International Regulatory Updates

The European Banking Authority (EBA) published today the findings of its first EU-wide pilot exercise on climate risk, whose main objective is to map banks’ exposures to climate risk and provide an insight into the green estimation efforts banks have carried out so far. The findings give a clear p ...

The European Central Bank (ECB) today announced its decision to start ensuring that the banks it directly supervises comply with the requirements for risk retention, transparency and resecuritisation, which are set out under Articles 6 to 8 of the EU Securitisation Regulation [1]. The decision fo ...

The European Central Bank (ECB) today published the results of its targeted review of internal models (TRIM). Large and more complex banks typically use internal models to determine some of their risk-weighted assets, which serve as a basis for banks to calculate their capital needs. This rev ...

The European Banking Authority (EBA) published today its Risk Dashboard for the last quarter of 2020. The data show a rise in capital ratios, a contraction of the NPL ratio and a return on equity (RoE) significantly below banks’ cost of equity. Besides asset quality and profitability, operational ...

The European Central Bank (ECB) announced today that it will charge banks total fees of €514.3 million for the 2020 fee period. Overall supervisory costs last year stood at €535.3 million, a very slight decrease of 0.3% compared with 2019. After adjusting for a surplus of €22.0 million carried ...

The European Central Bank (ECB) is today publishing a Guide to the method of setting administrative pecuniary penalties that outlines the principles and methods for calculating the penalties used to sanction banks for breaches of prudential requirements. The publication marks a further step forward ...

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

The European Banking Authority (EBA) published today an Opinion in response to the Commission’s call for advice on KPIs and related methodology for the disclosure by credit institutions and by investment firms of information on how and to what extent their activities qualify as environmentally sus ...

In line with its new Memorandum of Understanding (MoU) publication policy, the European Central Bank (ECB) today published its MoU on post-Brexit supervisory cooperation with the UK authorities, effective from 1 January 2021. The agreement with the Prudential Regulation Authority and the Financial C ...

The European Central Bank (ECB) will examine 38 significant euro area banks as part of the 2021 EU-wide stress test coordinated by the European Banking Authority (EBA). In line with the EBA’s selection criteria, these banks represent broadly 70% of total euro area banking assets. The EU-wide ex ...