International Regulatory Updates


FEBRUARY 06, 2020
Today the European Central Bank (ECB) published for consultation a guide that outlines the methodology it uses to assess the internal models banks apply to calculate their exposure to counterparty credit risk (CCR). The guide also describes how the ECB will assess the advanced methods banks use to c ...
FEBRUARY 04, 2020
The European Central Bank (ECB) will examine 35 significant euro area banks as part of the 2020 EU-wide stress test coordinated by the European Banking Authority (EBA). In line with the EBA’s selection criteria, these banks, which are directly supervised by the ECB, represent about 70% of total eu ...
JANUARY 28, 2020
The European Central Bank (ECB) today published the outcomes of its 2019 Supervisory Review and Evaluation Process (SREP). The overall SREP requirements and guidance for Common Equity Tier 1 (CET1) capital remained stable at 10.6% in 2019, the same level as in 2018. CET1 is a bank’s highest-qualit ...
JANUARY 20, 2020
The European Central Bank (ECB) has today published a draft ECB Guideline on the definition of the materiality threshold for credit obligations past due for less significant institutions (LSIs). The definition will take the form of an ECB Guideline addressed to national competent authorities (NCA ...
JANUARY 15, 2020
Capital Adequacy The capital ratios for the aggregated group of significant institutions, i.e. the banks supervised by the ECB, increased slightly in the third quarter of 2019 compared with the previous quarter. The Common Equity Tier 1 (CET1) ratio stood at 14.37%, the Tier 1 ratio at 15.58% and ...
DECEMBER 04, 2019
The number of banks that will be directly supervised by the European Central Bank (ECB) from 1 January 2020 has decreased to 117 from 119 a year earlier following the annual review of significance and ad hoc assessments. The changes are the result of new group structures, a licence withdrawal, busi ...
OCTOBER 23, 2019
The Single Resolution Board (SRB) today launches its first public consultation on its ‘Expectations for Banks’ document, which outlines best practice on key aspects of resolvability. The consultation is part of the SRB’s commitment to listening to the views of banks and other stakeholders and ...
OCTOBER 09, 2019
Capital Adequacy The capital ratios for the aggregated group of significant institutions, i.e. the banks supervised by the ECB, remained stable in the second quarter of 2019. The Common Equity Tier 1 (CET1) ratio stood at 14.34%, the Tier 1 ratio at 15.55% and the total capital ratio at 18.01%. A ...
OCTOBER 07, 2019
The vast majority of banks directly supervised by the European Central Bank (ECB) have overall comfortable liquidity positions despite some vulnerabilities requiring further attention, according to the results of the 2019 supervisory stress test. The shocks simulated in the exercise were calibrat ...
AUGUST 22, 2019
The European Central Bank (ECB) has decided to revise its supervisory expectations for prudential provisioning of new non-performing exposures (NPEs) specified in the “Addendum to the ECB Guidance to banks on non-performing loans” (hereafter the “Addendum”). The decision was made after takin ...