Deloitte Banking Alert

Perspectives

Risk Reduction Measures Package

On June 7th, the EU’s bank capital legislative package (CRD5/CRR2/BRRD2), also known as the Risk Reduction Measures (RRM) package, was published in the Official Journal of the European Union. After 20 days, the legislative package will enter into force.

Perspectives

Future of Banking Supervision

At the end of May, a conference on the Banking Union took place, where Pentti Hakkarainen, Member of the Supervisory Board of the ECB made a speech about the overlapping responsibilities within the banking industry supervision.

Perspectives

FSB Thematic Peer Review on Bank Resolution Planning

The Financial Stability Board (FSB) recently published the findings of its Thematic Peer Review on Bank Resolution Planning, which covered all 25 FSB member jurisdictions.

Perspectives

EBA - Impact of the Basel III reforms and compliance with liquidity measures in the EU

The European Banking Authority (EBA) published on March 20th two reports: one that measures the impact of implementing the final Basel III reforms and the other that monitors the implementation of liquidity measures in the EU.

Perspectives

2019 Planning priorities for Internal Audit in Financial Services

Now in its 5th year, Planning priorities for Internal Audit in Financial Services study, highlights a selection of most interesting developments and challenges being addressed by audit functions in financial services industry.

Perspectives

ECB publishes 2018 Annual Report on supervisory activities

European Central Bank (ECB) published this March the annual report for 2018. The report presents ECB’s policies and activities in the economic and financial environment during last year.

Perspectives

Impact of the final Basel III reforms on EU banks capital

On March 20th, the European Banking Authority (EBA) published a report assessing the impact that implementing the final Basel 3 reforms would have on EU banks, assuming its full implementation. 

Perspectives

Final EBA Guidelines on the estimation of LGD under an economic downturn

The European Banking Authority (EBA) published on March 6th its final Guidelines specifying how institutions should quantify the estimation of loss given default (LGD) appropriate for conditions of an economic downturn.

Perspectives

SRB and EBA publications on valuation

Single Resolution Board (SRB) has published its Framework for Valuation alongside a set of questions & answers. In developing the framework, the SRB worked closely with the EBA, which recently published its Draft Handbook on Valuation for Purposes of Resolution.

Perspectives

Financial cooperatives: Regulation, Supervision and other Challenges

Financial cooperatives (FCs) are the most numerous financial institutions.On one hand, FCs are small and serve only their members, by providing affordable financial services. On the other hand, FCs gather resources and form federations with internal solidarity schemes or even consolidated groups.

Perspectives

Cyber Security in banks continues to be a priority for regulators

European Central Bank (ECB) will conduct frequent on-site inspections with a focus on IT and cyber security. Having previously released the Threat Intelligence-based Ethical Red Teaming guideline, the ECB will surely follow banks’ reports for these assessments.

Perspectives

EU bank capital negotiations: Political deal reached by policymakers in Brussels 

A political deal has been reached in negotiations on the EU’s bank capital legislative package, the fifth Capital Requirements Directive and second Capital Requirements Regulation (CRD5/CRR2), plus changes to the Bank Recovery and Resolution Directive (BRRD2). 

Perspectives

EBA welcomes National Bank of Moldova to the Memorandum of Cooperation

The European Banking Authority (EBA) welcomed the National Bank of Moldova as an additional signatory party to the Memorandum of Cooperation (MoC) with banking supervisory authorities in several South-Eastern European (SEE) countries.

Perspectives

A supervisory perspective on 2019 and beyond

On the 17th January 2019, at the Risk Management & Supervisory Conference in Dublin, Sabine Lautenschläger, Member of the Executive Board of the ECB and Vice-Chair of the Supervisory Board of the ECB, discussed the impact of Brexit and digitalization on banks, markets and supervisors. 

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.

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.

Article

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).  

Article

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

Article

EBA Consults on Outsourcing Guidelines

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

Article

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 

Article

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.

Article

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.

Article

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. 

Article

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.

News

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.

News

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

News

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.

News

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.

News

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

News

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.

News

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”.

News

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.

News

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.

News

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.

News

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?

News

European Banking: Trends and Challenges for the Romanian Banking System

News

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

News

BCBS 239 - Risk data aggregation and reporting

News

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

News

Bank and Fintech bank licensing

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

News

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

News

MREL final standards by resolution authority

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

News

Cyber Security : CSSF Circular 17/655

What are the new requirements? Where do you stand?

Article

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?

News

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?

News

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?

Article

EBA issues 2018 EU-wide stress test draft methodology – including IFRS 9 impact

Is your organisation stress test ready?

News

ESMA rules out further delay on MIFID II implementation

January 2018 final deadline for all stakeholders

News

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

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

News

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?