Europe & UK
The EBA updates the list of other systemically important institutions
The European Banking Authority (EBA) updated the list of other systemically important institutions (O-SIIs) in the EU, which, together with global systemically important institutions (G-SIIs), are identified as systemically important by the relevant authorities according to harmonised criteria laid down in the EBA Guidelines. This list is based on year-end-2024 data and includes the overall score calculated according to the EBA Guidelines and the capital buffer rate that the relevant authorities have set for the identified O-SIIs.
The EBA updates Report on the monitoring of the liquidity coverage ratio and net stable funding ratio in the EU
The European Banking Authority (EBA) published an updated Report on the monitoring of the liquidity coverage ratio (LCR) and the net stable funding ratio (NSFR) in the EU. The EBA said that the update was necessary in light of the banking turmoil experienced in March 2023, which highlighted the need for enhanced supervision of various liquidity aspects resulting from the change in the interest rate environment and related trends in deposit behaviour and concentrations.
The EBA updates technical standards on resolution planning reporting
The European Banking Authority (EBA) published its updated final draft implementing technical standards (ITS) on resolution planning reporting. This comprehensive review of the ITS on the provision of information for the purposes of resolution plans seeks to achieve full harmonization of reporting requirements in the EU and avoid duplication of data requests, thus reducing the cost of compliance with resolution planning reporting obligations by institutions. Proportionality has been a key driver of this regulatory product.
Consultation on amending Regulatory Technical Standards concerning the assessment of appropriateness of risk weights and minimum LGD values
The European Banking Authority (EBA) has launched a public consultation on draft Regulatory Technical Standards (RTS) aimed at refining the assessment of the appropriateness of risk weights and minimum Loss Given Default (LGD) values for exposures secured by immovable property. This initiative seeks to align the RTS with recent amendments introduced by the Capital Requirements Regulation (CRR III) and to enhance the supervisory effectiveness of the approval process for model changes.
EU to Revise SFDR to Simplify Sustainability Disclosures
The European Commission plans to revise the Sustainable Finance Disclosure Regulation (SFDR) by late 2025. This initiative aims to simplify compliance requirements and reduce costs while enhancing the clarity and effectiveness of environmental, social, and governance (ESG) disclosures. The revision may introduce clearer definitions, streamlined requirements, and simplified categories for sustainability products. These changes are a response to feedback from stakeholders who identified legal ambiguities, data challenges, and the risk of greenwashing. The overarching goal is to improve the comparability of financial products, promote sustainable investments, and better align with the European Union's objectives for a green transition.
ESMA delivers technical advice on market abuse and SME growth markets as part of the Listing Act
The European Securities and Markets Authority (ESMA) has provided technical advice to the European Commission as part of the Listing Act initiative. This advice aims to simplify listing requirements, enhance access to public capital markets for EU companies, and improve market integrity. Key areas addressed include clarifying disclosure obligations under the Market Abuse Regulation (MAR) and proposing adjustments to the SME Growth Market regime to reduce administrative burdens and promote liquidity.
Consultation on the Technical Standards under the Regulation on the transparency and integrity of ESG rating activities
The European Securities and Markets Authority (ESMA) has initiated a consultation on draft technical standards under the Regulation on the transparency and integrity of ESG (Environmental, Social, and Governance) rating activities. This consultation, open from 2 May to 20 June 2025, seeks feedback on proposed standards aimed at enhancing transparency and ensuring the integrity of ESG ratings. Stakeholders are encouraged to provide comments, particularly on the specific questions outlined in Annex III of the consultation paper. ESMA emphasizes the importance of structured and well-reasoned responses to inform the development of effective regulatory standards in the ESG rating sector.
ECB partners with private sector through digital euro innovation platform
The European Central Bank (ECB) has established an innovation platform to collaborate with European stakeholders in the context of the digital euro project. Almost 70 market participants – including merchants, fintech companies, start-ups, banks and other payment service providers – have signed up to work with the ECB to explore digital euro payment functionalities and use cases.
Bank of England publishes Climate Risk Standards for Banks and Insurers
The Bank of England's Prudential Regulation Authority (PRA) has released Consultation Paper CP10/25, proposing updates to Supervisory Statement SS3/19 to enhance banks' and insurers' management of climate-related financial risks. This initiative aims to provide clear, concise expectations for firms regarding the identification, management, and governance of climate-related risks, while allowing flexibility for firms to develop solutions suited to their specific business models. The PRA plans to incorporate these expectations into supervisory assessments from 2026.
FCA seeks feedback on regulation of cryptoasset trading platforms in the next phase of road to regulation
The UK's Financial Conduct Authority (FCA) has initiated a consultation on proposed regulations for cryptoasset trading platforms. A key proposal is to ban retail investors from using borrowed funds to purchase cryptocurrencies, aiming to protect consumers and uphold market integrity. The FCA is seeking feedback from industry stakeholders to ensure the regulatory framework balances innovation with effective oversight.
Bank of England plans to remove post-crisis restrictions on building societies
The Bank of England (BoE) has announced plans to remove regulatory restrictions on building societies that were implemented after the 2007-08 financial crisis. These constraints, particularly those limiting fixed-rate lending, are being reconsidered as the sector is now viewed as significantly stronger, with improved risk management and robust capital positions.
APAC
HKMA announces the second cohort of Generative Artificial Intelligence Sandbox
The Hong Kong Monetary Authority (HKMA) has invited Authorized Institutions (AIs) to apply for the second cohort of the Generative Artificial Intelligence (GenA.I.) Sandbox initiative. The GenA.I. Sandbox is designed to provide a risk-controlled environment for AIs to develop and test innovative artificial intelligence-based solutions.
The Australian Prudential Regulation Authority (APRA) has finalized updates to Reporting Standard ARS 110.0 – Capital Adequacy
APRA has finalized updates to Reporting Standard ARS 110.0 – Capital Adequacy to align with recent changes in liquidity and interest rate risk reporting. The updates require authorised deposit-taking institutions (ADIs) to report unrealised losses on certain securities, ensure consistency in reporting the IRRBB capital requirement across forms, and automate calculations from March 2026. These changes aim to improve the accuracy and consistency of capital adequacy reporting. The guidelines come into effect from September 2025 onwards.
HKMA proposes enhancements to the Banking Ordinance
The Hong Kong Monetary Authority (HKMA) has launched a public consultation on proposed enhancements to the Banking Ordinance. The review focuses on updating the legal framework to reflect developments in banking industry practices and regulatory approaches, aiming to align Hong Kong's system with other major financial centers.
Revised Supervisory Policy Manual (SPM) Module CR-G-7 on “Collateral and Guarantees”
HKMA issued a revised version of the SPM module CR-G-7 "Collateral and Guarantees" to address the increasing complexity of authorized institutions' credit activities, reflect the property valuation requirements in respect of real estate exposures set out in paragraph 20.75(2) of CRE20 under the Basel III final reform package, and ensure consistency with the related guidance set out in “FSB principles for sound residential mortgage underwriting practices” issued by the Financial Stability Board in April 2012. Authorized institutions are expected to review whether their risk management systems are consistent with the guidance set out in the revised SPM module that is applicable to them and complete any necessary changes within two years from the date of issuance of the revised SPM module
SAFE 1.4 Data Collection Standards for Financial Institutions' Foreign Exchange Business
China SAFE issued a consultation paper for SAFE 1.4 Data Collection Standards for Financial Institutions' Foreign Exchange Business. It covers the adjustments to the existing reporting requirements for the BOP, CFA, and FAL modules. These adjustments involve field lengths, data dictionaries, reporting requirements, and validation rules, among other aspects. Additionally, some existing report submissions will be split, and new reports will be introduced.
United States & Canada
OCC Issues Request for Information on Community Bank Digitalization
The Office of the Comptroller of the Currency (OCC) issued a request for information (RFI) on the key challenges and barriers faced by community banks in adopting and implementing digital banking solutions. New and emerging technologies can be important tools for community banks to meet customer demand, increase revenue, improve efficiencies, and remain competitive. The OCC supports the strengthening and modernization of community banks and aims to facilitate community banks’ safe, sound, and fair transition to digital banking, including with regard to arrangements with technology providers and supporting a level playing field. The RFI will help the OCC better understand the specific obstacles that community banks encounter in their efforts to modernize operations, enhance customer experience, and remain competitive in an increasingly digital financial services environment. The comments will be due 45 days after the publication in the Federal Register.
OCC Rolls Bank Merger Review Rule
The Office of the Comptroller of the Currency (OCC) issued an interim rule restoring its prior [expedited] process for reviewing merger applications and other changes. Last year, the OCC issued policies that ended the auto-approval process, which allowed the approval of a merger application 15 days after the comment period ended. The OCC also added criteria to extend the comment period or to hold a public hearing on the application. These changes became effective January 1, 2025. The OCC posted its interim rule the day after the Senate voted in favor of the Congressional Review Act to overturn the 2024 rule.
FASB to Issue ASUs
The Financial Accounting Standards Board (FASB) has planned to issue a number of rules in the second and third quarters. They include:
- Credit Losses – Topic 606 Receivables (PCC) – Q2
- Determining the Acquirer in the Acquisition of a VIE – Q2
- Share-Based Consideration Payable to a Customer – Q2
- Accounting for and Disclosure of Software Costs – Q3
- Financial Instruments – Credit Losses (Topic) 326 – Purchased Financial Assets – Q3
- Topic 815 – Derivatives Scope Refinements – Q3
- Topic 815 – Hedge Accounting Improvements - Q3
House-Financial Services Committee - Hearing Enhancing Competition - Shaping the Future of Bank Mergers and De Novo Formations
On May 14, the Subcommittee on Financial Institutions will hold a hearing entitled “Enhancing Competition: Shaping the Future of Bank Mergers and De Novo Formation.” The hearing, part of the Committee’s community banking initiative, will examine how regulatory complexity, unclear supervisory standards, and inconsistent approval timelines may be limiting new bank formation and contributing to consolidation in the financial sector. The discussion will explore opportunities to improve transparency and efficiency in the bank merger review process, update the framework for new bank entrants, and promote a more competitive and accessible banking landscape. The hearing will also consider how existing regulations impact market entry and financial access, particularly in underserved areas. The Committee aims to identify reforms that support responsible growth, innovation, and a diverse banking system that meets the needs of communities and the broader economy.
