Risk & Resilience

The European Supervisory Authorities (ESAs) - comprising the European Banking Authority (EBA), the European Insurance and Occupational Pensions Authority (EIOPA), and the European Securities and Markets Authority (ESMA) - have announced the appointment of Marc Andries as the Director for DORA joint oversight. This appointment marks a significant step in implementing the Digital Operational Resilience Act (DORA), a key regulation aimed at strengthening the IT security and resilience of the European financial sector.

The Dutch Authority for the Financial Markets (AFM) has released its fifth update on the Digital Operational Resilience Act (DORA), providing critical guidance on the testing of digital operational resilience for financial firms. Since its implementation in January 2023, DORA aims to fortify financial organizations against IT risks, ensuring they are better equipped to withstand cyber threats and maintain operational continuity.

The German Federal Financial Supervisory Authority (BaFin) has issued new guidance notes aimed at helping banks and insurers transition to the requirements set forth by the Digital Operational Resilience Act (DORA). Set to take effect from January 17, 2025, DORA introduces a comprehensive framework for managing ICT risks and third-party risks, marking a significant shift from the existing supervisory frameworks.

The European Supervisory Authorities (ESAs)—comprising the European Banking Authority (EBA), the European Insurance and Occupational Pensions Authority (EIOPA), and the European Securities and Markets Authority (ESMA)—have issued their Autumn 2024 Joint Committee Report, highlighting a landscape fraught with economic and geopolitical uncertainties. This comprehensive assessment underscores the pressing need for heightened vigilance across all financial market participants.

The Federal Reserve is set to revise its proposed capital rules for banks, emphasizing a more nuanced, risk-based approach. Michael S. Barr, Vice Chair for Supervision at the Federal Reserve, unveiled these plans in a recent speech at the Brookings Institution, signaling a significant shift in how regulators view bank resilience and risk management.

The European Banking Authority (EBA) has set in motion its annual transparency exercise for 2024, a crucial initiative aimed at assessing the robustness and risk profile of the European banking sector. This yearly undertaking, which has become a linchpin of EU banking supervision since its inception in 2011, seeks to bolster confidence in the EU financial system through enhanced transparency.

In a world where financial headlines often focus on regulations and crises, the nuances of bank supervision often remain under-appreciated. However, Acting Comptroller of the Currency Michael Hsu’s recent remarks at the Joint European Banking Authority and European Central Bank Conference shed light on the vital yet understated role of bank supervision, especially as the financial landscape grows increasingly complex.