DNB published the banking and insurance newsletters for March 2020. The newsletters focus on the impact of COVID-19 on banking and insurance industry. The banking newsletter highlights the DNB discussion with less significant banks about the regulator's expectations at this time. DNB will publish a letter on its expectations from banks in the context of recent developments. The insurance newsletter highlights that a different approach is required in the wake of COVID-19 than the standard continuity processes. DNB expects institutions to recognize this risk, analyze its impact, and implement additional measures, where necessary. DNB also updated the calendar of requests from banks.
The banking newsletter highlights that the Ministry of Finance published a draft bill for amendments to the Financial Supervision Act to implement new European regulations in the field of capital requirements for banks and investment firms on February 12, 2020. The bill is open for consultation until March 11, 2020. DNB also published the results of its investigation, in 2019, into climate-related risks and mitigating actions by medium-size and small banks. DNB will also send the annual Integrity Risk Reporting (IRAP) to the financial sector on March 31, 2020. IRAP is an important source for DNB to arrive at a risk profile of each institution and for its analysis of risk management in the sector. The upcoming IRAP questionnaire concerns the organization, customers, activities and products of institutions in the calendar year 2019 and as at December 31, 2019. In preparation, DNB paid attention to cross-sectoral harmonization of the questionnaire.
Keywords: Europe, Netherlands, Banking, Insurance, COVID-19, Climate Change Risk, SSM, ESG, Capital Requirements, Integrity Risk Reporting, Newsletter, DNB
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BCBS published a technical amendment to the capital treatment of securitizations of non-performing loans by banks.
BoE announced that the Data and Statistics Division is planning to move collection of statistical data to the BoE Electronic Data Submission (BEEDS) portal.
APRA published the updated reporting standards and guidance for the collection of Economic and Financial Statistics (EFS), following a consultation process. Also published was a response letter to the feedback received on the proposal for amending the EFS reporting standards and guidance.
EC is consulting on a draft delegated regulation to supplement the Taxonomy Regulation (2020/852) by establishing the technical screening criteria for determining the conditions under which an economic activity qualifies as environmentally sustainable.
The IFRS Foundation published material highlighting the ways in which existing requirements in IFRS standards require companies to consider climate-related matters when their effect is material to the financial statements.
EBA published a report analyzing the impact of the unwind mechanism of the liquidity coverage ratio (LCR) for a sample of European banks over a three-year period, from the end of 2016 to the first quarter of 2020.
In response to questions from a member of the European Parliament, the ECB President Christine Lagarde issued a letter clarifying the possibility of amending the AnaCredit Regulation and making targeted longer-term refinancing operations (TLTROs) dependent on the climate-related impact of bank loans.
IASB started the post-implementation review of the classification and measurement requirements in IFRS 9 on financial instruments and added the review as a project to its work plan.
FSB published a report that examines progress in implementing policy measures to enhance the resolvability of systemically important financial institutions.
EBA published a report on the benchmarking of national loan enforcement frameworks across 27 EU member states, in response to the call for advice from EC.