Deutsche Bundesbank published results of the Basel III monitoring exercise and the 2022 stress test exercise for less significant institutions, along with the plausibility checks under the securities holdings statistics (SHS) reporting. Additionally, BaFin, the Federal Financial Supervisory Authority of Germany proposed the minimum requirements for risk management and announced a decision on the reciprocation of a Dutch macro-prudential measure, a Circular on reporting serious payment security incidents, and a statement from the Financial Stability Committee on the stability and resilience of the financial sector in Germany.
Below is a summary of the key updates:
- Bundesbank published the plausibility checks for "securities investment statistics" (SHS) for sector data as well as the FINREP checks for "securities investment statistics" for group data. The included plausibility checks are performed immediately after the electronic submission of the XML file via Bundesbank ExtraNet. An error in one of the plausibility checks leads to the rejection of the submitted report and the delivery of a corresponding error log. Securities investment statistics collect securities holder information about sector and group data. The SHS Group data collection provides information on holdings of securities by individual banking groups. SHS, collected on a security-by-security basis, provides information on securities held by selected categories of euro area investors, broken down by instrument type, issuer country, and further classifications.
- BaFin proposed the the seventh amendment to the circular on minimum requirements for risk management, with the comment period ending on October 28, 2022. The draft circular implements the guidelines of the European Banking Authority for lending and monitoring. incorporates findings from the audit practice on real estate transactions of institutions, and includes specific requirements for the management of the environmental, social, and governance (ESG) risks. The new version of the minimum requirements for risk management will replace the currently valid Circular 10/2021.
- BaFin announced its decision to reciprocate a macro-prudential measure of the Dutch central bank DNB in line with a February 2022 recommendation from the European Systemic Risk Board or ESRB. The measure applies to institutions with permission to use the internal ratings-based (IRB) approach and stipulates that these institutions must comply with a minimum average risk-weight in relation to their exposures secured by Dutch residential real estate. The measure affects IRB approach institutions whose relevant risk positions have a value of more than EUR 5 billion.
- With respect to the reporting of serious payment security incidents, BaFin is set to replace Circular 08/2018 with a new Circular 03/2022, with effect from October 01, 2022. The new circular adjusts the criteria for a reportable operational or security incident to ensure that more incidents that are relevant to supervision and less unimportant are reported. The new circular also sets out revisions to the standard forms that payment service providers use for their reports.
Related Links (in German)
- Results of Basel III Monitoring
- Results of Stress Tests
- SHS Reporting Page
- Plausibility Checks for SHS Sector Data (PDF)
- FINREP Checks for Group Data (XLSX)
- Proposal on Risk Management Requirements
- Reciprocation of Macro-Prudential Measure
- Reporting Serious Payment Security Incidents
- Statement on Resilience of Financial Sector
Keywords: Europe, Germany, Banking, Stress Testing, Basel, Less Significant Institutions, Climate Change Risk, Lending, Credit Risk, Residential Real Estate, IRB Approach, Reporting, Plausibility Checks, FINREP, ESG, RRE, Regulatory Capital, BaFin, Bundesbank
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