EBA Finalizes LCR Standards; ESAs to Work on Cyber Incident Framework
The European Banking Authority (EBA) published the final report on amendments to the implementing technical standards on currencies with constraints on the availability of liquid assets in the context of the liquidity coverage ratio (LCR). The amendments, which are in accordance with the Capital Requirements Regulation (575/2013), remove the Norwegian Krone (NOK) from the list of currencies with constraints. Thus, no currency will be recognized as having constraints on the availability of liquid assets. The draft standards will be submitted to the European Commission for endorsement before being published in the Official Journal of the European Union. In another development the European Supervisory Authorities (ESAs) welcomed the recommendation from the European Systemic Risk Board (ESRB) for the creation of a pan-European systemic cyber incident coordination framework—also called EU-SCICF.
In its recommendation, ESRB had called on ESAs to prepare for the gradual development of this pan-European framework to support an effective and coordinated response at the European Union level, in case of a major cross-border cyber incident with the potential for a systemic impact. The recommendation states that preparatory work for the gradual development of the framework should include an assessment of its resource requirements, with the recommendation setting out some concrete steps for ESAs. The ESRB recommendation also proposed for the ESAs, in consultation with the European Central Bank (ECB) and ESRB, to conduct a mapping and subsequent analysis of the current impediments as well as legal and other operational barriers for the effective development of the pan-European systemic cyber incident coordination framework. This framework endorses the potential coordination roles of ESAs, as envisaged in the European Commission’s proposed Digital Operational Resilience Act (DORA).
Related Links
- EBA Standards on Currencies
- Final Report on EBA Standards (PDF)
- ESAs on Cyber Risk
- ESA Statement on Cyber Risk (PDF)
Keywords: Europe, EU, Banking, Insurance, Securities, Basel, Reporting, Liquidity Risk, LCR, CRR, Implementing Technical Standards, Cyber Risk, EU-SCICF, Cyber Incident Coordination, Operational Resilience, DORA, Operational Risk, Systemic Risk, ECB, ESRB, EBA, ESAs
Featured Experts
María Cañamero
Skilled market researcher; growth strategist; successful go-to-market campaign developer
Nicolas Degruson
Works with financial institutions, regulatory experts, business analysts, product managers, and software engineers to drive regulatory solutions across the globe.
Karen Moss
Senior practitioner in asset and liability management (ALM) and liquidity risk who assists banking clients in advancing their treasury and balance sheet management objectives
Related Articles
US Agencies Issue Several Regulatory and Reporting Updates
The Board of Governors of the Federal Reserve System (FED) adopted the final rule on Adjustable Interest Rate (LIBOR) Act.
ECB Issues Multiple Reports and Regulatory Updates for Banks
The European Central Bank (ECB) published an updated list of supervised entities, a report on the supervision of less significant institutions (LSIs), a statement on macro-prudential policy.
HKMA Keeps List of D-SIBs Unchanged, Makes Other Announcements
The Hong Kong Monetary Authority (HKMA) published a circular on the prudential treatment of crypto-asset exposures, an update on the status of transition to new interest rate benchmarks.
EU Issues FAQs on Taxonomy Regulation, Rules Under CRD, FICOD and SFDR
The European Commission (EC) adopted the standards addressing supervisory reporting of risk concentrations and intra-group transactions, benchmarking of internal approaches, and authorization of credit institutions.
CBIRC Revises Measures on Corporate Governance Supervision
The China Banking and Insurance Regulatory Commission (CBIRC) issued rules to manage the risk of off-balance sheet business of commercial banks and rules on corporate governance of financial institutions.
HKMA Publications Address Sustainability Issues in Financial Sector
The Hong Kong Monetary Authority (HKMA) made announcements to address sustainability issues in the financial sector.
EBA Updates Address Basel and NPL Requirements for Banks
The European Banking Authority (EBA) published regulatory standards on identification of a group of connected clients (GCC) as well as updated the lists of identified financial conglomerates.
ESMA Publishes 2022 ESEF XBRL Taxonomy and Conformance Suite
The General Board of the European Systemic Risk Board (ESRB), at its December meeting, issued an updated risk assessment via the quarterly risk dashboard and held discussions on key policy priorities to address the systemic risks in the European Union.
FCA Sets up ESG Committee, Imposes Penalties, and Issues Other Updates
The Financial Conduct Authority (FCA) is seeking comments, until December 21, 2022, on the draft guidance for firms to support existing mortgage borrowers.
FSB Reports Assess NBFI Sector and Progress on LIBOR Transition
The Financial Stability Board (FSB) published a report that assesses progress on the transition from the Interbank Offered Rates, or IBORs, to overnight risk-free rates as well as a report that assesses global trends in the non-bank financial intermediation (NBFI) sector.
