Highlights

1. BIS consults on prudential treatment of crypto-asset banking exposures.

2. EBA makes recommendations to reduce supervisory reporting costs.

3. EBA updates list of risk indicators and analysis tools.

4. EBA publishes revised guidelines on reporting under PSD2.

5. EC issues Capital Markets Union (CMU) toolkit of indicators.

Global

BIS consults on prudential treatment of crypto-asset exposures.
Seeks a preliminary proposal for prudential treatment of banking crypto-assets splitting them in two groups: i) eligible under current Basel framework, and ii) subject to a new prudential treatment. Deadline: Sep 10, 2021.

Europe

EBA makes recommendations to reduce supervisory reporting costs.
Identifies 25 actions that could reduce reporting costs by 15-24%. Most of them will be implemented as part of the ongoing work on proportionality of the EU reporting framework.

EBA updates the list of risk indicators and analysis tools.
The guidance describes how EBA computes risk indicators in its publications and includes additional indicators on COVID-19, funding plans, resolution and remunerations.

EBA publishes revised guidelines on reporting under PSD2.
The revised guidelines optimize and simplify the reporting process and templates with focus on incidents with significant impact on payment services providers. They are also intended to reduce the reporting burden.

EC publishes CMU toolkit of indicators.
Introduces and explains the set of indicators that the Commission will use to monitor the progress towards the Key CMU objectives and that will complement evaluations and impact assessments of individual measures.

ESMA issues an opinion on intervention measures on turbos.
Concludes that proposed measures are justified and proportionate and encourages NCAs to monitor turbos in their respective markets to assess whether similar risks for retail investors could arise there.

ESAs issues amendments on ITS to map External Credit Assessment Institutions (ECAIS).
Amendments reflect: i) an update on the list of credit rating agencies (CRAs); and ii) the outcome of a monitoring exercise on the adequacy of existing mappings. They issued individual draft mapping reports too.

EBA consults on RTS on thresholds for investment firms and crowdfunding service providers.
i) Seeks to address level playing field concerns and to ensure a more proportionate methodology for the calculation of the thresholds; and ii) information that crowdfunding service providers shall provide to investors. Deadlines: Jul 17, 2021 and Sep 4, 2021 respectively.

ESMA issues the framework for its 2021 Central Counterparties stress test.
Addresses credit and concentration risks and assess the combination of concentration costs and credit losses when liquidating defaulting portfolios or including an intraday exercise for credit.

EIOPA issues its guidelines on Pan-European Personal Pension Product (PEPP).
It seeks to ensure the common, uniform and consistent application of the PEPP Regulation’s reporting requirement and the definitions for PEPP supervisory report. Effective date: Mar 22, 2021.

OJEU publishes two delegated regulations on remuneration and SA-CCR.
i) Sets out the criteria for identifying staff members whose professional activities have an impact on the institution's risk profile. Effective from: Jun 14, 2021 and ii) on the identification of derivative transactions and calculation of the supervisory delta under SA-CCR. Effective from: Jun 30, 2021.

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This document was prepared by Banco Bilbao Vizcaya Argentaria’s (BBVA) Research Department on behalf of itself and its affiliated companies (each a BBVA Group Company) for distribution in the United States and the rest of the world and is provided for information purposes only. The information, opinions, estimates and forecasts contained herein refer to that specific date and are subject to changes without notice due to market fluctuations. The information, opinions, estimates and forecasts contained in this document have been gathered or obtained from public sources believed to be correct by the Company concerning their accuracy, completeness, and/or correctness. This document is not an offer to sell or a solicitation to acquire or dispose of an interest in securities.

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