Danish FSA announced that the funding ratio benchmark will be deleted from the DFSA supervisory requirements for banks because the purpose of this benchmark will, in future, be covered by the net stable funding ratio (NSFR) requirement. The EU NSFR statutory requirement will enter into force for the Danish credit institutions on June 28, 2021 and the funding ratio benchmark will remain a valid requirement until then.
To ensure a smooth transition, where there is an opportunity for adequate supervision of the institutions' stable funding throughout the period, the funding ratio benchmark will apply until the end of the second quarter of 2021. Institutions will be only required to report NSFR on August 11, 2021. The institutions in the Faroe Islands and Greenland are not subject to the NSFR requirement and, therefore, the funding ratio benchmark for these institutions has been maintained. When NSFR enters into force in the Faroe Islands and Greenland, the funding ratio benchmark will similarly be deleted for the Faroese and Greenlandic institutions.
Related Links (in English and Danish)
Keywords: Europe, Denmark, Banking, NSFR, Basel, Funding Ratio Benchmark, Liquidity Risk, DFSA
The European Banking Authority (EBA) proposed implementing technical standards on the interest rate risk in the banking book (IRRBB) reporting requirements, with the comment period ending on May 02, 2023.
The U.S. Federal Reserve Board (FED) set out details of the pilot climate scenario analysis exercise to be conducted among the six largest U.S. bank holding companies.
The Board of Governors of the Federal Reserve System (FED) adopted the final rule on Adjustable Interest Rate (LIBOR) Act.
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.
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.
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.
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.
The Hong Kong Monetary Authority (HKMA) made announcements to address sustainability issues in the financial sector.
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.
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.