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Addendum to the Code of Conduct on Mortgage Arrears (Updated September 2024)
The Central Bank of Ireland (the CBI) published an addendum to the Code of Conduct on Mortgage Arrears (CCMA) effective from 17 September 2024. The addendum applies the CCMA to “credit servicing activities” in respect of mortgage loans of a credit servicer within the meaning of Article 3 of Directive 2021/2167//EU.
The amendments introduced by the addendum include:
Governor's blog - Inflation, growth and the outlook for the euro area
On 13 September 2024, the Governor of the CBI, Gabriel Makhlouf published a blog focusing on inflation, growth and the outlook for the euro area, noting the Governing Council’s decision to lower the deposit facility rate by 25 basis points to 3.5%.
According to its updated forecasts, the CBI remains on course to achieve its 2% inflation target in Q4 2025. As a whole, the euro area experienced a reduction in growth during Q2 2024, which was largely driven by weaker investment and consumption.
The Governor also highlighted certain updates to the operational framework for implementing monetary policy that became effective from 18 September 2024. This included the spread between the interest rate on the main refinancing operations (MRO) and the deposit facility rate (DFR) being placed at 15 basis points, potentially affecting numerous Irish holders of tracker mortgages.
Single Rulebook Q&A - Directive 2015/2366/EU (PSD2)
On 27 September 2024, the European Banking Authority (EBA) published responses to three additional questions in the Single Rulebook Q&A relating to Directive 2015/2366/EU (PSD2).
The first question related to Article 33(7) and the ability of national competent authorities (NCAs) to revoke an account servicing payment service provider’s (ASPSP) exemption from the contingency mechanism where an incident lasts more than two consecutive weeks (Question ID:2024_703).
The EBA’s response noted that an NCA will revoke the contingency mechanism where an incident causes general unavailability of the dedicated interface of an ASPSP for more than two consecutive weeks, while at the same time the interface made available to the payment service user for directly accessing its payment account online is available.
The remaining two questions dealt with Article 97 and specifically considered firstly, criteria for selecting the operations to be included in the calculation of fraud trades for the transaction analysis exemption (Question ID: 2024_6989) and, secondly, secure corporate payment processes and protocols and inactivity time period (Question ID: 2023_6949).
EBA reporting frameworks (updated 26 September 2024)
On 26 September 2024, the EBA updated its reporting frameworks which relate to the validation rules, the EBA Data Point Model(s) (DPM) and the XBRL Taxonomies. The changes in relation to Framework 3.5 and Framework 4.0 include:
Framework 3.5:
Framework 4.0:
EBA issues revised list of ITS validation rules - 12 September 2024
On 12 September 2024, the EBA published an updated list of validation rules in its ITS on supervisory reporting, with a focus on those that have been deactivated due to incorrectness or as a result of triggering IT problems. NCAs have been advised that data which is submitted in relation to the ITS should not be formally validated against the set of rules which have now been deactivated.
Single Rulebook Q&A - Regulation (EU) No. 575/2013 (CRR / CRD - CRR2 / CRD5)
In September 2024, the EBA published final answers in respect of five questions submitted in relation to the CRR. These questions covered the following topics:
EBA launches EU-wide transparency exercise for 2024
On 9 September 2024, the EBA announced the launch of an EU-wide transparency exercise for 2024 which includes over 100 banks. The purpose of the exercise is to offer preliminary insights into the health and resilience of the EU’s banking sector in advance of the 2025 stress tests.
The results of the exercise will be published at the end of November 2024, alongside the risk assessment report, and a range of interactive tools that will enable users to compare and visualise data across and both at a country and a bank-by-bank level.
ECB speech on the draft ECB guide on governance and risk culture
On 26 September 2024, the European Central Bank (ECB) held a stakeholder meeting on its draft guide on governance and risk culture. Mr. Frank Elderson, Executive Board and Vice Chair of the Supervisory Board of the ECB, delivered the introductory statement. Once the guide is finalised, it will replace the ECB’s SSM supervisory statement on governance and risk appetite.
Mr. Elderson advised that a new guide is required in order to address persistent structural weaknesses in the composition and effectiveness of management bodies, the diversity of board composition and quality of oversight. Mr. Elderson also noted that culture is a key component which the ECB considers when looking at considering formal governance structures.
For more information on these topics please contact any member of A&L Goodbody's Financial Regulation Advisory team.
This publication provides an overview of certain legal and regulatory developments that may be of interest to certain entities. It does not purport to provide analysis of law or legal advice and is strictly for information purposes only.