Europe and the UK
The EBA issues revised list of validation rules on supervisory reporting
June 12, 2025: The European Banking Authority (EBA) announced a revised set of validation rules in its Implementing Technical Standards (ITS) regarding supervisory reporting. This update specifically highlights rules that have been deactivated due to inaccuracies or IT-related issues. Competent Authorities across the EU are notified that data submitted in line with these ITS should not be assessed against the deactivated rules.
Additionally, the EBA introduced a small validation package today, which includes a micro taxonomy package and scripts for DPM VR deactivation updates. These tools are essential from release 4.0 for executing consistent deactivation of rules in both the taxonomy and DPM.
EBA issues No Action letter on dual authorization concerns under MiCA and PSD2
June 10, 2025: The European Banking Authority (EBA) released a No Action letter addressing the overlap between the Markets in Crypto-Assets Regulation (MiCA) and the existing Payment Services Directive (PSD2). The letter recommends that EU institutions take steps to avoid long-term dual authorization requirements for electronic money token (EMT) transactions under both frameworks.
While PSD2 remains in force, the EBA advises national competent authorities (NCAs) to delay requiring PSD2 authorization for crypto asset service providers (CASPs) dealing in EMTs until after the MiCA transition period concludes on 2 March 2026. It further suggests deprioritizing certain PSD2 provisions thereafter.
ECB to expand the €STR reporting population
June 6, 2025: The European Central Bank (ECB) announced that it will enhance the euro short‑term rate (€STR) by adding
24 banks to its reporting population. These institutions, already included in the Money Market Statistical Reporting (MMSR) from 1 July 2024, will begin contributing to €STR as of 2 July 2025. This expansion boosts the benchmark’s robustness and representativeness, drawing from a wider volume of real transactions.
EBA supports extension of Swedish macroprudential housing market measures
June 4, 2025: The European Banking Authority (EBA) issued two Opinions in response to the Swedish Financial Supervisory Authority’s (FSA) notification of its intention to extend existing macroprudential measures. These measures focus on exposures secured by immovable property and are designed to strengthen institutional resilience in the event of a severe downturn in Sweden’s real estate market. Based on the information submitted, the EBA has raised no objections to the proposed extensions.
Bulgaria to become the 21st EU Member state to join the euro area
June 4, 2025: The ECB confirmed that Bulgaria has achieved sustainable convergence with the euro area and complies with all legal, fiscal, monetary, and exchange rate requirements, positioning the country to potentially introduce the euro on 1 January 2026.
ECB steps up scrutiny on banks' exposure to private markets
June 3, 2025: The European Central Bank (ECB) is increasing pressure on banks to improve their management of private market exposures. A review revealed that many banks struggle to effectively track and assess these exposures, making it difficult to identify risks during stressful periods.
ECB supervisory board chair Claudia Buch pointed out that the growth and complexity of private market assets raise concerns about solvency and liquidity risks. She also highlighted the need for better risk management systems, increased transparency from private market funds, and improved data availability to help banks better assess correlation and concentration risks, ultimately aiding regulatory oversight of systemic risks.
HSBC leads charge for £175 billion ring fence carve out in UK
May 30, 2025: The biggest UK lenders are pushing regulators to allow them each to use as much as £35 billion ($47 billion) of their retail deposits to fund their investment banking activities, a move they say would put them on more level footing with the likes of JPMorgan Chase & Co. and Goldman Sachs Group Inc.
The charge is being led by HSBC Holdings Plc, according to people familiar with the matter. The proposal is being presented as a potential compromise in the ongoing row over the UK’s ring-fencing regime, which since 2013 has forced the separation of the largest banks’ UK retail businesses from the rest of their operations, the people said.
JBRC working program 2025
May 25, 2025: The Joint Banking Reporting Committee (JBRC) published its work program for 2025. The 2025 priorities focus on the semantic integration and development of common definitions and standards for bank reporting. The main activities include coordinating work on semantic integration, developing a set of terms and definitions, and creating a common data dictionary. The JBRC Steering Committee will oversee these efforts, ensuring coordination among different groups.
Close collaboration with DPM Alliance to avoid overlaps and leverage synergies will be required. The Expert Group on Semantic Integration will involve representatives from relevant authorities and, if necessary, the banking industry to achieve these objectives.
Top priorities are:
- Semantic integration: Integrated Reporting Framework (IReF) with supervisory and resolution reporting
- Semantic integration: Environmental, Social, and Governance (ESG) (new frameworks)
- Coordinated implementation of NACE 2.1
Asia-Pacific
HKMA publishes final MA(BS)23 guidelines
June 9, 2025: The Hong Kong Monetary Authority (HKMA) released the final version of the MA(BS)23 Return on Liquidity Monitoring Tools and its Completion Instructions (CIs), following consultations with industry associations.
Key updates:
Reporting frequency changes:
1. 2024 interim updated version includes transitional submission timelines:- Monthly for Parts 1–3
- Quarterly for Parts 4A and 4C (until Dec 2025), then monthly
- Quarterly for Parts 4B and 5
- Monthly for Parts 1–3
- Quarterly for Parts 4A, 4B, 4C, and 5
Effective reporting date: Authorized Institutions (AIs) must begin submitting the revised return for the reporting position as of 31 December 2025.
STET software availability: The updated STET software for submission will be available in October 2025.
Highlights from the RBI 55th Monetary Policy Committee Meeting
June 6, 2025: The Reserve Bank of India (RBI) took bold action in its 55th Monetary Policy Committee (MPC) meeting, held from 4 to 6 June 2025, unveiling a suite of aggressive rate cuts to support economic growth as inflation pressures ease. In a surprise move, the MPC slashed the repo rate by 50 basis points to 5.50%, the biggest cut since the pandemic-era measures of 2020. It also reduced the Cash Reserve Ratio (CRR) by 100 basis points to 3%, a decision expected to free up significant liquidity in the banking system. These measures were coupled with a shift in the policy stance from “accommodative” to “neutral”, signaling a more balanced but still growth-supportive outlook. As the RBI calibrates its path forward, the June 2025 policy marks a pivotal shift. It signals confidence in macroeconomic fundamentals while keeping a close watch on global headwinds and fiscal dynamics. Reports impacted:
Report |
Impact |
| Form A – CRR Return | Direct change in reserve requirement reporting |
| Form VIII – SLR Return | Potential rebalancing of SLR portfolio due to liquidity shift |
| RIS – Interest Rate Sensitivity | Revised rate assumptions; impact on ALM models |
| BSR 1/2 | Change in lending/deposit data driven by monetary policy adjustments |
| LCR/NSFR Returns | Liquidity and funding profile optimizations |
| OSMOS Returns | Changes in liquidity risk and profitability metrics |
| SLBC/Credit Growth Reports | Increase in lending activities reflected in sectoral/state-wise reports |
Reserve Bank of India tightens rules on inactive bank accounts and unclaimed
deposits
May 23, 2025: The Reserve Bank of India (RBI) has rolled out revised guidelines to tighten the handling of inoperative accounts and unclaimed deposits across banks. Effective from April 1, 2024, and revised on May 23, 2025, the circular outlines clear rules for identifying inactive accounts, streamlining reactivation processes, and preventing fraud. Banks must now conduct annual reviews, notify customers of impending inactivity, and segregate dormant accounts to reduce risk. Notably, accounts opened for government schemes like scholarships or DBT transfers are exempt from being marked inactive.
The RBI also requires banks to actively trace customers, nominees, or legal heirs and run awareness campaigns to help people claim dormant funds. Reactivation now involves updated KYC, strict internal checks, and prompt processing, without any charges. Banks must also publish unclaimed deposit data online with a search tool for public access. Feedback on these instructions is open until June 6, 2025. The move aims to improve customer service, boost transparency, and reduce the pile-up of forgotten funds in the banking system.
Update to the Bangko Sentral Ng Pilipinas Implementation of the International Transactions Reporting System (ITRS)
May 15, 2025: The timeline on the implementation and testing period for ITRS has been revised with extension of the testing period from June 2025 to May 2026, and ITRS full implementation to take effect from 1 June 2026. The implementation timeline of the ITRS is extended to allow sufficient time for the banks and the Project team to address emerging technical and report-related concerns prior to full implementation. The memorandum from BSP supersedes prior communications to banks on the schedule of the ITRS implementation.
United States
Draft Leverage Ratio Rule submitted for review
June 6, 2025: The FDIC on behalf of the three banking agencies (FDIC, OCC and FRB) submitted to the Office of Information and Regulatory Affairs (OIRA) a draft rule entitled “Modifications to Supplemental Leverage Capital for Large Banking Organizations; Total Loss-Absorbing Capacity Requirements for U.S. Global Systemically Important Bank Holding Companies.” As you may recall, earlier this year, President Trump issued an executive order requiring all independent agencies to present rulemaking items to the OMB for review before beginning the public notice process. In recent speeches, various agencies’ leadership have all indicated a desire for change and have suggested how. Treasurer Bessent suggests exempting safe assets such as Treasuries from the SLR. He believes T-Bills act as a “stabilizing force” in the market. The newly confirmed FRB Vice-Chair for Supervision, Bowman, wants to see regulators stop trying to eliminate risks from the banking system and focus on approaches that encourage responsible risk-taking. And Acting Comptroller Hood suggests that a simple capital standard ratio of assets to liabilities be implemented. The proposal is coming!
Bowman outlines agenda – It’s ambitious
June 6, 2025: Vice Chair for Supervision Bowman spoke at the Georgetown University McDonough School of Business Psaros Center for Financial Markets and Policy. She begins her speech by stating that she has a pragmatic approach, which focuses on first identifying a problem to be solved and then developing efficient solutions. Once we have identified a need for reform, or a problem to be solved, our next task is to conduct a careful analysis of the intended and unintended consequences of any proposed policy solution, and to consider alternative approaches that lead to lower cost or better outcomes.” She would like to see the following:
1. Enhancing Supervision - to more effectively and efficiently meet the FRB’s safety and soundness goals- Tailoring – implement rules and supervise by bank categories and within a particular category (large, regional, and community banks are not the same)
- Ratings – ratings must reflect risks and address the rating system calculation
- Improve Prioritization – curb the overemphasis on process and supervisory check-boxing examinations as well as horizontal reviews – these have evolved into oversimplifying the examination
- Guidance in Supervision - should be used as a tool to promote transparency in supervisory expectations
- Examiners Training – requires credentialing of commissioned bank examiners
3. Review of Regulations and Data Collection - to ensure that this framework remains viable; EGRPRA is underway, but the FRB should also look at loans to insiders, affiliate transactions, state member bank activities, and domestic and foreign bank holding company activities
4. Banking Applications - consider approaches to ensure the applications process is transparent, predictable, and fair
These “goals by creating an initial roadmap to refocus supervisory and regulatory efforts on the core financial risks most critical to maintaining a healthy and resilient banking system.”
Our Financial Regulatory News Hub provides up-to-date insights, covering key regulatory changes and updates that impact financial institutions globally. Previous editions are available here.
