ECB review of counterparty credit risk
  • Friday, 17 February 2023

ECB review of counterparty credit risk

In search for yield during the low interest rate environment, banks have increased the volume of capital market services provided to riskier and less transparent counterparties, including non-bank financial institutions (NBFIs), such as hedge funds and family offices. The European Central Bank (ECB) is concerned about the counterparty credit risk (CRR) involved in these activities […]

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FINMA publishes Circular “Operational risks and resilience – banks”
  • Friday, 17 February 2023

FINMA publishes Circular “Operational risks and resilience – banks”

The Swiss Financial Market Supervisory Authority FINMA published the fully revised circular on operational risks at banks in December 2022. The circular has been adapted to include new technological developments and has integrated the principles of the Basel Committee on Banking Supervision (BCBS) on operational resilience. Through the new circular the FINMA clarifies its supervisory practice regarding […]

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EBA’s 2023 EU-wide stress test has been launched
  • Friday, 17 February 2023

EBA’s 2023 EU-wide stress test has been launched

The European Banking Authority (EBA) launched the 2023 EU-wide stress test and released the macroeconomic scenarios. This year’s stress test is designed to assess the resilience of the European banking sector in the current uncertain and changing macroeconomic environment. The adverse scenario is based on a narrative of heightened geopolitical tensions (e.g., no Russian gas to Europe), leading to high inflation and […]

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EFRAG submits the first set of draft ESRS to the EC
  • Friday, 17 February 2023

EFRAG submits the first set of draft ESRS to the EC

In November 2022, the Council of the EU approved the Corporate Sustainability Reporting Directive (CSRD). The CSRD requires companies to disclose information on the way they operate and manage social and environmental challenges. They need to do so in compliance with European Sustainability Reporting Standards (ESRS). Under the CSRD, the European Financial Reporting Advisory Group (EFRAG) was requested to […]

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New ITS on IRRBB expand reporting obligations for banks
  • Tuesday, 14 February 2023

New ITS on IRRBB expand reporting obligations for banks

On 31 January 2023, the European Banking Authority (EBA) opened the consultation on the amendment of the Implementing Technical Standards (ITS) on supervisory reporting with respect to Interest Rate Risk in the Banking Book (IRRBB)1. Together with the consultation, the EBA has published the proposed reporting templates, including the reporting instructions. With the consultation, EBA […]

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