(Only in Italian)
(Only in Italian)
Key findings:
  • In percentage of the total risk exposure amount (TREA), the average MREL final target, including the combined buffer requirement (CBR) for resolution entities, to be respected by 1 January 2024, stood at 26.2% TREA, growing marginally from Q3.2021.
  • The average MREL shortfall to the final 2024 targets including the CBR reached 0.45% TREA (or EUR 32.6 bn) for resolution entities, continuing the decreasing trend observed in the previous quarter, yet at a slower pace.
  • For non-resolution entities, the average MREL shortfall (including the CBR) against the final target halved with respect to Q3.2021 and amounted to 1.06% TREA (or EUR 22 bn).
  • As concerns MREL intermediate 2022 targets (including CBR), almost all banks resulted compliant. The very few ones in shortfall are closely monitored.
  • Banks’ issuance increased by 42.1% over the quarter and amounted to EUR 60.9 bn.
  • MREL funding costs deteriorated in the first quarter, in light of rising geopolitical risks and elevated energy and oil prices, as well as inflationary pressures.
ESMA has advised the European Commission on certain aspects relating to retail investor protection.
In the advice ESMA puts forward proposals that will make it easier for investors to get the key information they need to take well-informed investment decisions, whilst also protecting them from aggressive marketing techniques and detrimental practices.
The proposals put forward aim at maintaining a high level of investor protection, while ensuring that retail investors can benefit from digitalisation opportunities.
The recommendations relate to, among others:
  • requiring machine readability of disclosure documents to facilitate the development of searchable databases available to the public;
  • addressing information overload by proposing to define what is vital information and by using digital techniques such as layering of information;
  • development of a standard EU format of information on costs and charges and aligning the disclosures under MiFID and the PRIIPs KID;
  • possibility for NCAs and ESMA to impose on firms the use of risk warnings for specific financial instruments;
  • addressing aggressive marketing communications; and
  • addressing issues related to misleading marketing campaigns on social media and the use of online engagement practices, such as the use of gamification techniques by firms or third parties.
ESMA has made available the results of the annual transparency calculations for non-equity instruments other than bonds and the quarterly systematic internaliser calculations.
EBA has published its response to the European Commission’s Call for Advice on the review of the macroprudential framework, proposing a set of recommendations to simplify the procedures around some of the existing macroprudential tools and to increase harmonisation for others.
The EBA’s advice includes the following recommendations:
  • to rebuild regulatory capital buffers to sufficient levels so that they can be released when needed again in the future;
  • to undertake a comprehensive evaluation of the interaction of macroprudential measures with other capital requirements, such as leverage ratio, own funds and eligible liabilities (MREL) requirements;
  • to maintain clear roles and responsibilities of the different authorities involved in microprudential and macroprudential policy as well as close coordination between them;
  • to include a legal mandate in the Capital Requirements Directive (CRD) to develop methodologies covering both the identification of other systemically important institutions (O-SIIs) and the setting of buffer rates;
  • to simplify the text of the CRD and the Capital Requirements Regulation (CRR) around governance procedures for some macroprudential measures;
  • to perform further assessments on the ability of current macroprudential tools to address environmental, crypto assets and cyber security risks;
  • to establish an oversight and monitoring system for non-bank lenders and enlarge the scope of the macroprudential framework to cover non-bank lenders.
EIOPA’s main findings in the areas which the Commission asked EIOPA to address in its Call for Advice , are as follows:
  • Enhancing consumer engagement with disclosures, including digital disclosures
  • Assessing the risks and opportunities presented by new digital tools and channels
  • Tackling damaging conflicts of interest in the sales process
  • Promotion of an affordable and efficient sales process
  • Assessing the impact of complexity in the retail investment product market