The European Commission, or EC, finalized the Implementing Regulation 2021/2017 with respect to the benchmark portfolios, reporting templates, and reporting instructions for the supervisory benchmarking of internal approaches for calculating own funds requirements. Regulation 2021/2017 amends Regulation 2016/2070 in reference to the reporting rules specified in Article 78(2) of the Capital Requirements Directive (2013/36/EU). CRD requires institutions to submit the results of their calculations, along with an explanation of the methodologies used to produce them, to the competent authorities at an appropriate frequency and at least annually. Regulation 2021/2017, which is based on the draft implementing technical standards that the European Banking Authority submitted to the European Commission, shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union.
Given that institutions have to submit the results of their annual calculations at least annually and that the focus of the competent authorities’ assessments and of the reports of the European Banking Authority (EBA) have changed, exposures or positions that are included in the benchmark portfolios, and therefore also reporting requirements, need to be adapted. Thus, it was appropriate to amend Annexes I to VII to the Implementing Regulation 2016/2070. Additionally, two new Annexes have been added in Regulation 2021/2017, one with the templates for reporting the International Financial Reporting Standard 9 (IFRS 9) impact and the other with the instructions for completing those templates. The IFRS 9 standard had introduced new rules for the measurement of credit losses, and, as a result, directly impacts on the amount of own funds and regulatory ratios reported.
Effective Date: December 16, 2021
Keywords: Europe, EU, Banking, Regulatory Capital, CRR, Basel, Credit Risk, Supervisory Benchmarking, SBP, Reporting, CRD, Counterparty Credit Risk, IFRS 9, Expected Credit Loss, EC
Previous ArticleEBA Publishes Single Rulebook Q&A Updates in November 2021
Next ArticleAPRA Finalizes Capital Adequacy Standards for Banks
The Board of Governors of the Federal Reserve System (FED) published the final rule that amends Regulation I to reduce the quarterly reporting burden for member banks by automating the application process for adjusting their subscriptions to the Federal Reserve Bank capital stock, except in the context of mergers.
The European Banking Authority (EBA) published its assessment of risks through the quarterly Risk Dashboard and the results of the Autumn edition of the Risk Assessment Questionnaire (RAQ).
The Malta Financial Services Authority (MFSA) updated the guidelines on supervisory reporting requirements under the reporting framework 3.0.
The Hong Kong Monetary Authority (HKMA) published a circular, along with the reporting form and instructions, for self-assessment, by authorized institutions, of compliance with the Code of Banking Practice 2021.
The Financial Conduct Authority (FCA) decided to register European DataWarehouse Ltd and SecRep Limited as securitization repositories under the UK Securitization Regulation, with effect from January 17, 2022.
The European Commission (EC) published the Delegated Regulation 2022/25, which supplements the Investment Firms Regulation (IFR or Regulation 2019/2033) with respect to the regulatory technical standards specifying the methods for measuring the K-factors referred to in Article 15 of the IFR.
The Bank of International Settlements (BIS) published a paper that assesses the ways in which platform-based business models can affect financial inclusion, competition, financial stability and consumer protection.
The Central Bank of Egypt (CBE) published a circular with instructions on emergency liquidity assistance to banks that are unable to meet their liquidity requirements.
The European Supervisory Authorities (ESAs) published the list of identified financial conglomerates for 2021.
The Australian Prudential Regulation Authority (APRA) updated the list of authorized deposit-taking institutions, granting license to Barclays Bank PLC and Crédit Agricole Corporate and Investment Bank to operate as foreign authorized deposit-taking institutions under the Banking Act 1959.