European Systemic Risk Board

Piero Cipollone: One step ahead: protecting the cyber resilience of financial infrastructures

Retrieved on: 
Friday, January 19, 2024

Bank market power, both in the loan and deposit market, has important implications for credit provision and for financial stability.

Key Points: 
  • Bank market power, both in the loan and deposit market, has important implications for credit provision and for financial stability.
  • This article discusses these issues through the lens of a simple theoretical framework.

Banks and insurance have key role to play in reducing climate-related financial stability risks, joint ECB/ESRB report finds

Retrieved on: 
Wednesday, January 3, 2024

Communication shocks from the US spill over to risk in the euro area and vice versa, but traditional US shocks show no spillover effects to risk.

Key Points: 
  • Communication shocks from the US spill over to risk in the euro area and vice versa, but traditional US shocks show no spillover effects to risk.
  • Both monetary policy and communication shocks spill over to stocks, with euro area information spillovers being particularly strong.

ESMA updates the parameters and methodology for MMF stress testing

Retrieved on: 
Tuesday, January 2, 2024

ESMA updates the parameters and methodology for MMF stress testing

Key Points: 
  • ESMA updates the parameters and methodology for MMF stress testing
    The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, has published the Final Report on the Guidelines on stress test scenarios under the Money Market Funds Regulation (MMFR).
  • The Final Report combines an update of the methodology to implement the scenario related to the hypothetical changes in the level of liquidity of the assets held in the portfolio of the MMF, with the annual calibration of the risk parameters.
  • Based on feedback received from stakeholders, the revised methodology includes parameters reflecting the liquidity stress affecting the money market and a new risk factor to simulate the additional impact of asset sales under stress market conditions.
  • In calibrating the new risk parameters ESMA has worked closely with the European Systemic Risk Board and the European Central Bank.

ESMA presents methodology for climate risk stress testing and analysis of the financial impact of greenwashing controversies

Retrieved on: 
Tuesday, January 2, 2024

ESMA presents methodology for climate risk stress testing and analysis of the financial impact of greenwashing controversies

Key Points: 
  • ESMA presents methodology for climate risk stress testing and analysis of the financial impact of greenwashing controversies
    The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, today published two articles, one outlining an approach to modelling the impact of asset price shocks from adverse scenarios involving climate-related risks, the other exploring the use of ESG controversies for the purpose of monitoring greenwashing risk.
  • The analysis focuses on the overall direction of these effects, finding that investor outflows can worsen falls in fund values following an initial shock.
  • Dynamic modelling of climate-related shocks in the fund sector is part of ESMA’s work in relation to its mandates in the area of climate stress testing.
  • Risk article: Financial impact of greenwashing controversies
    The article highlights how data on ESG controversies can be useful to monitor potential reputational risks around greenwashing.

The EBA responds to the European Commission’s Call for Advice on significance criteria and supervisory fees under the Markets in Crypto-Assets Regulation

Retrieved on: 
Friday, September 29, 2023

The EBA proposes a set of core and ancillary indicators for each significance criterion within the scope of the Call for Advice: financial sector interconnectedness, and activities on an international scale.

Key Points: 
  • The EBA proposes a set of core and ancillary indicators for each significance criterion within the scope of the Call for Advice: financial sector interconnectedness, and activities on an international scale.
  • all types of transactions, or transactions where the token is used as means of exchange) and take account of data availabilities.
  • Regulation (EU) 2023/1114 on Markets in Crypto-assets (MiCAR) establishes a regime for the regulation and supervision of crypto-asset issuance and crypto-asset service provision in the European Union (EU).
  • Supervision tasks are conferred on the EBA for ARTs and EMTs that are determined by the EBA to be significant.

EBA issues Opinion to the Ministry of Finance of Poland on measures in accordance with the notification of higher risk weights set for immovable property

Retrieved on: 
Thursday, September 14, 2023

12 September 2023

Key Points: 
  • 12 September 2023
    The European Banking Authority (EBA) today published an Opinion following notification by the Ministry of Finance of Poland of its intention to extend a measure originally introduced in March 2022.
  • The measure aims to limit risks associated with foreign currency housing loans by encouraging banks to enter in settlements with borrowers.
  • The measure sets different levels of risk weights on foreign currency housing loans for banks that actively engage in proceedings leading to settlements with borrowers of such loans.
  • In its assessment, the EBA reminded the Ministry of Finance that it shall reassess the appropriateness of the risk weights periodically, in accordance with the CRR.

The EBA consults on draft templates and template guidance to prepare its one-off Fit-for-55 climate risk scenario analysis

Retrieved on: 
Friday, July 21, 2023

The draft templates are accompanied by a template guidance, which includes definitions and rules for compiling the templates.

Key Points: 
  • The draft templates are accompanied by a template guidance, which includes definitions and rules for compiling the templates.
  • The draft templates are designed to collect climate-related and financial information on credit risk, market and real estate risks.
  • The one-off Fit-for-55 climate risk scenario analysis is expected to start by the end of 2023, with publication of results envisaged by Q1 2025.
  • As part of the Strategy, the Commission announced future work for the EBA on climate stress testing including a one-off Fit-for-55 climate risk scenario analysis.

EBA appoints Helmut Ettl as Vice-Chairperson

Retrieved on: 
Monday, July 10, 2023

10 July 2023

Key Points: 
  • 10 July 2023
    The Board of Supervisors of the European Banking Authority (EBA) has elected Helmut Ettl as its Vice-Chairperson for a duration of two and a half years.
  • Helmut Ettl is the Executive Director of the Austrian Financial Market Authority (FMA) and has been a voting member of the EBA Board of Supervisors since 2011 representing Austria.
  • Mr Ettl also sat on the EBA Management Board but has recently stepped down to take on his new position as EBA Vice-Chairperson.
  • Since 2011 Helmut Ettl has been a member of the Board of Supervisors of the European Banking Authority (EBA) and the European Systemic Risk Board (ESRB).