CRR

Digital innovation and banking regulation

Retrieved on: 
onsdag, juni 12, 2024
Pillar, Crypto, Celsius Network, Cloud, Bitcoin, Attention, Fratto, K 24, Comptroller, FSB, European Parliament, Cloud computing, Princeton University Press, Privacy, International Organization (journal), CBDC, EBA, Digital, Central bank, OHE, Social media, Federal, Boot, European Central Bank, IOSCO, Research Papers in Economics, International, De Economist, IDE, Communication, Manuscript, ESA, Fintech, Internet, Market, United States bankruptcy court, United States district court, Artificial Intelligence Act, Frankfurt, Risk, Credit, University, Table, Investment, BNP Paribas, Press, Apple, Environment, ESG, Section 4, AI, Journal, University of Bonn, Terra (blockchain), Microsoft, Bank statement, Dive (Belgian band), OJ, Money Changes Everything, Face, Supervision, Intelligence, Cris Bolado, Finance, Wirecard, 115th United States Congress, Capital Requirements Directives, Private law, Financial services, Bank, Brookings Institution, Mercury, The Act, PDF, Section 2, Multilateralism, Retirement Funds Administrators (Mexico), European Commission, Invisible hand, Congress, Commission, District court, Logic, EDS, DLT, Annual report, Research, Exercise, Decentralized finance, Cross, UNIDROIT, OECD, ICT, ECB, Prudential, CRR, Conference, Systemic, Freedom, BIS, Auer, Social science, Civil service commission, Oversight, Council, SSM, Google Cloud, CRD, JEL, Software, Vendrell, CFPB, Legislation, Yale Law Journal, Risk management, European Investment Bank, Artificial intelligence, Call, CLOUD, Common equity, Speech, Insurance, FSI, Digital asset, ICAAP, Bank for International Settlements, Currency, Disclosure, Private, Publishing, Committee, Prospectus, Section 3, ESBG, Literacy, Digitalization, BCBS, Interview, Blog, Column, IBM, Documentation, Reserve Bank, Policy, Amazon (company), Official Journal, CLS, Union, Reproduction, Causes, EIOPA, NBER, University Press, Financial Stability Board, Mount Albert Grammar School, ISSN, IBM Db2, Hosting environment, AWS, Cryptocurrency

Contents Abstract 2 Non-technical summary 3 1 Introduction 5 2 The promises and perils of digital innovation 6 3 The EU fosters digital trends 8 3.1 A level playing field for providers and deployers of AI systems 8 3.2 Cross-sectoral regulation of markets for crypto-assets 10 3.3 Oversight of critical cloud computing service providers 11 4 Banking regulation and digital trends 14 4.1 Gaps in banking regulation 14 4.2 How to foster a risk-based prudential framework 15 4.3 Market discipline through harmonised Pillar 3 disclosures 17 5 Conclusion 18 6 References 20 Digital innovation and banking regulation 1 Abstract The European Union is aiming to foster digital transformation in all sectors by 2030.

Key Points: 
    • Contents Abstract 2 Non-technical summary 3 1 Introduction 5 2 The promises and perils of digital innovation 6 3 The EU fosters digital trends 8 3.1 A level playing field for providers and deployers of AI systems 8 3.2 Cross-sectoral regulation of markets for crypto-assets 10 3.3 Oversight of critical cloud computing service providers 11 4 Banking regulation and digital trends 14 4.1 Gaps in banking regulation 14 4.2 How to foster a risk-based prudential framework 15 4.3 Market discipline through harmonised Pillar 3 disclosures 17 5 Conclusion 18 6 References 20 Digital innovation and banking regulation 1 Abstract The European Union is aiming to foster digital transformation in all sectors by 2030.
    • This paper discusses digital innovation in the banking sector in the context of the academic literature on financial innovation and non-banks.
    • The paper examines the digital transformation of European banks in the context of broader academic research into financial innovation and non-banks.
    • The ?dual nature of financial innovation? theory posits that cycles of prosperity arising from financial innovation are followed by cycles of severe disruption.
    • The challenges are not new, but the question remains: how should digital innovation in the banking sector be regulated?
    • To meet this need, the paper suggests initiating digital innovation plans drawn up by banks for five years, but updated annually.
    • The digital trends discussed in this paper include artificial intelligence (AI), crypto-assets and cloud computing services, which are all contemporary forms of financial innovation.
    • ?he Digital Finance Strategy sets out the EU?s commitment to creating a safe environment for digital financial service providers and their customers by attaining four objectives by 2030: (i) remove fragmentation in the digital single market, (ii) adapt the regulatory framework to facilitate digital innovation, (iii) promote data-driven innovation by creating a common financial data space, and (iv) address the challenges and risks from digital transformation.
    • To address the possibility of overreliance on digital innovation, this paper provides recommendations to shape a system of banking regulation that is fit for purpose.
    • The paper concludes that EU banking regulation should more purposefully reflect digital trends and the need for a state-of-the-art prudential and disclosure framework to promote the goal of adapting the regulatory framework to facilitate digital innovation.
    • Section 3 discusses how the EU is fostering digital trends in three specific regulations (the AI Act, MiCa and DORA).
    • Section 4 discusses the limitations of the current banking regulatory framework when it comes to reflecting risks from digital trends.
    • 5 See Digital Finance Strategy for the EU and 2030 Digital Compass: the European way for the Digital Decade.
    • These failures have not been prevented in the past owing to regulatory capture and overreliance on the promises of innovation (Hellwig, 2009).
    • Analysis of the 2008 financial crisis has shown the connection between increased demand for collateral in unregulated shadow banking markets and the financial innovation of securitised subprime mortgages (Gorton, 2010).
    • The fact that shadow banking was allowed to blossom and compete with commercial banking without appropriate regulation and supervision was one of the root causes of the financial crisis.
    • Regulatory and supervisory innovation need to accompany financial innovation.
    • Banking supervisors should also consider using regulatory sandboxes to remain technologically up-to-date Given the interest in AI tools for banking services, European banking supervisors will need to consider setting up regulatory sandboxes to ensure they remain technologically savvy about the risks and opportunities associated with supervised banks? use of digital trends.
    • Digital innovation challenges the barriers between banks, regulated entities and other commercial entities whose services are essential for regulated ones.
    • Digital innovation plans are suggested as a means of providing a comprehensive overview of all the risks to which a bank is exposed by using various types of digital trends.

​The EBA consults on the new framework for the operational risk loss as part of the implementation of the EU Banking Package

Retrieved on: 
onsdag, juni 12, 2024
Collection, RTS, EBA, European, Capital Requirements Regulation 2013, CRR, Comment, Risk management

​The European Banking Authority (EBA) today launched a consultation on three sets of draft Regulatory Technical Standards (RTS) aiming to standardise the collection and the record of operational risk losses and to provide clarity on the exemptions for the calculation of the annual operational risk loss and on the adjustments to the loss data set that banks must perform in case of merged or acquired entities or activities. The consultation runs until 6 September 2024.

Key Points: 
  • The draft RTS on establishing a risk taxonomy on operational risk provide a list of operational risk event types, categories and attributes that institutions must use when recording operational risk loss events, in line with the current framework and the international standards as well.
  • The draft RTS on the conditions under which it would be unduly burdensome for an institution to calculate the annual operational risk loss recognise cases when it would be disproportionate for an institution to promptly calculate the annual operational risk loss.
  • In such cases, the draft RTS allow for a temporary waiver from the requirement to calculate the annual operational risk loss.
  • Article 316(3) of the CRR, mandates the EBA to develop draft RTS to specify the conditions under which it would be unduly burdensome for an institution to calculate the annual operational risk loss.

EBA issues Opinion to the Norwegian Ministry of Finance on a measure adjusting the risk weight for commercial immovable property

Retrieved on: 
onsdag, juni 12, 2024
European Parliament, ESRB, European Economic Area, Capital Requirements Regulation 2013, EBA, Agriculture, Ministry, Risk, EFTA, European Systemic Risk Board, European, Fishery, CRR, Opinion, Insurance

The European Banking Authority (EBA) today published an Opinion following notification by the Norwegian Ministry of Finance of its intention to amend the risk weights for exposures secured by mortgages on commercial immovable property. The measure aims to limit risks associated with commercial immovable property. Based on the information provided, the EBA does not object to the risk weight adjustment.

Key Points: 
  • EBA issues Opinion to the Norwegian Ministry of Finance on a measure adjusting the risk weight for commercial immovable property The European Banking Authority (EBA) today published an Opinion following notification by the Norwegian Ministry of Finance of its intention to amend the risk weights for exposures secured by mortgages on commercial immovable property.
  • The measure aims to limit risks associated with commercial immovable property.
  • With the application of this measure, the Norwegian Ministry of Finance sets a risk weight of 100% for exposures secured by commercial immovable property and 75% for exposures secured by commercial immovable property meeting the requirements for inclusion in the retail category.
  • Therefore, the higher risk weight of 100% set for exposures secured by commercial property would not be needed.

Century Therapeutics Presents Interim Results from Phase 1 ELiPSE-1 Study at ASCO 2024 Annual Meeting

Retrieved on: 
måndag, juni 3, 2024
CRS, ASCO, Relapse, Patient, Cell, IPSC, NHL, Ink, Autoimmunity, Society, Graft-versus-host disease, Safety, Pharmacokinetics, CD19, Therapy, Phase 1, Science, DNA, DLT, Histology, Schedule, Doctor of Philosophy, Nucleic acid thermodynamics, NK, Lymphoid leukemia, AUC, CRR, Development, Inflammation, Vaccine

PHILADELPHIA, June 03, 2024 (GLOBE NEWSWIRE) -- Century Therapeutics (NASDAQ: IPSC), an innovative biotechnology company developing induced pluripotent stem cell (iPSC)-derived cell therapies in immuno-oncology and autoimmune and inflammatory disease, today announced a poster presentation highlighting interim results from the ongoing Phase 1 ELiPSE-1 study evaluating CNTY-101 in relapsed or refractory (R/R) non-Hodgkin lymphoma (NHL) at the American Society of Clinical Oncology (ASCO) Annual Meeting being held May 31 – June 4, 2024 in Chicago, Illinois.

Key Points: 
  • ELiPSE-1 ( NCT05336409 ) is an ongoing Phase 1, multicenter, open-label clinical trial to evaluate the safety, tolerability, pharmacokinetics, and preliminary efficacy of CNTY-101 in patients with R/R, CD19-positive B-cell malignancies.
  • Further, the majority of these cycles have been administered in the outpatient setting, providing additional support for CNTY-101 as a new paradigm for allogeneic cell therapies.
  • In these low dose levels, CNTY-101 demonstrated encouraging early response signals, including two complete responses (CRs) and one partial response (PR).
  • The full poster will be available on the Scientific Resources page of Century’s website at the start of the poster presentation.

Preliminary Analysis of Data Evaluating Investigational Epcoritamab (DuoBody® CD3xCD20) Combination Demonstrates 95% Overall Response Rate in Patients with Previously Untreated Follicular Lymphoma

Retrieved on: 
söndag, juni 2, 2024
Biotechnology, Health, Pharmaceutical, Clinical Trials, Oncology, Follicular lymphoma, ASCO, Patient, Annual general meeting, Safety, Society, Cytokine release syndrome, Abstract, CRR, Research, CRS, Pharmaceutical industry

Genmab A/S (Nasdaq: GMAB) today announced new efficacy and safety data from two ongoing Phase 1/2 clinical trials evaluating epcoritamab, a T-cell engaging bispecific antibody administered subcutaneously, in adult patients with certain types of follicular lymphoma (FL).

Key Points: 
  • Genmab A/S (Nasdaq: GMAB) today announced new efficacy and safety data from two ongoing Phase 1/2 clinical trials evaluating epcoritamab, a T-cell engaging bispecific antibody administered subcutaneously, in adult patients with certain types of follicular lymphoma (FL).
  • A preliminary analysis of data from the EPCORE™ NHL-2 study ( NCT04663347 ), evaluating epcoritamab in combination with rituximab-lenalidomide (R2), demonstrated an overall response rate (ORR) of 95% and complete response rate (CRR) of 85% in patients with previously untreated FL.
  • The safety and efficacy for this use have not been established.
  • Additionally, there were no Grade 3 or higher CRS events and no reported immune effector cell-associated neurotoxicity syndrome (ICANS).

The EBA and ESMA invite comments on the review of the investment firms prudential framework

Retrieved on: 
måndag, juni 3, 2024
Exercise, ESMA, Disclosure, CVA, EBA, European, FRTB, Commission, CRD, UCITS, Council, Parliament, Remuneration, CRR, Data collection, Harvard–Smithsonian Center for Astrophysics, Cryptocurrency

The European Banking Authority (EBA) and the European Securities and Markets Authority (ESMA) published today a discussion paper on the potential review of the investment firms’ prudential framework. The discussion paper aims at gathering early stakeholder feedback to inform the response to the European Commission’s call for advice (CfA). The consultation runs until 3 September 2024. To assess the impact of the possible changes discussed in the paper, the EBA also launched a data collection exercise on a voluntary basis.

Key Points: 
  • The EBA and ESMA invite comments on the review of the investment firms prudential framework The European Banking Authority (EBA) and the European Securities and Markets Authority (ESMA) published today a discussion paper on the potential review of the investment firms’ prudential framework.
  • Background and legal basis The IFD and IFR entered into force in 2019 introducing key innovations to the prudential framework for MiFID investment firms.
  • In its report, the Commission may include a legislative proposal to amend the prudential framework applicable to investment firms.
  • On that basis, the Commission submitted a call for advice on 1 February 2023 to the EBA and ESMA (link) seeking advice on the investment firms prudential framework as well as other related topics.

KBRA Releases Research – Customer Rate Relief Bonds: An Important Part of the Recovery Process

Retrieved on: 
onsdag, maj 29, 2024
Professional Services, Finance, Research report, ABS, KBRA, CRR, Weather

KBRA releases a research report providing an overview of customer rate relief (CRR) transactions and their credit characteristics.

Key Points: 
  • KBRA releases a research report providing an overview of customer rate relief (CRR) transactions and their credit characteristics.
  • As powerful storms and other severe weather events impose outsized strains on utility infrastructure across the U.S., affected utility companies are increasingly tapping capital markets to recoup associated losses.
  • CRR bonds are primarily collateralized by cash flows from CRR charges added to customers’ monthly utility bills.
  • As more severe weather incidents occur in the U.S. and investor acceptance for CRR bonds increases, KBRA expects more utility companies to issue CRR bonds as a cost-effective financing option.

The EBA consults on draft technical standards on equivalent mechanism for unfinished property under the standardised approach of credit risk

Retrieved on: 
tisdag, maj 28, 2024
RTS, Comment, EBA, CRR, Capital Requirements Regulation 2013

The European Banking Authority (EBA) today launched a public consultation on its draft regulatory technical standards (RTS) under the Capital Requirements Regulation (CRR3) regarding the equivalent mechanism for unfinished property. These technical standards specify the conditions that a legal mechanism should meet in order to recognise a property under construction in the own fund requirements calculation under the standardised approach of credit risk. The consultation runs until 13 August 2024. 

Key Points: 
  • The EBA consults on draft technical standards on equivalent mechanism for unfinished property under the standardised approach of credit risk
    • The EBA plays an important role in the implementation of the EU Banking Package.
  • • These draft regulatory technical standards are part of the first phase of the EBA roadmap for implementing the EU Banking Package in the area of credit risk.
  • • These draft technical standards will contribute to a more a robust regulatory framework, efficient supervision, and enhanced risk control by credit institutions.
  • The European Banking Authority (EBA) today launched a public consultation on its draft regulatory technical standards (RTS) under the Capital Requirements Regulation (CRR3) regarding the equivalent mechanism for unfinished property.

The EBA consults on draft guidelines on acquisition, development and construction exposures to residential property under the standardised approach of credit risk

Retrieved on: 
tisdag, maj 28, 2024
Risk, GLS, Sale, Capital Requirements Regulation 2013, ADC, Public housing, Acquisition, Comment, EBA, CRR, European, Medical device

The European Banking Authority (EBA) today launched a public consultation on its draft Guidelines (GLs) under the Capital Requirements Regulation (CRR3) regarding acquisition, development and construction (ADC) exposures to residential property. These Guidelines specify the credit risk-mitigating conditions that allow institutions to assign a risk weight of 100% instead of 150% for ADC exposures to residential property. Furthermore, the Guidelines also address the specificities of institutions’ lending to public housing or not-for profit entities. The consultation runs until 19 August 2024.

Key Points: 
  • The EBA consults on draft guidelines on acquisition, development and construction exposures to residential property under the standardised approach of credit risk
    - The EBA plays an important role in the implementation of the EU Banking Package.
  • - These draft guidelines will contribute to a more a robust regulatory framework, efficient supervision, and enhanced risk control by credit institutions.
  • The European Banking Authority (EBA) today launched a public consultation on its draft Guidelines (GLs) under the Capital Requirements Regulation (CRR3) regarding acquisition, development and construction (ADC) exposures to residential property.
  • These Guidelines specify the credit risk-mitigating conditions that allow institutions to assign a risk weight of 100% instead of 150% for ADC exposures to residential property.

The EBA publishes its final Guidelines on STS criteria for on-balance-sheet securitisation

Retrieved on: 
tisdag, maj 28, 2024
Capital Markets Union, Union, STS, European, Regulation, ABCP, EIOPA, Ambiguity, OBS, EBA, CRR, ESMA, Guideline, Medical device

The European Banking Authority (EBA) published today the final Guidelines on the criteria related to simplicity, standardisation and transparency and additional specific criteria for on-balance-sheet securitisations (so-called STS criteria). These Guidelines will ensure a harmonised interpretation of these STS criteria, in alignment with the EBA Guidelines for asset-backed commercial paper (ABCP) and non-asset-backed commercial paper (non-ABCP) securitisation.

Key Points: 
  • The EBA publishes its final Guidelines on STS criteria for on-balance-sheet securitisation
    The European Banking Authority (EBA) published today the final Guidelines on the criteria related to simplicity, standardisation and transparency and additional specific criteria for on-balance-sheet securitisations (so-called STS criteria).
  • These Guidelines will ensure a harmonised interpretation of these STS criteria, in alignment with the EBA Guidelines for asset-backed commercial paper (ABCP) and non-asset-backed commercial paper (non-ABCP) securitisation.
  • The Guidelines on the STS criteria for on-balance-sheet securitisations (OBS) provide a harmonised interpretation of the STS criteria and focus on clarifying those criteria with potential aspects of ambiguity.
  • Similar to the Guidelines on STS criteria for ABCP securitisation and non-ABCP securitisation, these Guidelines aim to provide a single point of consistent interpretation of the STS criteria to the relevant stakeholders throughout the Union.