Deloitte Banking Alert

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

Responsible Banking initiative | fight against climate change

In its initiative to fight climate change, the United Nations Organization has developed the “Responsible Banking” principles, which have been early endorsed by an impressive 130 banks (approximately a third of the global industry), before their launch on 22 and 23 September.

In its initiative to fight climate change, the United Nations Organization has developed the “Responsible Banking” principles, which have been early endorsed by an impressive 130 banks (approximately a third of the global industry), before their launch on 22 and 23 September.

Perspectives

On-site inspections 2018: Red flags raised on internal governance issues, credit and IT risk

In the last four years, the ECB’s Joint Supervisory Teams have undertaken various on-site inspections (OSIs) in their attempt to supervise significant banks within the framework of the Single Supervisory Mechanism (SSM). The OSIs are a successful tool for examining the banks’ internal control systems, business models and governance.

In the last four years, the ECB’s Joint Supervisory Teams have undertaken various on-site inspections (OSIs) in their attempt to supervise significant banks within the framework of the Single Supervisory Mechanism (SSM).

Perspectives

UK watchdog Provides Final Guidance on Current Cryptoassets Regulation

The Financial Conduct Authority (FCA) recently published its Final Guidance, setting the regulatory perimeter of crypto currency asset activities. This comes as a result to the consultation paper released at the beginning of the year.

The Financial Conduct Authority (FCA) recently published its Final Guidance, setting the regulatory perimeter of crypto currency asset activities. This comes as a result to the consultation paper released at the beginning of the year. 

Perspectives

European Banking Authority (EBA) launches report on regulatory approaches for FinTech

One of EBA’s main responsibilities as outlined within the Commission’s FinTech Action Plan refers to monitoring the regulatory perimeter of national CAs (Competent Authorities) under its remit. This exercise was performed by addressing CAs specific questions, covering the period between 1st September 2017 and 22nd March 2019.

One of EBA’s main responsibilities as outlined within the Commission’s FinTech Action Plan refers to monitoring the regulatory perimeter of national CAs (Competent Authorities) under its remit.

Perspectives

EBA publishes its roadmap on IFRS 9 and launches IFRS 9 benchmarking exercise

On July 23th, the European Banking Authority (EBA) published the IFRS 9 roadmap with the scope of providing a comprehensive overview of planned monitoring activities on IFRS 9 implementation. The EBA also launched an IFRS 9 benchmarking exercise on a sample of institutions aimed at analysing the different modelling practices followed by institutions and how IFRS 9 implementation impacts the amount of expected credit losses in terms of own funds and regulatory ratios.

On July 23th, the European Banking Authority (EBA) published the IFRS 9 roadmap with the scope of providing a comprehensive overview of planned monitoring activities on IFRS 9 implementation.

Perspectives

EBA and ECB progress towards harmonized supervision

Significant progress has been made by the European Banking Authority (EBA) and the European Central Bank (ECB) towards attaining harmonised supervision.

Significant progress has been made by the European Banking Authority (EBA) and the European Central Bank (ECB) towards attaining harmonised supervision.

Perspectives

The future role of EBA in deepening EU financial integration

The inauguration of the Paris offices of the European Banking Authority (EBA) was a good opportunity to discuss EBA's priorities in the next years.

The inauguration of the Paris offices of the European Banking Authority (EBA) was a good opportunity to discuss EBA's priorities in the next years.

Perspectives

EBA consults on draft Guidelines on loan origination and monitoring

The European Banking Authority (EBA) launched on June 19th, a consultation on its draft Guidelines on loan origination and monitoring. EBA developed the Guidelines in response to the European Council Action Plan on tackling the high level of non-performing exposures.

The European Banking Authority (EBA) launched on June 19th, a consultation on its draft Guidelines on loan origination and monitoring. EBA developed the Guidelines in response to the European Council Action Plan on tackling the high level of non-performing exposures.

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.

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

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.

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

Central Banks and Supervisors call for action regarding climate-related financial risks

NGFS (Network for Greening the Financial System), an international group of Central Banks and supervisors has recently called for action regarding the climate-change financial risks. The challenges are unprecedented, so critical measures have to be taken as soon as possible. It is believed that, a global standardized framework on climate disclosures is much needed at the moment.

NGFS (Network for Greening the Financial System), an international group of Central Banks and supervisors has recently called for action regarding the climate-change financial risks.

Perspectives

ECB publishes update on TRIM

On 5 April 2019, the European Central Bank (ECB) published a note providing an interim update on the targeted review of internal models (TRIM). The purpose of the note is to provide an overview of the TRIM project and to share aggregated information on its outcomes. The note complements the first update on TRIM outcomes published on 11 June 2018.

On 5 April 2019, the European Central Bank (ECB) published a note providing an interim update on the targeted review of internal models (TRIM).

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.

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. The EBA previously published a preliminary report on the results of a capital monitoring exercise using data as of 31st December 2017, and the latest update provides a more extensive insight using data as of 30 June 2018.

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

Validation reporting on internal models

European Central Bank (ECB) announced on the 5th of March 2019 the launch of the annual validation reporting on internal models used for calculating own funds requirements for credit risk.

European Central Bank (ECB) announced on the 5th of March 2019 the launch of the annual validation reporting on internal models used for calculating own funds requirements for credit risk.

Perspectives

EBA publishes revised Guidelines on outsourcing arrangements

On 25 February 2019, the European Banking Authority (EBA) published revised guidelines on outsourcing arrangements. The revised guidelines will enter into force on 30 September 2019, and firms will have to complete outsourcing arrangements in line with these guidelines by 31 December 2021.

On 25 February 2019, the European Banking Authority (EBA) published revised guidelines on outsourcing arrangements. The revised guidelines will enter into force on 30 September 2019, and firms will have to complete outsourcing arrangements in line with these guidelines by 31 December 2021.

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.

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

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.

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

AML Multilateral Agreement for Exchange of Information

In application of the provisions of the Fourth Directive against Money Laundering and Terrorist Financing, a Multilateral Agreement for the Exchange of Information between the European Central Bank (“ECB”) and the Competent National Authorities (“CA”) was signed on January 10, 2019.

In application of the provisions of the Fourth Directive against Money Laundering and Terrorist Financing, a Multilateral Agreement for the Exchange of Information between the European Central Bank (“ECB”) and the Competent National Authorities (“CA”) was signed on January 10, 2019.

Perspectives

EBA assesses post-implementation impact of IFRS 9

The European Banking Authority (EBA) published, at the end of last year, an initial report on IFRS 9 post-implementation impact on EU banks.

The report presents the follow-ups of the implementation of IFRS 9 standard (use of indicators based on regulatory reporting, understanding of the modelling aspects employed by banks, qualitative implementation of IFRS 9 standard)