International Regulatory Updates

The European Central Bank (ECB) has imposed an administrative penalty of €3.755 million on Banque et Caisse d’Epargne de l’Etat, Luxembourg after the bank miscalculated, and therefore misreported, its risk-weighted assets for exposures to banks. In 2017 and 2018, for seven consecutive qua ...

The European Central Bank (ECB) has assessed that Sberbank Europe AG and its two subsidiaries in the banking union, Sberbank d.d. in Croatia and Sberbank banka d.d. in Slovenia, are failing or likely to fail owing to a deterioration of their liquidity situation. The Austrian parent bank Sberbank ...

The European Central Bank (ECB) has today published the results of its Supervisory Review and Evaluation Process (SREP) for 2021. The findings of that annual assessment indicate that significant institutions have maintained solid capital and liquidity positions, with most banks operating at capital ...

The European Central Bank (ECB) sees no need to allow banks to operate below the level of capital defined by their Pillar 2 Guidance beyond December 2022, nor to extend beyond March 2022 the supervisory measure that allows them to exclude central bank exposures from their leverage ratios. “The ...

The three European Supervisory Authorities (EBA, EIOPA and ESMA) published today a joint report in response to the European Commission’s February 2021 Call for Advice on Digital Finance. The proposals that were put forward aim at maintaining a high level of consumer protection and addressing risks ...

The European Central Bank (ECB) today launched a supervisory climate risk stress test to assess how prepared banks are for dealing with financial and economic shocks stemming from climate risk. The exercise will be conducted in the first half of 2022 after which the ECB will publish aggregate result ...

The European Banking Authority (EBA) published today its final draft implementing technical standards (ITS) on Pillar 3 disclosures on Environmental, Social and Governance (ESG) risks. The final draft ITS put forward comparable disclosures to show how climate change may exacerbate other risks within ...

Capital Adequacy The aggregate capital ratios of significant institutions (i.e. those banks that are supervised directly by the ECB) decreased slightly in the third quarter of 2021. The aggregate Common Equity Tier 1 (CET1) ratio stood at 15.47%, the aggregate Tier 1 ratio stood at 16.79% and the ...

The European Banking Authority (EBA) today published its quarterly Risk Dashboard together with the results of the autumn edition of the Risk Assessment Questionnaire (RAQ). The NPL ratio declined to 2.1% and the stage 2 ratio contracted to 8.7%. Return on equity (RoE) was reported higher than pre-p ...

The European Insurance and Occupational Pensions Authority (EIOPA) published today the results of its 2021 Insurance Stress Test in which it assessed the industry’s resilience to a prolonged COVID-19 scenario in a “lower for longer” interest rate environment. In the 2021 Insurance Stress ...