German Regulators Publish Reporting and Regulatory Updates
Deutsche Bundesbank published a supporting document specifying the method for identifying institutions with reduced reporting requirements under the AnaCredit regulation. Additionally, the Federal Financial Supervisory Authority of Germany (BaFin) announced its agreement with the content and orientation of the European Banking Authority (EBA) no-action letter on market risk, updated questions and answers on the EU Disclosure Regulation, and issued updates on the Germany branch of the Silicon Valley Bank.
Below is a summary of the key regulatory developments:
- The EBA no-action letter (guarantee of the suspension of proceedings) grants the institutes a deferral in the course of the fundamental review of the trading book (FRTB) in accordance with the Capital Requirements Regulation (CRR II). The letter suggests that the competent supervisory authorities should not prioritize compliance with these regulations, which will allow the institutions to postpone the implementation of the requirements according to Article 3(6) of the CRR II to the expected general entry point of the FRTB at the beginning of 2025.
- Following the amendments to the regulatory technical standards on EU Disclosure Regulation by the European Commission on February 17, 2023, BaFin updated its questions and answers on the EU Disclosure Regulation accordingly. The amended Annexes II to V of the regulatory technical standards contain extended information on taxonomy-compliant investments in the areas of fossil gas and nuclear energy.
- BaFin ordered a moratorium on the Silicon Valley Bank Germany Branch due to the existing risk to the fulfilment of obligations to creditors. BaFin highlighted that Silicon Valley Bank Germany Branch has no systemic relevance and such measures will apply until it is clarified that Silicon Valley Bank's Santa Clara businesses has been transferred to the Federal Deposit Insurance Corporation (FDIC). Later, BaFin granted Silicon Valley Bridge Bank NA permission to conduct lending and proprietary business through its German branch SVB Germany. SVB Germany has taken over all business from the Silicon Valley Bank Germany Branch.
Related Links (in German)
Keywords: Europe, Germany, Banking, AnaCredit, Reporting, Market Risk, FRTB, CRR2, Basel, Regulatory Capital, Disclosures, Regulatory Technical Standards, Silicon Valley Bank, SVB Germany, FDIC, EBA, Bundesbank, BaFin
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