The European Banking Authority has published its proposal for developing a simple, transparent and standardized (STS) framework for synthetic securitization.  This proposal, which is limited to balance-sheet securitization, includes a list of criteria to be considered when labeling synthetic securitization as STS. Among the regulator’s proposed criteria are requirements on simplicity, standardization and transparency similar […]

The European Bank for Reconstruction and Development (EBRD) has announced its support for the Central Bank of Tunisia’s adoption and implementation of International Financial Reporting Standards (IFRS). The Central Bank of Tunisia is leading the transition of the financial sector towards IFRS from a prudential point of view.  It has requested the assistance of the […]

The European Banking Authority (EBA) has published its final Guidelines on credit risk mitigation (CRM) in the context of the advanced internal ratings-based (A-IRB) approach (Guidelines).  These Guidelines, which are part of the EBA’s regulatory review of the IRB approach, aim to eliminate the remaining significant differences in approaches in the area of CRM, which […]

The Prudential Regulation Authority (PRA) has published its observations on the risk-weighted treatment of exposures under the Bounce Back Loan Scheme, particularly eligibility for recognition as unfunded credit risk mitigation under the Capital Requirements Regulation.  The PRA release also sets out a change to the UK leverage ratio framework. The regulator is offering a modification […]

The Financial Stability Board is consulting on Guidance on financial resources to support CCP resolution and on the treatment of CCP equity in resolution (Guidance). Part I of the Guidance proposes five steps to guide supervisory authorities in assessing the adequacy of a central counterparty (CCP)’s financial resources and the potential financial stability implications of […]

The Monetary Authority of Singapore, the Association of Banks in Singapore, and the Finance Houses Association of Singapore have announced additional measures to support individuals facing financial difficulties due to the COVID-19 pandemic.  Based on the announcement, the measures will extend the scope of relief for individuals to other types of loan commitments, and allow […]

In light of the COVID-19 pandemic, the Central Bank of Nigeria has extended by one year, commencement dates for revised minimum capital requirements for microfinance banks (MFBs) in the country. According to the prudential regulator, the revised capital requirements for the different categories of MFBs in the country will come into effect as follows: i) […]

OSFI has announced that deposit-taking institutions can use their Pillar II capital buffers to absorb unexpected losses arising from the impact of the COVID-19 disruption. This flexibility, the regulator hopes, will assist financial institutions to continue supporting Canadians and Canada-based businesses through these extraordinary times. OSFI expects these institutions to concurrently consider the appropriateness of […]

The Basel Committee on Banking Supervision (Committee) has published a stocktake report on its members’ existing regulatory and supervisory initiatives on climate-related financial risks. Prepared by the Committee’s high-level Task Force on Climate-related Financial Risks (TFCR), the report suggests that the majority of Committee members are undertaking a number of regulatory and supervisory initiatives on […]

The Basel Committee on Banking Supervision has published its progress report on banks’ implementation of the Principles for effective risk data aggregation and reporting (Principles). Issued in 2013, the Principles aim to strengthen banks’ risk data aggregation and risk reporting with a view to improving their risk management, decision-making processes and resolvability. The progress report […]