Banks in Europe are going to have to fundamentally rethink their risk frameworks following the publication of guidance by the ECB telling banks to place climate change considerations front and centre of their businesses.
Reporting and Governance
FSB cybersecurity guidance dashes hopes for single global approach
The FSB’s cybersecurity guidance leans considerably on the work of US regulators, meaning that it differs from the EU approach, which makes it harder for a genuine global standard to evolve.
CPMI-IOSCO publishes discussion paper on CCP default auction processes
There are a number of management auctions processes central counterparty clearing houses (CCPs) need to consider when their participants default, according to a paper drafted by two global standard setters.
ECB dials up pressure on banks to manage climate and environmental risks
The Covid-19 pandemic has done little to dull the appetite of EU regulators to drive climate change policies, as proven by the ECB’s guide on the matter. Given the scope of work needed to meet the ECB’s expectations, banks are advised to starting acting now.
FDIC ponders dropping quarterly reporting by banks
Banks could be relieved of having to make long-standing quarterly regulatory reports to the Federal Deposit Insurance Corp (FDIC) in favour of a more technology-driven approach.
Wirecard scandal potentially highlights gaps in regulatory oversight
German payments firm Wirecard has filed for insolvency following a scandal involving the disappearance of €1.9bn in cash from its balance sheet, raising concerns that it was inadequately supervised.
New York Fed audit finds it is compliant with IOSCO benchmark principles
The interest rate benchmarks administered by the Federal Reserve Bank of New York were found to be in compliance with the principles set out by the International Organization of Securities Commissions (IOSCO) following an annual audit.
UK banks and insurers ordered to plan for climate change risks by 2021
Banks and insurers have been ordered by the Bank of England to draw up plans by the end of 2021 detailing how they will cope with climate change risks.
The aftermath of Covid-19 is likely to result in greater regulatory oversight
The fallout from the Covid-19 pandemic has disrupted regulatory initiatives and very likely ushers in greater supervisory scrutiny of financial firms on a range of issues from conduct through to operational risk.
Covid-19 poses the first real test for SM&CR
The Covid-19 pandemic has given rise to more conduct risks with most bank staff forced to work at home, making it crucial for senior managers to maintain audit trails of their decisions.
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