International Regulatory Updates

The European Central Bank (ECB) today updated its recommendation to banks on dividend distributions. To boost banks’ capacity to absorb losses and support lending to households, small businesses and corporates during the coronavirus (COVID-19) pandemic, they should not pay dividends for the financ ...

The European Central Bank (ECB) today announced further measures to ensure that its directly supervised banks can continue to fulfil their role to fund households and corporations amid the coronavirus-related economic shock to the global economy. The ECB supports all initiatives aimed at providin ...

The European Central Bank (ECB) today announced a number of measures to ensure that its directly supervised banks can continue to fulfil their role in funding the real economy as the economic effects of the coronavirus (COVID-19) become apparent. “The coronavirus is proving to be a significant ...

The Executive Board of the European Central Bank (ECB) today announced a range of operational measures that it is taking as a precaution to protect its staff from risks associated with the spread of the coronavirus, COVID-19. All travel by Executive Board members and employees judged to be non-es ...

Today the European Central Bank (ECB) published for consultation a guide that outlines the methodology it uses to assess the internal models banks apply to calculate their exposure to counterparty credit risk (CCR). The guide also describes how the ECB will assess the advanced methods banks use to c ...

The European Central Bank (ECB) will examine 35 significant euro area banks as part of the 2020 EU-wide stress test coordinated by the European Banking Authority (EBA). In line with the EBA’s selection criteria, these banks, which are directly supervised by the ECB, represent about 70% of total eu ...

The European Central Bank (ECB) today published the outcomes of its 2019 Supervisory Review and Evaluation Process (SREP). The overall SREP requirements and guidance for Common Equity Tier 1 (CET1) capital remained stable at 10.6% in 2019, the same level as in 2018. CET1 is a bank’s highest-qualit ...

The European Central Bank (ECB) has today published a draft ECB Guideline on the definition of the materiality threshold for credit obligations past due for less significant institutions (LSIs). The definition will take the form of an ECB Guideline addressed to national competent authorities (NCA ...

Capital Adequacy The capital ratios for the aggregated group of significant institutions, i.e. the banks supervised by the ECB, increased slightly in the third quarter of 2019 compared with the previous quarter. The Common Equity Tier 1 (CET1) ratio stood at 14.37%, the Tier 1 ratio at 15.58% and ...

The number of banks that will be directly supervised by the European Central Bank (ECB) from 1 January 2020 has decreased to 117 from 119 a year earlier following the annual review of significance and ad hoc assessments. The changes are the result of new group structures, a licence withdrawal, busi ...