Prudential Regulation Review


Prudential Regulation Review 

August 2019

Prudential Regulatory Review is a monthly newsletter dedicated to summarising all major risk and regulatory updates.

Prudential Regulation Review - latest edition

August, as always, is a relatively quiet month on the regulatory front, but we, nevertheless saw a number of interesting developments.

In Ireland, A Financial Stability Note by Silvia Calo and Valerie Herzberg was released, examining the future of Global Financial Centres post Brexit from an EU perspective. The Regulatory Service Standard Performance Report for the first half of 2019 was issued, setting out the Central Bank of Ireland’s commitments for authorisation and fitness and probity application processing timeframes quality standards.

The EBA published the first part of its impact assessment and recommendations on the EU implementation of the final Basel III framework. This came in five documents: its impact study and key recommendations; and its policy advice on securities financing transactions, operational risk, the output floor, and credit risk. The EBA also published a letter from Olivier Guersent, Director General of DG FISMA, to Jose Manuel Campa, EBA Chairman, regarding areas where DG FISMA has requested further analysis to be included in the second part of the Call for Advice. The EBA's quantitative impact analysis shows a projected 24.4% aggregate increase in minimum required capital (MRC) for all EU banks, with a 25% increase for large banks and a 28.6% increase for EU G-SIBs. The EBA analysis shows the main drivers of MRC increases to be the output floor and operational risk. The EBA will publish a follow up report in September 2019 containing more detailed analysis of the market risk and CVA frameworks.

Other topics covered include:

  • Banking 
  • Capital Markets
  • Central Bank of Ireland

Prudential Regulation Review August 2019

EMEA Centre of Regulatory Strategy

If you would like to contact a member of the EMEA Centre for Regulatory Strategy then please click on the below links:

Rod Hardcastle - Director, Centre for Regulatory Strategy UK

John Andrews - Senior Manager, Centre for Regulatory Strategy UK

Did you find this useful?