Deloitte Banking Alert Archive

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ECB and SRB welcome the new legislative proposal on bank crisis management and deposit insurance framework

The European Commission has adopted in April a legislative proposal to adjust and further strengthen the EU's existing bank crisis management and deposit insurance (CMDI) framework, with a focus on medium sized and smaller banks.

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European Supervisory Authorities (ESAs): proposed amendments to the Delegated Regulation of the Sustainable Finance Disclosure Regulation (SFDR)

The ESAs (European Banking Authority, the European Insurance and Occupational Pensions Authority and the European Securities and Markets) are proposing changes to the disclosure framework to address issues that have emerged since the introduction of SFDR.

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Council of the EU adopts rules which will make crypto-asset transfers traceable

The EU is making it more difficult for criminals to avoid anti-money laundering (AML) rules via crypto currencies. On 16th of May, the Council adopted updated rules on information accompanying the transfers of funds by extending the scope of the rules to transfers of crypto assets.

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New EU measures against money laundering and terrorist financing

On 28th of March, MEPs from the Economic and Monetary Affairs and Civil Liberties, Justice and Home Affairs committees adopted their position on three pieces of draft legislation on the financing provisions of EU Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) policy.

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UK regulator attacks ‘unacceptable’ risk posed by payments groups

Matthew Long, Director of Payments and Digital Assets at the Financial Conduct Authority (FCA), criticized payments companies for not adequately safeguarding clients’ money or conducting anti-money laundering checks and for failures of governance. 

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Remote identification of customers in Moldova & other AML provisions, drafted with USAID support, adopted by the Moldovan Parliament in the final reading

Legislative amendments in the field of Anti-Money Laundering/Countering the Financing of Terrorism (AML/CFT), which will allow the onboarding of the customers of financial institutions to be carried out online, have been adopted by the Moldovan Parliament in the final reading.

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The EU’s Banking Package nears the finishing line: what happens now?

The “Banking Package” is the most important piece of bank prudential legislation proposed in the EU in the last decade. It includes revisions to the Capital Requirements Directive and Regulation (known as CRD6/CRR3) that implement the finalized Basel 3 reforms in the EU.

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EBA benchmarking the diversity practices and gender pay gap

Gender equality is a core value of the EU, established as a fundamental right in the EU treaties. Since 2015, the EBA has been collecting data on credit institutions and investment firms’ diversity policies, the composition of the management body

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The EU includes additional 87 individuals and 34 entities to the EU’s sanctions list as part of the 10th package of sanctions on Russia’s war of aggression against Ukraine

In this alert, you will read more about other sanctioned entities, conclusions and how can Deloitte help.

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Council of the EU adds four new members to the EU list of non-cooperative jurisdictions for tax purposes

The EU continues to promote fair tax competition and addresses harmful tax practices. On 14th of February, the Council decided to add the following jurisdictions to the EU list of non-cooperative jurisdictions for tax purposes: British Virgin Islands, Costa Rica, Marshall Islands, and Russia.

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New EBA Guidelines of the write-down and conversion and bail-in exchange mechanic

The European Banking Authority published on 13th of February its final Guidelines to resolution authorities on the publication of the write-down and conversion and bail-in exchange mechanic.

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EBA launches 2023 EU-wide stress test

At the end of last month, the European Banking Authority launched the 2023 EU-wide stress testing programme. This year’s exercise is set out to be one of the most demanding one of the last years, covering a large sample of banks and around 75% of total bank assets in the EU. 

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SSM Supervisory Priorities for 2023-2025 – Key highlights and areas of supervisory scrutiny for banks

The updated planning reflects the progress achieved by supervisors in addressing the vulnerabilities and risks that were prioritized in previous years.

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Financial Markets Regulatory Outlook 2023 – confronting the polycrisis

The annual assessment from Deloitte’s EMEA Centre for Regulatory Strategy has been published, exploring the way major regulatory trends will affect the financial services industry in the year ahead, and how leaders can anticipate and respond to them effectively.

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EBA publishes peer review on authorization under the Payment Services Directive

The European Banking Authority (EBA) published on 11th of January its peer review on the authorization of payment institutions and e-money institutions under the revised Payment Services Directive (PSD2).

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ECB supervisory priorities for 2023 - 2025

On 12th of December, the European Central Bank (ECB) published its SSM supervisory priorities for next period of 2023 – 2025. Bearing in mind the macro-financial consequences that have increased uncertainties about the evolution of the economy and financial markets

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EBA Guidelines on the Use of Remote Customer Onboarding Solutions

On the 22nd of November, the European Banking Authority (EBA) published its final guidelines on the use of remote customer onboarding solutions.

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EBA publishes final Guidelines on transferability

At the end of last month, The European Banking Authority (EBA) published its final Guidelines on transferability to support the resolvability assessment for transfer strategies, covering key topics such as the definition of the transfer perimeter

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ESG and remuneration – are institutions ready?

Starting with the increased hype of ESG, a growing number of institutions are incorporating ESG criteria within the executive compensation contracts. Given the significant exposure on ESG

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EU legislators propose first ever bill on tracking crypto-assets

The European Parliament and Council negotiators reached a provisional deal on a new bill aiming to ensure that crypto transfers can always be traced, and suspicious transactions blocked – in the exact same way as traditional money transfers

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ECB welcomes the AMLA proposal but sees areas of improvement

Although it is not in its scope of work, the European Central Bank (ECB) has always paid attention to bank’s AML & KYC capabilities, as strugglers in this area often have structural deficiencies which fall under the jurisdiction of the ECB.

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EBA reviews the implementation of SREP guidelines but sees room for improvements

The European Banking Authority (EBA) published last May its annual Report on convergence of supervisory practices for 2021 and was keen to point out that Competent Authorities (CAs) made progress in the implementation of the EBA Guidelines on supervisory review and evaluation process (SREP). 

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EBA Guidelines on AML officer

The European Banking Authority (EBA) published on June 15th its Guidelines specifying the role and responsibilities of anti-money laundering and countering the financing of terrorism (AML/CFT) compliance officer and of the management body of credit or financial institutions

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ESAs: Report on the withdrawal of authorization for serious breaches of AML/CFT rules

On 1st of June, the European Supervisory Authorities (EBA, EIOPA and ESMA – jointly called ESAs) published a report on the withdrawal of authorization for serious breaches of AML/CFT rules.

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Inflation on the rise, NBR urges for calmness

Romania's central bank (BNR) revised significantly upwards its projection for the inflation trajectory over the next two years under the May Inflation Report published on May 12. Governor makes an appeal for calm as the economic conditions in Romania worsen. 

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ECB Supervisory Priorities 2022-2024/ Emerging operational risks in 2022

ECB has published on 7 December 2021 its supervisory priorities for 2022-2024, based upon its assessment of the risks and vulnerabilities faced by supervised institutions in the current economic, regulatory, and supervisory environment

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European Supervisory Authorities highlight key risks in gloomy times

For a number of years, we are witnessing increasing numbers in online banks and Fintechs trying to modernise the traditional banking experience. These businesses rely on using innovative solutions and the latest technology to speed up and simplify banking as much as a possible.

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European Supervisory Authorities highlight key risks in gloomy times

Earlier this month, the three European Supervisory Authorities (EBA, EIOPA, and ESMA) released their first joint risk assessment report for 2022 meant to shed light on the complicated European economic outlook and the new and existing risks that could materialize for financial institutions.

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Single Resolution Board provides a report on liquidity needs estimation in resolution

The Single Resolution Board has published its staff working paper: “Estimating liquidity needs in resolution in the Banking Union”. The document provides a methodology for the ex-ante estimation of the potential liquidity needs that banks could foresee in resolution.

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The war in Ukraine might put EU banks through their paces

On the 1st of April, the European Banking Authority (EBA) published its Risk Dashboard for the fourth quarter (Q4) of 2021. According to EBA’s initial assessment, the first round of impacts wasn’t an important threat for the EU banking sector

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EBA published its second Report on Competent Authorities’ approaches to the AML and CFT supervision of banks

On 22nd of March 2022, The European Banking Authority (EBA) has published a report on competent authorities’ approaches to the anti-money laundering (AML) and countering the financing of terrorism (CFT) supervision of banks.

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NBR amends Regulation no. 5/2013 by incorporating main provisions of EBA Guidelines on LOM, including ESG and AML

On 25th of March 2022, The National Bank of Romania (NBR) has published a new Regulation for the amendment and completion of the NBR Regulation no 5/2013 on prudential requirements for credit institutions and for the repeal of certain normative acts.

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SFDR – the path to green investment not greenwashing

The European Supervisory Authorities seek to mitigate the risk of divergent application of sustainable financial disclosure reporting (SFDR) and Article 5 and 6 of the Taxonomy Regulation in the financial services sector within the period from 10 March 2021

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EBA updates SREP guidelines: ML/TF risks, P2 capital add-ons, IRRBB and liquidity risk

On 18th of March 2022, The European Banking Authority (EBA) issued final revised Guidelines on common procedures and methodologies for the supervisory review and evaluation process (SREP) and supervisory stress testing, aligning them with the Capital Requirements Directive (CRD V)

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ECB puts Russians under scanner

In the aftermath of Russia’s unprovoked invasion of Ukraine, the comprehensive set of sanctions had a widespread impact over the banking industry. Recently, the ECB has asked banks to pay extra attention to all transactions made by Russian and Belarusian clients

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Projections on GDP Growth and Inflation do not bring optimism. Is the European Economy under pressure?

As the war in Ukraine started in February, the macroeconomic outlook in the Euro Area became more uncertain than it was during the pandemic, mainly due to spikes in energy prices

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Crypto lending business - greed, gloom, and doom

The crypto market has not yet stop growing, counting new cryptocurrencies every day, big swings, whipsaw, scams, and even new features, such as crypto lending, that can permanently change the whole crypto game.

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ECB’s concerns with real estate risk - Implications for banks

In its supervisory priorities for 2022-2024 the ECB is keen on pointing out several potential vulnerabilities regarding banks’ exposure towards the real estate sector. 

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ECB SREP results: banks are expected to hold more capital in 2022

On 10th of February 2022, the European Central Bank issued the results of its Supervisory Review and Evaluation Process (SREP) for 2021 and has announced the end of several capital measures introduced in response to COVID-19.

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EBA remuneration framework update: public consultation on gender gap pay benchmarking and data collection exercises regarding high earners

On the 21st of January 2022 the European Banking Authority (EBA) launched two public consultations to update its corresponding guidelines under the Capital Requirements Directive (CRD).

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ECB Single Supervisory Mechanism sets priorities for banks for 2022-2024

ECB Banking Supervision together with the national competent authorities has performed an assessment of the risk and vulnerabilities faced by the institutions under its surveillance and has set-up three main priorities for 2022-2024

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EBA published top 3 resolution priorities for 2022

The European Banking Authority published the 2022 European Resolution Examination Programme (EREP), which sets out three key topics for resolution authorities to be considered when developing their 2022 priorities. The EREP is aimed at focusing greater attention on monitoring implementation

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EBA published top 5 supervisory priorities for 2022

On 12th of November, the European Banking Authority published the 2022 European Supervisory Examination Program (ESEP), which sets out five primary topics for supervisory attention to be considered in the upcoming year. The strategic dual aim of the ESEP

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ECB warns of housing bubble risks across European countries

The housing market has been one of the beneficiaries during COVID-19 pandemic as prices increased on account of higher demand for more space (lockdowns and work-from home).

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ECB published the methodology of climate stress test for 2022 exercise

The 2022 climate risk stress test exercise is considered to be a joint learning exercise with pioneering characteristics. One of its main objectives is to enhance the capacity of both banks and supervisors to assess climate risk.

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EBA Report - Platformisation of Financial Services

In response to the newly emerged difficulties related to increased reliance of financial institutions on digital platforms for the marketing and distribution of financial services

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ECB revises approach to Pillar 2 guidance

The Pillar 2 Guidance is a bank-specific recommendation that indicates the level of capital that the ECB expects banks to maintain in addition to their binding capital requirements. It serves as a buffer for banks to withstand stress.

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EBA publishes brand new amendments to the technical standards on resolution planning reporting

On the 3rd of August, the EBA published a series of draft amendments to the ITS on Resolution Planning Reporting aimed at accommodating the changes introduced by BRRD2, reflecting the practical experience gathered from resolution reporting

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Climate-related financial risk in banking - the state of play on capital requirements

As the regulatory policy framework for climate risk develops, a key consideration for banks is how climate-related financial risks are captured by prudential capital requirements. COP26 (Conference of the Parties)

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EU plans to strip the EBA of all its money-laundering duties

The European Commission is planning to publish on 20th of July its plans to take away the European Banking Authority’s duties on anti-money-laundering and countering terrorism financing (AML/CFT) and to assign them to a new EU specific supervisory authority. 

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EBA’s Consultation to review SREP Guidelines

On 28th of June 2021, the EBA launched a public consultation on its Guidelines on SREP and supervisory stress testing.

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Learnings from the first EU-wide pilot exercise on climate risk

The European Banking Authority (EBA) published on the 21st of May 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.

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EBA issues RTS on own funds and eligible liabilities 

In the course of the adoption of the ‘Risk Reduction Measures Package’ by European legislators in May 2019, CRR2 updated the own funds framework with certain targeted adjustments.

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EBA publishes draft RTS on prudential consolidation methods, including approach for entities subject to step-in risk

28 April 2021

Following the approval of the Risk Reduction Measure Package, EBA has revised the RTS for the purpose of alignment with the changes introduced in the CRR and CRD, focusing mainly on the appropriate methods of prudential consolidation for the calculation of CRR requirements.

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The EBA launched two public consultations as part of FRTB roadmap

29 March 2021

The European Banking Authority (EBA) launched on March 12 two public consultations on its draft Regulatory Technical Standards (RTS) on gross jump-to-default (JTD) amounts and on residual risk add-on (RRAO). 

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ECB to conduct comprehensive assessment as Romania targets delayed euro zone membership 

25 March 2021

Romania’s Prime Minister recently stated that he hopes the country will be able to adopt the euro in 2027-2028 and enter the Schengen area this year. As of March 2018, the scheduled date for euro adoption in Romania was 2024. 

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The European Supervisory Authorities have set out more specific guidance on the SFDR Regulation on sustainability-related disclosures in the financial services sector

5 March 2021

The three European Supervisory Authorities (EBA, EIOPA and ESMA – ESAs) have published on February 25 a joint supervisory statement on the effective and consistent application and national supervision of the Regulation on sustainability-related disclosures in the financial services sector (SFDR).

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EBA launches 2021 EU-wide stress test exercise

4 February 2021

The European Banking Authority (EBA), launched the EU-wide stress test, the sixth exercise since its establishment, on 29 January 2021. Along with methodology and set of templates, EBA released the macroeconomic scenarios.

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New regulatory requirements for credit institutions in 2021

13 January 2021

Regulation no. 11/2020 amending and supplementing Regulation no. 5/2013 on prudential requirements for credit institutions and Regulation no. 12/2020 on authorization of the credit institutions and the changes in their situation

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Final Basel III Compliance: 9.4 billion EUR of additional Tier 1 capital to be added by EU banks to ensure compliance

15 December 2020

The European Banking Authority (EBA) published a Report on the impact of implementing the final Basel III reforms in the European Union. According to the report, the full Basel III implementation, in 2028, would result in an average increase of 15.4% on the current 

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Learning by doing: Climate risk & your 2021 ICAAP

27 November 2020

As we roll into 2021, financial services firms that run an internal capital adequacy assessment process (“ICAAP”) will be reviewing their risk registers for adverse risk factors and scenarios to anchor the assessment on.1

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The EBA’s latest Consultation Paper:
Incorporating EGS risks into the governance, risk management and supervision of institutions

20 November 2020

The European Banking Authority (EBA) has recently published a Discussion Paper regarding Environmental, Social and Governance (ESG) risks management and supervision, whose aim is to collect feedback that will be further taken into account while preparing the final report on this topic. 

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EBA issues final report on draft RTS regarding prudential treatment of software assets

In alignment with the amendment of the CRR focusing on the exemption from deduction of intangible assets from CET1 items for ‘prudently valued software assets the value of which is not negatively affected by resolution

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ECB is taking actions towards an efficient fit & proper framework

The integrity and competence of a bank’s directors is one of the most important lines of defence against mismanagement and fraud. 

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ECB: Most of the economies will not return to their previous performance peaks until late 2022

A new working paper issued by the ECB presents the COVID-19 recovery and recession forecasting. The document reports that most of the countries have already entered into deep economic crisis and will not return to their previous performance peaks until late 2022.

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ECB: ICAAPs need further improvements

24 August 2020

The European Central Bank published on 12th August 2020 a report on banks’ ICAAP practices.

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Sustainable Finance Update: EU Climate Benchmarks

19 August 2020

The European Commission recently adopted three delegated acts containing the methodology and requirements for EU climate change benchmarks, which will supplement the EU Benchmarks Regulation.

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Financial services: Managing risk to get fit for a digital future

30 July 2020

Financial services firms need to manage digital risk, to deliver a better customer experience, make firms fit for the future, and to create a more resilient financial services ecosystem.

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EBA supports EU Commission’s actions towards a more sustainable European economy 

22 July 2020

The European Banking Authority (EBA) published on July 16th, 2020 its response to the European Commission’s consultation on a Renewed Sustainable Finance Strategy.

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EBA provides clarifications on the application of the prudential framework in the context of COVID-19 

13 July 2020

The European Banking Authority (EBA) published on July 7 a Report, which provides clarifications on the application of the prudential framework that have been raised as a consequence of the COVID-19 pandemics.  

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COVID-19: Council adopts exceptional rules to facilitate bank lending in the EU

10 July 2020

The Council of the EU has announced that it has adopted the proposed Regulation containing amendments to the Capital Requirements Regulation (CRR and CRR 2)

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EBA launches discussion paper on enhancing competent authorities’ supervisory powers

6 July 2020

On June 26th 2020, the European Banking Authority (EBA) published a discussion paper whose subject refers to enhancing the Bank Recovery and Resolution Directive (BRRD) framework on early intervention measures.

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EBA issues disclosures and reporting ITS driven by CRR2 requirements

30 June 2020

The European Banking Authority (EBA) has just published new Implementing Technical Standards (ITS) on disclosure and supervisory reporting requirements that implement the changes introduced in the revised Capital Requirements Regulation (CRR2) and the Prudential Backstop Regulation.

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COVID-19 second wave?

25 June 2020

The world’s coronavirus lockdowns are being eased and six months after Covid-19 first appeared in Wuhan, China, much of the world is returning to some sort of normality. 

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EBA: Revised standards to identify staff with material impact on the institutions’ risk profile

22 June 2020

The EBA published on 18th June 2020 the final draft Regulatory Technical Standards (RTS) covering the criteria to identify all categories of staff whose professional activities have a material impact on the institutions’ risk profile (risk takers).

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The European Supervisory Authorities address ESG disclosures

16 June 2020

The European Supervisory Authorities (EBA, EIOPA and ESMA) have announced the organization of a public hearing on proposed environmental, social and governance (ESG) disclosure standards for financial market participants, advisers and products. 

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EBA targets banks’ digitalization boost by issuing a consultation on RTS regarding software assets

The European Banking Authority (EBA) launched a consultation on draft Regulatory Technical Standards (RTS) specifying the prudential treatment of software assets.

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The coronavirus emergency: the General Board of the European Systemic Risk Board takes first set of actions

3 June 2020

At its latest extraordinary meeting, the General Board of the European Systemic Risk Board (ESRB) discussed a first set of actions in five priority areas identified to address the impact of the coronavirus (COVID-19) emergency on the financial system from a macroprudential perspective.

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EC decision makes software investments cheaper for banks earlier than expected

22 May 2020

At the end of April, the European Commission (EC) released its “quick fix” package, in response to COVID-19. The package implied a series of amendments to the CRR II requirements

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EC decision makes software investments cheaper for banks earlier than expected

22 May 2020

At the end of April, the European Commission (EC) released its “quick fix” package, in response to COVID-19. The package implied a series of amendments to the CRR II requirements

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COVID-19 and operational resilience in the financial sector

20 May 2020

Monitoring of the operational resilience of financial services firms during the COVID-19 pandemic represents an essential role that the regulators must accomplish. Also, this will continue to be an important focus for them as restrictions are gradually eased.

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Climate-related financial risks: the results of BIS survey on current initiatives

13 May 2020

Recently, The Bank for International Settlements (BIS) published a report which summarises the main results of a stocktake conducted by the Basel Committee of its members' initiatives on climate-related financial risks.

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COVID-19 and the corporate sector liquidity

8 May 2020

On 28th of April, the Bank for International Settlements published a report regarding Coronavirus and corporate sector liquidity.

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EU proposes urgent bank capital changes to respond to COVID-19

5 May 2020

Responding to the economic and financial conditions arising from the COVID-19 pandemic, the European Commission has published an Interpretative Communication on facilitating EU bank lending and proposed urgent targeted amendments to the EU Capital Requirements Regulation (CRR).

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Proposal for the EU Green Bond Standards was published

29 April 2020

The Technical Expert Group (TEG) on sustainable finance, created in 2018 by the European Commission (EC), proposed in 2019 report that the EC should create a voluntary and non-legislative EU Green Bond Standard 

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EBA’s opinion on supervisory reporting and Pillar 3 disclosures following COVID-19 outbreak

10 April 2020

The European Banking Authority (EBA) issued March 12th a statement on actions needed in order to mitigate the impact of the COVID-19 outbreak upon the banking sector.

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ECB and EBA provide clarification to banks in reaction to Covid-19

6 April 2020

The European Banking Authority (EBA) published on April 2, 2020 a more detailed guidance on the criteria to be fulfilled by legislative and non-legislative moratoria applied before 30 June 2020 and do not to trigger forbearance classification.

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Basel III implementation delayed by one year due to Covid-19 pandemics

30 March 2020

A press release published on March 27 announced deferral of Basel III implementation to increase operational capacity of banks and supervisors to respond to Covid-19.

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ESMA Guidance on tick-size regime and phone recording requirements under COVID-19 pressure

26 March 2020

The European Securities and Markets Authority (ESMA) has recently issued two public statements in response to the COVID-19 pandemic.

Article

ECB provides further flexibility to banks in reaction to Covid-19

The European Central Bank (ECB) 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.

Perspectives

COVID-19 potential implications for the banking and capital markets sector

COVID-19’s impact on individuals, communities, and organizations is rapidly evolving. In addition to the effects on the supply and demand side, COVID-19 has already jolted financial markets. 

Perspectives

Coronavirus emergency economic-aid package

The EU Commission presented an immediate response to mitigate the socio-economic impact of the COVID-19 outbreak, centred on a European coordinated response

Perspectives

Coronavirus: first sign of impact on banks

The magnitude of the spread of coronavirus increases exponentially, thus amplifying the impact on the economy and daily life. The last week of February saw the worst performance for major stock markets since the 2008 financial crisis.

Perspectives

EBA reports on gender diversity and calls for measures

The European Banking Authority (EBA) issued a benchmarking report with regards to the diversity practices within credit institutions and investment firms that aims to analyse the developments which have occurred since the other diversity benchmarking exercise that took place in 2015.

Perspectives

EBA launches 2020 EU-wide stress test exercise

The European Banking Authority (EBA), launched the EU-wide stress test, the fifth exercise since its establishment, on 31 January 2020. Along with methodology and set of templates, EBA released the macroeconomic scenarios.

Perspectives

Cyber Attack May Cause Liquidity Crisis in the Financial sector

The president of the European Central Bank (ECB), Christine Lagarde, sent out a warning: a well-organized cyber-attack on a major financial institution could trigger a liquidity crisis.

Perspectives

EBA report identifies key challenges in the roll out of Big Data and Advanced Analytics

The European Banking Authority (EBA) published a Report on the recent trends of Big Data and Advance Analytics (BD&AA) in the banking sector and on the key considerations in the development, implementation and adoption of BD&AA.

Perspectives

EBA publishes the final guidelines on ICT and security risk management

The European Banking Authority (EBA) published on November 28th the final guidelines on ICT and security risk management whose role is to set up requirements for credit institutions, investment firms and payment service providers (PSPs)

Perspectives

Banks’ balance sheet being threatened by move into riskier portfolios. EBA highlights bleak outlook for banks 

The European Banking Authority (EBA) published its annual Report on risks and vulnerabilities in the EU banking sector.

Perspectives

EBA issues second report on Basel III implementation impact and assessment of its effect on the EU economy

EBA issued second report on Basel III implementation impact and assessment of its effect on the EU economy. The report comes as a complementing piece of advice on the implementation of the Basel III reforms in the EU, to the report issued on 5th August 2019. 

Perspectives

The Rise of SupTech: New era of banking supervision

Financial authorities' use of technology has evolved over the years, leading to different generations of technology that culminate in what is considered as SupTech, which refers to the application of big data or artificial intelligence (AI) tools.

Perspectives

EBA confirms next EU-wide stress test in 2020!

The EU-wide stress testing package has just been issued by EBA, and it includes the methodology, templates and template guidance.

Perspectives

EBA Consultation Paper on disclosures under CRR2 – are you prepared for the new data extensive requirements?

On October 16, 2019 EBA launched a public consultation on the new comprehensive Implementing Technical Standard (ITS) for financial institutions' public disclosure, designed to promote market discipline.

Perspectives

SSM Supervisory priorities 2020: Continuing balance sheet repair, credit risk and business model sustainability are high on the list of priorities, with a focus on digitalization

The key drivers of banking sector risks identified by ECB are the challenges in the euro area from economic, political and debt sustainability point of view, the business model sustainability and the cybercrime and IT deficiencies with a focus on digitalisation.

The key drivers of banking sector risks identified by ECB are the challenges in the euro area from economic, political and debt sustainability point of view, the business model sustainability and the cybercrime and IT deficiencies with a focus on digitalisation.

Perspectives

Third Progress Report on the reduction of NPLs in the Banking Union

In line with the Commission’s roadmap as of December 6, 2017 for deepening the Economic and Monetary Union and corresponding to the Leaders’ Agenda, completing the Banking Union remains one of the Union’s key policy objectives.

Perspectives

Banking Alert: ECB sets new expectations on ICAAP and ILAAP

Starting 1st January 2019, the ECB will use the recently published guidelines when assessing Banks’ internal capital and liquidity adequacy assessment processes

Perspectives

Banking Alert | Adapting the risk framework to macroeconomic vulnerabilities

One of the lessons learned from the recent financial crisis was that many banks were not adequately prepared to cope with weaker market conditions. When a bank becomes distressed, the time window for adopting countermeasures to prevent an insolvency or resolution is short.

Perspectives

Banking Alert: EBA assesses Republic of Moldova

EBA recently published the outcome of its equivalence assessment, based on the relevant provisions of the Capital Requirements Directive (CRD IV). National Bank of Moldova’s confidentiality regimes can be regarded as equivalent to those included in the Directive.

Perspectives

Banking Alert: Is this the end of the economic boom?

IMF and UniCredit revise downwards Romania’s economic growth forecast for 2018 and 2019 in the light of political and fiscal turmoil

Perspectives

EBA Guidelines on management of non-performing and forborne exposures

EBA recently published its final Guidelines on management of non-performing and forborne exposures which aim to ensure that credit institutions have adequate prudential tools and frameworks in place to manage effectively their non-performing exposures (NPEs) 

Perspectives

Banking Alert | EBA publishes 2018 EU-wide stress test results

The EBA published on Friday evening the results of its 2018 EU-wide stress test (report, results for individual banks). The EBA’s exercise covered a sample of 48 banks (representing 70% of total banking assets in the EU).  

Press releases

Banking Alert! Deloitte’s FRTB front-to-back advisory services

29 October 2018

The impact of the fundamental review of the trading book (FRTB) will be felt well beyond risk, with front office, finance and IT all heavily affected.

Perspectives

Banks profitability remains a key challenge

Perspectives

Banking Alert! ECB guide to on-site inspections (OSIs) and internal model (IMIs) investigations

Perspectives

Banking Alert! ECB’s New AQR Methodology

Perspectives

Banking Alert! A single agency for AML/CTF supervision in the EU

Perspectives

Banking Alert! Where to next on the MiFID journey?

Perspectives

Banking Alert! What's the cost of model risk management failure?

Perspectives

Banking Alert! What lies ahead? Regulatory Radar

Perspectives

Banking Alert! The New Physics of Financial Services -Understanding how AI is transforming the financial ecosystem

Perspectives

Banking Alert! Criteria for entry into the Exchange Rate Mechanism (ERM II)

Perspectives

Banking Alert! ECB’s progress to identify and recommend alternative short-term risk-free rates (RFR)

The ECB (European Central Bank) will begin publishing the ESTER (Euro Short-Term Rate) by October 2019, to be used to complement existing benchmark rates produced by the private sector.

Perspectives

Banking alert! 

Supervisors to impose diversity targets and comply-or-explain rules on banks?

ECB Supervisory Board member and Deputy Governor of the Central Bank of Ireland, Ed Sibley, discusses the importance of diversity to the governance, culture and risk profile of banks.

Perspectives

Paying for research post-MiFID II

MiFID II, which took effect on 3 January, requires payment for research to be an 'unbundled' product, separate from other broker services. As expected, the investment research market is a key focus area for EU regulators following the implementation of MiFID II.

Perspectives

Big data meets artificial intelligence

Society and the business world are currently undergoing profound technological changes. Digital networking is increasingly prevalent and new technologies are helping tackle ever more complex tasks. This trend is driven in particular by the availability of large quantities of data – big data (BD).

Article

Operational resilience - The UK supervisory approach

In May 2018, the ECB published the Framework for testing resilience to Cyber Attacks. A few days ago, the Bank of England (BoE) and the Financial Conduct Authority (FCA) have released a Discussion Paper (DP) on Operational Resilience.

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Operational resilience - The UK supervisory approach

In May 2018, the ECB published the Framework for testing resilience to Cyber Attacks. A few days ago, the Bank of England (BoE) and the Financial Conduct Authority (FCA) have released a Discussion Paper (DP) on Operational Resilience.

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Malta becomes the blockchain island after the Parliament passes three Bills that create a regulatory framework for blockchain technology

The framework includes a regime, developed by the Malta Financial Services Authority (MFSA), for the approval of ICOs (Initial Coin offers) and the regulation of certain service providers dealing in VCs (Virtual Currencies).  

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First EBA products published to raise awareness against FinTech

The development of the financial technology infrastructure, in combination with the significant socio-economic trends and demographic shifts in the population, whereby consumers are now seeking easy access, choice, better control and speed

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EBA Consults on Outsourcing Guidelines

EBA has issued a consultation on the draft guidelines on outsourcing services in financial institutions in the EU.

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The success in the area of recovery and resolution depends on sound collaboration

SRM-EBF Boardroom dialogue

The Single Resolution Board (SRB) and the European Banking Federation (EBF) held their first Boardroom Dialogue on 12 June 2018 in Brussels. This event is part of ongoing cooperation between the SRB and the EBF and it provides the SRB with the opportunity to directly engage with banks 

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ECB updates AQR manual

A more comprehensive AQR

The ECB published today an update to the Asset Quality Review (AQR) Manual for euro area banks. The manual contains the methodology for assessing the valuations of bank assets from a prudential perspective.

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Europe’s efforts to turn banks green

Last month, Spanish bank BBVA opened its headquarters in Madrid to welcome investors, business leaders, public and private institutions, to an event aimed at promoting sustainable development and the fight against climate change.

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EBA consultation paper on downturn LGD estimation

A step closer to a harmonize IRB framework

This GL is part of the EBA efforts to harmonize IRB practices. It provides draft Guidelines specifying how LGD estimates appropriate for an economic downturn should be quantified. 

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Cyber risk and regulation in Europe. A new paradigm for banks

The European Central Bank (ECB) published this month the European Framework for Threat Intelligence-based Ethical Red Teaming (TIBER-EU), which is the first Europe-wide framework for controlled and bespoke tests against cyber-attacks in the financial market.

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Basel IV - Operational Risk SMA finalized

A diminished conservativeness. A potential extreme impact

The final design of the new Basel IV: Standardized Measurement Approach (SMA) is less conservative than previous version presented in the consultation paper. This means that the impact on capital requirements will be less severe. However, extreme cases of capital increase are still possible.

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The European Banking Authority (EBA) published its report on benchmarking of remuneration practices in EU banks

The EBA observes a slight decrease in the number of ‘high earners’ and ‘identified staff’ in 2016

This Report has been developed in accordance with Article 75 (paragraphs 1 and 3) of Directive 2013/36/EU (CRD IV), which mandates the EBA to use the data disclosed by institutions to benchmark remuneration trends and practices and to collect information on the number of individuals per institution

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Frameworks for early supervisory intervention by Basel

02 April 2018

The “Frameworks for early supervisory intervention” presents a range-of-practice study on how supervisors around the world have adopted frameworks, processes, and tools to support early supervisory intervention.

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Roundtable: IFRS 9 Validation

On January 1st 2018, IFRS 9 standard came into force and many financial institutions started using complex internal models without the scrutiny and the prior approval from the supervisory authorities.

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EU bank capital negotiations

The European Commission’s ‘CRD5/CRR2’ bank capital proposal (including amendments to the BRRD) is now at an important stage in its negotiations. Although a deal has not been reached in either the Council or Parliament

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Roundtable: Internal Governance new guidelines

Deloitte Romania is delighted to invite you to Banking Risk and Regulatory Roundtable, organised on March 29th at 9.30am at Deloitte premises, 4-8 Nicolae Titulescu Road, East Entrance, 2nd Floor, District 1, Bucharest.

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Analytics and information management (AIM)

Adam Farkas (Executive Director - EBA) speech on reshaping banks’ models

The European Banking Authority (EBA) has published a speech given by its Executive Director, Adam Farkas at the Deutsche Bundesbank Conference. The speech is entitled “Bank business models – structural changes and their systemic implications”.

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Still 180 days past due?

Time to reconsider!

In December 2017, the European Banking Authority (EBA) advised the European Commission on the appropriateness of continuing to apply the 180 day past due exemption for defaulted recognition under IRB approach after 31 December 2019.

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NPL: EBA issues final standardised templates

Faster way of getting rid of your NPL portfolio

To address the request of the European Commission to support the development of a functioning NPL secondary market in the EU, the European Banking Authority (EBA) issued yesterday the final NPL standardised data templates.

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Basel IV and Capital Adequacy Contraction

What will be the impact of Basel III reforms, also known as “Basle IV”? Although a phase-in approach is planned, 2022 – 2027, it may prove to be the greatest challenge yet for the banking sector, and Romanian banks will make no exception.

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ESAs publish list of financial conglomerates for 2017

How do you become one? What does it entail in terms of additional capital and supervision? Is there anything that you can do?

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European Banking: Trends and Challenges for the Romanian Banking System

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Payment Service Directive (PSD2) – 2018 will be a game-changing year for banks

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BCBS 239 - Risk data aggregation and reporting

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EBA and ESMA provide guidance to assess the suitability of management body members and key function holders

How prepared is the management body to be supervised?

30 September 2017

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Bank and Fintech bank licensing

The first attempt to regulate the fintech and cryptocurrency industry by the ECB

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Beyond the Horizon of Banking Regulation - What to expect from Basel IV

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MREL final standards by resolution authority

EBA guidance to National Resolution Authorities – how will guidance affect your reporting to the NRA?

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Cyber Security : CSSF Circular 17/655

What are the new requirements? Where do you stand?

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EBA is using its existing SREP framework to explore the regulation and supervision of fintech

How will the regulation of fintech affect the fintech development and the business model of the bank? Will fintech be overregulated ? What are the threats and opportunities created for the banking and the fintech sector?

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Ecofin sets out plan to tackle NPL problem, ‘blueprint’ for national bad banks available by end-17

How to align your NPL strategy to ECB NPL guidelines and Member State bad bank?

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EBA and ECB observe challenges in integrating ILAAP in the SREP assessment, signalling additional buffers to Pillar II capital

How is ILAAP integrated in the liquidity management of the bank?

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ESMA rules out further delay on MIFID II implementation

January 2018 final deadline for all stakeholders

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Vulnerabilities of the EU Financial System and supervisory priorities for 2017/2018

The ESAs (EBA, ESMA, EIOPA) are publishing their 2017 Spring Report

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Interest Rate Risk to play key role for 2018 Stress Tests, updated 2018 SREP and Pillar II capital

How is the watchdog’s new focus affecting your minimum capital requirements?