EIOPA issued an Opinion on the supervision of the use of climate change scenarios in the Own Risk and Solvency Assessment (ORSA) addressed to national supervisory authorities.

In this Opinion EIOPA sets out expectations on the supervision of the integration of climate change risk scenarios by insurers in their ORSA.

The (re)insurance industry will be impacted by climate change-related physical and transition risks. However, only a minority of insurers assess climate change risks in the ORSA using scenario analysis, usually limited to a short-term time horizon. Therefore, EIOPA considers it essential to foster a forward-looking management of these risks to ensure the long-term solvency and viability of the industry.

European Central Bank has published its Targeted Review of Internal Models (TRIM)

This review aimed to ensure that internal models comply with the rules and provide different outcomes only when the underlying risks are different.

ECB assessed internal models which banks use to calculate risk-weighted assets (RWAs) for credit, market and counterparty credit risks. Large-scale review checked that banks comply with rules and implement internal models consistently. With 200 on-site investigations conducted in 65 significant banks using internal models, TRIM is the largest project ever carried out by ECB Banking Supervision. Review resulted in €275 billion increase in RWAs over the last three years and more than 5,000 findings for banks to remediate.

Borsa Italiana with Notice n. 12368 of 16 April 2021 has published the Amendments to the Transaction Reporting Manual. The changes will enter into force on 26th April 2021.

Borsa Italiana with Notice n. 12367 of 16 April 2021 has published the Amendments to the Market Rules and to the related Instructions regarding the Client Price Improvement (CPI) Orders within the types of trading proposals. The amendments will enter into force on the 26th April 2021.

Bank of Italy has released seven new Working Papers (nn. 1327-1333).

No. 1333 – Population aging, relative prices and capital flows across the globe

No. 1332 – Dating the euro area business cycle: an evaluation

No. 1331 – The catalytic role of IMF programs

No. 1330 – (In)efficient separations, firing costs and temporary contracts

No. 1329 – Can Internet banking affect households’ participation in financial markets and financial awareness?

No. 1328 – Board composition and performance of state-owned enterprises: Quasi-experimental evidence

No. 1327 – Foreign investors and target firms’ financial structure: cavalry or locusts?