Featured Product

    German Regulators Issue Updates Under IFR and AnaCredit Rules

    February 02, 2023

    Deutsche Bundesbank published Version 16 of the manual for AnaCredit validation rules, which will become valid from August 01, 2023. Additionally, the Federal Financial Supervisory Authority of Germany (BaFin) proposed the criteria for exemption from liquidity requirements for small securities institutions and the framework for supervision and governance of retail banking products. BaFin also announced that it is conducting audits of the business operations of a total of eight credit institutions in accordance with Section 44 of the German Banking Act (KWG) and published a report that examines risks to the stability of the financial system in Germany.

    Below is a summary of the key regulatory developments:

    • BaFin is seeking comments, until February 10, 2023, on a draft circular on the criteria for exemption from liquidity requirements in accordance with Article 43(1) of the Investment Firm Regulation (IFR or Regulation 2019/2033). The Article 43 paragraph 1 subparagraph 1 of the Investment Firm Regulation allows small securities institutions to be exempt from the liquidity requirement on a case-by-case basis. The draft circular will serve as a guide to implement the European Banking Authority (EBA) guidelines, which define additional criteria that must be considered when exempting smaller investment firms from the liquidity requirement. The circular will come into force on February 28, 2023.
    • Another consultation addresses the supervision and governance of retail banking products, with the comment period ending on February 28, 2023. This draft circular provides a framework for the introduction of regulations for the monitoring and governance of banking products, payment services and e-money products in the private customer business of credit institutions, in accordance with the German Banking Act and the German Payment Services Supervision Act (ZAG). The scope relates to the internal processes, functions, and strategies for the design, launch, and verification of these products throughout their life cycle. The circular applies to manufacturers and distributors of products offered and sold to consumers and details arrangements for product oversight and governance.
    • In another development, BaFin examined the real estate holdings of credit institutions to determine whether this could result in stability risks for the financial institutions. To this end, BaFin conducted audits of business operations and the annual financial statements of eight credit institutions in accordance with sections 44 and 30 of the German Banking Act, respectively. The audit began in October 2022 and will be continued in the first half of 2023. The audit is focused on the question of how valuable the real estate investments of the audited institutions are and how they are taken into account in the balance sheet. Going forward, BaFin plans to formulate clear expectations on how institutions should ensure appropriate business organization in the area of ​​own investments in real estate.
    • Finally, BaFin published a report that examines the risks that could pose the greatest threat to financial stability and the integrity of the German financial system in 2023. The report identified six risks: interest rate risk, risks from corrections in real estate markets, risks from significant corrections in the international financial markets, risks from the default of loans to German companies, cyber risk, and money laundering risk. Also identified were key future trends that will shape business models in the financial sector in the long-term—namely, issues related to sustainability, digitization of financial sector, and geopolitical upheavals. 

     

    Related Links (in German)

    Keywords: Europe, Germany, Banking, Basel, AnaCredit, Validation Rules, Reporting, Investment Firms, IFR, Liquidity Risk, Financial Stability, Credit Risk, Cyber Risk, ML TF Risk, Interest Rate Risk, BaFin, Bundesbank

    Featured Experts
    Related Articles
    News

    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.

    March 13, 2023 WebPage Regulatory News
    News

    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.

    March 12, 2023 WebPage Regulatory News
    News

    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.

    March 03, 2023 WebPage Regulatory News
    News

    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.

    March 02, 2023 WebPage Regulatory News
    News

    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.

    February 28, 2023 WebPage Regulatory News
    News

    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.

    February 28, 2023 WebPage Regulatory News
    News

    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.

    February 28, 2023 WebPage Regulatory News
    News

    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

    February 24, 2023 WebPage Regulatory News
    News

    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.

    February 21, 2023 WebPage Regulatory News
    News

    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

    February 20, 2023 WebPage Regulatory News
    RESULTS 1 - 10 OF 8793