal Council, on November 22, 2017, amended the Capital Adequacy Ordinance to permit banks to apply the current exposure method for derivatives and the present rules governing capital adequacy for investments in funds for a further two years. This amendment necessitates a change to Circular 2017/7 for the calculation of the minimum capital requirement for the default fund of a central counterparty. The amended Capital Adequacy Ordinance also requires all institutions to maintain a 3% minimum leverage ratio on tier 1 capital, effective January 01, 2018. The proposed updates to Circular 2015/3 allow banks to also apply the Basel III standard approach for derivatives when calculating the leverage ratio; these proposed changes are in response to the concerns raised by the industry.

     

    Related Link: Press Release

     

    Comment Due Date: February 15, 2018

    Keywords: Europe, Switzerland, Banking, Credit Risk, Leverage Ratio, Capital Adequacy Ordinance, FINMA

    Featured Experts
    Related Articles
    News

    MAS Concludes Blockchain Payments Prototype Shows Commercial Potential

    MAS and Temasek jointly released a report to mark the successful conclusion of the fifth and final phase of Project Ubin, which focused on building a blockchain-based multi-currency payments network prototype.

    July 13, 2020 WebPage Regulatory News
    News

    EBA Publishes Phase 2 of Technical Package on Reporting Framework 2.10

    EBA published phase 2 of the technical package on the reporting framework 2.10, providing the technical tools and specifications for implementation of EBA reporting requirements.

    July 10, 2020 WebPage Regulatory News
    News

    APRA Updates Reporting Validation Rules in July 2020

    APRA updated the lists of the Direct to APRA (D2A) validation rules for authorized deposit-taking institutions, insurers, and superannuation entities.

    July 10, 2020 WebPage Regulatory News
    News

    PRA to Partly Apply EBA Guidelines on Disclosures for COVID Measures

    PRA updated the statement that provides guidance to regulated firms on implementation of the EBA guidelines on reporting and disclosure of exposures subject to measures applied in response to the COVID-19 crisis.

    July 10, 2020 WebPage Regulatory News
    News

    EBA Updates List of Correlated Currencies Under CRR

    EBA updated the 2019 list of closely correlated currencies that was originally published in December 2013.

    July 10, 2020 WebPage Regulatory News
    News

    FASB Proposes to Delay Implementation of Insurance Contracts Standard

    FASB issued a proposed Accounting Standards Update that would grant insurance companies, adversely affected by the COVID-19 pandemic, an additional year to implement the Accounting Standards Update No. 2018-12 on targeted improvements to accounting for long-duration insurance contracts, or LDTI (Topic 944).

    July 09, 2020 WebPage Regulatory News
    News

    APRA Updates Regulatory Approach to Loan Deferrals Amid COVID Crisis

    APRA updated the regulatory approach for loans subject to repayment deferrals amid the COVID-19 crisis.

    July 09, 2020 WebPage Regulatory News
    News

    BCBS and FSB Set Out Recommendations for Benchmark Transition

    BCBS and FSB published a report on supervisory issues associated with benchmark transition.

    July 09, 2020 WebPage Regulatory News
    News

    IAIS Sets Out Recommendations for Benchmark Transition for Insurers

    IAIS published a report on supervisory issues associated with benchmark transition from an insurance perspective.

    July 09, 2020 WebPage Regulatory News
    News

    ESMA Updates Reporting Manual on European Single Electronic Format

    ESMA updated the reporting manual on the European Single Electronic Format (ESEF).

    July 09, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 5469