The European Central Bank published a package of Governing Council decisions spanning market operations, payments, macroprudential policy and banking supervision, including a harmonised framework under which national central banks’ statistical in-house credit assessment systems can be used in the Eurosystem collateral framework and a standard methodology for sanctions where banks breach minimum reserve reporting and calculation requirements. Statistical in-house credit assessment systems, which were widely introduced during the COVID-19 period to assess the creditworthiness of non-financial corporations, particularly small and medium-sized enterprises, will be accepted as an additional credit assessment source in the general framework provided they meet the new harmonised requirements. For minimum reserves, the new methodology harmonises how potential sanctions are determined for errors in reporting liabilities used to calculate the reserve base or in calculating the reserve base and required reserves, alongside a harmonised approach to addressing incorrect remuneration arising from such errors. The package also sets a process to ensure timely European Central Bank opinions on the authorisation of issuers of asset-referenced tokens under the Markets in Crypto-Assets Regulation, updates the TIBER-EU framework to align with the Digital Operational Resilience Act threat-led penetration testing standards, and includes supervisory changes such as repealing cyber incident and outsourcing data-collection decisions to avoid duplication under DORA, setting reporting criteria and guidance for the 2025 supervisory stress tests, and publishing FAQs on its interim approach for initial margin model approvals during the European Market Infrastructure Regulation 3 transitional phase. Separately, the European Central Bank imposed an administrative penalty of EUR 10.4 million on BNP Paribas Fortis SA/NV for reporting miscalculated risk-weighted assets for credit risk. Statistical in-house credit assessment systems will become eligible from 1 January 2026, with the necessary legal amendments due to enter into force in the next General Documentation update cycle. For significant institutions under its direct supervision, the European Central Bank intends to comply by 30 April 2025 with the joint European Supervisory Authorities guidelines on oversight cooperation and information exchange under DORA.
European Central Bank 2025-01-31
European Central Bank sets harmonised frameworks for S-ICAS collateral assessments and minimum reserve sanctions and updates supervisory processes for DORA and MiCAR
The European Central Bank (ECB) released a package of Governing Council decisions on market operations, payments, macroprudential policy, and banking supervision. Key measures include a harmonised framework for national central banks' statistical in-house credit assessment systems, a standard methodology for sanctions on reserve reporting errors, and updates to align with the Digital Operational Resilience Act. Additionally, the ECB imposed a EUR 10.4 million penalty on BNP Paribas Fortis SA/NV for misreporting risk-weighted assets.