BDE has decided to maintain the countercyclical capital buffer (CCyB) rate applicable to credit exposures in Spain at 0% in the fourth quarter of 2020. To alleviate the impact of the COVID-19 shock, the provision of lending to the real economy by credit institutions is an essential component of the strategy. Consequently, BDE has decided to maintain the CCyB rate at the minimum level of 0%. BDE maintains its forward-looking stance of not increasing the CCyB rate over the coming quarters, at least until the main economic and financial effects arising from the COVID-19 crisis have dissipated.
In addition, the Executive Committee of BDE, at its meeting of October 02, 2020, has determined the existence of exceptional macroeconomic circumstances, referred to in an article of the Capital Requirements Regulation (CRR), which justify that the less significant Spanish credit institutions may exclude certain exposures to Eurosystem central banks from the total exposure (denominator) of the leverage ratio. In particular, these institutions may exclude coins and banknotes of legal tender in the jurisdiction of the central bank and assets that represent credits to the central bank, including reserves therein. Regarding the latter assets, the exclusion may only apply to exposures that ECB has identified as relevant for the transmission of monetary policy, in its Decision of September 16, 2020 (ECB/2020/44); this includes the deposits held in the deposit facility and the balances held in the reserve accounts, including those that cover the minimum reserve requirements. Less significant Spanish credit institutions may make use of this exclusion, from the report corresponding to the third quarter of 2020 until June 27, 2021.
Related Links (in Spanish)
Keywords: Europe, Spain, Banking, COVID-19, CCyB, CRR, Basel, Leverage Ratio, Regulatory Capital, Less Significant Institutions, ECB, BDE
Previous ArticlePRA Consults on Stressed VaR and RNIV Calculations Under Market Risk
The European Commission (EC) published the Delegated Regulation 2022/786 with regard to the liquidity coverage requirements for credit institutions under the Capital Requirements Regulation (CRR).
The European Banking Authority (EBA) published the final draft regulatory technical standards specifying the criteria to identify shadow banking entities for the purposes of reporting large exposures.
The European Insurance and Occupational Pensions Authority (EIOPA) published a report assessing insurers' exposure to physical climate change risks
The European Commission (EC) published the results of a public consultation, held in October 2021, on the review of the Web Accessibility Directive.
The Network for Greening the Financial System (NGFS) published two reports to aid central banks and regulators in their oversight of the financial sector and in their central bank operations
The Monetary Authority of Singapore (MAS) and the SC-STS are jointly consulting, until June 10, 2022, on setting adjustment spreads for the conversion of legacy SOR contracts to SORA reference rate.
The Office of the Superintendent of Financial Institutions (OSFI) published the strategic plan for 2022-2025 and the departmental plan for 2022-23.
The European Banking Authority (EBA) is consulting, until August 31, 2022, on the draft implementing technical standards specifying requirements for the information that sellers of non-performing loans (NPLs) shall provide to prospective buyers.
The European Council and the Parliament reached an agreement on the revised Directive on security of network and information systems (NIS2 Directive).
The European Banking Authority (EBA) published the final draft regulatory technical standards specifying information that crowdfunding service providers shall provide to investors on the calculation of credit scores and prices of crowdfunding offers.