EC published the Implementing Regulation (EU) 2019/482, which amends the Regulation (EU) 2016/1368 that establishes a list of critical benchmarks used in financial markets pursuant to Benchmarks Regulation, or BMR (EU 2016/1011). The key change involves the addition of Warsaw Interbank Offered Rate (WIBOR) to the list of critical benchmarks pursuant to BMR. Regulation (EU) 2019/482 shall enter into force on the day following that of its publication in the Official Journal of the European Union.
On October 10, 2018, the Polish competent authority, Komisja Nadzoru Finansowego (KNF), notified ESMA of its proposal to recognize the Warsaw Interbank Offered Rate (WIBOR) as a critical benchmark, under point (b) of Article 20(1) of BMR, because it is critical in Poland and it is based on submissions of contributors, all of which are located in Poland. WIBOR is a reference rate based on an average of the interest rates at which banks operating in the Polish money market are willing to lend unsecured funds to each other at different maturities. As of October 10, 2018, eleven banks participate in the WIBOR panel, all of which are located in Poland.
In its assessment submitted to ESMA, the KNF concluded that the cessation of WIBOR, or its provision on the basis of input data or of a panel of contributors that are no longer representative of the underlying market or economic reality, could have a significant adverse impact on the functioning of financial markets in Poland. On November 08, 2018, ESMA sent EC its opinion setting out that KNF had taken into consideration all the elements and criteria included in Article 20(3) of BMR and that it had provided quantitative data to support the case for the recognition of WIBOR as a critical benchmark, as well as analytical reasoning highlighting the crucial role of WIBOR in the Polish economy. Therefore, the Regulation (EU) 2016/1368 has been amended accordingly. The Annex to Implementing Regulation (EU) 2016/1368 has been replaced by the text in the Annex to Regulation (EU) 2019/482.
Effective Date: March 26, 2019
Keywords: Europe, EU, Poland, Banking, Securities, WIBOR, Regulation 2019/482, Regulation 2016/1368, Benchmarks Regulation, Critical Benchmarks, Interest Rate Benchmarks, ESMA, EC
Previous ArticleAPRA Proposes Amendments to CPG 234 Related to Information Security
BCBS Finalizes Revisions to Credit Valuation Adjustment Risk Framework
PRA published a statement to insurers that clarifies the approach to application of the matching adjustment during COVID-19 crisis.
EBA published a report on the implementation of selected COVID-19 policies within the prudential framework for banking sector.
EC launched a consultation to revise the network and information systems (NIS) Directive (2016/1148), which was adopted in July 2016 and is the first horizontal internal market instrument aimed at improving the resilience of the EU against cybersecurity risks.
PRA published a statement that outlines its view on the implications of LIBOR transition for contracts in scope of the “Contractual Recognition of Bail-In” and “Stay in Resolution” parts of the PRA Rulebook.
PRA published the policy statement PS15/20 to reflect additional resilience associated with higher macro-prudential buffers in a standard risk environment with a reduction in Pillar 2A capital requirements.
BCBS published the eighteenth progress report on implementation of the Basel III regulatory framework in member jurisdictions.
FCA announced proposals that would provide continued support for certain consumer credit products to users, who are facing a financial impact because of the exceptional circumstances arising from the COVID-19 pandemic.
ACPR published a draft version of taxonomy RAN 1.4.0_PWD1, along with the related documentation, for Solvency II reporting.
BCBS amended the guidelines on sound management of risks related to money laundering and financing of terrorism (ML/FT).