BIS highlights the need for authorities to review their prudential frameworks with a view to taking full account of the implications of climate-related financial risks for financial stability. Given the longer time horizons and the higher degree of uncertainty associated with the materialisation of climate-related financial risks, standard…

The Financial Stability Board (FSB) has published a letter from its Chair, Klaas Knot, to G20 finance ministers and central bank governors ahead of their meeting on 17-18 February 2022. The letter notes that the COVID-19 pandemic continues to weigh on the global economy. The global financial system has so far been able to support the recovery…

The European Banking Federation, together with the United Nations Environment Programme Finance Initiative (UNEP FI), have launched a report, “Practical approaches to applying the EU Taxonomy to bank lending”, that explores practical approaches for banks who wish to use the EU Taxonomy. This initiative, supported by EY, developed based on…

The ESMA publishes the first Trends, Risks and Vulnerabilities (TRV) Report of 2022 and, in its outlook for 2022, continues to see high risks to institutional and retail investors of further, possibly significant, market corrections. The pandemic’s resurgence at the end of 2021 and an uncertain economic and monetary policy outlook are leading…

As of 12 February, the Dutch Central Bank (DNB) has been formally designated by the legislator as CCP resolution authority. This designation stems from the European Regulation for Recovery and Resolution of Central Counterparties (CCPs) that entered into force in February 2021. Among other things, this regulation stipulates that Member States…

According to the European Systemic Risk Bord report of February 2022 on vulnerabilities in the residential real estate sectors of the European Economic Area countries, factors including strict urban planning, high quality standards required for new constructions, inefficient issuance of building permits and labour shortages are further limiting…

The European PRIIPs Template v2.0 (EPT) incorporates the necessary changes based on the revised PRIIPs RTS, published by in the Official Journal of the European Union in December 2021. The EPT is intended to be used for products sold from January 2023 onwards. It is important that data contained in the EPT is communicated by asset managers to…

The ECB has published the results of its Supervisory Review and Evaluation Process (SREP) for 2021. The findings of that annual assessment indicate that significant institutions have maintained solid capital and liquidity positions, with most banks operating at capital levels above those dictated by capital requirements and guidance. Banks’…

The ECB has published the results of its Supervisory Review and Evaluation Process (SREP) for 2021. The findings of that annual assessment indicate that significant institutions have maintained solid capital and liquidity positions, with most banks operating at capital levels above those dictated by capital requirements and guidance. Banks’…

The overriding importance of confronting the climate crisis forms a core part of the OECD work programme on the Future of Investment treaties. Discussion forums at the OECD have revealed strong support for the wide consultation of the public and relevant stakeholders. To this end, the OECD is conducting an online consultation, with a view to…