18/12/2023 - C609 - ΕΒΑ Guidelines on Information and Communication Technology (ICT) and Security Risks Management (EBA/GL/2019/04)

Following the issuance of Circular C571 from CySEC regarding the EBA Guidelines on Information and Communication Technology (ICT) and security risks management (EBA/GL/2019/04) (the "Guidelines"), CySEC clarified certain provisions of these guidelines. For more details, refer to the link below. 

C609-ΕΒΑ Guidelines on ICT

22/12/2023 - C-610 - ASPs Quarterly Statistics (Form QST-ASP) – 31/12/2023 Submission

The present Circular is addressed to ASPs and is issued pursuant to section 25(1)(c)(ii) & (iii) of the Cyprus Securities and Exchange Commission Law (the 'CySEC Law') regarding the following compliance requirements:

1. Information requested by CySEC
2. Deadline for the Submission of the Form 
3. General commentary on the form
4. Method of creating, signing and submitting the Form

C610-ASPs Quarterly Statistics

22/12/2023 - C611 - CIFs Quarterly Statistics (Form QST-CIF) – 31/12/2023 Submission

The present Circular is addressed to CIFs and is issued pursuant to section 25(1)(c)(ii) & (iii) of the Cyprus Securities and Exchange Commission Law (the 'CySEC Law') regarding the following compliance requirements:

1. Information requested by CySEC
2. Deadline for the Submission of the Form 
3. General commentary on the form
4. Method of creating, signing and submitting the Form

 C611-CIFs Quarterly Statistics 

22/12/2023 - C612 - Cross Border Data Collection Exercise, Freedom to Provide Investment Services and Activities (Cross Border Activity)

CySEC informs the Regulated Entities of the launch of this exercise for the collection of data regarding the cross-border activity of investment firms for the year 2023. This exercise is in line with the exercise that was conducted last year through the CBRT-CIF form. This year, reporting will be done via the EU's online platform in the form of an online questionnaire. Participating firms will receive an invitation link to access and submit the questionnaire. 

 C612 -Cross-Border Data Collection

04/12/2023 - Statistics on Interest Rates applied by Monetary Financial Institutions

CBC has released the statistics on interest rates applied by the financial institutions in Cyprus on deposits and loans of euro area residents. Additionally, they published data regarding volumes (amounts) of new euro-denominated loans to euro area residents for October 2023. These statistics are included in the November 2023  Monetary and Financial Statistics edition.

Interest Rates Statistics-MFI

12/12/2023 - Aggregate Cyprus banking sector data 

CBC published updated aggregate Cyprus banking sector data (non-performing loans data) with a reference date of 30 September 2023.

Aggregate Cyprus Banking Sector Data 

18/12/2023 - Financial Stability Report 2022 

CBC has published the Greek edition of its Financial Stability Report (FSR) for 2022. The FSR covers issues that are relevant for safeguarding the stability of the Cyprus financial system and presents the key medium-term risks to financial stability. The FSR focuses on the developments in Cyprus' financial sector, the risks that various sectors of the financial system may face, the resilience that the financial sector has demonstrated, and the CBC's macroprudential policy decisions and actions.

Financial Stability Report 2022

20/12/2023 - The Central Bank of Cyprus (CBC) leaves the countercyclical buffer rate unchanged at 1%, with effect as of 2 June 2024 

CBC, based on the provisions of the Macroprudential Oversight of Institutions Laws of 2015 to 2022, deemed it appropriate to maintain the countercyclical buffer (CCyB) rate at 1%, effective as of 2 June 2024 and adopted as per the latest decision of the CBC dated 2 June 2023. In accordance with the above decision as well as with prior decisions on the same matter, the countercyclical buffer rate that is effective as of 30 November 2023 is 0,5%, and as of 2 June 2024, is increased further to 1,0%.

Countercyclical buffer rate announcement

05/12/2023 - ECB Consumer Expectations Survey results – October 2023 

ECB presented the results of the consumer expectations survey for October 2023. Compared with September 2023: 

• Median consumer inflation expectations for the next 12 months and for three years ahead remained unchanged. 
• Expectations for nominal income growth over the next 12 months and expectations for nominal spending growth decreased slightly. 
• Expectations for economic growth over the next 12 months became marginally more negative, while the expected unemployment rate in 12 months remained unchanged. 
• Expectations for growth in the price of homes over the next 12 months decreased, while expectations for mortgage interest rates 12 months ahead remained unchanged. 

 ECB Consumer Expectations Survey – October 2023 

11/12/2023 - ECB publishes a study on the environmental impact of euro banknotes. 

ECB findings on the environmental impact of euro banknotes are: 

• The environmental footprint of a person's yearly use of euro banknotes is equivalent to driving 8 km by car. 
• The Euro system committed to further reducing the environmental impact of banknotes while ensuring cash is widely available and accepted.

ECB study on environmental impact

12/12/2023 - The EBA published its annual risk assessment of the European banking system.  
The EU banking sector remains resilient despite pockets of risk stemming from the change in interest rates EBA published its annual risk assessment of the European banking system. The Report is accompanied by the 2023 EU-wide transparency exercise publication, which provides detailed information in a comparable and accessible format for 123 banks from 26 countries across the European Union (EU) and the European Economic Area (EEA).

Annual risk assessment

14/12/2023 - The EBA publishes a roadmap on the implementation of the EU Banking Package. 

EBA published its roadmap on the Banking Package, which implements the final Basel III reforms in the EU. The EBA roadmap aims to strengthen the prudential framework as well as ensure an international level playing field. It also aims to clarify to the industry how it will develop the mandates implementing the legislation and how it expects to finalize the most significant components ahead of the application date, on 1 January 2025.

EBA roadmap on the implementation of the EU Banking Package 

20/12/2023 - EBA report on liquidity measures

EU banks' liquidity coverage ratio declined but remained well above the minimum requirement EBA published its Report on liquidity measures, which monitors and evaluates the liquidity coverage requirements currently in place in the EU. Between June 2022 and June 2023, the EU banks' liquidity coverage ratio (LCR) declined but remained comfortably above the minimum requirement. However, within this review period, there were important fluctuations in the components of the ratio, driven mostly by changes in the banks' allocation of funding deposits and the ongoing reduction of central bank liquidity. Unlike the LCR in domestic currency, EU banks' LCR in foreign currencies remained below 100%.

EBA report on liquidity measures

15/12/2023 - ESMA consults on draft guidelines for supervision of corporate sustainability information 

ESMA has launched a consultation on a set of draft Guidelines on the Enforcement of Sustainability Information and is inviting comments from interested stakeholders by 15 March 2024. The main goals of the draft Guidelines are to: 

• Ensure that national competent authorities carry out their supervision of listed companies' sustainability information under the Corporate Sustainability Reporting Directive (CSRD), the European Sustainability Reporting Standards and Article 8 of the Taxonomy Regulation in a converged manner and 
• establish consistency in an equally robust approach to the supervision of listed companies' sustainability and financial information; this will facilitate increased connectivity between the two types of reporting. 

The consultation paper will be of interest to listed companies required to publish sustainability information by the CSRD and Article 8 of the Taxonomy Regulation, to investors and other users of sustainability information, and auditors and independent assurance service providers.

Read ESMA draft guidelines

19/12/2023 - ESMA presents methodology for climate risk stress testing and analysis of the financial impact of greenwashing controversies 

ESMA published two articles, one outlining an approach to modelling the impact of asset price shocks from adverse scenarios involving climate-related risks and the other exploring the use of ESG controversies for the purpose of monitoring greenwashing risk.

Read ESMA methodology on climate risk stress testing and analysis on financial impact of greenwashing 

20/12/2023 - ESAs propose extending the EMIR equity option exemption 

The three European Supervisory Authorities (EBA, EIOPA and ESMA – the ESAs) published the joint draft regulatory technical standards (RTS) under the European Market Infrastructure Regulation (EMIR), where they are proposing a two-year extension to the equity option exemption from bilateral margining, as well as issue a no-action opinion.

EMIR equity option exemption

21/12/2023 - ESMA consults on possible changes to the securitization disclosure templates. 

ESMA launched a consultation on the revision of the Disclosure Regulatory Technical Standards (RTS) and Implementing Technical Standards (ITS). These standards relate to the specific information and details of securitization transactions that should be made available. The objective of this consultation is to gather stakeholders' views on four proposed options for the revision of the securitization disclosure framework: 

1. Putting the template review on hold until the revision of the L1 text. 
2. Expanding the current framework with the introduction of a few amendments to the currently used disclosure templates. 
3. Focusing on a targeted review for streamlining the information required and developing a new dedicated and simplified template for private securitizations only or 
4. Undertaking a thorough review of the current disclosure framework proposes a significant simplification of the templates. a consultation on the revision of the Disclosure Regulatory Technical Standards (RTS)

Consultation on the revision of the Disclosure RTS