Featured Product

    EC Amends Implementing Standards on Supervisory Reporting Under CRR

    EC published Regulation 2020/429 that amends the Regulation 680/2014, which sets out implementing technical standards on supervisory reporting of institutions under the Capital Requirements Regulation or CRR (575/2013). The key amendments in Regulation 2020/429 relate to reporting on securitization positions, IFRS 16 on leases, non-performing exposures, and liquidity. This Regulation is based on the draft implementing technical standards submitted by EBA to EC. Regulation 2020/429 shall enter into force on the day following that of its publication in the Official Journal of the European Union.

    Regulation 2017/2402 had set up a new framework for securitization, including a specific framework for simple, transparent, and standardized (STS) securitizations. It established preferential treatment for STS securitizations and certain micro, small, and medium-size enterprise (SME) synthetic securitizations. Regulation 2017/2042 also set out a framework for a more risk-sensitive regulatory treatment of exposures to securitizations. Regulation 2020/429 is now amending Regulation 680/2014 to accommodate the reporting on securitization positions to this new securitization framework. The new EU securitization framework became fully applicable on January 01, 2020 after the expiration of transitional provisions. Therefore, the revised reporting requirements on own funds and own funds requirements set out in Regulation 2020/429 shall apply from March 30, 2020. The revised reporting requirements set out in Annexes III to V of Regulation 2020/429 shall apply from June 01, 2020. Additional amendments to Regulation 680/2014 include the following:

    • Regulation 1126/2008 was amended by Regulation 2017/1986 to bring it in line with the IFRS 16 on leases and Regulation 680/2014 is now being amended to reflect those amendments. 
    • Regulation 2020/429 is revising the reporting requirements for nonperforming exposures with the aim to strengthen the ability of competent authorities to assess and monitor non-performing exposures by collecting more granular information on those exposures on a recurring basis and to close identified data gaps. 
    • Regulation 680/2014 is being amended to reflect, in the reporting framework, amendments of the liquidity coverage requirements for credit institutions. The provisions of Regulation 2020/429 concerning liquidity reporting shall apply from April 01, 2020. 
    • Templates and instructions of Regulation 680/2014 have been reviewed to reassess the convenience and appropriateness of the memo items included in the templates and instructions during the early years of implementation of the regulation as well as to correct typos, erroneous references, and formatting inconsistencies that were discovered in the course of its application.

     

    Related Links

    Effective Date: March 31, 2020

    Keywords: Europe, EU, Banking, Securities, Securitization, Reporting, CRR, NPE, STS Securitization, Regulation 2020/429, Regulation 680/2014, Basel, IFRS 16, Leases, Liquidity Risk, EC

    Featured Experts
    Related Articles
    News

    BIS Bulletin Examines Cognitive Limits of Large Language Models

    The use cases of generative AI in the banking sector are evolving fast, with many institutions adopting the technology to enhance customer service and operational efficiency.

    January 25, 2024 WebPage Regulatory News
    News

    ECB is Conducting First Cyber Risk Stress Test for Banks

    As part of the increasing regulatory focus on operational resilience, cyber risk stress testing is also becoming a crucial aspect of ensuring bank resilience in the face of cyber threats.

    January 24, 2024 WebPage Regulatory News
    News

    EBA Continues Momentum Toward Strengthening Prudential Rules for Banks

    A few years down the road from the last global financial crisis, regulators are still issuing rules and monitoring banks to ensure that they comply with the regulations.

    January 24, 2024 WebPage Regulatory News
    News

    EU and UK Agencies Issue Updates on Final Basel III Rules

    The European Commission (EC) recently issued an update informing that the European Council and the Parliament have endorsed the Banking Package implementing the final elements of Basel III standards

    December 19, 2023 WebPage Regulatory News
    News

    Industry Agency Expects Considerable Uptake for Swiss Climate Scores

    The Swiss Federal Council recently decided to further develop the Swiss Climate Scores, which it had first launched in June 2022.

    December 18, 2023 WebPage Regulatory News
    News

    BCBS Consults on Disclosure of Climate Risks, Issues Other Updates

    The Basel Committee on Banking Supervision (BCBS) launched consultation on a Pillar 3 disclosure framework for climate-related financial risks, with the comment period ending on February 29, 2024.

    December 18, 2023 WebPage Regulatory News
    News

    US Government Moves to Regulate Development and Use of AI Models

    The U.S. President Joe Biden signed an Executive Order, dated October 30, 2023, to ensure safe, secure, and trustworthy development and use of artificial intelligence (AI).

    December 18, 2023 WebPage Regulatory News
    News

    MAS Launches Gprnt Digital Platform for ESG Reporting for SMEs

    The Monetary Authority of Singapore (MAS) launched an integrated digital platform, Gprnt, also known as “Greenprint.”

    November 29, 2023 WebPage Regulatory News
    News

    EBA Finalizes Templates for One-Off Climate Risk Scenario Analysis

    The European Banking Authority (EBA) has published the final templates, and the associated guidance, for collecting climate-related data for the one-off Fit-for-55 climate risk scenario analysis.

    November 28, 2023 WebPage Regulatory News
    News

    NGFS Publishes Phase IV Long-term Climate Scenarios for Banks

    The Network for Greening the Financial System (NGFS) published its latest set of long-term climate macro-financial scenarios (Phase IV) for assessing forward-looking climate risks.

    November 28, 2023 WebPage Regulatory News
    RESULTS 1 - 10 OF 8947