BoE has decided that it will not restart the 2019 liquidity Biennial Exploratory Scenario (BES) exercise. In March 2020, BoE paused the 2019 liquidity BES to alleviate burdens on core treasury staff at the participating banks. BoE uses the BES to explore the potential impact of risks that are not covered by the annual solvency stress tests of large UK banks. The 2019 test focused on how banks would respond to a severe liquidity stress. Insights from the liquidity BES have already helped to shape aspects of the BoE’s response to the impact of COVID-19 pandemic. In addition, HM Treasury announced that UK has joined the International Platform on Sustainable Finance (IPSF).
The UK Chancellor Rishi Sunak underscored the commitment of UK to strengthening international cooperation on environmentally sustainable finance by becoming a signatory to the Joint Statement on the IPSF. UK will contribute to the goals of IPSF to scale up the mobilization of private capital toward environmentally sustainable finance at the global level and promote integrated markets for environmentally sustainable finance, in an effort to deliver on the domestic and international commitments to tackle climate change. IPSF is a multilateral forum of dialog between policymakers that focuses on initiatives in the areas of taxonomies, disclosures, standards, and labels, which are fundamental for investors worldwide to identify and seize investment opportunities that truly contribute to climate and environmental objectives. IPSF aims to exchange and spread information to promote best practices in environmentally sustainable finance; identify barriers and opportunities to help scale up environmentally sustainable finance internationally; and enhance international coordination on sustainable finance issues, while respecting national and regional contexts.
Keywords: Europe, UK, Banking, Insurance, Securities, Sustainable Finance, IPSF, Climate Change Risk, ESG, Biennial Exploratory Scenario Exercise, Stress Testing, Liquidity Risk, BoE
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The three European Supervisory Authorities (ESAs) issued a letter to inform about delay in the Sustainable Finance Disclosure Regulation (SFDR) mandate, along with a Call for Evidence on greenwashing practices.
The Financial Stability Board (FSB) and the Network for Greening the Financial System (NGFS) published a joint report that outlines the initial findings from climate scenario analyses undertaken by financial authorities to assess climate-related financial risks.
The Financial Stability Board (FSB) published a letter intended for the G20 leaders, highlighting the work that it will undertake under the Indian G20 Presidency in 2023 to strengthen resilience of the financial system.
The International Sustainability Standards Board (ISSB) of the IFRS Foundations made several announcements at COP27 and with respect to its work on the sustainability standards.
The International Organization for Securities Commissions (IOSCO), at COP27, outlined the regulatory priorities for sustainability disclosures, mitigation of greenwashing, and promotion of integrity in carbon markets.
The European Banking Authority (EBA) issued a statement in the context of COP27, clarified the operationalization of intermediate EU parent undertakings (IPUs) of third-country groups
The European Union has finalized and published, in the Official Journal of the European Union, a set of 13 Delegated and Implementing Regulations applicable to the European crowdfunding service providers.
The Office of the Superintendent of Financial Institutions (OSFI) published an annual report on its activities, a report on forward-looking work.
The Australian Prudential Regulation Authority (APRA) finalized amendments to the capital framework, announced a review of the prudential framework for groups.
The Bank for International Settlements (BIS) Innovation Hubs and several central banks are working together on various central bank digital currency (CBDC) pilots.