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
Leading economist; commercial real estate; performance forecasting, econometric infrastructure; data modeling; credit risk modeling; portfolio assessment; custom commercial real estate analysis; thought leader.
APRA issued a letter on the loss-absorbing capacity (LAC) requirements for domestic systemically important banks (D-SIBs) and published a discussion paper, along with the proposed the prudential standards on financial contingency planning (CPS 190) and resolution planning (CPS 900).
The European Commission (EC) launched a call for evidence, until March 18, 2022, as part of a comprehensive review of the macro-prudential rules for the banking sector under the Capital Requirements Regulation (CRR) and Directive (CRD IV).
The Financial Stability Board (FSB) published a report that sets out good practices for crisis management groups.
The Australian Prudential Regulation Authority (APRA) found that Heritage Bank Limited had incorrectly reported capital because of weaknesses in operational risk and compliance frameworks, although the bank did not breach minimum prudential capital ratios at any point and remains well-capitalized.
The Office of the Superintendent of Financial Institutions (OSFI) released the annual report for 2020-2021.
Through a letter addressed to the banking sector entities, the Office of the Superintendent of Financial Institutions (OSFI) announced deferral of the domestic implementation of the final Basel III reforms from the first to the second quarter of 2023.
EIOPA recently published a letter in which EC is informing the European Parliament and Council that it could not adopt the set of draft regulatory technical standards for disclosures under the Sustainable Finance Disclosure Regulation (SFDR) within the stipulated three-month period, given their length and technical detail.
The Financial Conduct Authority (FCA) published the third in a series of policy statements that set out rules to introduce the UK Investment Firm Prudential Regime (IFPR), which will take effect on January 01, 2022.
The Australian Prudential Regulation Authority (APRA) published, along with a summary of its response to the consultation feedback, an information paper that summarizes the finalized capital framework that is in line with the internationally agreed Basel III requirements for banks.
The Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) issued a consultative report focusing on access to central counterparty (CCP) clearing and client-position portability.