The National Bank of Belgium (NBB) published a communication on climate-related and environmental risks, issued an update on XBRL reporting, and announced the availability of new Fit and Proper forms for financial institutions on the OneGate portal from March 31, 2023.
Below are the key highlights of these recent updates:
- NBB published a communication that sets out its expectations regarding the climate-related and environmental risks. NBB highlights that all Belgian credit institutions, including the less significant institutions, should meet the expectations set out by the European Central Bank (ECB) in the guide that was published in November 2020, while considering the nature, scope, and complexity of activities of the concerned institutions. In 2022, NBB conducted its first prudential assessment of less significant institutions’ management and disclosure of climate-related and environmental risks. The assessment results show that most Belgian less significant credit institutions have started to adapt their practices to prudential expectations. However, significant shortcomings remain at all institutions in their development of suitable approaches for identifying, assessing, managing, and disclosing climate-related and environmental risks. Thus, NBB highlights the need to develop a strategic approach, including intermediate steps, if necessary, especially where data and methodology gaps could hamper adequate compliance with supervisory expectations in the short term. NBB also states that the ECB publication of November 2022 on the good practices identified during the thematic analysis exercise at the significant institutions could serve as a useful guidance in this regard.
- The new Fit and Proper forms consist of a “New Appointment Insurance” form applicable to insurance and reinsurance companies subject to the Bank’s supervision and “New Elements” forms applicable to all institutions subject to the Bank’s prudential supervision which have been subdivided into three—a generic "New elements" form for all cases of new elements except the exercise of a new external function, a "New elements - New external function" form to notify the Bank of the exercise of a new external function, and a "New elements - Update external function" form to inform the Bank of a significant change in an external function. NBB expects financial institutions to fill in these new forms, which will be accessible on the NBB FAP Portal from March 31, 2023.
- With regard to XBRL reporting, NBB highlights that good and efficient Enterprise Data Management (EDM) forms an integral part of the 2025 strategy of NBB. The first phase has been finalized and consists, among other things, of the setting up of transversal units for data collection and data validation within the Microdata management department. The first line support for reporting issues will be fully handled by the Microdata management department. Gradually, over the last two years, more and more datasets and resources have been transferred to these new units. As a result, NBB has updated the contact details for issues regarding overruling of validation rules, reopenings, or remarks with regard to the OneGate collection tool (domains MBS, MUN, NRA, REV) and/or the direct dissemination to the ECB or other European Authorities.
Keywords: Europe, Belgium, Banking, Basel, Reporting, Climate Change Risk, ESG, Environmental Risk, Fit and Proper Forms, OneGate, NBB
Previous ArticleFI Publishes Multiple Regulatory and Reporting Updates for Banks
The European Banking Authority (EBA) has published the final templates, and the associated guidance, for collecting climate-related data for the one-off Fit-for-55 climate risk scenario analysis.
The European Banking Authority (EBA) recently published a report that recommends enhancements to the Pillar 1 framework, under the prudential rules, to capture environmental and social risks.
As a follow on from its prudential standard on the treatment of crypto-asset exposures, the Basel Committee on Banking Supervision (BCBS) proposed disclosure requirements for crypto-asset exposures of banks.
The Basel Committee on Banking Supervision (BCBS) and the European Banking Authority (EBA) have published results of the Basel III monitoring exercise.
The Prudential Regulation Authority (PRA) recently issued a few regulatory updates for banks, with the updated Basel implementation timelines being the key among them.
The U.S. Department of the Treasury has recently set out the principles for net-zero financing and investment.
The European Commission (EC) launched a stakeholder survey on the draft International Guiding Principles for organizations developing advanced artificial intelligence (AI) systems.
The finalization of the two sustainability disclosure standards—IFRS S1 and IFRS S2—is expected to be a significant step forward in the harmonization of sustainability disclosures worldwide.
Decentralized finance (DeFi) is expected to increase in prominence, finding traction in use cases such as lending, trading, and investing, without the intermediation of traditional financial institutions.
The Basel Committee on Banking Supervision (BCBS) published reports that assessed the overall implementation of the net stable funding ratio (NSFR) and the large exposures rules in the U.S.