Featured Product

    German Authorities Issue Reporting and Regulatory Updates for Banks

    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)

     

     

    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

    Featured Experts
    Related Articles
    News

    ESAs Issue Multiple Regulatory Updates for Financial Sector Entities

    The three European Supervisory Authorities (ESAs) issued a letter to inform about delay in the Sustainable Finance Disclosure Regulation (SFDR) mandate, along with a Call for Evidence on greenwashing practices.

    November 15, 2022 WebPage Regulatory News
    News

    FSB and NGFS Publish Initial Findings from Climate Scenario Analyses

    The Financial Stability Board (FSB) and the Network for Greening the Financial System (NGFS) published a joint report that outlines the initial findings from climate scenario analyses undertaken by financial authorities to assess climate-related financial risks.

    November 15, 2022 WebPage Regulatory News
    News

    FSB Issues Reports on NBFI and Liquidity in Government Bonds

    The Financial Stability Board (FSB) published a letter intended for the G20 leaders, highlighting the work that it will undertake under the Indian G20 Presidency in 2023 to strengthen resilience of the financial system.

    November 14, 2022 WebPage Regulatory News
    News

    ISSB Makes Announcements at COP27; IASB to Propose IFRS 9 Amendments

    The International Sustainability Standards Board (ISSB) of the IFRS Foundations made several announcements at COP27 and with respect to its work on the sustainability standards.

    November 10, 2022 WebPage Regulatory News
    News

    IOSCO Prioritizes Green Disclosures, Greenwashing, and Carbon Markets

    The International Organization for Securities Commissions (IOSCO), at COP27, outlined the regulatory priorities for sustainability disclosures, mitigation of greenwashing, and promotion of integrity in carbon markets.

    November 09, 2022 WebPage Regulatory News
    News

    EBA Finalizes Methodology for Stress Tests, Issues Other Updates

    The European Banking Authority (EBA) issued a statement in the context of COP27, clarified the operationalization of intermediate EU parent undertakings (IPUs) of third-country groups

    November 09, 2022 WebPage Regulatory News
    News

    EU Finalizes Rules Under Crowdfunding Service Providers Regulation

    The European Union has finalized and published, in the Official Journal of the European Union, a set of 13 Delegated and Implementing Regulations applicable to the European crowdfunding service providers.

    November 08, 2022 WebPage Regulatory News
    News

    OSFI Sets Out Work Priorities and Reporting Updates for Banks

    The Office of the Superintendent of Financial Institutions (OSFI) published an annual report on its activities, a report on forward-looking work.

    November 07, 2022 WebPage Regulatory News
    News

    APRA Finalizes Changes to Capital Framework, Issues Other Updates

    The Australian Prudential Regulation Authority (APRA) finalized amendments to the capital framework, announced a review of the prudential framework for groups.

    November 03, 2022 WebPage Regulatory News
    News

    BIS Hub and Central Banks Conduct CBDC and DeFI Pilots

    The Bank for International Settlements (BIS) Innovation Hubs and several central banks are working together on various central bank digital currency (CBDC) pilots.

    November 03, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8596