Financial Services Regulation and Compliance - Banking May 2023
Domestic
CBI publish bank lending survey results – April 2023
On 2 May 2023, the CBI published the results of the April 2023 bank lending survey which examined changes in credit market conditions in the first quarter of 2023. The key results from the survey included:
- On aggregate, banks tightened credit standards slightly in Q1 2023.
- Credit standards on mortgages and consumer credit tightened significantly in Q1 2023. They are expected to tighten marginally in Q2.
- Demand for loans to businesses remained largely unchanged in Q1 2023. Demand fell slightly for larger businesses. It is expected that demand will increase across all categories in Q2 2023.
- The demand for consumer credit and mortgages increased in Q1 2023 and is expected to increase in Q2 2023.
European Union (Bank Recovery and Resolution) Resolution Fund Levy Regulations 2023 [S.I. No. 226 of 2023]
On 10 May 2023, the European Union (Bank Recovery and Resolution) Resolution Fund Levy Regulations 2023 commenced. All institutions, as defined under Regulation 166 of the European Union (Bank Recovery and Resolution) Regulations 2015 (S.I. No. 289 of 2015) on 1 January of a levy period, are required to pay a levy to the CBI for the Bank and Investment Firm Resolution Fund.
European
Prior Permission Regime: Commission Delegated Regulation (EU) 2023/827 applies from 9 May
On 9 May 2023, the Commission Delegated Regulation (EU) 2023/827 governing prior permissions to redeem eligible liabilities instruments entered into force. The Delegated Regulation reflects the content of the draft EBA regulatory technical standards (RTS), except for the simplified procedure for institutions with minimum requirement for own funds and eligible liabilities (MREL) equal to the loss absorption amount (LAA). While the draft EBA RTS established automatic applications and renewals of permissions, the Delegated Regulation will require such institutions to formally apply for permission under Article 78a CRR for both ad-hoc and general prior permissions.
Applications will need to be submitted three months in advance, specifying the rationale of the request and the relevant legal basis. A new procedure of tacit approval also provides that an application is deemed to be approved unless the resolution authority rejects it in writing within three months from the time of the application.
The Delegated Regulation applies to all applications filed after 9 May 2023. Permission decisions already granted by the SRB continue to be valid until they expire. Applications already filed but still being processed by the SRB are similarly unaffected.
Complementary cost-benefit assessment questionnaire on the integrated reporting framework for the banking industry
On 5 May, the ECB issued a cost-benefit assessment questionnaire on the planned integrated reporting framework (IReF). Respondents have been pre-selected by national central banks with a view to ensuring minimum coverage of 80% of their domestic banks in terms of total assets, and to including institutions of all sizes and types. The results of this questionnaire will inform the European System of Central Banks’s drafting of a regulation on the statistical reporting of credit institutions and deposit-taking corporations other than credit institutions under the IReF.
For more information on these topics please contact any member of A&L Goodbody's Financial Regulation Advisory team.
Date published: 15 June 2023