MFSA published a circular on submission of Remuneration Benchmarking and High Earners data to MFSA and updated certain reporting modules as part of the common reporting (COREP) and financial reporting (FINREP) frameworks under the Capital Requirements Regulation (CRR) and the implementing technical standards on supervisory reporting (EU Regulation 680/2014). The updated modules are part of the EBA framework versions 2.10 and 3.0. MFSA also updated the guidelines to the Capital Requirements Directive (CRD IV) supervisory reporting requirements for credit institutions and foreign bank branches. Also updated are the guidelines for credit institutions and branches to upload and review supervisory reporting data through LH Portal, along with the remittance timetable have been updated.
For credit institutions, the updated modules under COREP are related to own funds and own funds requirements (including immovable property losses), leverage, large exposures and concentration risk, and liquidity modules (including LCR DA, NSFR, and ALMM for additional liquidity monitoring metrics). For foreign bank branches, the COREP module for immovable property losses (module OF) has been updated. The updated FINREP modules include those on non-performing loans (NPLs) and forbearance, asset encumbrance, and remuneration for high earners for both credit institutions and foreign bank branches. Additionally, for credit institutions, MFSA updated FINREP modules on identification of global systemically important institutions or G-SIIs, specific reporting requirements for market risk (under the EU Regulation 2021/453), and remuneration benchmarking. Submission of data by credit institutions to MFSA shall be in line with the reporting dates available in the remittance timetable. The updated modules are applicable from the reference date June 2021, with certain exceptions: module on specific reporting requirements for market risk is applicable from the reference date September 2021 while modules on remuneration for benchmarking and remuneration for high earners are applicable from the reference date December 2020.
MFSA also published a circular that provides detailed information to institutions on developments with respect to the submission of Remuneration Benchmarking and High Earners data to MFSA in line with the EBA integration of these data requirements into the supervisory reporting taxonomy. Going forward, from the December 31, 2020 reference date, remuneration reporting data will be required to be submitted to MFSA in both XBRL and Excel formats, similar to the supervisory reporting modules (FINREP/COREP). Institutions will be required to submit data through the LH Portal. Institutions are reminded to follow all the provisions of the EBA guidelines on the remuneration benchmarking exercise and data collection exercise regarding high earners in reporting remuneration data to MFSA.
Keywords: Europe, Malta, Banking, COREP, FINREP, LH Portal, Reporting, Remuneration, CRR, Basel, MFSA, Framework 2.10, Framework 3.0, MFSA
The Board of Governors of the Federal Reserve System (FED) adopted the final rule on Adjustable Interest Rate (LIBOR) Act.
The European Central Bank (ECB) published an updated list of supervised entities, a report on the supervision of less significant institutions (LSIs), a statement on macro-prudential policy.
The Hong Kong Monetary Authority (HKMA) published a circular on the prudential treatment of crypto-asset exposures, an update on the status of transition to new interest rate benchmarks.
The European Commission (EC) adopted the standards addressing supervisory reporting of risk concentrations and intra-group transactions, benchmarking of internal approaches, and authorization of credit institutions.
The China Banking and Insurance Regulatory Commission (CBIRC) issued rules to manage the risk of off-balance sheet business of commercial banks and rules on corporate governance of financial institutions.
The Hong Kong Monetary Authority (HKMA) made announcements to address sustainability issues in the financial sector.
The European Banking Authority (EBA) published regulatory standards on identification of a group of connected clients (GCC) as well as updated the lists of identified financial conglomerates.
The General Board of the European Systemic Risk Board (ESRB), at its December meeting, issued an updated risk assessment via the quarterly risk dashboard and held discussions on key policy priorities to address the systemic risks in the European Union.
The Financial Conduct Authority (FCA) is seeking comments, until December 21, 2022, on the draft guidance for firms to support existing mortgage borrowers.
The Financial Stability Board (FSB) published a report that assesses progress on the transition from the Interbank Offered Rates, or IBORs, to overnight risk-free rates as well as a report that assesses global trends in the non-bank financial intermediation (NBFI) sector.