ESRB updated the list of national macro-prudential measures applied by each member state in the European Economic Area. One of the updates on the national macro-prudential measures involves the Debt-Service-to-Income (DSTI) measure in France, which became effective on January 28, 2021. Additionally, ESRB separately published notifications regarding other systemically important institutions (O-SIIs) from the respective regulatory authorities in Austria, Belgium, Bulgaria, Croatia, Czech Republic, Estonia, France, Germany, Greece, Hungary, Italy, Ireland, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Netherlands, Norway, Portugal, Poland, Spain, Sweden, and UK. ESRB also published notifications regarding global systemically important institutions (G-SIIs) from the respective regulatory authorities in France, Germany, Italy, the Netherlands, Spain, and UK.
The overview of national macro-prudential measures covers several measures, including capital buffers, reciprocation measures, and borrower-based measures. The capital buffers are capital conservation buffer, countercyclical capital buffer. systemic risk buffer, and G-SII and O-SII buffers. The borrower-based measures are DSTI, loan-to-income ratio, loan-to-value ratio, debt-to-income ratio, and loan maturity. The ESRB overview of the national macro-prudential measures includes all types of current and past measures. National authorities are required to notify ESRB about their macro-prudential measures in accordance with the Capital Requirements Directive (CRD IV), the Capital Requirements Regulation (CRR), and various ESRB recommendations.
- List of Macro-Prudential Measures (XLSX)
- Overview of Macro-Prudential Measures
- ESRB Notifications on SIIs
Keywords: Europe, EU, Banking, Macro-Prudential Measures, Borrower-Based Measures, Systemic Risk, Regulatory Capital, Basel, CRR/CRD, DSTI, RRE, ESRB
APRA issued a letter on the loss-absorbing capacity (LAC) requirements for domestic systemically important banks (D-SIBs) and published a discussion paper, along with the proposed the prudential standards on financial contingency planning (CPS 190) and resolution planning (CPS 900).
The European Commission (EC) launched a call for evidence, until March 18, 2022, as part of a comprehensive review of the macro-prudential rules for the banking sector under the Capital Requirements Regulation (CRR) and Directive (CRD IV).
The Financial Stability Board (FSB) published a report that sets out good practices for crisis management groups.
The Australian Prudential Regulation Authority (APRA) found that Heritage Bank Limited had incorrectly reported capital because of weaknesses in operational risk and compliance frameworks, although the bank did not breach minimum prudential capital ratios at any point and remains well-capitalized.
The Office of the Superintendent of Financial Institutions (OSFI) released the annual report for 2020-2021.
Through a letter addressed to the banking sector entities, the Office of the Superintendent of Financial Institutions (OSFI) announced deferral of the domestic implementation of the final Basel III reforms from the first to the second quarter of 2023.
EIOPA recently published a letter in which EC is informing the European Parliament and Council that it could not adopt the set of draft regulatory technical standards for disclosures under the Sustainable Finance Disclosure Regulation (SFDR) within the stipulated three-month period, given their length and technical detail.
The Financial Conduct Authority (FCA) published the third in a series of policy statements that set out rules to introduce the UK Investment Firm Prudential Regime (IFPR), which will take effect on January 01, 2022.
The Australian Prudential Regulation Authority (APRA) published, along with a summary of its response to the consultation feedback, an information paper that summarizes the finalized capital framework that is in line with the internationally agreed Basel III requirements for banks.
The Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) issued a consultative report focusing on access to central counterparty (CCP) clearing and client-position portability.