The annual regulation outlook reports bring together a summary of the main standards issued by global regulators (BCBS, FSB), supranational ones (with a focus on Europe), and some local geographies’ (USA, UK, Spain) during the year, as well as other related publications of interest, with the aim of providing an overview of the latest and most prominent policy developments.
List of annual regulatory outlook reports released.
In 2022 there have been limited regulatory developments in Capital and Resolution. In the field of Sustainability, the Proposal for a Directive on Corporate Due Diligence focuses on monitoring and mitigating impacts on adverse human rights and the environmental impacts. Meanwhile, EIOPA provides criteria for climate change scenarios and materiality assessment in the context of the ORSA. In addition, the ECB has set compliance deadlines for its supervisory expectations for climate and environmental risks. On the IT front, the final publication of DORA stands out, as do two different regulations on data use and management.
2022 Annual Regulation Outlook
In 2021, various supranational, international and local bodies have pronounced themselves on the methodologies for measuring, disclosing and principles for managing and supervising ESG risks, with a focus on climate risk. Also noteworthy are technological publications, such as the BCBS's Operational Resilience Principles, IOSCO's Outsourcing Principles and, at the European level, the IA Regulation Proposal. In addition, in Europe, the EC also published the amendment of the Solvency II Directive and the 2021 Banking Package, as well as several AML/CFT rules.
The year 2020 has been marked by norms issued by regulators in order to mitigate the impact of the COVID-19 pandemic, such as moratoriums on the payment of certain credits or the postponement of the EBA stress tests. At international level, the IOSCO published consultation report on the use of artificial intelligence and machine learning, as well as a consultative document on the principles of outsourcing services. At European level, the EBA published the final report on the Guidelines on CRM for institutions applying the IRB approach with own estimates of LGD. In the US, the Fed, FDIC and OCC have published the Final Rule on Regulatory Capital Treatment for Investments in Certain Unsecured Debt Instruments or the final rule strengthening the resilience of large banks.
In 2019, the BCBS’ Standard on minimum capital requirements for market risk stands out at global level. In Europe, EP and the Council published a package of financial system reforms (CRR II, CRD V, BRRD II and SRMR II). In addition, the ECB published the Guide to internal models. In Spain, the Government published the Draft Royal Decree on the legal regime of payment services and payment services and payment institutions, completing the transposition of PSD2. In the USA, the Fed, FDIC and OCC have published several Final rules such as the one on regulatory capital thresholds and liquidity requirements or the Final rule on the simplification of the Capital Rule.
In 2018, the BCBS’ consultative document on revisions to the minimum capital requirements for market risk stands out at global level. In Europe, the European Commission, the EBA and the ECB published several documents on NPLs. Furthermore, the ECB published a Guide on internal models, which updates the general aspects chapter. In Spain, the Anteproyecto de Ley de prevención del blanqueo de capitales y la financiación del terrorismo and the transposition of PSD2 into the Spanish legal system by the Spanish Government stand out.
In 2017, the BCBS’ review of the Basel framework: finalising post-crisis reforms stands out. In Europe, the EBA published a document on the impact assessment of the Basel III reform package as well as Final Guidelines on PD and LGD estimation and the treatment of defaulted exposures. In Spain, the publication of the Circular 4/2017 on rules for public and supervisory financial reporting and models of financial statements by the BdE which aimed to adapt the accounting framework of credit institutions to IFRS 9 and IFRS 15 stands out.
Regulatory updates for the current quarter can be found in the Regulatory Alerts for this Quarter section, while updates for previous quarters of the current year can be found on the Quarterly Regulatory Reports section.
Macroeconomic outlook reports