On November 6, 2024, the Bank of England’s Monetary Policy Committee reduced the Bank Rate by 0.25 points to 4.75%, responding to ongoing disinflation. While CPI inflation fell to 1.7% in September, a temporary increase to around 2.5% is expected by year-end. The MPC aims to achieve a 2% inflation target in the medium term and is monitoring wage growth and labour market stability closely, planning a gradual approach to further adjustments.
Europe
European Banking Authority (EBA)
Supervision of Non-Performing Exposures (NPEs): The EBA's latest report, a follow-up to its 2022 Peer Review, highlights improvements in how authorities supervise credit institutions' management of NPEs. With all reviewed authorities largely compliant with EBA guidelines, the EBA stresses the need for vigilance to detect early NPE growth.
Sustainable Finance Disclosure Regulation (SFDR): The EBA, ESMA, and EIOPA issued their third annual report on principal adverse impact disclosures, noting improved accessibility and compliance. Recommendations were made for consistent oversight and further SFDR review by the European Commission.
European Single Access Point (ESAP): The EBA, ESMA, and EIOPA finalised technical standards for ESAP, establishing a centralised portal for financial and sustainability data from national and EU authorities.
EMIR 3 Initial Margin Model Survey: A survey by the EBA, ESMA, and EIOPA seeks feedback on initial margin model authorisation to shape guidelines under the EMIR 3 framework, particularly for standardised margin models.
Consultation on Structural FX Standards: The EBA is consulting on draft standards for structural FX under the Capital Requirements Regulation (CRR). Aimed at standardising currency eligibility and open position calculations, the guidelines are designed to bring greater transparency to EU institutions.
European Securities and Markets Authority (ESMA)
Quarterly Bond Liquidity Assessment: ESMA’s latest liquidity report lists 1,233 bonds meeting transparency obligations under MiFID II and MiFIR, effective November 18, 2024, through February 16, 2025.
Direct Supervision of Data Reporting Service Providers: Starting in June 2025, ESMA will directly oversee Wiener Börse AG and KELER Központi Értéktár Zrt, marking a shift from national supervision to ensure compliance with ESMA standards.
Prospectus Regulation and Liability Consultation: ESMA’s recent consultation seeks input on Prospectus Regulation standards, aiming to ease regulatory burdens and improve transparency, especially for ESG-related non-equity securities.
Federal Funds Rate Adjustment: On November 7, 2024, the Federal Reserve adjusted its target federal funds rate down by 0.25 points to 4.5%-4.75%, as inflation remains above target. The FOMC continues to monitor economic activity and employment conditions to balance its goals.
Data Collections Review: The Federal Reserve posted updates on multiple data collection requirements, including new final notices and draft supporting statements, signaling ongoing efforts to streamline reporting processes.
Securities and Exchange Commission (SEC)
Small Business Capital Formation Committee: The SEC appointed four new members to its advisory committee, underscoring the SEC’s focus on supporting small businesses and promoting diversity within its initiatives.
Coming up...
Join us for our Webinar: Navigating CRR III – A Global Perspective on Basel III Implementation and Financial Stability.
🗓 Date: 27 November 2024
🕓 Time: 4:00 PM - 4:45 PM CET
We’re bringing together top experts for a concise, insightful webinar designed to equip senior banking professionals with the knowledge they need on CRR III’s impact and Basel III alignment.
Featured SpeakersVincent Baritsch, Head of Regulatory Policy, SMBC; Suade's David Hulmes, Managing Director, Regulatory Success and Suade's Samuel Heelan, Head of Regulatory Change.
