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Source: European Banking Authority

The European Banking Authority (EBA) today published new draft Regulatory Technical Standards (RTS) that define when crypto-asset service providers (CASPs) have to appoint a central contact point. A central contact point can be an important tool in the fight against financial crime.

CASPs established in one EU Member State can provide services in another EU Member State. In some cases, where they have a local ‘establishment’, for example a crypto ATM, they must comply with local anti-money laundering and countering the financing of terrorism (AML/CFT) obligations as well as those that apply in the home Member State. In those situations, central contact points can help mitigate the money laundering and terrorist financing (ML/TF) risks associated with the cross-border provision of crypto asset services and facilitate adequate AML/CFT supervision and oversight.

The draft RTS set out:

• The conditions under which CASPs should appoint a central contact point; and
• The roles and responsibilities of that central contact point.

In line with the EBA’s legal mandate, the draft RTS do not define the form a central contact point should take, or where in the EU it should be based.

Legal basis, background

Article 45(10) of Directive (EU) 2015/849 requires the EBA to develop RTS setting out the criteria for determining the circumstances in which the appointment of a central contact point is appropriate, and the functions of the central contact points.

A first version of such draft regulatory standards was issued in 2017. This Commission Delegated Regulation (EU) 2018/1108 was published in the Official Journal of the EU in 2018. The scope was limited to Electronic Money Institutions (EMIs) and Payment Service Providers (PSPs).

Regulation (EU) 2023/1113 on information accompanying transfers of funds and certain crypto-assets applies from 30 December 2024. It amends Directive (EU) 2015/849, inter alia by extending its scope to crypto-asset service providers. Consequently, Article 45(9) of this Directive extends provisions that Member States may require EMIs and PSPs established on their territory in forms other than a branch, and whose head office is situated in another Member State, to appoint a CCP point in their territory to CASPs. This means that the EBA has to update the Commission Delegated Regulation (EU) 2018/1108.

Source: European Banking Authority

The European Banking Authority (EBA) today released an ESG dashboard that establishes a broader ESG risks monitoring framework and allows centralised access to comparable climate risk indicators. This dashboard provides benchmarks and enhances the assessment and monitoring of transition and physical climate-related risk across the EU/EEA banking sector. It is based on the information disclosed by banks as part of their Pillar 3 ESG disclosures.

This dashboard covers climate risk, both from a transition and a physical perspective. The indicators show the spectrum of green financing, based on the alignment with the EU Taxonomy, as well as beyond the Taxonomy criteria, considering internal definitions of green finance used by institutions.

The data show a substantial exposure (above 70% in most countries) of the EU/EEA banks to corporates from sectors highly contributing to climate change. This may imply a significant exposure to climate-related transition risk, especially if companies are affected by policy measures related to sustainability objectives, if a need to invest in technological change arises, or are affected by changing consumer preferences. Companies active in these sectors may of course be affected by these risks to a different extent and the aggregate data cannot recognise individual differences or transition measures already taken.

Indicators related to physical risk show an average share of exposures in areas subject to elevated physical risk below 30% in most countries. However, the granularity at which data is disclosed in different geographical locations, as well as the assessment methodologies vary across institutions. The indicators are built on data disclosed by institutions presenting their own assessment of the exposures and geographical areas exposed to this type of risk.

The dashboard also includes specific indicators for exposures secured by immovable property collateral, showing that approximately half of the EU real estate lending is classified in the first two buckets of energy efficiency, lower than 200 kWh/m2 of collateral. This may indicate relatively limited transition risk related to immovable property collateral. However, banks report that they largely rely on proxies and estimates with regard to energy efficiency data, hence the need to interpret this data with caution.

Finally, the tool provides indicators related to EU/EEA banks’ alignment with the EU Taxonomy and beyond. While the Green Asset Ratio (GAR) remains low, slightly below 3% on average, there is noticeable dispersion across EU/EEA banks and countries. The currently low level of the indicator owes to the structure of the indicator itself. The computed loan GAR, which aligns the numerator and the denominator of the indicator, displays higher levels. The low level of the indicator is also due to the fact that the economy is still under transition, with at this stage few activities being able to demonstrate alignment with the Taxonomy criteria. To facilitate the interpretation, the GAR figures are accompanied by further indicators, offering a more detailed focus on lending to specific types of counterparties, presenting the scope of exposures that are eligible to be assessed against the Taxonomy criteria, and the extent of green lending based on other criteria than the EU Taxonomy.

Legal basis, background and next steps

The development of the ESG risk monitoring framework supports the Commission’s objective to systemically monitor climate-related financial stability risks. The ESG risk indicators have been developed in accordance with Article 29(f) of the EBA founding regulation (Regulation EU 1093/201), requiring the EBA to put in place a monitoring system to assess environmental, social and governance-related risks taking into account the Paris Agreement to the United Nations Framework Convention on Climate Change.

The indicators are built based on Pillar 3 ESG data disclosed by banks with reference dates of 31 December 2023 and 30 June 2024.

The EBA intends to regularly update and evolve the indicators over time. Given that the Pillar 3 disclosure templates are presently under revision, the charts and indicators may be adjusted in future updated versions. This relates in particular to the Taxonomy alignment indicators (any changes to the GAR in the relevant regulations would be reflected in future updates of the ESG risks monitoring tool).

Source: Government of the Netherlands

News item | 17-04-2025 | 16:35

A well-functioning transmission grid and access to electricity are essential for Dutch households and businesses. Expansion and reinforcement of the electricity grid are necessary to meet the growing demand. This requires major investments; TenneT Netherlands is expected to invest some 90 billion euros over the next ten years. The government has decided to issue a guarantee to ensure that TenneT Netherlands can finance this investment. This will enable TenneT Netherlands to take out loans with the same credit rating as the Dutch state (AAA). This means that loans can be obtained on the capital market under better conditions – and therefore more cheaply. This approach means that no additional capital contributions from the state are necessary. The intention to provide a guarantee is included in the Spring Budget 2025. This will be submitted to parliament.

For TenneT Germany, where substantial investments are also needed in the coming years, the government has chosen private funding. An initial public offering or private share issuance are the two options currently under consideration. Interest among private investors will be explored in the coming months and a decision will be made before the summer which option implemented further.

The proposed structural solutions changes TenneT’s financing structure. At the moment, TenneT raises its debt through TenneT Holding and lends it to TenneT Netherlands and TenneT Germany. In the future, the debt will be raised separately by TenneT Netherlands and TenneT Germany. All existing bondholders will be asked to agree to the transfer of the debt to TenneT Netherlands in exchange for a one-time compensation. In doing so, TenneT is working on a future-proof financing structure. If there is insufficient interest among private investors in participating in TenneT Germany or the debt restructuring does not succeed, the Dutch state will itself provide the capital needed by TenneT Germany. A reservation has therefore been included in the national budget. The Dutch state is hereby acting as a responsible shareholder.

Source: Government of the Netherlands

News item | 21-04-2025 | 10:21

The Action Plan is supplementary to the existing Strategic Partnership Agreement for Sustainable Peace and Prosperity agreed upon between the Netherlands and Japan in November 2015. 

Source: European Banking Authority

The European Banking Authority (EBA) today published an updated list of indicators for risk assessment and risk analysis tools, together with the accompanying methodological guide. Without adding any reporting burden on reporting institutions nor on competent authorities, this guidance describes how risk indicators are computed in EBA publications. It will allow competent authorities and users of EBA data to interpret key bank figures in a consistent fashion when conducting their risk assessments and analyses.

This update is based on the EBA reporting framework version 4.0 and covers indicators on institutions’ profitability, solvency and operational risk, among others. The update also includes a new sets of risk indicators laid down in the Banking Package (Capital Requirements Regulation and Capital Requirements Directive – CRR3/CRD6), indicators related to Environmental, Social and Governance (ESG), and those already used in the context of the Minimum Requirement for Own Funds and Eligible Liabilities (MREL).

Source: European Banking Authority

The Joint Committee of the European Supervisory Authorities (EBA, EIOPA and ESMA – ESAs) today published its 2024 Annual Report, which provides an overview of the joint ESAs work completed during the past year.

The ESAs continued to explore and monitor potential emerging risks for financial markets participants and the financial system.

The main areas of cross-sectoral focus in 2024 were joint risk assessments, sustainable finance, operational risk and digital resilience, consumer protection, financial innovation, securitisation, financial conglomerates and the European Single Access Point (ESAP). Among the Joint Committee’s main deliverables were policy products for the implementation of the Digital Operational Resilience Act (DORA) as well as ongoing work related to the Sustainable Finance Disclosure Regulation (SFDR).

Background

In 2024, ESMA chaired the Joint Committee with all three ESAs coordinating discussions and the exchange of information across their institutions, the European Commission and the European Systemic Risk Board (ESRB).

The Joint Committee is a forum with the objective of strengthening cooperation between the European Banking Authority (EBA), the European Insurance and Occupational Pensions Authority (EIOPA) and the European Securities and Markets Authority (ESMA), collectively known as the three European Supervisory Authorities (ESAs).Through the Joint Committee, the three ESAs coordinate their supervisory activities in the scope of their respective responsibilities regularly and closely and ensure consistency in their practices.

Source: European Banking Authority

The European Banking Authority (EBA) today published its Report on Remuneration and Gender Pay Gap Benchmarking for institutions and investment firms. The Report shows a material gender pay gap in 2023 with women earning less than men. Remuneration practices in institutions remained stable between 2021 – 2023, but the ratio between the variable and fixed remuneration in investment firms increased significantly after the introduction of the Investment Firms Directive (IFD).

Alongside its annual Report on Remuneration of identified staff, the EBA is releasing, for the first time, a detailed section on gender pay gap covering all staff as well as those identified as having a material impact on the risk profile of institutions and investment firms.

In 2023, the average ratio between variable and fixed remuneration for identified staff in investment firms stood at 145.85% (2022: 191.42%), higher and less stable compared to the ratio in institutions of 59.59% (2022: 58.62%). Higher bonuses in investment firms are driven by different business models and a more volatile profitability. In 2023, the highest bonuses in institutions were paid in the area of investment banking, whereas in investment firms in the area of dealing on own account, underwriting and placing of instruments, where the average ratio reached 521%. This is a material increase compared to 2021, where for investment firms a 100% limit (200% with shareholders’ approval) for bonuses compared to the fixed remuneration applied. The bonus ratios in other business areas were much lower and remained between 35% and 120%.

On average, female staff in institutions earned 24.48% less in 2023 than their male counterparts. For risk takers (identified staff) the difference was at 21.64%. The pay gap was even more pronounced in investment firms, with female staff earning 32.0% and female identified staff earning 31.74% less than their male colleagues. The pay gap was mainly caused by the underrepresentation of women in higher paid positions. The Report shows the gender pay gap for each quartile of pay level. Women only held 33.45% of the highest paid positions in institutions and just 12.99% of them in investment firms. However, overall, women and men were equally represented in institutions (median representation of women 51.65%) but underrepresented in investment firms (35.43%).

The data underscores the need for entities and competent authorities to analyse closer the reasons for the observed gender pay gap and to address gender pay and gender representation disparities. In this context the EBA is also revising its internal governance Guidelines to further improve the monitoring of gender aspects in institutions and investment firms.

Legal basis and background

The EBA collects remuneration and gender pay gap data from competent authorities for benchmarking under Article 75(1) of Directive 2013/36/EU (CRD) and Article 34(1) of Directive 2019/2034/EU (IFD) and as specified in Guidelines (EBA/GL/2022/06) and (EBA/GL/2022/07), both published on 30/06/2022.

The Capital Requirements Directive (CRD) and the IFD include requirements on the variable remuneration of identified staff, who have a material impact on the banks or investment firms risk profile, or the assets managed by them. Until 2021, investment firms were subject to the same requirements as banks, including a limitation of the variable to fixed remuneration of identified staff to 100% (200% with shareholders’ approval). As of 2022, this requirement, that aims to prevent excessive risk taking, no longer applies to investment firms, that have to set an appropriate ratio for this purpose in their remuneration policies. 

Source: Government of the Netherlands

News item | 10-04-2025 | 14:37

Taking part in Expo 2025 brings opportunities to deepen bilateral relations with Japan. As a reliable partner in East Asia, and the world’s fourth largest economy, Japan is important to the Netherlands. This year marks 425 years of ties between our two countries. These longstanding relations form the basis for strong cooperation in areas such as security, economic resilience, trade, agriculture, food security, defence, cyber protection and innovation.

Minister for Foreign Trade and Development, Reinette Klever: ‘Expo 2025 is a unique opportunity for Dutch companies and knowledge institutions to present their expertise to a large international audience. As a powerhouse of innovation, the business community plays a vital role in addressing global challenges, such as those related to food security and health.’

Potential growth sectors

Over the course of six months, an extensive programme of more than 100 events will give Dutch companies and institutions the opportunity to present themselves and meet Japanese companies. Various theme weeks will focus on potential growth sectors such as food, health, energy and tech, and there will be an ongoing cultural programme with work by Dutch artists and ensembles. Six economic missions will visit from the Netherlands. On the 22nd of April Prime Minister Schoof will officially open the Netherlands pavilion during his visit to Japan.

Common Ground

The Netherlands’ participation is inspired by its unique relationship with water. Our country’s location, partly below sea level, taught us centuries ago to work with each other. Now, as we face new challenges in 2025, cooperation is once again of great importance, this time on an international level. The Netherlands therefore invites Japan and other countries to join it on common ground and work together on solutions.

Pavilion based on circular design concept

The Netherlands pavilion was designed and built by Dutch-Japanese consortium A New Dawn (AND BV), consisting of architecture firm RAU, engineering consultancy DGMR, experience design studio Tellart and Japanese construction company Asanuma. The design consists of a rectangular building with a luminous sphere in the centre, symbolizing a ‘man-made sun’: a clean and endless energy source. On the outside are slats shaped like ocean waves. Together these are exactly 425 metres long, in honour of the 425-year trade relationship with Japan. The pavilion is also an excellent example of circular construction. Records have been kept of exactly what materials have been used, so that nothing goes to waste. After Expo the pavilion will be dismantled and the materials reused.

Interactive visitor experience

When visitors arrive at the pavilion, they are given a small luminous sphere. This reacts to installations at various points in the building, taking them on a journey through the history of the Netherlands and Japan and our battle against water. In the highlight of the show, visitors step into the large sphere in the centre of the pavilion to see an AI film in a 360-degree dome. Before they exit, visitors can share their own ideas and dreams for the future through an interactive artwork.

Dutch innovations

The pavilion revolves around ten impressive Dutch innovations, all harnessing the power of nature. In their own way, each contributes to changing how we generate energy, travel and grow food. Among the innovations being showcased are cultivating fish from cells (Upstream Foods), harnessing ocean waves to generate electricity (Weco) and using self-steering boats for fast and clean transport (Roboat).

Expo 2025 Osaka runs from 13 April to 13 October 2025. Around 160 countries and organisations are participating. The exhibition organisers are expecting more than 28 million visitors.

Source: Government of the Netherlands

News item | 07-04-2025 | 17:00

Targeted screening to preserve openness of science

The new bill identifies the knowledge and technology areas where the risks to our national security are greatest. They include AI, nuclear, quantum, biotechnology, microchips, as well as other technology with potential military applications. The law requires research universities, universities of applied sciences and other research institutes, such as TNO, to examine their operations and activities to pinpoint areas where research takes place with  sensitive knowledge or technology. This involves a customised approach, which recognises that differences occur between the usage of such technologies between institutions. While many knowledge institutions may not engage with such technology, others may use it in specific projects or labs. In future, knowledge institutions will determine this themselves, eliminating unnecessary screening. It is essential to maintain ample space for international collaboration between researchers.

When the law comes commences, any new researcher or Master’s student, regardless of their background, who wishes to work in environments with sensitive knowledge or technology will need to undergo screening. This screening is a form of tailored risk evaluation. The government has asked screening authority Justis to conduct the screenings.  To facilitate this, Justis is performing an implementation test to determine the feasibility and requirements for the new screening process. Ensuring the law can be effectively enforced is a priority for the government. Initial estimates suggest approximately eight thousand screenings will be conducted per year.

Screening is necessary

In recent years, universities and knowledge institutions have implemented numerous measures to safeguard their knowledge. For example, they are more cautious about certain international collaborations and have increased their security measures. Increased security awareness amongst scientific researchers helps on a daily basis in curbing the unwanted transfer of critical knowledge assets from the Netherlands. However, scientific researchers cannot do this on their own. Following the example of neighbouring countries and others worldwide, the Netherlands is now taking the next step: screening researchers. This measure is necessary. Minister of Justice and Security David van Weel is one of the ministers submitting the bill.
 

Van Weel: “Foreign powers are intensifying their efforts to acquire Dutch knowledge and technology. Their aim is to utilise our technological expertise to enhance their weaponry, or use it as a strategic means of power. They seek to achieve this by sending researchers and students here or by pressuring them to share information. Therefore, it is essential that we carefully scrutinise who is granted access to the most sensitive knowledge and technology here in the Netherlands. By doing so, we enhance the resilience of our knowledge institutions against external threats, which is crucial in these turbulent times.“

Law to come into force as soon as possible

The bill is available online for public consultation as of today. This gives everyone the opportunity to voice their opinion, including those who will be involved in the screening process. This input will facilitate further improvement of the bill. Following this, the law will be submitted to the Council of State for advice and then to parliament for debate. The objective is for the law to commence as soon as possible, with mid-2027 as the target, assuming it can be enforced.

Source: European Banking Authority

The European Banking Authority (EBA) published today an updated list of institutions, which have a reporting obligation for the purpose of the 2025 EU supervisory benchmarking exercise. The EBA will be conducting the 2025 benchmarking exercise on a sample of 110 institutions from 16 countries across the EU and the European Economic Area. The EBA runs this exercise leveraging on established data collection procedures and formats of regular supervisory reporting and assists Competent Authorities in assessing the quality of internal approaches used to calculate risk weighted exposure amounts.

Legal Basis

The benchmarking exercises are conducted in accordance with Article 78 of the Capital Requirements Directive (CRD), which mandates the Authority to produce a report to assist the competent authorities in assessing the quality of the internal approaches.

These annual exercises provide a regular supervisory tool based on benchmarks to support competent authorities’ assessments of internal models and produce comparisons with EU peers.

They also increase the convergence of supervisory practices concerning the internal model’s application in the regulatory framework.