The Central Bank of Ireland is increasing the countercyclical capital buffer (CCyB) rate on Irish exposures from 0% to 1%, with effect from July 05, 2019. The Central Bank of Ireland also published an "Explainer" or research related to CCyB that supports the case for activating the buffer sufficiently early in the economic cycle, to ensure that the buffer is available for future downturns.
In increasing the CCyB requirement at this stage, the Central Bank of Ireland is looking to protect the banking sector against potential losses associated with a build-up of cyclical systemic risk and thereby support a sustainable provision of credit to the real economy throughout the financial cycle. The setting of the rate at 1% acknowledges the exposure and susceptibility of the Irish economy to a downturn or the materialization of cyclical systemic risk, potentially arising from an external shock. The decision also reflects the expected limited impact on the credit environment and real economy at this stage. In line with this objective and taking account of the relative sensitivity of the Irish macro-financial environment, the Central Bank of Ireland expects to maintain a positive CCyB rate when there is a sustained trajectory in indicators related to emerging cyclical systemic risk.
Effective Date: July 05, 2019
Keywords: Europe, Ireland, Banking, CCyB, Systemic Risk, Capital Requirements, Central Bank of Ireland
Previous ArticleCFTC Publishes Paper Analyzing Implementation of Swaps Reform
EC published the Implementing Regulation 2021/763 that lays down implementing technical standards for supervisory reporting and public disclosure of the minimum requirement for own funds and eligible liabilities (MREL).
EBA published a report that examines the convergence of prudential supervisory practices in 2020 and offers conclusions of the EBA college monitoring activity.
APRA announced the standardization of quarterly reporting due dates for authorized deposit-taking institutions.
The private sector working group of ECB on euro risk-free rates published the recommendations to address events that would trigger fallbacks in the Euro Interbank Offered Rate (EURIBOR)-related contracts, along with the €STR-based EURIBOR fallback rates (rates that could be used if a fallback is triggered).
Bundesbank published a list of "EntryPoints" that are accepted in its reporting system; the list provides taxonomy version and name of the module against each EntryPoint.
EBA published the phase 1 of its reporting framework 3.1, with the technical package covering the new reporting requirements for investment firms (under the implementing technical standards on investment firms reporting).
The Sustainable Finance Taskforce of IOSCO held two roundtables, with global stakeholders, on the IOSCO priorities to enhance the reliability, comparability, and consistency of sustainability-related disclosures and to collect views on the practical implementation of a global system architecture for these disclosures.
Asia Pacific Australia Banking APS 111 Capital Adequacy Regulatory Capital Basel RBNZ APRA
ESMA published the final guidelines on outsourcing to cloud service providers.
EBA published annual data for two key concepts and indicators in the Deposit Guarantee Schemes (DGS) Directive—available financial means and covered deposits.