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COVID-19: Reactions of major regulators

24 Jun, 2020

This page displays the regulatory updates in Financial sector caused by the COVID-19 outbreak.

Given the foreseen related complications, we are all on the lookout for news that may impact our lines of business. 
To that end, Finalyse tracks all the regulatory updates related to the financial sector in response to COVID-19.
Many of these updates are going to affect the regulatory requirements and implementation deadlines.
This page will be updated daily.

You are invited to consult it regularly, or you can subscribe to our LinkedIn news feed.

You can sort this table by date of the update or by subject (alphabetically).

Subjects covered are the following:

Accounting, Capital, Governance, Insurance, Market Environment, Planning, Reporting, Risk Management, Supervision.

Should you have any questions, please let us know at info@finalyse.com
   
 

 

 

DateTitleSummarySubjectOriginator
19.06.2020Measures requested by the CSSF in the light of the return to working on-siteFollowing the additional measures for the easing of the lockdown announced by the Luxembourg government, the CSSF requests, while taking into account that the coronavirus is still present in the Grand Duchy and in order to avoid a second wave of infections and ensure operational continuity of the supervised entities, that the supervised entities put in place, or continue to apply several additional measures when employees and external providers return to work on-site.Market EnvironmentCSSF
DateTitleSummarySubjectOriginator
19.06.2020Trade credit, trade finance, and the Covid-19 Crisis

The BIS has published a bulletin on Trade credit, trade finance, and the Covid-19 Crisis. Its key takeaways are:

  • The vulnerabilities of longer and more geographically extended trade credit chains are coming to the fore, especially those related to international trade.
  • The bulk of the exposures associated with supply chains is borne by the participating firms themselves, through inter-firm credit.
  • Measures such as central bank swap lines that ease global dollar credit conditions may cushion the impact of the pandemic on global value chains.
 
Market EnvironmentBCBS
DateTitleSummarySubjectOriginator
19.06.2020COVID-19: Easing rules to encourage banks to lend to companies and householdsThe European Parliament has released a press release titled "COVID-19: Easing rules to encourage banks to lend to companies and households" This is in reaction to Plenary having approved the “quick fix” to the capital requirement regulation to temporarily ensure favourable conditions for banks. This will support credit flows to companies and households and absorb losses, mitigating the economic consequences of the COVID-19 lock-down.CapitalParliament
DateTitleSummarySubjectOriginator
19.06.2020A roadmap to completing the Banking UnionThe European Parliament has released an In-dept analysis titled "A roadmap to completing the Banking Union" The current crisis will evidently put the current setup of Banking Union to test, but may also create a new impetus and political will for it’s completion. This briefing, based on two earlier EGOV briefings, sets out the main milestones of such process so far, outlines where work was before the coronavirus outbreak and points to areas where progress is still missing and should continue once the urgency of the current crisis is mitigated. It will be regularly updated on the basis of available public information.Market EnvironmentParliament
DateTitleSummarySubjectOriginator
17.06.2020The COVID-19 crisis and its implications for fiscal policiesAs part of its Economic Bulletin, the ECB has published a study titled "The COVID-19 crisis and its implications for fiscal policies" the study shows that COVID-19) pandemic has put unprecedented burdens on euro area countries’ economies and government finances, which will require a strong EU response in addition to action at national level. According to the Commission, no euro area country is currently compliant with the Treaty’s government deficit criterion and some are also non-compliant with its debt criterion.Market EnvironmentECB
DateTitleSummarySubjectOriginator
17.06.2020BCBS press release on impact of Covid-19The BCBS Produced a press released based on its meeting to discuss a range of policy issues and to review the impact to date of Covid-19 pandemic on the global banking system. BCBS has noted that the pandemic has entered a new phase. The impact and response vary across jurisdictions and the global economic outlook remains uncertain. Banks and supervisors must remain vigilant to the risks and vulnerabilities stemming from the pandemic to ensure that the global banking system remains financially and operationally resilient.Market EnvironmentBCBS
DateTitleSummarySubjectOriginator
17.06.2020COVID-19: market fear as implied by options pricesAs part of its Economic Bulletin, the ECB has published a study titled "Coronavirus (COVID-19): market fear as implied by options prices" the study shows that stock markets around the world have tumbled since late February, when international investors began to worry about the spread of the coronavirus outside of China and its impact on the global economy. The COVID 19 naturally features heavily throughout all the bulletin.Market EnvironmentECB
DateTitleSummarySubjectOriginator
15.06.2020ESMA updates 2020 Annual Work ProgrammeThe ESMA has published a revised version of its 2020 annual Work Programme. Amid the COVID-19 outbreak, the Authority’s work has been recently focusing on itsThe work programme is thus rewritten to account for ESMAs additional work on its immediate reaction to the crisis and indicates potential deprioritization regarding ongoing and future mandates.SupervisionESMA
DateTitleSummarySubjectOriginator
15.06.2020The economy and coronavirus: Weekly PicksThe European Parliament has released a Briefing titled: "The economy and coronavirus: Weekly Picks" This paper provides a summary of recent analyses of the economic and financial effects of the coronavirus, an overview of the proposed new temporary European Union Recovery Instrument, and some policy recommendations made in the public domain to mitigate the negative economic effects of the pandemic.Market EnvironmentParliament
DateTitleSummarySubjectOriginator
15.06.2020Banking Union: Corona crisis effectsThe European Parliament has released a Briefing titled: "Banking Union: Corona crisis effects" this series of briefings reports on observations made and actions taken by supervisory authorities, credit rating agencies, banking federations, as well as other industry and academic experts, in order to point to relevant developments in the banking sector.Market EnvironmentParliament
DateTitleSummarySubjectOriginator
11.06.2020ESMA renews its Decision on Short SellingIn response to COVID 17 still having a serious adverse effects on real economy. The ESMA, the EU’s securities markets regulator, has renewed its decision to temporarily require the holders of net short positions in shares traded on a EU regulated market to notify the relevant NCA if the position exceeds 0.1% of the issued share capital. The measure applies from 17 June 2020 for a period of three months.TradingESMA
DateTitleSummarySubjectOriginator
10.06.2020Amending CRR and CRD as regards adjustments in response to the COVID-19 pandemicThe Committee on Economic and Monetary Affairs has recommended the European parliament to addopt the proposal for a regulation of the European Parliament and of the Council
amending CRR and CRR2 as regards
adjustments in response to the COVID-19 pandemic. In particular, the proposed amendments allows the regulators to relax the capital requirements in the context of economy-wide crisis not caused by the financial sector such is the one related to COVID 19
CapitalParliament
DateTitleSummarySubjectOriginator
10.06.2020ECB report on banks’ credit underwriting standardsThe ECB has published a report on banks’ credit underwriting standards, which highlights some weaknesses in the way banks have granted and priced new loans in recent years. In times of economic downturn or stress such as the current crisis caused by the COVID-19, adequate lending standards and risk-based pricing become even more importanE10t as losses materialise. Report shows: several cases where loan pricing did not cover expected losses and costs
Banks with high NPL levels tended to grant housing loans more conservatively
No evidence banks using internal models applied better risk-based pricing 
Market EnvironmentECB
DateTitleSummarySubjectOriginator
09.06.2020EIOPA supports the ESRB’s call on enhanced monitoring of liquidity risksThe EIOPA has announced that it supports the views expressed by the ESRB regarding the importance of improving the monitoring of liquidity risks in the insurance sector with the aim to enhance Europe’s preparedness to potential future shocks.
In this context, as a response to Covid-19, EIOPA already developed and put in place a proportionate framework to enhance the nature and the consistency of the information collected on liquidity risks. Until now there is no evidence of the materialisation of liquidity risks in the insurance sector.
InsuranceEIOPA
DateTitleSummarySubjectOriginator
09.06.2020Revised rules to encourage banks to lend to companies and householdsThe Economic and Monetary Affairs Committee MEPs approved new rules to temporarily ensure favourable conditions for banks in order to support credit flows to companies and households and absorb losses, mitigating the severe economic consequences of the COVID-19 pandemic and the enforced confinement. With a view to striking a balance between a robust and stable banking system and securing much-needed credit for the EU economy, MEPs agreed to apply specific changes to the CRR, which will have to be coherently applied in the EU. CapitalParliament
DateTitleSummarySubjectOriginator
09.06.2020ESMA extends deadline for responses to consultation on EMIR REFITThe ESMA, has decided, in view of the effects of the ongoing COVID-19 pandemic on stakeholders and market participants, to extend the response date for the consultation on the technical standards on reporting, data quality, data access and registration of Trade Repositories under EMIR REFIT to 3 July 2020.ReportingESMA
DateTitleSummarySubjectOriginator
08.06.2020COVID-19 and German constitutional court decisionDuring the quarterly ‘Monetary Dialogue’ with Ms Lagarde on Monday, Economic and Monetary Affairs Committee MEPs focused almost exclusively on the ECB’s actions to dampen the pandemic’s negative effects on the economy and the decision of the German constitutional court on the ECB’s Public Sector Purchase Programme.SupervisionParliament
DateTitleSummarySubjectOriginator
08.06.2020ECB opinion welcomes the Council endorsement of SUREThe ECB has released an opinion on a proposal for a regulation on the establishment of a European instrument for temporary support to mitigate unemployment risks in an emergency following the COVID-19 outbreak. The ECB has welcomed the endorsement of the Eurogroup agreement on three safety nets for workers, businesses and sovereigns, i.e. the SURE instrument, together with Pandemic Crisis Support by the European Stability Mechanism and a pan-European guarantee fund.Market EnvironmentECB
DateTitleSummarySubjectOriginator
04.06.2020ECB Monetary policy decisionsThe Governing Council of the ECB took several monetary policy decisions: The envelope for the pandemic emergency purchase programme (PEPP) will be increased by €600 billion to a total of €1,350 billion. The horizon for net purchases under the PEPP will be extended to at least the end of June 2021. The maturing principal payments from securities purchased under the PEPP will be reinvested until at least the end of 2022. Market EnvironmentECB
DateTitleSummarySubjectOriginator
04.06.2020Eurosystem staff macroeconomic projections for the euro area, June 2020The ECB has released a Eurosystem staff macroeconomic projections for the euro area for June 2020. The paper talks about how COVID-19 pandemic has affected global economic activity since taking hold in early 2020 and the euro area economy is no exception. Mainly due to the strict lockdown measures implemented in most euro area countries around mid-March, euro area real GDP registered a record decline of 3.8% in the first quarter of 2020 and a further decline in GDP of 13% is expected for the second quarter.Market EnvironmentECB
DateTitleSummarySubjectOriginator
04.06.2020Weekly picks on the economy and coronavirusThe European Parliament has published a Briefing on the weekly picks on the economy and coronavirus. This paper provides a summary of some recent estimates and analyses of the economic and financial effects of the coronavirus, an overview of the grants component included it the Commission’s proposal for a new EU recovery and resilience facility, and some policy recommendations made in the public domain to mitigate the negative economic effects of the pandemic.Market EnvironmentEuropean Parliament
DateTitleSummarySubjectOriginator
03.06.2020June 2020 quarterly reviewThe Bank of International Settlements has published its June 2020 quarterly review. This Quarterly Review draws on several BIS data sets to examine emerging market corporates' external and foreign currency debt on the eve of the Covid-19 outbreak.  It also assesses whether emerging market government debt is a cause for concern.Market EnvironmentBCBS
DateTitleSummarySubjectOriginator
02.06.2020Guidelines to address gaps in reporting data and public informationThe EBA has published its Guidelines on reporting and disclosure of exposures subject to measures applied in response to the COVID-19 crisis. These Guidelines follow the implementation of a broad range of measures, such as legislative moratoria on loan repayments and public guarantees in Member States, with the aim to support the operational and liquidity challenges faced by borrowers. The Guidelines have been developed to address data gaps associated with such measures to ensure an appropriate understanding of institutions’ risk profile and the asset quality on their balance sheets both for supervisors and the wider public.Risk ManagementESMA
DateTitleSummarySubjectOriginator
28.05.2020financial vulnerabilities and responses to the COVID-19 pandemicThe FSB Regional Consultative Group for Europe held a conference call to discuss global and regional macroeconomic and financial market developments and their potential impact on European economies.
Members exchanged views on the latest financial stability implications of COVID-19, including the wide range of policy measures authorities have taken, as well as their effectiveness.
SupervisionFSB
DateTitleSummarySubjectOriginator
28.05.2020The SURE: Main Features - In-depth analysisThe European Parliament has released an In-dept analysis titled "The SURE: Main Features" This document presents the main features of the European instrument for temporary support to mitigate unemployment risks in an emergency and compares such facility with other financial assistance instruments already available in the EU. This note updates a previous version dated 15 April 2020 and highlights the differences of the instrument as agreed by Council on 19 May.Market EnvironmentParliament
DateTitleSummarySubjectOriginator
27.05.2020ESMA NewsletterESMA has released 14th edition of its Newsletter. The newsletter presents an update on ESMA's recent activities related to COVID-19 and takes a closer look at the Thematic Report on CLO credit ratings in the EU. It also highlights deadlines for closing consultations next month and may present a convenient catch up on the full list of publications from April and May. SupervisionESMA
DateTitleSummarySubjectOriginator
26.05.2020The role of the EIB in the EU response to the COVID-19 The Committees on Budgets and Monetary Affairs jointly organised a public hearing on “The role of the European Investment Bank in the EU response to the COVID-19 outbreak and the post-crisis recovery”. The purpose of the hearing was to gather information from stakeholders on current and possible future EIB instruments to counter tightening of the credit supply in the context of the COVID-19 pandemic as well as to support investment during the recovery phase.Market EnviromnmentParliament
DateTitleSummarySubjectOriginator
26.05.2020Financial policymakers discuss responses to COVID-19Financial policymakers and international standard setters today met virtually with private sector executives to discuss international policy responses to COVID-19. The meeting explored the effectiveness of prudential and other financial policy measures taken to date, including experiences with their implementation. The discussion at the meeting will help inform ongoing work in the FSB, BCBS, CPMI, IAIS, and IOSCO, and serve as input into the FSB's report on COVID-19 policy responses to the July G20 meeting.SupervisionBCBS
DateTitleSummarySubjectOriginator
26.05.2020Pandemic increases risks to financial stability

The ECB has made a press release tellingly titled "Pandemic increases risks to financial stability" the main takeaways from this press release are:   

  • Pandemic greatly amplified existing vulnerabilities of the financial sector, corporates and sovereigns
  • Policy responses are essential to preserve financial stability
  • Euro area banks, are likely to face significant losses and further pressure on profitability 
 
Market EnviromnmentECB
DateTitleSummarySubjectOriginator
25.05.2020EBA: COVID-19 is placing unprecedented challenges on EU banksThe EBA has published a preliminary assessment of the impact of COVID-19 on the EU banking sector. The report states that the crisis is expected to affect asset quality and, thus, profitability of banks going forward. Nonetheless, the capital accumulated by banks during the past years along with the capital relief provided by regulators amounts on average to 5p.p. above their overall capital requirements (OCR). This capital buffer should allow banks to withstand the potential credit risk losses derived from a sensitivity analysis based on the 2018 stress test.Market EnviromnmentEBA
DateTitleSummarySubjectOriginator
20.05.2020EME bond portfolio flows and long-term interest rates during the Covid-19 pandemicThe BIS has published a bulletin on EME bond portfolio flows and long-term interest rates during the Covid-19 pandemic. The major findings are following: Bond portfolio outflows from emerging market economies were strongly associated with currency depreciation and rising domestic long-term interest rates. The relationship between bond portfolio outflows and long-term rates varies across EMEs, depending on factors such as bond market depth, FX market functioning and sovereign risk. Recent policy responses can play an important role in maintaining financial stability in EMEs when they face bond outflows.Market EnviromnmentBCBS
DateTitleSummarySubjectOriginator
20.05.2020COVID-19 and the half-yearly financial reportsESMA has published a public statement on the implications of the COVID-19 outbreak on the half-yearly financial reports. ESMA has consistently highlighted the need to continue providing the necessary level of transparency, while considering measures that could provide assistance to issuers in facing these difficult circumstances.
This statement particularly addresses the preparation of the interim financial statements according to IFRS and the interim management reports for the 2020 half-yearly reporting periods.
Market EnvironmentESMA
DateTitleSummarySubjectOriginator
20.05.2020Opinion on amendments to the Union prudential frameworkThe ECB has submitted an opinion on a proposal of the regulation, which is to aments CRR as regards adjustments in response to the COVID-19 pandemic. the ECB fully supports the Commission’s initiative to increase the capacity of credit institutions to lend and to absorb losses related to the COVID-19 pandemic, while still ensuring their continued resilience, but warns that further ammendments should not overly alter the present regulatory requirements and avoid causing further divergence to Basel Standards.CapitalECB
DateTitleSummarySubjectOriginator
19.05.2020Financing collateralised by euro-denominated securities continued to declineThe ECB has released the results of the March 2020 survey on credit terms and conditions in euro-denominated securities financing and over-the-counter derivatives markets. Against the background of the emerging COVID-19 crisis during the latter part of the review period December 2019 to February 2020, price and non-price credit terms offered to non-financial corporations, insurance companies and hedge funds tightened somewhat in both the securities financing market and the OTC derivatives market.Market EnviromnmentECB
DateTitleSummarySubjectOriginator
19.05.2020economy and coronavirus: weekly picksThe European Parliament has published a Briefing on its Weekly Picks on the economy and coronavirus. This paper provides a summary of some recent analyses of the economic and financial effects of the coronavirus, an overview of some policy recommendations made in the public domain to mitigate the negative economic effects of the pandemic.Market EnvironmentParliament
DateTitleSummarySubjectOriginator
19.05.2020The ESM Pandemic Crisis SupportThe European Parliament has released a briefing on the ESM Pandemic Crisis Support. This paper provides a summary analysis of the European Stability Mechanism Pandemic Crisis Support instrument agreed by the Eurogroup. This instrument allows the ESM to provide financial assistance to euro area Member States, to be used for recovering costs related to direct and indirect healthcare, cure and prevention due to the COVID- 19 crisis. The paper focuses on the main feature of the instrument, including its eligibility, the financial and the surveillance aspects.SupervisionParliament
DateTitleSummarySubjectOriginator
19.05.2020FINMA Guidance on extension or discontinuation of exemptionsThe Swiss Financial Market Supervisory Authority FINMA is publishing further guidance in the context of the COVID-19 crisis containing adjustments to the periods for various exemptions already granted and specifying in more detail how the net stable funding ratio is calculated. Risk ManagementFINMA
DateTitleSummarySubjectOriginator
18.05.2020COVID 19 in EIOPA Risk DashboardThe EIOPA has published its updated Risk Dashboard based on the fourth quarter 2019 Solvency II data. Despite the fact that some indicators used in this Risk Dashboard do not capture the latest market development in the context of Covid-19 outbreak, the expected deterioration of the relevant indicators reflecting all available information in a forward looking perspective has been considered in the assigned risk levels.Market EnviromnmentEIOPA
DateTitleSummarySubjectOriginator
15.05.2020Parliament has released brieging on the Banking Union and CoronavirusThe European Parliament has released a Briefing on the Banking Union and Corona crisis effects. It contributes to the series of briefings reports on observations made and actions taken by supervisory authorities, credit rating agencies, banking federations, as well as other industry and academic experts, in order to point to relevant developments in the banking sector.Market EnviromnmentParliament
DateTitleSummarySubjectOriginator
14.05.2020COVID 19 in ESMA risk dashboard The ESMA has published the first complete risk dashboard for 2020, and highlights the very high risks in all areas of ESMA’s remit.  The assessment remains at the same level as the separate risk update published on 2 April. Unsurprisingly, the risk dashboard features heavily imppacts of COVID 19 as the main driver of the risk in Q1 2020. Risk ManagementESMA
DateTitleSummarySubjectOriginator
14.05.2020ESMA to undertake focused supervisory engagement with investment funds The ESRB addressed a Recommendation to the ESMA as part of a set of actions to address the COVID-19 emergency from a macroprudential perspective. The recommendation suggests that the relevant NCAs across Europe, coordinated by ESMA, undertake focused supervisory engagement with investment funds that have significant exposures to corporate debt and real estate, which are less liquid asset categories.SupervisionESMA
DateTitleSummarySubjectOriginator
14.05.2020ECB has released a bulletin on economic and monetary developmentsThe ECB has released a  bulletin on economic and monetary developments. Whilst bulletin is a periodic release, given the period it covers it consists of descriptions and evaluations of the impacts of COVID 19 on financial markets and the real economy as well as the steps taken by the member states and the institutions to mitigate it.Market EnvironmentECB
DateTitleSummarySubjectOriginator
14.05.2020CSSF recommends supervised entities to be careful when relaxing the telework requirementsThe CSSF has released a set of recommendations to supervised entities on telework and a possible return to the office. CSSF stresses that The recent easing of the lockdown by the Luxembourg government has not signalled the end of the COVID-19 pandemic. As a result CSSF firmly recommends to supervised entities to remain extremely careful when considering allowing the return to the office.GovernanceCSSF
DateTitleSummarySubjectOriginator
13.05.2020ESMA has published a thematic report on the impact of COVID 19 on CLOsThe ESMA, has published a Thematic Report on Collateralised Loan Obligations credit ratings in the EU. The report provides an overview of CLO rating practices and identifies the main supervisory concerns, and medium-term risks, in this asset class. The report also highlights the impact that COVID-19 may have on CLO methodologies. ESMA expects CRAs to provide market participants with granular information on the sensitivity of CLO credit ratings to key economic variables affected by the pandemic. TradingESMA
DateTitleSummarySubjectOriginator
13.05.2020CSSF has updated its Q&A's on COVID 19The CSSF has updated its Q&As on COVID-19 the new Q&A concerns whether or not the deadlines for the submission of the closing documents of specialised PFS can be postponed. The CSSF decided that the deadline extensions for the submission of usual closing documents may, be exceptionally granted upon reasoned request. Nevertheless, submission on time is encouraged,ReportingCSSF
DateTitleSummarySubjectOriginator
12.05.2020The Parliament has Released a Briefing on the Economy and CoronavirusThe European Parliament has published a briefing titled "The economy and coronavirus: Weekly Picks". This paper provides a summary of some recent analyses of the economic and financial effects of the coronavirus, an overview of the new pandemic credit line by the European Stability Mechanism and some policy recommendations made in the public domain to mitigate the negative economic effects of the pandemic.Market EnvironmentParliament
DateTitleSummarySubjectOriginator
08.05.2020Small businesses report challenging outlook for their access to external financingThe European Central Bank has released a Survey on the Access to Finance of Enterprises. The survey indicates that:    Small and medium-sized enterprises report a rapid deterioration in economic environment in context of COVID-19
    Deterioration in economic outlook and SMEs’ financial situations have a strong negative impact on availability of finance
    SME expectations about access to external finance deteriorate sharply, reflecting expected impact of coronavirus pandemic 
Market EnvironmentECB
DateTitleSummarySubjectOriginator
08.05.2020CSSF has amended its Q&As on COVID 19The CSSF has updated one of its previously released Q&As on COVID 19 more concretely the question on the extension of reporting deadlines for banks. The update concernes the reports of the réviseurs d'entreprises (statutory auditors) which are hereby due on 30th of JuneReportingCSSF
DateTitleSummarySubjectOriginator
06.05.2020The BIS has published a brief on Banks' dividends in Covid-19 timesThe Bank of International settlements has published a brief on Banks’ dividends in Covid-19 times. This FSI Brief describes how regulatory distribution constraints operate under Basel III and discusses how that standard has been applied in some jurisdictions. Further, it takes stock of recent supervisory actions aimed at capital conservation and discusses how they differ across a sample of 14 jurisdictions. Lastly, it offers some concluding remarks.SupervisionBCBS
DateTitleSummarySubjectOriginator
06.05.2020ESMA has reminded firms of conduct of business obligations under MiFID IIFollowing requests of several member state NCAs, the ESMA has issued a Public Statement on the risks for retail investors when trading under the highly uncertain market circumstances due to the COVID-19 pandemic. ESMA also reminds investment firms of the key conduct of business obligations under MiFID when providing services to retail investors.SupervisionESMA
DateTitleSummarySubjectOriginator
04.05.2020ESAS postponed the last two implementation phases of margin requirements by a yearThe European Supervisory Authorities, in response to the COVID-19 outbreak have published joint draft RTS to amend the Delegated Regulation on the risk mitigation techniques for non-centrally cleared OTC derivatives, under EMIR, to incorporate a one-year deferral of the two implementation phases of the bilateral margining requirements.ReportingEBA
DateTitleSummarySubjectOriginator
04.05.2020CSSF has released a circulare on supervision in the collective investment sectorThe CSSF has published a circular providing Luxembourg professionals with information particularly relevant for their activities and to provide guidance on how to abide by AML/CFT professional obligations during COVID 19 crisis. The CSSF has implemented several measures to ensure it meets the operational challenges associated with AML/CFT supervision during this time.SupervisionCSSF
DateTitleSummarySubjectOriginator
30.04.2020ECB has recalibrated targeted lending operationsThe ECB has decided on a number of modifications to the terms and conditions of its targeted longer-term refinancing operations in order to support the provision of credit to households and firms in the face of the current economic disruption and heightened uncertainty. For the period from 24 June 2020 to 23 June 2021 the interest rate on all TLTRO III operations will now be 50 basis points below the average rate applied in the Eurosystem’s main refinancing operations over the same period.Market EnvironmentECB
DateTitleSummarySubjectOriginator
30.04.2020ECB has announced new pandemic emergency longer-term refinancing operations The ECB has decided to conduct a new series of seven additional longer-term refinancing operations, called pandemic emergency longer-term refinancing operations. These operations will provide liquidity support to the euro area financial system and contribute to preserving the smooth functioning of money markets by providing an effective backstop after the expiry of the bridge longer-term refinancing operations that have been conducted since March 2020.Market EnvironmentECB
DateTitleSummarySubjectOriginator
30.04.2020EIOPA has revised its timetable for advice on Solvency II ReviewEIOPA, has decided to deliver its advice to the European Commission at end December 2020, to take into account the importance of assessing the impact of the current Covid-19 situation on the Solvency II Review. The new timing will allow an update of the holistic impact assessment in view of the impact of the pandemic on the financial markets and insurance business and to take that impact into account in EIOPA’s advice.InsuranceEIOPA
DateTitleSummarySubjectOriginator
30.04.2020SCCF has released a circulare on legislative and non-legislative moratoria on loan repaymentsThe CSSF has released a circular on the adoption of the EBA guidelines on legislative and non-legislative moratoria on loan repayments applied in the light of the COVID-19 crisis. The CSSF thereby announces that it complies with and applies the EBA guidelines on legislative and non-legislative moratoria on loan repayments applied in the light of the COVID-19 crisis.CapitalCSSF
DateTitleSummarySubjectOriginator
29.04.2020The BIS has released a Brief on Public guarantees for bank lendingThe Financial Stability Institute of the Bank of International Settlements has released a FSI Brief number 5 on Public guarantees for bank lending in response to the Covid-19 pandemic. This paper discusses the steps taken by the public authorities, In order to shield their real economy from an impact of COVID-19 measures. It discusses the necessity of these steps, and what broad principles should these steps follow.CapitalBCBS
DateTitleSummarySubjectOriginator
29.04.2020The ECB has extended deadlines for the reporting of statistical informationThe ECB has decided to postpone the
following remittance dates:
  • Insurance Corporations statistics: annual remittance postponed by 8 weeks, quarterly by 1 week;
  • Pension Funds statistic: the annual remittance postponed by 8 weeks, quarterly remittance by 2 weeks;
  • Payment statistics: the remittance is postponed by 4 weeks.
 
ReportingECB
DateTitleSummarySubjectOriginator
29.04.2020CSSF has released a Q&As on payment moratoriaThe CSSF has updated its Q&As on COVID-19 adding a Q&A on prudential treatment of payment moratoria. Following the EBA publications on payment moratoria in a COVID-19 context, the CSSF takes an opportunity to summarise the main aspects related to the prudential treatment of private (also called non-legislative) moratoria in Luxemburg.TradingCSSF
DateTitleSummarySubjectOriginator
28.04.2020The Commission has adopted a banking packageThe European Commission has adopted a banking package aimed at facilitating bank lending to support the economy and help mitigate the economic impact of the Coronavirus. The package encourages banks and supervisory bodies to apply the EU’s accounting and prudential rules more flexibly, and proposes targeted amendments to EU banking rules (CRR).CapitalParliament
DateTitleSummarySubjectOriginator
28.04.2020BIS has published a bulletin on corporate sector liquidityThe Bank of International Settlements has published a bulletin on Covid-19 and corporate sector liquidity. The paper suggest ammong others, that the Covid-19 shock is placing enormous strains on corporates cash buffers. Corporate financial statements from 2019 suggest that 50% of firms do not have sufficient cash to cover total debt servicing costs over the coming year. Market EnviromentBCBS
DateTitleSummarySubjectOriginator
27.04.2020Weekly Picks on The economy and coronavirusThe European Parliament has released its weekly picks on The economy and coronavirus. Weekly Picks provides a snapshot of the current and recently proposed EU budgetary and financial support in view of the discussions on possible building blocks for a new European Recovery Fund. It covers as well other recent proposals made in the public domain related to the COVID 19 crisis.Market EnvironmentParliament

 

 

DateTitleSummarySubjectOriginator
27.04.2020Thematic Digest on EU Economic Governance during the pandemicThe European Parliament has released a Thematic Digest on EU
Economic Governance during the pandemic. This document presents a selection of thematic briefings in the area of EU economic governance and banking union recently published by the Economic Governance Support Unit of the European Parliament, notably in view of the ongoing debate to find common solutions to combat the economic, financial and social effects of COVID-19.
SupervisionParliament

 

 

DateTitleSummarySubjectOriginator
27.04.2020The European Parliament asked for a Concrete Details and Novel Tools to Address the Economic CrisisMembers of the European Parliament have quizzed Commissioners Dombrovskis and Gentiloni on planned measures to tackle the looming economic crisis due to COVID-19. MEPs called for concrete details and novel tools to address the economic crisis. The discussion underlined that although the measures agreed by the European Council were to be welcomed, more was needed, including fresh funds.Market EnviromentParliament

 

 

DateTitleSummarySubjectOriginator
24.04.2020Specific measures for addressing the outbreak of COVID-19The Official Journal of the EU has published a regulation ammending a regulation on the Fund for European Aid to the Most Deprived as regards the introduction of specific measures for addressing the outbreak of COVID-19. Market EnvironmentParliament

 

 

DateTitleSummarySubjectOriginator
24.04.2020Use of the European Structural and Investments Funds in response to the COVID-19The Official Journal of the EU has published a regulation amending the regulation on the European Regional Development Fund and on specific provisions concerning the Investment for growth and jobs goal and repealing Regulation as regards specific measures to provide exceptional flexibility for the use of the European Structural and Investments Funds in response to the COVID-19 outbreak.Market EnvironmentParliament

 

 

DateTitleSummarySubjectOriginator
23.04.2020European Parliament has published a briefing on Corona crisis effectsThe Banking Union Working Group of the EUropean Parliament has published a briefing reports on observations made and actions taken by supervisory authorities, credit rating agencies, banking federations, and other industry experts, in order to point to relevant developments in the banking sector in the last two weeks. This includes: Proposal for a euro area bad bank, Finance Ministers’ position on mitigating actions, EBA Risk Dashboard, Consolidation pressure and other topics.Market EnvironmentParliament

 

 

DateTitleSummarySubjectOriginator
22.04.2020EBA has released another guidance on the use of flexibility The EBA has provided further clarity on how additional flexibility will guide supervisory approaches in relation to market risk, the SREP, recovery planning, digital operational resilience and ICT risk and securitisation.  At the same time, the EBA notes the need for stringent attention by supervisors and financial institutions in relation to key risks in these areas. CapitalEBA

 

 

DateTitleSummarySubjectOriginator
22.04.2020ECB has taken steps to mitigate impact of possible rating downgrades The Governing Council of the ECB have adopted temporary measures to mitigate the effect on collateral availability of possible rating downgrades resulting from the economic fallout from the COVID-19 pandemic. The decision complements the broader collateral easing package that was announced on 7 April. These measures aim to ensure that banks have sufficient assets that they can mobilise as collateral to participate in the liquidity-providing operations and to continue providing funding to the euro area economy. CapitalECB

 

 

DateTitleSummarySubjectOriginator
21.04.2020The European Parliament has published a briefing on economy and coronavirusThe European Parliament has published a briefing consisting of weekly picks on the economy and coronavirus. this Weekly Picks
provides a selection of positions taken by EU institutions (or their representatives) on an EU recovery fund. It also covers other recent proposals made in the public domain related to the COVID 19 crisis.
SupervisionParliament

 

 

DateTitleSummarySubjectOriginator
20.04.2020Measures to mitigate impact of COVID 19 feature heavily in ESMA's NewsletterThe ESMA has published the edition of its Newsletter. In it ESMA informs that it has launched its new page on COVID-19 as it continues to closely monitor the situation in view of the impact the virus is having on EU financial markets. Also, in this issue ESMA takes a closer a look at its full list of publications and at some important statements delivered by Steven Maijoor, ESMA's Chair, on the measures ESMA has taken to address the effects of COVID-19.SupervisionESMA

 

 

DateTitleSummarySubjectOriginator
20.04.2020CSSF has updated its Q&A's on Banking supervision in light of COVID 19The CSSF has updated its Q&As on COVID-19, specifically CSSF updated the answer on whether the measures imposed by ECB on significant institutions will also be applied analogously to less significant institution. CSSF notes that main difference it makes compared to ECB is that an extension of a deadline will only be granted to LSIs upon submission of a reasoned COVID-19 related request. This approach is meant to keep supervision at a normal level, as far as justified given COVID-19, thus avoiding backlogs. SupervisionCSSF

 

 

DateTitleSummarySubjectOriginator
17.04.2020IASB has amended its work plan and proposed amendment to IFRS 16The IAS Board has decided to propose an amendment to the leases Standard, IFRS 16, to help companies account for covid-19-related rent concessions, such as rent holidays. The Board has also decided to propose extending by one year the effective date of an amendment to IAS 1 Presentation of Financial Statements, issued in January 2020: Classification of Liabilities as Current or Non-current. Finally, several consultations planned for 2020 will be delayed until later in the year or to 2021.AccountingIAS

 

 

DateTitleSummarySubjectOriginator
17.04.2020The OJ has published a European Roadmap towards lifting COVID-19 containment measuresThe Official Journal of the EU has published a European Roadmap towards lifting COVID-19 containment measures. The roadmap summarises the numbers of confirmed cases in individual countries as well as the measures taken to date. It provides the three criteria for relaxing the restriction - evidence of the decrease in spread of disease, sufficient health system capacity and appropriate monitoring capacity. If these conditions are met, the roadmap provides the principles and recommendations for member states to follow when relaxing their measures.Market EnviromentCommission

 

 

DateTitleSummarySubjectOriginator
17.04.2020EIOPA has issued a statement on principles to mitigate the impact on IORPSThe EIOPA has issued a Statement on principles to mitigate the impact of COVID-19 on the occupational pensions sector. The statement recognises the stabilising role that IORPs can play as long-term investors in the current economic climate. The statement, addressed to national competent authorities, outlines principles related to:
    Business continuity and operational risk
    Liquidity position
    Funding situation and pro-cyclicality
    Protection of members and beneficiaries; and
    Communication
IORPSEIOPA

 

 

DateTitleSummarySubjectOriginator
17.04.2020ESMA has issued new Q&A on Alternative Performance Measures The ESMA has issued a Q&A to provide guidance to issuers on the application of the ESMA Guidelines on Alternative Performance Measures in the context of the COVID-19 pandemic. The Q&A's highlights the main principles of the APM Guidelines;
encourages issuers to use caution when adjusting Alternative Performance Measures; an invites issuers to provide: narrative information regarding the modifications made and information on measures taken or expected to be taken by issuers.
GovernanceESMA

 

 

DateTitleSummarySubjectOriginator
17.04.2020CSSF has encouraged all financial institutions to work from homeFurther to the confirmation by the Luxembourg government, on 15 April 2020, that the lockdown will be extended with limited exceptions until at least 25 May, the CSSF urges all financial institutions under its prudential supervision to continue favouring working from home. A satisfactory IT security conditions should be guaranteed and no prior authorisation is needed for such work arrangements.SupervisionNCA

 

 

DateTitleSummarySubjectOriginator
16.04.2020ECB temporarily allowed lower capital requirements for market riskThe ECB has announced a temporary reduction in capital requirements for market risk, by allowing banks to adjust the supervisory component of these requirements.
With this decision, the ECB is responding to the extraordinary levels of volatility recorded in financial markets since the outbreak of COVID-19. As well as smoothing procyclicality, it aims to maintain banks’ ability to provide market liquidity and to continue market-making activities. This decision will be reviewed after six months.
Risk ManagementECB

 

 

DateTitleSummarySubjectOriginator
16.04.2020CSSF updated Q&As regarding passive breachesThe CSSF has updated its Q&As on COVID-19 regarding the passive breaches of VaR and global exposure limits by UCITS as a result of the increase volatility and their treatment by CSSF. Whilst CSSF does note that the best effort need to be made, it appears that VaR breaches as a result of increased volatility can be considered a passive breaches and they need not to be reported to CSSF. CSSF also explained its position on active breaches.Risk ManagementCSSF

 

 

DateTitleSummarySubjectOriginator
16.04.2020ESMA updated overview of the steps it has taken so farThe ESMA has updated its webpage on the steps on addressing the COVID 19. The ESMA, together with National Competent Authorities, is closely monitoring the situation in view of the continuing impact of the COVID-19 outbreak on financial markets in the EU. The webpage gives an overview of all steps taken by ESMA regarding the COVID 19 crisis to date.SupervisionESMA

 

 

DateTitleSummarySubjectOriginator
15.04.2020ECB has endorsed NCA's decisions to loosen capital requirementsThe ECB has announced that it supports the measures taken by euro area macroprudential authorities to address the impact of COVID-19 outbreak on the financial sector. The ECB has assessed the notifications submitted by national macroprudential authorities for each proposed measure provided for in the CRR and CRD and has issued a non-objection decision, thereby endorsing the measures taken to reduce capital requirements, including the countercyclical capital buffer.CapitalECB
DateTitleSummarySubjectOriginator
15.04.2020ECB asked Reporting Authorities to consider requesting only essential statistical reportsECB communication to reporting agents on the collection of statistical information in the context of COVID-19. The ECB stressed that the access to the reliable reported information is of paramount importance, particularly in the turbulent times, however, ECB also recognises that the reporting agents may not have a capacity to provide the most accurate information at the moment. The ECB therefore invites the national central banks and reporting agents to find pragmatic solutions within the existing legal framework to keep data reporting within limits that are manageable for reporting agents, while maintaining the quality of the statistical information at a level that is fit for purpose. ReportingECB

 

 

DateTitleSummarySubjectOriginator
15.04.2020FSB has set up five principles of safeguarding the economies from financial impactThe FSB has published a report delivered to the G20 on international cooperation and coordination to address the financial stability implications from COVID-19. The report sets out five principles that underpin the official community’s rapid and coordinated response to support the real economy, maintain financial stability and minimise the risk of market fragmentation. SupervisionFSB

 

 

DateTitleSummarySubjectOriginator
14.04.2020Q&As on investment fund reports and flexibility offered by IFRS 9The CSSF has updated its Q&As on COVID-19 regarding its position concerning the deadlines applicable under the UCITS Directive and under the AIFMD for annual and half-yearly reports and regarding the flexibility offered by IFRS 9 in order to mitigate volatility in the banks’ regulatory capital, financial statements and reporting of the banks regarding the COVID-19 pandemic. The CSSF emphasises that in order to gain an exemption, you need to notify them about your reasons.CapitalCSSF

 

 

DateTitleSummarySubjectOriginator
14.04.2020FINMA relaxed Requirements on Market Risk Models and Derivatives TradingThe Swiss Financial Market Supervisory Authority FINMA has published further guidance in the context of the COVID-19 crisis. The exemptions and clarifications related to its supervisory practice concern institutions authorised to apply the model approach to market risk as well as an extension of the timeframes for supervised institutions to introduce new rules for derivatives trading.CapitalFINMA

 

 

DateTitleSummarySubjectOriginator
14.04.2020FSB published a letter identifying the main challengesFSB has published a letter from its Chair, Randal K. Quarles, to G20 Finance Ministers and Central Bank Governors ahead of their virtual meeting on 15 April. The letter highlights the twin challenge that the global financial system must respond to in the face of COVID-19: First, a dramatically increased need for credit throughout the global economy, to bridge this period of highly restricted activity. Second, marked uncertainty about the value of a wide range of assets, which greatly complicates the operation of markets and the intermediation of this heightened credit need.SupervisionFSB

 

 

DateTitleSummarySubjectOriginator
09.04.2020Publication dates for annual non-equity transparency calculations and quarterly SI data postponedThe ESMA has issued a Public Statement postponing the application of the annual non-equity transparency calculations and the calculations for the systematic internalise test for derivatives, ETCs, ETNs, emission allowances and structured finance products under MiFID II. ESMA is taking this approach in recognition of the difficulties encountered by market participants in complying with an update of the transparency calculations for non-equity instruments, in a situation where they already face significant challenges due to the COVID-19 pandemic.ReportingESMA

 

 

DateTitleSummarySubjectOriginator
09.04.2020CSSF to deprioritise SFTR reportingBased on the considerations described in the ESMA statement, the CSSF decided that it will not prioritise its supervisory actions towards counterparties, entities responsible for reporting and investment firms in respect of their reporting obligations pursuant to SFTR or MiFIR, regarding (i) SFTs concluded between 13 April 2020 and 13 July 2020, and (ii) SFTs subject to backloading under SFTRReportingNCA

 

 

DateTitleSummarySubjectOriginator
09.04.2020Supervisors to deprioritise benchmarks external audit requirementsThe ESMA has issued a Public Statement to promote coordinated action by NCAs regarding the timeliness of fulfilling external audit requirements for interest rate benchmark administrators and contributors to interest rate benchmarks. ESMA expects NCAs not to prioritise supervisory actions relating to the timeliness of fulfilling those audit requirements where the audits are carried out by 30 September 2020.ReportingESMA

 

 

 

DateTitleSummarySubjectOriginator
09.04.2020MiFID II/MiFIR transparency review report postponedThe ESMA has decided, in view of the effects of the ongoing COVID-19 pandemic, to further extend the response date for the consultation on the MiFID II/MiFIR review report on the transparency regime for non-equity instruments and the trading obligation for derivatives to 14 June 2020.ReportingESMA

 

 

DateTitleSummarySubjectOriginator
09.04.2020Supervisors to deprioritise funds periodic reportsThe ESMA has issues a public statement directed at Fund Managers concerning their obligations to publish yearly and half-yearly reports. In the current situation, ESMA expects NCAs to adopt a risk-based approach and not prioritise supervisory actions against these market participants in respect of the upcoming reporting deadlines.  ReportingESMA

 

 

DateTitleSummarySubjectOriginator
07.04.2020Package of temporary collateral easing measuresECB has adopted a package of temporary collateral easing measures to facilitate the availability of eligible collateral for Eurosystem counterparties to participate in liquidity providing operations, such as the targeted longer-term refinancing operations. ECB: eases the conditions for the use of credit claims as collateral; adopts a general reduction of collateral valuation haircuts and introduces a waiver to accept Greek sovereign debt instruments as collateral in Eurosystem credit operations CapitalECB

 

 

DateTitleSummarySubjectOriginator
07.04.2020Q&As on swing factor increaseThe CSSF the national Authority of Luxemburg has updated its Q&As on COVID 19. The Updated question concerns the swing factor. CSSF clarifies that UCIs can increase the swing factor to be applied on the NAV up to the maximum level laid down in the prospectus without notifying the CSSF and show the conditions under which they can increase it above the maximum level.Risk ManagementCSSF

 

 

DateTitleSummarySubjectOriginator
07.04.2020The exemptions for identification requirementsThe Swiss Financial Market Supervisory Authority FINMA has published further guidance with information for supervised institutions about exemptions and clarifications related to its supervisory practice in the context of the COVID-19 crisis. The exemptions concern certain identification requirements under anti-money laundering regulation and in the insurance area. FINMA is willing to approve requests from insurance companies for a temporary smoothing of the yield curves for various currencies, in order to reduce daily fluctuations of the Swiss Solvency Test.InsuranceFINMA

 

 

DateTitleSummarySubjectOriginator
07.04.2020Briefing on recent observations of CRA's and the list of developments to watch out forThe European Parliament has published a briefing titled "Banking Union: Corona crisis effects". the following briefing reports on observations made and actions taken by supervisory authorities, credit rating agencies, banking federations, or other industry experts, in order to point to relevant developments in the banking sector. This briefing considers recent assessment by rating agencies and the "developments to watch in the banking union".Market EnvironmentParliament

 

 

DateTitleSummarySubjectOriginator
06.04.2020Commission and EIF unlocked €8 bn in finance for 100,000 SMEsThe Commission has unlocked €1 BN from the European Fund for Strategic Investments that will serve as a guarantee to the EIF (part of EIB). This will allow the EIF to issue special guarantees to incentivise banks and other lenders to provide liquidity to at least 100,000 European SMEs and small mid-cap companies hit by the economic impact of the coronavirus pandemic, for an estimated available financing of €8 billion.Market EnvironmentComission

 

 

DateTitleSummarySubjectOriginator
06.04.2020Parliament enquires on SME debt guaranteesA group of European Parliament MPs has submitted a question to the ECB. In their question they noted that the COVID 19 related crisis will burden disproportionally SMEs, distort their cash flows, threaten job places, and challenge their viability in the post-crisis period. The Parliament therefore asks Is the ECB operationally ready to use its balance sheet to protect the SMEs and the real sector directly by the necessary providing debt guarantees?Market EnvironmentParliament

 

 

DateTitleSummarySubjectOriginator
06.04.2020Briefing on Coronavirus impact on economies of Portugal, Netherlands and the Baltic statesThe European Parliament has produced a Briefing on the economy and coronavirus. This paper provides a summary of some recent analyses of the economic and financial effects of the coronavirus and some policy recommendations made in the public domain to mitigate these negative effects. More specifically it looks at countries of Portugal, Netherlands, Estonia, Lithuania and Latvia.Market EnvironmentParliament

 

 

DateTitleSummarySubjectOriginator
03.04.2020Revised G-SIB framework postponed by a yearThe BCBS has announced that it will conduct the 2020 G-SIB assessment exercise as planned, based on end-2019 data, but has agreed not to collect the memorandum data included in the data collection template. The Committee has also decided to postpone the implementation of the revised G-SIB framework by one year, from 2021 to 2022.These adjustments will provide additional operational capacity for banks and supervisors in the current juncture.GovernanceBCBS

 

 

 

 

DateTitleSummarySubjectOriginator
03.04.2020The Impact on ECL accountingThe BCBS has published a paper on Measures to reflect the impact of Covid-19. This document sets out technical guidance related to: (i) the exceptional measures introduced by governments and banks to alleviate the impact of Covid-19; and (ii) expected credit loss (ECL) accounting. The guidance seeks to ensure that banks reflect the risk-reducing effect of the exceptional measures when calculating their capital requirements.Risk ManagementBCBS

 

 

DateTitleSummarySubjectOriginator
03.04.2020The final two implementation phases of the margin requirements postponed by a yearBCBS and IOSCO have revised the framework for margin requirements for non-centrally cleared derivatives. Relative to the 2019 framework the revision extend by one year the final two implementation phases of the margin requirements, so that the final implementation phase will take place on 1 September 2022. This extended timeline will provide additional operational capacity for firms to respond to the immediate impact of the Covid-19 and at the same time, facilitate covered entities to act diligently to comply with the requirements by the revised deadline.Risk ManagementBCBS

 

 

DateTitleSummarySubjectOriginator
02.04.2020EIOPA urged (re)insurers to temporarily suspend all discretionary dividendThe EIOPA has published a statement on dividends distribution and variable remuneration policies in the context of COVID-19.
Taking due account of the current level of uncertainty on the depth, magnitude and duration of the impacts of COVID-19 in financial markets and on the economy, EIOPA urges (re)insurers to temporarily suspend all discretionary dividend distributions and share buy backs aimed at remunerating shareholders.
InsuranceEIOPA

 

 

DateTitleSummarySubjectOriginator
02.04.2020Guidelines on treatment of public and private moratoriaFollowing the publication of its statement on the application of the prudential framework regarding default, forbearance and IFRS9 in light of COVID-19 measures, the EBA has published more detailed guidance on the criteria to be fulfilled by legislative and non-legislative moratoria applied before 30 June 2020. The aim is to clarify the requirements for public and private moratoria, which if fulfilled, will help avoid the classification of exposures under the definition of forbearance or as defaulted under distressed restructuring. CapitalEBA

 

 

DateTitleSummary Subject  Originator
02.04.2020ESMA has updated its risk assessmentThe ESMA has updated its risk assessment to account for the impact of the COVID-19 pandemic. Corporate bond, government bond markets and a number of investment funds show signs of stress. ESMA sees a prolonged period of risk to institutional and retail investors of market corrections and very high risks across the whole of ESMA’s remit. Market     Environment  ESMA

 

 

 

 

DateTitleSummarySubjectOriginator
02.04.2020FSB members to take action to ensure continuity of critical financial services functionsThe FSB has announced that its  members are taking steps to maintain financial stability to address the economic and financial stability risks of the COVID-19 pandemic. This includes: (i) sharing information on evolving financial stability threats and on the policy measures that financial authorities are taking; (ii) assessing financial risks and vulnerabilities in the current environment; and (iii) coordinating policy responses to maintain global financial stability, keep markets open and functioning, and preserve the financial system’s capacity to serve households and businesses.SupervisionFSB

 

 

DateTitleSummarySubjectOriginator
02.04.2020ECB extended review of its monetary policy strategy until mid-2021The ECB has decided to extend the timeline for the review of its monetary policy strategy. In the current situation, the decision-making bodies and staff of the ECB and the national central banks of the Eurosystem are focusing all their efforts on addressing the challenges posed by the coronavirus pandemic. The conclusion of the strategy review will therefore be postponed from the end of 2020 to mid-2021.SupervisionECB

 

 

DateTitleSummarySubjectOriginator
02.04.2020Extensions for reporting in LuxemburgThe national financial authority of Luxembourg - the CSSF, has updated its Q&As on COVID 19, the new Q&As focus on extension of deadlines for prudential reporting particularly for the reports to be submitted by UCIs, SIFs, SICARs, investment fund managers, pension funds and securitisation undertakings. The Q&As list the reports for which the deadlines may be postponed, provided that the institutions notify the CSSF.ReportingNCA

 

 

DateTitleSummarySubjectOriginator
01.04.2020Steps to mitigate the impact on clientsThe EIOPA has issued today a statement to insurers and intermediaries, urging them to take steps to mitigate the impact of COVID-19 on consumers. The EIOPA specifically asks insurers and intermediaries to consider a number of different actions:
Providing clear and timely information to consumers;
Keeping consumers informed about contingency measures that have been put in place;
Continuing to apply product oversight and governance requirements; and
Exercising flexibility in the treatment of consumers where reasonable and practical.
InsuranceEIOPA

 

 

DateTitleSummarySubjectOriginator
01.04.2020CSSF is to comply with ECB advice on remunerationsThe CSSF updated its Q&A's on COVID 19, the new question asked on CSSF policy stance as regards banks’ distribution policies aimed at remunerating shareholders. The CSSF noted that it intends to fully comply with the ECB request as well as EBAs statement. To this end it lists a more concrete steps regarding its policy. GovernanceCSSF

 

 

DateTitleSummarySubjectOriginator
01.04.2020Steps taken by FINMAs summarised in its newsletterThe FINMA has teleased its 2020-03 Newsletter. This Newsletter gives an overview of the new items that were published last month on the FSMA website. Responces and advices regarding COVID 19 and it sinpacts on the economy feature heavily in the publication. It includes the information for profesionals, including provision on IORPS and prohibitions of short selling. Another part is dedicated to warnings against the fraud which is deemed particularly risky in the context of the pandemic. SupervisionFINMA

 

 

DateTitleSummarySubjectOriginator
31.03.2020Institutions are not to lessen their actions against the financial crime riskEBA issued a note stressing that despite the COVID 19 related issues, it remains important to continue to put in place and maintain effective systems and controls to ensure that the EU’s financial system is not abused for money laundering or terrorist financing purposes whilst asking competent authorities to support them in this regard.GovernanceEBA

 

 

DateTitleSummarySubjectOriginator
31.03.2020Supetvisory reporting of data subsets for pillar 3 to be delayed by a monthThe EBA invited the competent and resolution authorities to assess if delayed submission of all the data or subsets of the data included in the EBA reporting framework would be justified in these extraordinary circumstances. Such supervisory actions are only being considered for submissions due between March and end of May 2020. In general, institutions should be allowed up to one additional month for submitting the required data.ReportingEBA

 

 

DateTitleSummarySubjectOriginator
31.03.2020Banks to stop paying dividents and review their remuneration policy The EBA has issued a public statement emphasising that the capital relief resulting from the measures adopted by competent authorities in response to COVID 19 crisis are to be used to finance the corporate and household sectors and not to increase the distribution of dividends or make share buybacks for the purpose of remunerating shareholders. Furthermore, competent authorities should ask banks to review their remuneration policies, practices and awards to ensure that they are consistent with and promote sound and effective risk management. GovernanceEBA

 

 

DateTitleSummarySubjectOriginator
31.03.2020FINMA published temporary exemptions for banks due to the COVID-19 crisisThe Swiss Financial Market Supervisory Authority FINMA provides the banks with clarifications for dealing with the COVID-19 credits with federal guarantees within the framework of the capital and liquidity requirements, and on temporary exemptions relating to the leverage ratio and on risk diversification requirements. FINMA also provides information about the expected credit loss approach under IFRS 9 and its application in the context of the COVID-19 crisis.CapitalFINMA

 

 

 

 

DateTitleSummarySubjectOriginator
31.03.2020Council and Commission Call Eurogroup to Take Additional MeasuresThe European Council tasked the Eurogroup to come up with proposals for measures to combat the economic impacts of COVID 19 within the next weeks. The Commission announced that it will participate in these discussions and stands ready to assist, if supported by the Eurogroup. Commission feels this is required since the fiscal space for new instruments is limited as we are in the last year of the Multi annual Financial Framework.Market EnvironmentComission

 

 

DateTitleSummarySubjectOriginator
30.03.2020Parliament to release updates on Euro-Area measuresThe European Parliament has published an in-depth analysis on EU/EA measures to mitigate the economic, financial and
social effects of coronavirus as of 30th March 2020. This document compiles information, obtained from public sources, on the measures proposed and taken at the EU or Euro Area level to mitigate the economic and social effects of Covid19. It will be regularly updated.
Market EnvironmentParliament

 

 

DateTitleSummarySubjectOriginator
30.03.2020Overview of Macroeconomic effects of COVID 19 The European Parliament has published a briefing  titled "The economy and coronavirus: Weekly Picks"
This paper provides a summary of some recent analyses of the macroeconomic effects of
the coronavirus conducted by S&P and some policy recommendations made in the public domain.
Market EnvironmentParliament

 

 

DateTitleSummarySubjectOriginator
30.03.2020Extensions for reporting in LuxemburgThe national financial authority of Luxembourg - the CSSF, has updated its Q&As on COVID 19, the new Q&As focus on extension of deadlines for prudential reporting particularly for payment institutions and electronic money institutions, Investment Firms and the support PFS. Each answer contains a list of reports delayed for given institutions.ReportingNCA

 

 

DateTitleSummarySubjectOriginator
30.03.2020Extraordinary information for Solvency II RFR and EDADue to COVID-19 outbreak, in the coming weeks EIOPA will carry out extraordinary calculations on weekly basis to monitor the evolution of the relevant risk-free interest rate term structures (RFR) and the symmetric adjustment to equity risk (EDA). EIOPA is publishing this information in order to support insurance and reinsurance undertakings in the monitoring of their solvency and financial position. InsuranceEIOPA

 

 

DateTitleSummarySubjectOriginator
27.03.2020Equity Transparency Calculations not to be postponedThe ESMA has recently been asked by some stakeholders to postpone the date of application of equity transparency calculations reporting which is to apply from 1 April. The ESMA answered that delaying the application of the new transparency results would in itself entail some risks and might even create additional operational burdens to all the market participants that have already planned for them.ReportingESMA

 

 

DateTitleSummarySubjectOriginator
27.03.2020Transparency Law Reporting delayed by 2 months in LuxemburgThe CSSF announced, that it will not take any administrative measures or sanctions in relation to issuers’ failure to comply with the upcoming deadlines for the publication of periodic information required by the Articles 3, 4 and 5 of the Transparency Law. Issuers may make use of additional two months, if they feel it appropriate to do so.ReportingNCA

 

 

DateTitleSummarySubjectOriginator
27.03.2020ECB asks banks not to pay dividends until OctoberThe ECB has updated its recommendation to banks on dividend distributions. To boost banks’ capacity to absorb losses and support lending to households and SMEs during the pandemic, they should not pay dividends for the financial years 2019 and 2020 until at least 1 October 2020. Banks should also refrain from share buy-backs aimed at remunerating shareholders. GovernanceECB
DateTitleSummarySubjectOriginator
27.03.2020Basel III and related publications postponed by a year

The Group of Central Bank Governors and Heads of Supervision, has endorsed measures to provide additional operational capacity for banks and supervisors to respond to the Covid-19. These measures comprise the following changes to the implementation timeline of the outstanding Basel III standards:

  • The implementation date of the Basel III standards has been deferred to 1 January 2023. The accompanying transitional arrangements for the output floor to 1 January 2028.
  • The implementation date of the revised market risk framework has been deferred to 1 January 2023.
  •  The implementation date of the revised Pillar 3 disclosure requirements has been deferred by one year to 1 January 2023
 
CapitalBCBS

 

 

DateTitleSummarySubjectOriginator
27.03.2020Annual TD reports postponed by two months, half-year reports by a month

 

The ESMA has issued a Public Statement to promote coordinated action by NCAs regarding issuers’ obligations to publish periodic information for reporting periods ending on 31 December 2019 or after. Considering that issuers may be prevented from meeting the requirements due to COVID-19, ESMA expects NCAs not to prioritise supervisory actions against issuers in respect of the upcoming deadlines set out in the Transparency Directive regarding:
  • annual financial reports referring to a year-end occurring on or after 31 December 2019 but before 1 April 2020 for a period of two months following the TD deadline; and
  • half-yearly financial reports referring to a reporting period ending on or after 31 December 2019 but before 1 April 2020 for a period of one month following the TD deadline.
 
ReportingESMA
DateTitleSummarySubjectOriginator
26.03.2020Large Data Requests suspended until 1st JuneThe Netherlands Authority for the Financial Markets stated that due to the impact of COVID-19 it will be suspending large data requests to financial undertakings until 1 June 2020. There are exceptions such as the AFM’s investigation into interest-only mortgages, monitoring compliance with the Act on the prevention of money laundering and terrorist financing and the Market Monitor Advisors and Intermediaries.ReportingNCA
DateTitleSummarySubjectOriginator
26.03.2020SFTR reporting delay to include SFTs concluded between 13/4 and 13/7The ESMA has clarified its earlier statement on the application of SFTR. SFTs concluded between 13 April 2020 and 13 July 2020 and SFTs subject to backloading under the SFTR also fall within those issues in respect of which Member State competent authorities are not expected to prioritise in their supervisory actions.ReportingESMA

 

 

 

DateTitleSummarySubjectOriginator
26.03.2020Parliament approves crucial EU support measures

The European Parliament has adopted three urgent proposals:

  • The Corona Response Investment Initiative - The €37 billion from available EU funds will be directed towards healthcare systems, SMEs, labour markets and other vulnerable parts of EU member states’ economies;
  • The extension of the EU Solidarity Fund to cover public health emergencies. The measures will make up to €800 million available for European countries in 2020; and
  • Temporarily suspending EU rules on airport slots.
 
Market environmentParliament

 

 

DateTitleSummarySubjectOriginator
26.03.2020CSSF updates FAQ Covid-19 regarding extensionsThe national financial authority of Luxembourg - the CSSF, has updated its Q&As on COVID 19, the new Q&As focus on extension of deadlines for prudential reporting particularly for the investment funds and banks. CSSF notes that, when the extension is possible, the institutions still need to notify the supervisor.ReportingNCA

 

DateTitleSummarySubjectOriginator
25.03.2020Temporary pandemic emergency purchase programme was set up by ECB The ECB has published a decision on a temporary pandemic emergency purchase programme. This decision seeks to establish the temporary pandemic emergency purchase programme (‘PEPP’) as a separate purchase programme, with an overall envelope of EUR 750 billion. Under the PEPP the Eurosystem central banks shall purchase eligible market debt securities, eligible corporate bonds, eligible covered bonds and eligible ABSs.SupervisionECB

 

DateTitleSummarySubjectOriginator
25.03.2020EBA postpones non-esential activities

The EBA has released a statement on activities postponed to support banks’ focus on key operations. The EBA has decided:

  • to extend the deadlines of ongoing public consultations by two months;
  • to postpone all public hearings already scheduled to a later date and run them remotely;
  • to extend the remittance date for funding plans data; and
  • in coordination with tBCBS, to extend the remittance date for the QIS based on December 2019 data.
 
SupervisionEBA
DateTitleSummarySubjectOriginator
24.03.2020DNB postpones Solvency II annual reports by 8 weeksThe DNB has published on postponing the reporting periods for insurers due to the COVID-19 outbreak. DNB follows EIOPAs recommendations on supervisory flexibility regarding the deadline of supervisory reporting and public disclosure. DNB allows for an eight week delay for the Solvency II annual reports. The Solvency II quarterly report impact alternative extrapolation method can be submitted one week after the original deadline.InsuranceDutch Central Bank

 

DateTitleSummarySubjectOriginator
25.03.2020Statement on consumer and payment issues in light of COVID19 The EBA has released a statement on consumer and payment issues in light of COVID-19. In this statement the EBA comments on the general debt moratoria and payment holidays that stem from public measures or industry-wide initiatives that have been taken by credit institutions.CapitalEBA

 

DateTitleSummarySubjectOriginator
25.03.2020The application of the prudential framework regarding  Default, Forbearance and IFRS9 in light of COVID19 measures.

The EBA has published a statement on the application of the prudential framework regarding default, forbearance and IFRS9 in light of COVID-19 measures. It discusses:

  • general considerations on the accounting and regulatory framework;
  • prudential identification of default;
  • classification of forbearance; and
  • considerations on IFRS9.
 
AccountingEBA

 

DateTitleSummarySubjectOriginator
25.03.2020ESMA issues guidance on accounting implications of COVID-19The ESMA has issued a public statement designed to promote consistent application of IFRS in the EU and avoid divergence in practice on the application of IFRS 9 Financial Instruments in the specific context of the COVID-19 pandemic. The statement addresses in particular the accounting implications of the measures taken or proposed by national governments and EU bodies.AccountingESMA

 

DateTitleSummarySubjectOriginator
23.03.2020Solvency  regular reports postponed by 8 weeks quarterly reporting by 4The EIOPA has published recommendations to NCAS that aim to offer operational relief and support business continuity to insurance and reinsurance undertakings by extending deadlines for supervisory reporting and public disclosure during the Covid-19 outbreak. The recommendations allow for an 8 week delay to the submission of the Regular Supervisory Report and Solvency and Financial Condition Report and a four week delay for quarterly reporting for Q1. I don't know wky the thingy is so much bigger now, but I haopeReportingEIOPA

 

DateTitleSummarySubjectOriginator
20.03.2020ESMA extends consultations response dates by four weeksThe ESMA has announced that it was extending the response date for a number of ongoing consultations with a closing date on, or after, 16 March 2020 by four weeks. The consultations include those on the MiFIR report in systematic internalisers, draft technical standards under the BMR and guidelines for CRAs.SupervisionESMA

 

 

DateTitleSummarySubjectOriginator
20.03.2020Basel Committee coordinates policy and supervisory response to Covid-19 The BCBS has reported that it had held a conference call with its members to discuss the impact of the COVID-19 pandemic on the global banking system. In the immediate term, the Basel Committee is suspending consultation on all policy initiatives and postponing all outstanding jurisdictional assessments planned in 2020 under its Regulatory Consistency Assessment Programme.PlanningBIS

 

DateTitleSummarySubjectOriginator
20.03.2020Covid-19-Lage: Neue Entwicklungen und wichtige Informationen der BaFinFollowing initial steps to deal with the impact of the COVID-19 pandemic on the financial sector in Germany, the  BaFin has taken further relief measures. In order to give supervised entities a better overview of these measures, BaFin has published a related website compiling information on the actions taken by BaFin, by the ECB and by the ESAs.PlanningBaFin

 

DateTitleSummarySubjectOriginator
20.03.2020DNB measures for Less Significant InstitutionsThe Dutch Central Bank has issued a press release on its approach with respect to LSIs in light of the coronavirus pandemic. This follows the measures announced by the ECB providing temporary capital and operational relief to Significant Institutions.CapitalDNB (The Dutch Central Bank)

 

DateTitleSummarySubjectOriginator
20.03.2020The new tick size regime for systematic internalisers postponed by three monthsThe ESMA has published a Public Statement to ensure coordinated supervisory actions by NCAs on the application of the new tick size regime for systematic internalisers under MiFIR, as amended by IFR. While it lacks formal regulatory forbearance powers, ESMA  “expects competent authorities not to prioritise their supervisory actions in relation to the new tick size regime from 26 March, the application date, until 26 June 2020."ReportingESMA

 

DateTitleSummarySubjectOriginator
20.03.2020Supervisory flexibility to banks in treatment of NPLsThe ECB has announced further measures to ensure that directly supervised banks can weather the coronavirus related economic shock. To that end, the ECB  has introduced supervisory flexibility regarding the treatment of NPLs, in particular to allow banks to fully benefit from guarantees and moratoriums put in place by public authorities to tackle the current distress.
On a temporary basis ECB supervisors will exercise flexibility regarding the classification of debtors as “unlikely to pay” when banks call on public guarantees granted in the context of coronavirus. 
CapitalECB

 

DateTitleSummarySubjectOriginator
20.03.2020BaFin guidance on conduct of business rulesAfter the ESMA issued a public statement regarding the application of MiFID II requirements on the recording of telephone conversations, the BaFin has published additional guidance to market participants. The guidance focuses on conduct of business rules, particularly on Client-related requirements and other relief measures of BaFin.ReportingBaFin

 

DateTitleSummarySubjectOriginator
20.03.2020SFTR reporting pushed back to 13 July 2020The ESMA has published a Public Statement setting out its approach to the reporting obligation under SFTR. Noting significant impact caused by the COVID-19 outbreak on the EU financial markets. To this end, ESMA calls on national competent authorities “not to prioritise their supervisory actions towards entities responsible for reporting in respect of SFT reporting obligations, under SFTR and under MIFIR, as of 13 April 2020 and until 13 July 2020 - a new start date for SFTR reporting.ReportingESMA

 

DateTitleSummarySubjectOriginator
17.03.2020EIOPA statement on actions to mitigate the impact of Coronavirus/COVID-19 on the EU insurance sectorThe EIOPA has issued a statement on actions to mitigate the impact of Covid-19 on the insurance sector in the EU. EIOPA states that insurers will face “progressively difficult conditions in the immediate future, both in terms of navigating challenging market conditions and in maintaining operations, while taking steps to protect employees and customers.” The statement focuses on business continuity and solvency.CapitalEIOPA

 

DateTitleSummarySubjectOriginator
17.03.2020DNB relaxes the buffer and floor requirementsThe Dutch Central Bank has issued a press release notifying that it has decided to take the following measures:
  • the systemic risk buffer will be lowered, from its current 3% of global risk-weighted exposures to 2.5% for ING, 2% for Rabobank and 1.5% for ABN Amro; and
  • The introduction of a floor for mortgage loan risk weighting will be postponed.
 
CapitalDNB (The Dutch Central Bank)

 

DateTitleSummarySubjectOriginator
16.03.2020Emergency reporting of net short positionsIn reaction to COVID-19 the ESMA has published a decision, which requires natural or legal persons who have net short positions in relation to a share admitted to trading on a regulated market to notify to a competent authority details of any such position if the position reaches or exceeds 0.1% of the issued share capital. The requirement will last for three months.ReportingESMA

 

DateTitleSummarySubjectOriginator
12.03.2020

BaFin extends the ECB measures to less significant entities

Following the ECB Announcement on measures taken for directly supervised entities, and the EBA measures to mitigate the impact of COVID 19, the BaFin has published a notice that it will also apply the ECB relief measures to “less significant” credit institutions, and that  it will take into account the recommendations of the EBA for its supervisory practice. Furthermore BaFin relaxed the requirements on the conclusions of transactions, as part of the trading activities by a credit institution or an investment firm, to only happen on their premises.SupervisionBaFin

 

DateTitleSummarySubjectOriginator
12.03.2020EBA stress test pushed back to 2021 among other things

The EBA has issued a statement regarding actions to mitigate the impact of COVID-19 on the banking sector:

  • the EBA will postpone the EU-wide stress test exercise to 2021;
  • the EBA will carry out an additional EU-wide transparency exercise;
  • EBA recommends that NCAs plan supervisory activities, in a pragmatic and flexible way, and postpone them if possible; and
  • Conduct dialogue on the implementation of the EBA Guidelines on management of non-performing and forborne exposures.
 
CapitalEBA

 

DateTitleSummarySubjectOriginator
12.03.2020The ECB relaxes capital requirements for systemic institutions The ECB has announced a number of measures so that directly supervised banks can continue to fulfil their roles:
  • the banks will temporarily be able to operate below the level of pillar 2 capital, the capital conservation buffer and the LCR;
  • banks will be allowed to partially use instruments that do not qualify as CET 1, for example AT 1 or Tier 2 instruments, to meet the Pillar 2 requirements; and
  • the ECB is opened to individual measures, such as adjusting timetables, processes and deadlines.
 
CapitalECB

 

DateTitleSummarySubjectOriginator
12.03.2020ESMA recommends action by financial market participants for COVID-19 impact The ESMA has issued a public statement making recommendations to market participants as regards the impact of COVID-19.
The statement focuses on:
    Business continuity planning;
    Market disclosure;
    Financial reporting; and
    Fund management.
PlanningESMA

 

DateTitleSummarySubjectOriginator
12.03.2020ECB asks significant institutions to review their business continuity plansThe ECB has issued a letter for significant institutions concerning their contingency preparedness in the context of COVID-19.
The ECB notes that supervised entities are expected to review their business continuity plans and consider what actions can be taken to enhance preparedness to minimise the potential adverse effects of the spread of COVID-19. The ECB also stated that supervised entities are expected to take appropriate actions for preparing and responding to a potential pandemic.
Capital ECB