DNB Publishes Multiple Regulatory Updates for Banks
DNB, the central bank of Netherlands, published an updated list of additional data requests for banks. The updated data request, which has been highlighted with the word "UPDATE" in red, is related to Basel III monitoring quantitative impact study. DNB also announced that the reporting templates and filing indicators for quarterly reporting of minimum own funds and eligible liabilities/total loss absorbing capacity (MREL-TLAC) are now available in the Digital Reporting Portal (DLR). The reporting deadline for reference period June 30, 2021 (second quarter of 2021) is September 30, 2021. Banks within the scope of this report have been informed by DNB.
Additionally, DNB and 24 other national central banks and financial supervisory authorities in the European Union issued a letter to the European Commission (EC) for full, consistent, and timely implementation of the Basel III accord. The letter notes that EC is preparing a legislative proposal to implement the final parts of the globally agreed Basel III framework for banks. It further highlights that it is in the long-term interests of the European Union to implement the globally agreed standards, including all aspects of the Basel III agreement. This has three important implications:
- The output floor should be implemented as agreed in Basel, with all risk-based capital measures and buffers calculated on the basis of one single set of risk-weighted assets. This has several benefits. It is simple and transparent, reduces the variability of risk-weighted assets, and builds confidence in banks’ capital structures. It also improves the level playing field between banks using internal models and banks using standardized models, as well as between different banks using internal models worldwide. A parallel stack approach to the output floor does not attain these benefits and therefore should not be pursued.
- The new standardized approach for credit risk should be implemented as agreed globally. This new approach is more risk-sensitive than the old one and it entails a delicate balance between the risks in different exposure types.
- European Union should refrain from making further exemptions from Basel III or from making the banking regulatory framework more complex. Deviations specific to the European Union should be minimized and the existing deviations from Basel should be re-assessed.
- Update on Additional Data Requests
- Overview of Additional Data Requests (PDF)
- Notification on MREL-TLAC Reporting
- Reporting Templates and Filing Indicators (XLSX)
- Notification on Implementation of Basel III
- Joint Letter to EC (PDF)
Keywords: Europe, Netherlands, Banking, Reporting, Basel, Regulatory Capital, DLR, MREL, TLAC, Credit Risk, Standardized Approach, Output Floor, EBA, DNB, EC
Skilled market researcher; growth strategist; successful go-to-market campaign developer
Works with financial institutions, regulatory experts, business analysts, product managers, and software engineers to drive regulatory solutions across the globe.
Applies proficiency and knowledge to regulatory capital and reporting analysis and coordinates business and product strategies in the banking technology area
Previous ArticleACPR Issues Update on Reporting with Legal Entity Identifier
FINMA Approves Merger of Credit Suisse and UBS
The Swiss Financial Market Supervisory Authority (FINMA) has approved the takeover of Credit Suisse by UBS.
BOE Sets Out Its Thinking on Regulatory Capital and Climate Risks
The Bank of England (BOE) published a working paper that aims to understand the climate-related disclosures of UK financial institutions.
OSFI Finalizes on Climate Risk Guideline, Issues Other Updates
The Office of the Superintendent of Financial Institutions (OSFI) is seeking comments, until May 31, 2023, on the draft guideline on culture and behavior risk, with final guideline expected by the end of 2023.
APRA Assesses Macro-Prudential Policy Settings, Issues Other Updates
The Australian Prudential Regulation Authority (APRA) published an information paper that assesses its macro-prudential policy settings aimed at promoting stability at a systemic level.
BIS Paper Examines Impact of Greenhouse Gas Emissions on Lending
BIS issued a paper that investigates the effect of the greenhouse gas, or GHG, emissions of firms on bank loans using bank–firm matched data of Japanese listed firms from 2006 to 2018.
HMT Mulls Alignment of Ring-Fencing and Resolution Regimes for Banks
The HM Treasury (HMT) is seeking evidence, until May 07, 2023, on practicalities of aligning the ring-fencing and the banking resolution regimes for banks.
MFSA Sets Out Supervisory Priorities, Issues Reporting Updates
The Malta Financial Services Authority (MFSA) outlined its supervisory priorities for 2023
German Regulators Issue Multiple Reporting Updates for Banks
Deutsche Bundesbank published the nationally deactivated validation rules for the German Commercial Code (HGB) users on the taxonomy 3.2, which became valid from December 31, 2022
BCBS Report Examines Impact of Basel III Framework for Banks
The Basel Committee on Banking Supervision (BCBS) published results of the Basel III monitoring exercise based on the June 30, 2022 data.
PRA Consults on Prudential Rules for "Simpler-Regime" Firms
Among the recent regulatory updates from UK authorities, a key development is the first-phase consultation, from the Prudential Regulation Authority (PRA), on simplifications to the prudential framework that would apply to the simpler-regime firms.