On the occasion of the COP26 Finance Day (Climate Change Conference), Bank of Italy and IVASS reiterates their willingness to contribute to the global response to combat rising global temperatures and to meet the objectives of the Paris Agreement.

The Governing Council of the ECB adopted Decision ECB/2021/45 on the methodology applied for the calculation of sanctions for non-compliance with the obligation to hold minimum reserves and the related minimum reserve requirements and Regulation ECB/2021/46 amending Regulation (EC) No 2157/1999 concerning the powers of the ECB to impose sanctions.

These acts, in the interests of legal certainty and transparency, inform credit institutions of the formula and methodology adopted by the ECB to calculate sanctions in the event of non-compliance with the obligation to notify the relevant national central bank of restrictions which would prevent an institution from liquidating, transferring, assigning or disposing of its funds held as minimum reserves.

On the occasion of the COP26 Finance Day (Climate Change Conference), EBA and EIOPA have published statements underlining their commitment to support the fight against climate change.

In particular, EBA reaffirmed its commitment to supporting green finance, with the aim of facilitating the transition of the banking and financial sectors towards a “green” economy.

EIOPA, on the other hand, affirmed its commitment to supporting the insurance and pension sectors: it declared that in 2022 it will finalise the first European-level dashboard on the insurance protection gap against natural disasters: the aim is to raise awareness of the role of insurance against climate-related hazards.

EIOPA has published its Risk Dashboard based on Solvency II data from the second quarter of 2021.

The results show that insurers’ exposures to macro risks remain at a high level while all other risk categories, such as insurance as well as profitability and solvency risks, stay at medium levels.

The environmental, social and goverance (ESG) related risks, included for the first time in the current Risk Dashboard, are at a medium level, with transaction and physical risks slightly improving.