EBA responded to the EC consultation on the proposed new consumer agenda to express support for harmonization of the creditworthiness assessment process for consumer lending across EU; this includes the introduction of standards for the data and creditworthiness assessment process. The EBA response focuses on the revision of the Consumer Credit Directive (CCD or Directive 2008/48/EC) and builds on the recent EBA guidelines on loan origination and monitoring.
In its response, EBA calls for the introduction of binding principles on responsible lending such as an obligation to take into account target consumer interests, objectives, and characteristics when designing credit products. The response aims at reinforcing the requirements, for assessing the creditworthiness of borrowers, that are set out in the guideless and, thus, contributing to the EC’s planned changes to the CCD. In June 2020, EC had consulted on the new consumer agenda that, among other topics, contained a number of questions regarding the CCD. The questions also contained a series of proposals regarding the harmonization of the creditworthiness assessment of a borrower, which is a topic that EBA has addressed in the guidelines on loan origination and monitoring (EBA/GL/2020/06).
Keywords: Europe, EU, Banking, Credit Assessment, Consumer Credit, Consumer Credit Directive, Loan Origination, Credit Risk, EBA, EC
APRA issued a letter on the loss-absorbing capacity (LAC) requirements for domestic systemically important banks (D-SIBs) and published a discussion paper, along with the proposed the prudential standards on financial contingency planning (CPS 190) and resolution planning (CPS 900).
The European Commission (EC) launched a call for evidence, until March 18, 2022, as part of a comprehensive review of the macro-prudential rules for the banking sector under the Capital Requirements Regulation (CRR) and Directive (CRD IV).
The Financial Stability Board (FSB) published a report that sets out good practices for crisis management groups.
The Australian Prudential Regulation Authority (APRA) found that Heritage Bank Limited had incorrectly reported capital because of weaknesses in operational risk and compliance frameworks, although the bank did not breach minimum prudential capital ratios at any point and remains well-capitalized.
The Office of the Superintendent of Financial Institutions (OSFI) released the annual report for 2020-2021.
Through a letter addressed to the banking sector entities, the Office of the Superintendent of Financial Institutions (OSFI) announced deferral of the domestic implementation of the final Basel III reforms from the first to the second quarter of 2023.
EIOPA recently published a letter in which EC is informing the European Parliament and Council that it could not adopt the set of draft regulatory technical standards for disclosures under the Sustainable Finance Disclosure Regulation (SFDR) within the stipulated three-month period, given their length and technical detail.
The Financial Conduct Authority (FCA) published the third in a series of policy statements that set out rules to introduce the UK Investment Firm Prudential Regime (IFPR), which will take effect on January 01, 2022.
The Australian Prudential Regulation Authority (APRA) published, along with a summary of its response to the consultation feedback, an information paper that summarizes the finalized capital framework that is in line with the internationally agreed Basel III requirements for banks.
The Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) issued a consultative report focusing on access to central counterparty (CCP) clearing and client-position portability.