On 14 November 2019, the Basel Committee on Banking Supervision published a consultative document on voluntary disclosure templates related to banks’ sovereign exposures. The templates break down a bank’s sovereign exposures by country, currency and accounting treatment. The templates build upon the contents of the Basel Committee’s December 2017 discussion paper on the regulatory treatment of sovereign exposures and the feedback received. The deadline for comments on the consultative document is 14 February 2020.…

On 14 November 2019, the Basel Committee on Banking Supervision published a consultative document setting out proposed revisions to the Pillar 3 templates for the revised market risk framework to reflect the changes introduced in the January 2019 minimum capital requirements for market risk. Among other things the Basel Committee consults on the introduction of a “traffic light” approach for capital requirements as a consequence of the outcome of the profit and loss attribution test…

On 14 November 2019, the European Forum of Deposit Insurers (EFDI) published a non-binding guidance paper on deposit guarantee schemes’ (DGSs) alternative measures to pay-out. Article 11(3) of the Deposit Guarantee Schemes Directive (DGSD) permits DGSs to use available financial means for alternative measures in order to prevent a bank from failure, as well as to make pay-outs to depositors. Under Article 11(6), DGSs may also use available financial means to finance measures to preserve…

On 12 November 2019, the European Commission published a Delegated Regulation supplementing the Securitisation Regulation with respect to regulatory technical standards (RTS) specifying the information to be provided in accordance with the ‘Simple, Transparent and Standardised’ (STS) notification requirements, together with annexes. Article 27(6) of the Securitisation Regulation mandates the European Securities and Markets Authority (ESMA) to develop draft RTS  specifying the information that originators and sponsors are required to provide in order to…

On 8 November 2019, the European Banking Authority (EBA) published its second thematic report on non-performing loans (NPLs). The report is based on supervisory data of asset quality metrics, and provides an update on the progress made so far in addressing NPLs in Europe. It also takes stock of ongoing initiatives to tackle the NPL issue both at the EU level and at Member State level, identifies challenges to tackle the remaining NPL stock and…

On 7 November 2019, the FCA published an updated statement on the reporting of derivatives under the UK EMIR regime in a no-deal scenario. The statement explains that in the event that the UK withdraws from the EU without an agreed deal on 31 January 2020, UK reporting counterparties and trade repositories (TRs) should use the UK EMIR validation rules when submitting derivative transactions entered into from 11:00pm on 31 January 2020 onwards. The FCA…

In July the European Banking Authority published two final draft regulatory technical standards (RTS) under the Securitisation Regulation. The first of these RTS established the conditions for which underlying exposures are to be considered homogeneous, being one of the requirements with respect to simplicity, standardisation and transparency of a securitisation transaction. Our earlier blog is here. On 6 November 2019, these RTS were published in the Official Journal of the EU (OJ) in the…