BaFin published a consultation (14/2020) that sets out amendments to the minimum requirements for risk management (MaRisk). Comments are requested until December 04, 2020. The amendments to the minimum requirements for risk management implement the EBA guidelines on management of non-performing and forborne exposures (EBA/GL/2018/06), outsourcing (EBA/GL/2019/02), and information and communication technology (ICT) and security risk management (EBA/GL/2019/04). In addition, BaFin is consulting on amendments to the circular on banking supervisory requirements for IT (BAIT). The amendments adopt the EBA guidelines on ICT and security risk management. BaFin and Bundesbank are accepting feedback until November 23, 2020.
The guidelines on management of non-performing and forborne exposures require adjustments to the minimum requirements for risk management, particularly in sections related to strategy for risk management and requirements for the process in lending business. With respect to the EBA guidelines on outsourcing, requirements for risk analysis, design of the outsourcing agreement, and controlling and monitoring the risks of outsourcing agreements have been incorporated or specified. The section on emergency management has been revised in relation to guidelines on ICT and security risk management. The effectiveness and appropriateness of the emergency plan must be checked regularly. In addition, further changes are being made to the minimum requirements for risk management where they appear necessary due to supervisory practice. Updates are made, for example, in the areas of operational risks, trading transactions, liquidity, and risk-bearing capacity.
Related Links (in German)
- Press Release on MaRisk
- Press Release on BAIT
- Consultation on MaRisk (PDF)
- Consultation on BAIT (PDF)
- Overview of Consultation on MaRisk
- Overview of Consultation on BAIT
Comment Due Date: December 04, 2020/November 23, 2020
Keywords: Europe, Germany, Banking, Outsourcing, NPL, NPE, ICT Risk, Credit Risk, EBA, BaFin
Previous ArticleFASB Consults on XBRL US DQC Rules Taxonomy and Technical Guides
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.
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.
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.
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
The Office of the Superintendent of Financial Institutions (OSFI) published an annual report on its activities, a report on forward-looking work.
The Australian Prudential Regulation Authority (APRA) finalized amendments to the capital framework, announced a review of the prudential framework for groups.
The Bank for International Settlements (BIS) Innovation Hubs and several central banks are working together on various central bank digital currency (CBDC) pilots.
The European Central Bank (ECB) published the results of its thematic review, which shows that banks are still far from adequately managing climate and environmental risks.
Among its recent publications, the European Banking Authority (EBA) published the final standards and guidelines on interest rate risk arising from non-trading book activities (IRRBB)
The European Commission (EC) recently adopted regulations with respect to the calculation of own funds requirements for market risk, the prudential treatment of global systemically important institutions (G-SIIs)