Featured Product

    NBB Maintains CCyB at 0%, Issues Guidelines on Recovery Plans

    March 30, 2022

    The National Bank of Belgium (NBB) published guidelines on simplified obligations for recovery plans and guidelines on drafting recovery plans for credit institutions. The regulator also decided to maintain the countercyclical buffer rate (CCyB) at 0% for the second quarter of 2022.

    The guidelines on simplified obligations for recovery plans set out the requirements for the recovery plans to be drafted by credit institutions that have been designated as qualifying for simplified recovery plan obligations. Credit institutions that qualify for simplified recovery plan obligations are expected to develop a recovery plan that is appropriate for the their size, business model, complexity, and shareholding structure. Simplified recovery plans should include a brief summary of the plan and of the institution’s own assessment of its overall recovery capacity as well as a description of the institution’s key vulnerabilities and of relevant scenarios that could severely impact the institution. Such plans should also include a description of recovery options that could be used to address an extreme solvency or liquidity shock and information regarding activation of the recovery plan.

    The guidelines on drafting recovery plans are intended to be a user-friendly tool to guide both credit institutions and parent undertakings in drafting recovery plans, in accordance with the requirements of the Bank Recovery and Resolution Directive (BRRD), the final draft Regulatory Technical Standards of the European Banking Authority (EBA) on the content of recovery plans, the EBA guidelines on the range of scenarios to be used in recovery plans and recovery plan indicators, and the EBA recommendation on the coverage of entities in a group recovery plan. The guidelines highlight that recovery plans contain five modules: summary of the recovery plan, governance, strategic analysis, communication and disclosure plan, and preparatory measures. NBB notes that recovery plan is a strategic document with highly sensitive content. Throughout the process, the recovery plan remains the institution’s property and should only be transmitted to NBB for assessment.


    Related Links


    Keywords: Europe, Belgium, Banking, Regulatory Capital, Basel, Resolution Framework, BRRD, Governance, Guidelines, CCyB, Recovery Planning, NBB

    Featured Experts
    Related Articles

    CFPB Finalizes Rule on Small Business Lending Data Collection

    The Consumer Financial Protection Bureau (CFPB) published a final rule that sets out data collection requirements on small business lending, under section 1071 of the Dodd-Frank Act.

    March 30, 2023 WebPage Regulatory News

    BCBS to Consult on Pillar 3 Climate Risk Disclosures by End of 2023

    The Bank for International Settlements (BIS) published a summary of the recent Basel Committee (BCBS) meetings.

    March 23, 2023 WebPage Regulatory News

    FINMA Approves Merger of Credit Suisse and UBS

    The Swiss Financial Market Supervisory Authority (FINMA) has approved the takeover of Credit Suisse by UBS.

    March 21, 2023 WebPage Regulatory News

    BOE Sets Out Its Thinking on Regulatory Capital and Climate Risks

    The Bank of England (BOE) published a working paper that aims to understand the climate-related disclosures of UK financial institutions.

    March 13, 2023 WebPage Regulatory News

    US Congress Report Examines Data Privacy and Cybersecurity Regulations

    The U.S. Congressional Research Service published a report on banking, data privacy, and cybersecurity regulation.

    March 13, 2023 WebPage Regulatory News

    OSFI Finalizes on Climate Risk Guideline, Issues Other Updates

    The Office of the Superintendent of Financial Institutions (OSFI) is seeking comments, until May 31, 2023, on the draft guideline on culture and behavior risk, with final guideline expected by the end of 2023.

    March 12, 2023 WebPage Regulatory News

    EU to Conduct One-Off Scenario Analysis to Assess Transition Risk

    The European authorities recently made multiple announcements that impact the banking sector.

    March 10, 2023 WebPage Regulatory News

    APRA Assesses Macro-Prudential Policy Settings, Issues Other Updates

    The Australian Prudential Regulation Authority (APRA) published an information paper that assesses its macro-prudential policy settings aimed at promoting stability at a systemic level.

    March 07, 2023 WebPage Regulatory News

    BIS Paper Examines Impact of Greenhouse Gas Emissions on Lending

    BIS issued a paper that investigates the effect of the greenhouse gas, or GHG, emissions of firms on bank loans using bank–firm matched data of Japanese listed firms from 2006 to 2018.

    March 03, 2023 WebPage Regulatory News

    HMT Mulls Alignment of Ring-Fencing and Resolution Regimes for Banks

    The HM Treasury (HMT) is seeking evidence, until May 07, 2023, on practicalities of aligning the ring-fencing and the banking resolution regimes for banks.

    March 02, 2023 WebPage Regulatory News
    RESULTS 1 - 10 OF 8810