ICYMI: "City of London calls on BoE to delay bank capital rules until mid-2025"

Welcome back to Suade's fortnightly regulatory round-up, where we bring you the latest updates from authorities across the United States and Europe.

Let's dive right in then!

In US regulation...

• The Federal Reserve and federal financial institution regulatory agencies have updated guidance on liquidity risks and contingency planning. This emphasizes the importance of regular evaluation and updating of contingency funding plans for depository institutions.
• The FDIC has invited public comment on a proposal to strengthen capital requirements for large banks. This proposal aims to align capital requirements with underlying risks and promote consistency in risk measurement across banks.
• The Commodity Futures Trading Commission (CFTC) has extended the comment period for the impact assessment of affiliations of certain CFTC-regulated entities until September 28, 2023.
• The U.S. Department of the Treasury is seeking public input on the implementation of an Executive Order addressing U.S. investments in certain national security technologies and products in countries of concern.

For more, check out our website.

Now onto European Regulatory updates!

• The European Banking Authority (EBA) has been at the forefront of streamlining regulatory processes. They've updated their implementation timeline for the internal ratings-based (IRB) model requirements, a move aimed at reducing compliance costs for financial institutions. Additionally, the EBA has released its final supervisory handbook for the validation of IRB rating systems, providing clarity on the validation function's role within corporate governance.
• EBA's proactive data collection effort on interest rate risk in the banking book (IRRBB) ensures timely data for monitoring risks stemming from interest rate fluctuations. This initiative targets institutions involved in the QIS exercise, bolstering risk management practices.
• The European Securities and Markets Authority (ESMA) has bolstered market oversight by publishing data related to bond liquidity assessment, systematic internaliser calculations, and consolidated tape provider (CTP) calculations. These actions enhance transparency and market oversight under MiFID II and MiFIR.
• ESMA has provided clarity on regulatory definitions, updating guidance on the definition of advice under MiFID II within financial markets. Additionally, they've submitted a report on national rules concerning the marketing of investment funds, shedding light on the diverse regulatory landscape across EU member states.
• The Bank of England is actively transforming data collection processes in collaboration with the Financial Conduct Authority (FCA), modernizing data collection within the UK's financial sector.
• The Bank of England's Monetary Policy Committee (MPC) has increased the Bank Rate to 5.25%, reflecting their efforts to balance inflation targets with economic growth and stability.
• The City of London has requested a delay in the adoption of new global banking capital rules until mid-2025 to avoid regulatory divergence and maintain competitiveness within the financial industry.
• The Central Bank of Ireland has released the results of the 2023 EU-wide and ECB stress tests, offering insights into the resilience of banks amid economic challenges.
• The Financial Conduct Authority (FCA) has introduced the Consumer Duty, setting higher standards for consumer protection in financial services. This initiative focuses on customer support, understandable communications, and products that provide fair value.

For more, check out our website.

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