NBB Amends Guidelines on Use of Counterparty Identification Codes
NBB published a communication on amendments to the existing national guidelines on the use of counterparty identification codes in the EBA reporting framework. Considering the recent clarifications on the use of counterparty identification codes in various tables in the new version of the EBA implementing technical standards on supervisory reporting, NBB wishes to amend these national guidelines to complement the European guidelines. This communication will apply from the reporting reference date of June 30, 2021.
In addition to the new requirements on identification codes, NBB is requesting the concerned institutions to apply the following “cascade system”:
- Institutions are asked to always provide a Legal Entity Identifier, or LEI, code to identify their counterparties in the reporting (insofar as a LEI code is available for these counterparties)
- If there is no LEI code available for a counterparty, a national code should be used. For Belgian counterparties, this should be the Crossroads Bank for Enterprises (CBE) number
- Only if there is no LEI or national code (the CBE number for Belgian counterparties) available for a counterparty, an internal code will be requested. In that case, institutions will be asked to use the existing "Gggg(g)(g) code" (as provided for in Communication NBB_2014_05 on the use of counterparty identification codes).
In a separate circular, NBB specified that it is integrating the EBA guidelines on tri-party repurchase agreements (EBA/GL/2021/01) into its supervisory practice. The EBA guidelines specify conditions for the application of alternative treatment of exposures related to tri-party repurchase agreements for large exposure purposes, as set out in the Capital Requirements Regulation (CRR). These guidelines will apply from June 28, 2021.
Related Links
- Communication on Identification Codes (PDF in English)
- Circular on Application of EBA Guidelines (in French)
Keywords: Europe, Belgium, Banking, Reporting, LEI, Large Exposures, Basel, CRR, Credit Risk, Repo, Triparty Repo, EB
Featured Experts
María Cañamero
Skilled market researcher; growth strategist; successful go-to-market campaign developer
Nicolas Degruson
Works with financial institutions, regulatory experts, business analysts, product managers, and software engineers to drive regulatory solutions across the globe.
Scott Dietz
Scott is a Director in the Regulatory and Accounting Solutions team responsible for providing accounting expertise across solutions, products, and services offered by Moody’s Analytics in the US. He has over 15 years of experience leading auditing, consulting and accounting policy initiatives for financial institutions.
Previous Article
BoE and PRA Revise Resolution Policy for BanksRelated Articles
BIS and Central Banks Experiment with GenAI to Assess Climate Risks
A recent report from the Bank for International Settlements (BIS) Innovation Hub details Project Gaia, a collaboration between the BIS Innovation Hub Eurosystem Center and certain central banks in Europe
Nearly 25% G-SIBs Commit to Adopting TNFD Nature-Related Disclosures
Nature-related risks are increasing in severity and frequency, affecting businesses, capital providers, financial systems, and economies.
Singapore to Mandate Climate Disclosures from FY2025
Singapore recently took a significant step toward turning climate ambition into action, with the introduction of mandatory climate-related disclosures for listed and large non-listed companies
SEC Finalizes Climate-Related Disclosures Rule
The U.S. Securities and Exchange Commission (SEC) has finalized the long-awaited rule that mandates climate-related disclosures for domestic and foreign publicly listed companies in the U.S.
EBA Proposes Standards Related to Standardized Credit Risk Approach
The European Banking Authority (EBA) has been taking significant steps toward implementing the Basel III framework and strengthening the regulatory framework for credit institutions in the EU
US Regulators Release Stress Test Scenarios for Banks
The U.S. regulators recently released baseline and severely adverse scenarios, along with other details, for stress testing the banks in 2024. The relevant U.S. banking regulators are the Federal Reserve Bank (FED), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC).
Asian Governments Aim for Interoperability in AI Governance Frameworks
The regulatory landscape for artificial intelligence (AI), including the generative kind, is evolving rapidly, with governments and regulators aiming to address the challenges and opportunities presented by this transformative technology.
EBA Proposes Operational Risk Standards Under Final Basel III Package
The European Union (EU) has been working on the final elements of Basel III standards, with endorsement of the Banking Package and the publication of the European Banking Authority (EBA) roadmap on Basel III implementation in December 2023.
EFRAG Proposes XBRL Taxonomy and Standard for Listed SMEs Under ESRS
The European Financial Reporting Advisory Group (EFRAG), which plays a crucial role in shaping corporate reporting standards in European Union (EU), is seeking comments, until May 21, 2024, on the Exposure Draft ESRS for listed SMEs.
ECB to Expand Climate Change Work in 2024-2025
Banking regulators worldwide are increasingly focusing on addressing, monitoring, and supervising the institutions' exposure to climate and environmental risks.