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  • BIS: Basel Committee Issues Principles For Operational Resilience And Risk

    Date 31/03/2021

    • Principles for operational resilience aim to increase banks' capacity to withstand disruptions due to potentially severe events.
    • Revised principles on operational risk focus on change management and information and communication technologies (ICT).
    • Covid-19 has made operational resilience and mitigating operational risk even more important.

  • EBA Launched Public Consultation On Regulatory Technical Standards On Disclosure Of Investment Policy By Investment Firms

    Date 31/03/2021

    • The draft technical standards specify the information that investment firms have to make public to show their influence over the companies in which they have voting rights.
    • The standards put forward comparable disclosures and detailed instructions on investment firms’ voting rights, voting guidelines and voting behaviour.

  • The European Supervisory Authorities Issue A Report On The Application Of Their Guidelines On Complaints-Handling

    Date 31/03/2021

    The Joint Committee of the three European Supervisory Authorities (EBA, EIOPA and ESMA - ESAs) published today a Report on the application of their Guidelines on complaints-handling. The Report concludes that the Guidelines have contributed to a consistent approach to complaints-handling across the banking, insurance and securities sectors and have resulted in better outcomes for consumers.


  • EBA Points To A Rising Share Of Loans That Show A Significant Increase In Credit Risk (Stage 2 Loans)

    Date 31/03/2021

    • Capital and liquidity ratios increased further quarter-over-quarter (QoQ).
    • While non-performing loans (NPLs) declined on average, the NPL ratio shows first signs of deterioration in exposures to sectors that are most affected by the COVID-19 crisis.
    • The share of stage 2 loans rose across the board. The rise was particularly pronounced for loans still under moratoria.

  • BIS: An Empirical Foundation For Calibrating The G-SIB Surcharge

    Date 31/03/2021

    Summary

    Focus

    During the Great Financial Crisis (GFC) of 2007–09, policymakers intervened to prevent the failure of global systemically important banks (G-SIBs) and to alleviate turmoil in the financial system. Following the GFC, the Basel Committee on Banking Supervision (BCBS) introduced measures to reduce the likelihood and severity of a G-SIB failure in the future. Capital requirements corresponding to measures of systemic importance, along with other post-GFC reforms, increased the going-concern loss absorbency of G-SIBs and improved the resilience of the banking sector. The expected impact framework provides a theoretical foundation for these capital requirements based on systemic importance, which are often referred to as G-SIB surcharges. Our alternative implementation of the expected impact framework has the potential to improve the empirical basis of these surcharges and eliminate uneven incentives for G-SIB growth.