Featured Product

    EU Authorities Address COVID-19 Reporting, MCD, and PSD2 Issues

    The European Banking Authority (EBA) announced that the guidelines on the reporting and disclosure of exposures subject to measures COVID-relief measures shall continue to apply until further notice. However, the competent authorities may exercise the flexibility provided in the guidelines to reduce or stop specific reporting and disclosure requirements. EBA published a discussion paper on its preliminary observations on selected payment fraud data under the Payment Services Directive (PSD2), with the comment period ending on April 19, 2022. In addition, the European Commission (EC) issued a call for advice letter for EBA on issues related to the review of Mortgage Credit Directive (2014/17/EU), with the deadline for this call for advice being June 30, 2022.

    The key topics on which EBA has been invited to provide technical advice include exclusions from the scope of the Mortgage Credit Directive, peer-to-peer lending platforms, information disclosure rule, creditworthiness assessment, ways to facilitate the cross-border provision for mortgages, ways to contribute to financial stability, and green mortgages. EC had published a, in May 2021, a report that assessed implementation and functioning of the Mortgage Credit Directive for four years after its transposition deadline. The report highlighted that the Directive has been effective in raising the standard of consumer protection and has helped harmonize mortgage-lending practices across the member states. Nevertheless, the level of protection differs across member states, with some limitations, in particular in terms of scope and information disclosure requirements for digital delivery, seeming to hinder the full effectiveness of the rules.

    The report also concluded that the impact on the creation of a single market for residential property loans has been limited, mostly for reasons outside the scope of the Directive. With the digitalization of financial services comes the possibility to increase cross-border activity in the near future. EC also adopted a proposal for a Directive on consumer credits, repealing and replacing the Consumer Credit Directive in June 2021. The new proposal included provisions on scope extension to crowdfunding credit services, rules to adapt information disclosure to digital channels and to tackle online practices exploiting consumer behavior, provisions to strengthen responsible lending especially in the digital context, and as provisions addressing consumer over-indebtedness. Given the important similarities between consumer credit and mortgage credit, EC will need to assess the proposed amendments to Consumer Credit Directive in its review of Mortgage Credit Directive with a view to ensuring coherence of the European Union law and providing clarity and consistency to credit markets.

     

    Related Links

    Keywords: Europe, EU, Banking, COVID-19, Reporting, Disclosures, Guidelines, PSD2, Call for Advice, Mortgage Credit Directive, Lending, Credit Risk, Lending Marketplace, Crowdfunding Service Providers, P2P Lending, ESG, EBA, EC

    Featured Experts
    Related Articles
    News

    US Regulators Release Stress Test Scenarios for Banks

    The U.S. regulators recently released baseline and severely adverse scenarios, along with other details, for stress testing the banks in 2024. The relevant U.S. banking regulators are the Federal Reserve Bank (FED), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC).

    February 28, 2024 WebPage Regulatory News
    News

    Asian Governments Aim for Interoperability in AI Governance Frameworks

    The regulatory landscape for artificial intelligence (AI), including the generative kind, is evolving rapidly, with governments and regulators aiming to address the challenges and opportunities presented by this transformative technology.

    February 28, 2024 WebPage Regulatory News
    News

    EBA Proposes Operational Risk Standards Under Final Basel III Package

    The European Union (EU) has been working on the final elements of Basel III standards, with endorsement of the Banking Package and the publication of the European Banking Authority (EBA) roadmap on Basel III implementation in December 2023.

    February 26, 2024 WebPage Regulatory News
    News

    EFRAG Proposes XBRL Taxonomy and Standard for Listed SMEs Under ESRS

    The European Financial Reporting Advisory Group (EFRAG), which plays a crucial role in shaping corporate reporting standards in European Union (EU), is seeking comments, until May 21, 2024, on the Exposure Draft ESRS for listed SMEs.

    February 23, 2024 WebPage Regulatory News
    News

    ECB to Expand Climate Change Work in 2024-2025

    Banking regulators worldwide are increasingly focusing on addressing, monitoring, and supervising the institutions' exposure to climate and environmental risks.

    February 23, 2024 WebPage Regulatory News
    News

    BIS Bulletin Examines Cognitive Limits of Large Language Models

    The use cases of generative AI in the banking sector are evolving fast, with many institutions adopting the technology to enhance customer service and operational efficiency.

    January 25, 2024 WebPage Regulatory News
    News

    ECB is Conducting First Cyber Risk Stress Test for Banks

    As part of the increasing regulatory focus on operational resilience, cyber risk stress testing is also becoming a crucial aspect of ensuring bank resilience in the face of cyber threats.

    January 24, 2024 WebPage Regulatory News
    News

    EBA Continues Momentum Toward Strengthening Prudential Rules for Banks

    A few years down the road from the last global financial crisis, regulators are still issuing rules and monitoring banks to ensure that they comply with the regulations.

    January 24, 2024 WebPage Regulatory News
    News

    EU and UK Agencies Issue Updates on Final Basel III Rules

    The European Commission (EC) recently issued an update informing that the European Council and the Parliament have endorsed the Banking Package implementing the final elements of Basel III standards

    December 19, 2023 WebPage Regulatory News
    News

    Industry Agency Expects Considerable Uptake for Swiss Climate Scores

    The Swiss Federal Council recently decided to further develop the Swiss Climate Scores, which it had first launched in June 2022.

    December 18, 2023 WebPage Regulatory News
    RESULTS 1 - 10 OF 8952