FIN-FSA decided to maintain the countercyclical capital buffer (CCyB) requirement for credit institutions at 0% and the maximum loan-to-collateral ratio at the statutory standard level of 90% for residential mortgage loans other than first-home loans. The FIN-FSA Board also decided not to extend validity of the risk-weight floor requirement for housing loans, which expires on January 01, 2021. The minimum risk-weight level of 15% was set in June 2017. However, at present, average risk-weights on residential mortgage loans of Finnish banks exceed the 15% limit, which is why it was decided not to extend the validity of the risk-weight floor. According to another announcement, FIN-FSA launched a reform of the reporting system for the financial standing and risks of supervised entities. The tendering phase for the reporting system is underway, with the system supplier expected to be selected during Spring 2021.
The reporting system reform will cover data collections for EBA, EIOPA, ESMA, and national (Virati) requirements. The data collections will be transferred gradually to the new reporting system during 2022–2023. A more detailed schedule will be known after the system vendor has been selected. In the new reporting system, reporters will have access to a "reporter portal," in which Finnish and foreign reporters will be authenticated and authorized via the suomi.fi service. The reporting obligations for each reporter will be visible in the "reporter portal." It will also be possible to submit reports to the FIN-FSA via an interface (A2A) provided for the reporter. Reporting feedback on a submitted report will be provided via both the "reporter portal" and the interface (A2A). In the new Reporting System, national reporting will continue to be in CSV format. In a separate statement on the use of testing environment for reporting, FIN-FSA notified that reporters may submit their reports to the testing environment, provided by FIN-FSA, for checking before submitting the official report to the FIN-FSA. It is possible for reporters to receive automatic feedback from the testing environment on format errors present in reports and on reporting that violates EBA and EIOPA filing rules. It is also possible to receive feedback from the testing environment about incorrect validations.
- Press Release on Macro-Prudential Decisions
- Press Release on Reporting System Reform
- Press Release on Testing Environment for Reporting
Keywords: Europe, Finland, Banking, Insurance, Securities, Reporting, CCyB, Loan to Collateral Ratio, Systemic Risk, Regulatory Capital, Macro-Prudential Policy, Basel, FIN-FSA
FDIC is seeking comments on a rule to amend the interagency guidelines for real estate lending policies—also known as the Real Estate Lending Standards.
ISDA is consulting on the implementation of fallbacks for the sterling LIBOR ICE Swap Rate and for the USD LIBOR ICE Swap Rate.
BIS and BoE launched the BIS Innovation Hub Center in London, which is the fourth new Innovation Hub Centre to be opened in the past two years.
ESRB published recommendations on the reciprocation of macro-prudential measures in Belgium, France, Luxembourg, Norway, and Sweden.
SEC announced that the Office of Information and Regulatory Affairs released the Spring 2021 Unified Agenda of Regulatory and Deregulatory Actions.
EC published the Delegated Regulation 2021/931, which supplements the Capital Requirements Regulation (CRR or Regulation 575/2013) with regard to the regulatory technical standards specifying the method for identifying derivative transactions with one or more than one material risk driver.
BCBS is consulting on preliminary proposals for the prudential treatment of cryptoasset exposures of banks.
EBA issued a revised list of validation rules under the implementing technical standards on supervisory reporting.
BIS Innovation Hub, BDF, and SNB announced that, together with a private-sector consortium led by Accenture, they will conduct an experiment using wholesale central bank digital currency (wCBDC) for cross-border settlement.
ESAs published two amended implementing technical standards on the mapping of credit assessments of External Credit Assessment Institutions (ECAIs).