We researched and summarised for you, all recent regulatory updates from Cyprus and Europe, which are applicable for Regulated Companies operating in the Region.
Cyprus Securities and Exchange Commission ("CySEC")
01/02/2023 - C547: Introduction of prudential reporting of CIFs through CySEC's XBRL Portal –Extension of deadline
CySEC informs the CIFs that the deadline for the submission
through XBRL Portal is extended.
For more information click here.
C547- Extension of deadlines for XBRL submissions
2/2/2023 – C549- Deprioritisation of supervisory actions on the obligation to publish RTS 27 reports after 28 February 2023 considering the ongoing legislative procedure on the MiFID II/MiFi review.
CySEC informs the Regulated Entities of its supervisory actions regarding the RTS27 reporting obligation.
C549-RTS27 Reporting/obligations
10/02/2023 – C548- Guidance on Liquidity Risk Management (LRM)
In C548, CySEc reviews the ESMA's Public Statement regarding the results of the 2020 Common Supervisory Action (CSA) on UCITS liquidity risk management.
C548-UCITS and AIFs Liquidity Management
Central Bank of Cyprus ("CBC")
01/02/2023- Financial stability indicators
The European Central Bank and the International Monetary Fund publish aggregate data and financial indicators for the Cyprus banking sector. These are compiled and submitted to the organisations by the CBC on a regular basis and are used for macroprudential analysis. Both, the Consolidated Banking Data (CBDs) and the Financial Soundness Indicators (FSIs) are analysed in the publication.
For more details on both indicators in the following link:
Key Aggregate Financial Indicators for the Cyprus Banking Sector for 2022Q3
01/02/2023 -Portfolio Investment
The publication provides an overview of the major developments in the portfolio investments of Cyprus. The analysis is based on data collected and compiled by the External & General Economic Statistics of the CBC and focuses on the main geographical areas and sectors of economic activity which relate to portfolio investments made by non-residents in securities issued by residents and by residents in securities issued by non-residents.
Statistics on Interest Rates applied by Monetary Financial Institutions
6/02/2023 - Aggregate Cyprus banking sector data (non-performing loans data) with reference date 30 November 2022
The CBC has published updated aggregate Cyprus banking sector data (non-performing loans data) with a reference date of 30 November 2022.
Aggregate Cyprus Banking Sector Data
17/02/2023 -Investment Funds Statistics
TheCBC has released the Investment Funds statistics for the reference month of December 2022.
28/02/2023- Monetary Financial Institutions (MFIs) Deposits and Loans Statistics
The CBC has today released the MFIs deposits and loans statistics for the reference month of January 2023, which are included in the February 2023 edition of Monetary and Financial Statistics.
Monetary Financial Institutions (MFIs) Deposits and Loans Statistics
European Central Bank ("ECB")
2/2/2023-ECB decides on detailed modalities for reducing asset purchase programme holdings.
- ECB details modalities to reduce the Euro system's holdings of securities under the asset purchase programme through partial reinvestment, broadly in line with current practice under full reinvestment.
- Governing Council decided on the stronger tilting of corporate bond purchases during partial reinvestment, including in the primary market, towards issuers with better climate performance.
ECB detailed modalities for reducing asset purchase programme holdings
2/2/2023-Monetary policy decisions
The Governing Council continued raising interest rates significantly at a steady pace and keeping them at levels that are sufficiently restrictive to ensure a timely return of inflation. In any event, the Governing Council's future policy rate decisions will continue to be data-dependent and follow a meeting-by-meeting approach.
The Governing Council today also decided on the modalities for reducing the Euro system's holdings of securities under the Asset Purchase Programme (APP).
Key ECB interest rates
The Governing Council decided to raise the three key ECB interest rates by 50 basis points.
Asset Purchase Programme (APP) and Pandemic Emergency Purchase Programme (PEPP)
The Governing Council intends to continue reinvesting, in full, the principal payments from maturing securities purchased under the APP until the end of February 2023.
Refinancing operations:
As banks are repaying the amounts borrowed under the targeted longer-term refinancing operations, the Governing Council will regularly assess how targeted lending operations are contributing to its monetary policy stance.
The Governing Council stands ready to adjust all of its instruments within its mandate to ensure that inflation returns to its 2% target over the medium term.
7/2/2023-ECB adjusts remuneration of certain non-monetary policy deposits as of 1 May 2023
- New ceiling for remuneration of euro area government deposits to be set at the euro short-term rate (€STR) minus 20 basis points, taking effect on 1 May 2023.
- Remuneration of deposits held under the Euro system reserve management services (ERMS) framework to be adjusted accordingly.
- Measure aims to provide incentives for a gradual and orderly reduction of such deposits held with the Euro system, in order to minimise the risk of adverse effects on market functioning and ensure the smooth transmission of monetary policy.
- Remuneration regime will be monitored and adjusted if necessary.
ECB adjusts remuneration of certain non-monetary policy deposits as of 1 May 2023
European Banking Authority ("EBA")
14/02/2023 -EBA publishes final draft technical standards defining the homogeneity of the underlying exposures in STS securitisation.
The EBA published its final draft of Regulatory Technical Standards (RTS) setting out the conditions for the assessment of the homogeneity of the underlying exposures in a pool of a Simple Transparent and Standardised (STS) on-balance-sheet securitisation. Homogeneity is one of the key simplicity requirements enabling originators and investors to properly assess the underlying risks while facilitating investors' due diligence.
EBA final draft technical standards
14/02/2023-EBA updates some important Q&As in the area of own funds and eligible liabilities.
The EBA has updated some of its existing Q&As on its own funds and eligible liabilities to ensure consistency with the revised final draft Regulatory Technical Standards (RTS) on its own funds and eligible liabilities submitted to the European Commission in May 2021. While the latter has not been finally adopted yet, the EBA deemed it important to already provide clarity to institutions and market participants on some undisputed aspects related to the RTS that are particularly relevant for their practical implementation of the Capital Requirements Regulation (CRR) and the RTS.
EBA updates some important Q&As in the area of own funds and eligible liabilities
21/02/2023-EBA publishes final revised Guidelines on methods for calculating contributions to deposit guarantee schemes
The EBA published its final revised Guidelines on deposit guarantee schemes (DGS) contributions. The revised Guidelines further strengthen the link between the riskiness of a credit institution and how much it needs to contribute to the DGS funds that will be used to reimburse depositors in case their bank fails.
EBA final revised Guidelines on methods for calculating contributions to deposit guarantee schemes
27/02/2023 -EBA publishes a no-action letter on the boundary between the banking book and the trading book provisions.
The EBA published a no-action letter stating that competent authorities should not prioritise any supervisory or enforcement action in relation to the new banking book – trading book boundary provisions.
EBA no-action letter on the boundary between the banking book and the trading book provisions
European Securities and Markets Authority ("ESMA")
15/02/2023-ESMA assesses supervision of Central Securities Depositories
ESMA published its Peer Review Report on the national supervision of Central Securities Depositories (CSDs) providing cross-border services or participating in interoperable links.
ESMA expects to carry out a follow-up assessment in two years to review the level of improvements achieved based on the findings and recommendations of this peer review.
ESMA assesses supervision of Central Securities Depositories
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