Governance & Regulation

Geopolitical risks are overarching risk drivers that can affect all risk categories within banks. As the current elevated geopolitical environment has material implications for the banking sector, these risks have become a central supervisory topic for BaFin and the ECB. This article explains what geopolitical risks entail, how they affect banks at a systemic level, and what supervisory authorities expect in terms of governance, risk management and resilience.

For many banks, the register of grants, use of funds and measures is an annual obligation that requires considerable coordination. What are the typical problems in banking practice, and what added value do they offer banks and customers? This article answers these questions and provides practical takeaways.

CRR III has been in force for more than a year now. And yet many institutions are still not fully exploiting the potential of the new regulations. With the introduction of ‘property values’, a new framework concept for the valuation of real estate collateral has been implemented. This offers potential savings in risk-weighted assets, particularly for institutions with a high volume of real estate loans. The equity capital that is freed up opens up growth opportunities and advantages in pricing. It also makes it easier to meet the reporting requirements of WIFSTA. Due to the existing transition periods, it is highly recommended that institutions address their specific potential in a timely manner.

With Regulation (EU) 2024/886, the European Union is tightening the requirements for instant payments in the SEPA area and introducing new reporting requirements for payment service providers. This article discusses what the new requirements mean for payment service providers in concrete terms.