Featured Product

    ECB President Answers Queries on Application of EU Taxonomy

    January 22, 2021

    ECB published a letter in which the President Christine Lagarde answered questions, from a Member of the European Parliament, on the application of the EU taxonomy on sustainable finance. In response to the question on the use of the EU taxonomy to estimate the volume of outstanding taxonomy-aligned loans, the ECB President stated that, at present, no infrastructure for collecting and reporting this information exists. In this context, she highlighted that the overall framework of the EU taxonomy is still incomplete and, therefore, not yet ready for use by corporates and banks. The delegated acts outlining the methodologies for calculating and disclosing the alignment with the taxonomy criteria will be gradually adopted in the coming months and the framework will only enter into full force in 2023.

    The second question answered by Ms. Lagarde in the letter concerns what further changes in ECB instruments, EU legislation, or national legislation would be needed to ensure usability of the taxonomy at the loan level. The ECB President highlighted that finalization of the delegated acts of EC on the taxonomy, along with the ongoing work of EBA and Platform on sustainable finance, should provide the main forum to address the most urgent challenges related to the application of the taxonomy to loans and potentially advise on possible future legislative changes. Ms. Lagarde also mentioned that she had discussed the possible use of AnaCredit to collect information on the environmental characteristics of bank loans in her letter to Ernest Urtasun, a Member of the European Parliament. However, AnaCredit constitutes only one of the tools at the disposal of ECB to collect information on the taxonomy-alignment of banks’ lending activities and—depending on the purpose of this data—might not be the most appropriate one. ECB is closely monitoring gaps in the data and possible additional data requirements, while being fully mindful of the need to ensure consistency and avoid unnecessary reporting burdens in the context of a rapidly evolving regulatory framework. While the process of mainstreaming the EU taxonomy across the financial sector is at its inception, ECB is committed to do its part in taking this process forward. As the EU taxonomy framework is implemented and the related data become available, ECB stands ready to make the relevant statistics available to the public. 

    Additionally, in a separate joint statement, EC and ECB highlighted that, following the conclusion of the consultation on January 12, 2021 and a period of preparatory work, ECB will consider whether to start a digital euro project toward mid-2021.

     

    Related Links

    Keywords: Europe, EU, Banking, Sustainable Finance, Taxonomy, ESG, Climate Change Risk, AnaCredit, Taxonomy Regulation, Reporting, Credit Risk, EC, ECB

    Featured Experts
    Related Articles
    News

    EBA Updates Filing Rules for Supervisory Reporting

    The European Banking Authority (EBA) published version 5.1 of the filing rules for supervisory reporting.

    October 19, 2021 WebPage Regulatory News
    News

    ECB Amends Guideline on Procedures for Collection of AnaCredit Data

    The European Central Bank (ECB) Guideline 2021/1829 on the procedures for the collection of granular credit and credit risk data has been published in the Official Journal of European Union.

    October 19, 2021 WebPage Regulatory News
    News

    ECB Amends Guideline on Procedures for Collection of AnaCredit Data

    The European Central Bank (ECB) Guideline 2021/1829 on the procedures for the collection of granular credit and credit risk data has been published in the Official Journal of European Union.

    October 19, 2021 WebPage Regulatory News
    News

    EBA Publishes Standards on Disclosure of Investment Policy Under IFR

    The European Banking Authority (EBA) published the final draft regulatory technical standards on disclosure of investment policy by investment firms, under the Investment Firms Regulation (IFR).

    October 19, 2021 WebPage Regulatory News
    News

    APRA Finalizes Guidance for New Prudential Standard on Remuneration

    The Australian Prudential Regulation Authority (APRA) published the prudential practice guide CPG 511 to assist banks, insurers, and superannuation licensees in meeting requirements of CPS 511, the new prudential standard on remuneration.

    October 18, 2021 WebPage Regulatory News
    News

    OCC Updated LIBOR Self-Assessment Tool for Banks

    The Office of the Comptroller of the Currency (OCC) published a bulletin that provides an updated self-assessment tool for banks to evaluate their preparedness for cessation of the London Interbank Offered Rate (LIBOR).

    October 18, 2021 WebPage Regulatory News
    News

    TCFD Updates Guidance for Financial Disclosures on Climate Risk

    The Financial Stability Board (FSB) published a report that examines the progress made toward disclosures aligned with recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).

    October 14, 2021 WebPage Regulatory News
    News

    BCBS Report Examines Progress on Adoption of Basel III Framework

    The Basel Committee on Banking Supervision (BCBS) published the progress report on adoption of the Basel III regulatory framework in member jurisdictions.

    October 14, 2021 WebPage Regulatory News
    News

    ACPR Implements Updates Related to DPM Version 3.1

    The French Prudential Supervisory Authority (ACPR) has implemented, in its information system, updates linked to the Data Point Model (DPM) version 3.1.

    October 14, 2021 WebPage Regulatory News
    News

    EBA Note Examines Transition Risks of Benchmark Rates

    The European Banking Authority (EBA) published a thematic note that aims to identify and raise awareness of the transition risks of benchmark rates, as the London Interbank Offered Rate (LIBOR) and the Euro Overnight Index Average (EONIA) are close to being phased out.

    October 14, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 7571