Skip to main content

Key Regulations

Basic regulations and standards for the industries in which we operate

This section lists, not exhaustively, some of the regulatory documents of particular interest for the financial sector.

 

Basel II

Scope: Global | Regulator: BCBS | Industry: Banking | Topic: Capital | Date of publication: June, 2006

Set of proposals for banking regulation reform whose aim to encourage banks to develop internal models that will allow them to further adjust requirements to their risk profile.

Click here to access this Regulation

 

Basel III: capital

Scope: Global | Regulator: BCBS | Industry: Banking | Topic: Capital; liquidity; leverage | Date of publication: June, 2011

Set of proposals for banking regulation reform that supplement BIS II, adding a capital buffer, leverage and liquidity requirements, and modifying the capital base as well as the calculation of minimum capital requirements.

Click here to access this Regulation

 

CRD IV/CRR

Scope: EU | Regulator: PE y C | Industry: Banking | Topic: Capital; Corporate governance | Date of publication: June, 2013

CRD IV/CRR transposes Basel III to European law. This text strengthens bank capital requirements, introduces a mandatory capital conservation buffer and a discretionary countercyclical buffer, and foresees a framework for new regulatory requirements on liquidity and leverage, as well as additional capital requirements for systemically important institutions.

Click here to access this Regulation

 

Revisions to the Standardised Approach for credit risk

Scope: Global | Regulator: BCBS | Industry: Banking | Topic: Credit risk; Capital | Date of publication: December, 2015

Second consultation on the BCBS’s proposal to revise the standardised approach (SA) for credit risk, in response to the issues raised in the 2014 proposal. This revision also includes a proposal to the credit risk mitigation (CRM) framework for exposures risk-weighted under the standardised approach.

Click here to access this Regulation

 

Constraints on the use of IRB approach - consultative document

Scope: Global | Regulator: BCBS | Industry: Banking | Topic: Credit risk; Capital | Date of publication: March, 2016

Consultative document setting constraints on the use of the IRB approach for certain portfolios. Moreover, it proposes to adopt exposure-level, model-parameter floors; replace the current capital floor; and provide greater specification of parameter estimation practices.

Click here to access this Regulation

 

Regulatory treatment of accounting provisions

Scope: Global | Regulator: BCBS | Industry: Banking | Topic: Credit risk; Capital; Provisions | Date of publication: October, 2016

Discussion paper on the policy considerations related to the regulatory treatment of accounting provisions under the Basel III regulatory capital framework, in order to adapt it to the standards that require the use of expected credit loss (ECL) models published by the IASB and the FASB. Along with this discussion paper, the BCBS released a consultative document proposing to retain, for an interim period, the current regulatory treatment of provisions under the standardised and the internal ratings-based approaches.

Click here to access this Regulation

 

Changes to the IRB method

Scope: EU | Regulator: EBA | Industry: Banking | Topic: Credit risk; Capital | Date of publication: March, 2015

Deals with key actions that need to be implemented to improve the IRB approach framework.

Click here to access this Regulation

 

Operational risk – Standardised Measurement Approach (SMA)

Scope: Global | Regulator: BCBS | Industry: Banking | Topic: Operational risk; Capital | Date of publication: March, 2016

Second consultative document which develops the Standardised Measurement Approach (SMA) for the estimation of the operational risk. The SMA is a single non-model-based method for the estimation of operational risk capital which will withdraw the AMA, although the implementation calendar has not been specified yet.

Click here to access this Regulation

 

Criteria for allowing the use of AMA methods

Scope: EU | Regulator: EBA | Industry: Banking | Topic: Operational risk; Capital | Date of publication: June, 2015

Regulatory Technical Standards (RTS) specifying the qualitative and quantitative requirements on which Competent Authorities should base their decisions as to whether to allow banks to use advanced methods (AMA) for the calculation of capital for operational risk.

Click here to access this Regulation

 

Minimum capital requirements for market risk

Scope: Global | Regulator: BCBS | Industry: Banking | Topic: Market risk; Capital | Date of publication: January, 2016

Final standards by the BCBS proposing a revised market risk framework, after conducting the Fundamental Review of the Trading Book. This revised market risk framework consists of the following key enhancements: i) revised boundary between the banking book (BB) and trading book (TB); ii) revised Standardised Approach (SA); and iii) revised Internal Models Approach (IMA).

Click here to access this Regulation

 

CP on Review of the CVA risk framework

Scope: Global | Regulator: BCBS | Industry: Banking | Topic: CVA | Date of publication: July, 2015

The proposed revision of CVA establishes two different frameworks: a FRTB-CVA framework, for banks that satisfy several conditions related to CVA calculation and management and have received supervisory approval; and a Basic CVA framework.

Click here to access this Regulation

 

Interest rate risk in the banking book

Scope: Global | Regulator: BCBS | Industry: Banking | Topic: Interest rate risk; Capital | Date of publication: April, 2016

Final standards which update the Pillar 2 Principles for the management and supervision of interest rate risk in the banking book (IRRBB). The BCBS also sets out a standardised framework which supervisors could mandate their banks to follow, or a bank could choose to adopt.

Click here to access this Regulation

 

Basel III leverage ratio framework and disclosure requirements

Scope: Global | Regulator: BCBS | Industry: Banking | Topic: Leverage | Date of publication: January, 2014

Leverage ratio framework and disclosure requirements to ensure this objective is met.

Click here to access this Regulation

 

Delegated Regulation to supplement the CRR with regard to the liquidity coverage ratio

Scope: EU | Regulator: Comisión Europea | Industry: Banking | Topic: Liquidity | Publication date; October, 2014

Delegated regulation detailing LCR.

Click here to access this Regulation

 

Basel III: The Liquidity Coverage Ratio and liquidity risk monitoring tools

Scope: Global | Regulator: BCBS | Industry: Banking | Topic: Liquidity | Date of publication: January, 2013

Introduces significant changes to the short-term liquidity coverage ratio (LCR), to make requirements less stringent.

Click here to access this Regulation

 

Basel III: the net stable funding ratio

Scope: Global | Regulator: BCBS | Industry: Banking | Topic: Interest rate risk; Capital | Date of publication: October, 2014

The BCBS has reinforced its liquidity framework through the development of two minimum standards for funding liquidity. The aim of the NSFR is to reduce funding risk over the longer term. For this, banks are required to fund their activities with stable sources of funding.

Click here to access this Regulation

 

Delegated Regulation amending the CRR with regard to the leverage ratio

Scope: EU | Regulator: Comisión Europea | Industry: Banking | Topic: Leverage | Date of publication: October, 2014

Delegated regulation introducing changes to the LR framework

Click here to access this Regulation

 

Guidelines on SREP

Scope: EU | Regulator: EBA | Industry: Banking | Topic: SREP | Date of publication: December, 2014

Guidelines addressed to Competent Authorities and intended to promote common procedures and methodologies for the supervisory review and evaluation process (SREP) and for assessing the organization and treatment of risks. Competent Authorities must ensure that SREP covers bank classification, monitoring of key indicators, assessment of specific areas and supervisory measures.

Click here to access this Regulation

 

Guide to banking supervision

Scope: EU | Regulator: ECB | Industry: Banking | Topic: Supervision | Date of publication: November, 2014

Document explaining the operation of the Single Supervisory Mechanism (SSM) and providing guidance on SSM supervisory practices.

Click here to access this Regulation

 

Revised Pillar 3 disclosure requirements

Scope: Global | Regulator: BCBS | Industry: Banking | Topic: Disclosure | Date of publication: January, 2015

Revised Pillar 3 framework whose aim is to enhance the comparability and consistency of information disclosures, focusing on improving the transparency of the internal model-based approaches that financial institutions use to calculate minimum capital requirements.

Click here to access this Regulation

 

RDA

Scope: Global | Regulator: BCBS | Industry: Banking | Topic: Information; Reporting | Date of publication: January, 2013

The RDA principles are a set of guidelines issued by the BCBS for effective risk data aggregation. Their main aim is for banks to be able to quantify their risk appetite levels and establish a robust infrastructure and control mechanisms to monitor and limit risk.

Click here to access this Regulation

 

COREP

Scope: EU | Regulator: EBA | Industry: Banking | Topic: Supervisory Reporting | Date of publication: June, 2014

COREP is the standardized reporting framework issued by the EBA for CRDIV reporting. It covers credit risk, market risk, operational risk, own funds and capital adequacy ratios.

Click here to access this Regulation

 

FINREP

Scope: EU | Regulator: EBA | Industry: Banking | Topic: Supervisory Reporting | Date of publication: June, 2014

Standard reporting framework covering Financial Reporting for supervisory purposes in relation to International Accounting Standards (IAS) / International Financial Reporting Standards (IFRS), as approved by the European Union.

Click here to access this Regulation

 

Corporate governance principles for banks

Scope: Global | Regulator: BCBS | Industry: Banking | Topic: Corporate governance | Date of publication: July, 2015

New corporate governance principles proposed by the BCBS concerning the Board, Senior Management, the three lines of defense, compensation, etc.

Click here to access this Regulation

 

Key Attributes of Effective Resolution Regimes for Financial Institutions

Scope: Global | Regulator: FSB | Industry: Banking | Topic: Resolution | Date of publication: October, 2014

Requires that G-SIFIs set up a recovery plan at the individual level, as well as resolution plans at both the individual and group level.

Click here to access this Regulation

 

Principles on Loss-absorbing and Recapitalisation Capacity of G-SIBs in Resolution and Total Loss-absorbing Capacity (TLAC) Term Sheet November 2015

Scope: Global | Regulator: FSB | Industry: Banking | Topic: Resolution | Date of publication: November, 2015

New requirement for G-SIBs to hold a proportion of liabilities that can be written off or converted to equity in the event of resolution. By January 2022, the TLAC percentage should have reached at least 18% of RWAs and 6.75% of the denominator of the leverage ratio set by Basel III.

Click here to access this Regulation

 

BRRD

Scope: EU | Regulator: PE y C | Industry: Banking | Topic: Recovery; Resolution | Date of publication: May, 2014

BRRD lays down rules and a standard procedure for the resolution of credit institutions of member States

Click here to access this Regulation

 

IAS 39

Scope: Global | Regulator: IASB | Industry: All | Topic: Provisions | Date of publication: February, 2011

Regulation that outlines the principles for the recognition and measurement of financial assets, financial liabilities and some contracts to buy and sell non-financial assets.

Click here to access this Regulation

 

IFRS 9

Scope: Global | Regulator: IASB | Industry: All | Topic: Provisions | Date of publication: July, 2014

The purpose of IFRS 9 is to establish the principles related to the reporting of financial assets and liabilities with the aim of improving and simplifying information on financial instruments.

Click here to access this Regulation

 

Guidance on accounting for expected credit losses

Scope: Global | Regulator: BCBS | Industry: Banking | Topic: Provisions | Date of publication: December, 2015

Supervisory guidance for sound credit risk practices regarding the implementation of accounting models for expected losses.

Click here to access this Regulation

 

Guidelines on credit risk management practices and accounting for expected credit losses

Scope: UE | Regulator: EBA | Industry: Banking | Topic: Provisions | Date of publication: July, 2016

Consultation on draft Guidelines on credit institutions' credit risk management practices and accounting for expected credit losses, with the aim of harmonizing the criteria established by the BCBS and ensuring consistent interpretations and practices according to IFRS 9.

Click here to access this Regulation

Draft guidance to banks on non-performing loans

Scope: SSM | Regulator: ECB | Industry: Banking | Topic: Credit risk; Capital; Provisions | Date of publication: September, 2016

Public consultation on guidance to banks on how they should tackle non-performing loans (NPLs). The guidance provides recommendations to banks and sets out a number of best practices that will constitute the ECB’s supervisory expectations going forward.

Click here to access this Regulation

Mifid II

Scope: EU | Regulator: PE y C | Industry: Banking | Topic: Consumer protection | Date of publication: May, 2014

Directive aimed at ensuring that financial markets are safer and more efficient and that investors are better protected.

Click here to access this Regulation

 

General Data Protection Regulation

Scope: UE | Regulator: EP y C | Industry: Various | Topic: Personal data protection | Date of publication: April, 2016

Regulation on the protection of natural persons with regard to the processing of personal data and on the free movement of such data. Among others, this Regulation includes new rights for the natural persons (e.g. right to be forgotten), and a set of obligations for the controller and processor of personal data.

Click here to access this Regulation

 

Solvency II

Scope: EU | Regulator: PE y C | Industry: Insurance | Topic: Insurance | Date of publication: November, 2009

EU Directive that governs and harmonizes insurance regulations in Europe. It deals mainly with the amount of capital that EU insurance companies must hold to reduce the risk of insolvency.

Click here to access this Regulation

© GMS Management Solutions, S.L., 2016. All rights reserved. The information contained on this publication is of a general nature and does not constitute a professional opinion or an advisory service. The data used in this publication come from public sources. GMS Management Solutions, SL assumes no liability for the veracity or accuracy of such data.