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Source: European Banking Authority

The European Supervisory Authorities (EBA, EIOPA and ESMA – the ESAs) launched today a public consultation on the draft Regulatory Technical Standards (RTS) on the conduct of oversight activities in relation to the joint examination teams under the Digital Operational Resilience Act (DORA).

The primary goal of the draft RTS is to lay out the criteria for determining the composition of the joint examination teams – ensuring a balanced participation of staff members from the ESAs and from the relevant competent authorities – as well as the designation of the members, their tasks, and working arrangements.

These draft RTS aim at ensuring maximum efficiency and effectiveness regarding the functioning of the joint examination teams, given their central role in the daily oversight of critical ICT third-party service providers (CTPPs). The proposed technical standards take into account the high technical complexity of the oversight activities and the scarce availability of the expertise needed to perform them.

Consultation process

The ESAs invite stakeholders to submit their comments on the draft RTS by 18 May 2024 using the links available on the consultation page.

All contributions received will be published following the end of the consultation, unless requested otherwise.

The Digital Operational Resilience Act (DORA) and the related RTS will apply from 17 January 2025.

Legal basis, background and next steps

These draft technical standards have been developed in accordance with Article 41(1) point (c) of DORA (Regulation (EU) 2022/2554). The ESAs expect to submit these draft technical standards to the European Commission by 17 July 2024.

These draft RTS complement those on which the ESAs consulted on 8 December 2023 (the consultation ended on 4 March 2024) aimed at harmonising the conditions enabling the conduct of oversight activities, in accordance with points (a), (b), and (d) of Article 41 of DORA. 

Source: Government of the Netherlands

News item | 16-04-2024 | 13:00

The chemical industry is a supplier of components for essential products such as medicines, plastics, paint, mattresses and batteries. At the moment, these products mainly consist of fossil raw materials, such as oil and natural gas. For circular and climate-neutral production by 2050, a switch to sustainable raw materials is needed. These raw materials are reusable or renewable and have less impact on the planet.

Examples of reusable and renewable raw materials are recycled plastics, sugar beets, gas from gasified waste streams or wood chips as a basis for new plastic and other products. These raw materials can replace fossil raw materials and drastically reduce CO2 emissions and boost the circular economy. In this way, the Dutch and European chemical industry can become a world leader in the field of green chemistry.

Need for EU policy

We now use far more raw materials than the Earth can handle. That is why we want to move towards a circular economy. This means that we use raw materials over and over again and that virtually no waste remains. The Netherlands also wants to be climate neutral by 2050.

Minister Heijnen: “With a switch from fossil to sustainable raw materials, we can make great steps towards these two goals. But we don’t want to and can’t do that alone as a country. By tackling this at the European level, we are stronger and achieve two aims at once, in terms of circularity and CO2 emissions. That is why today, together with France, the Czech Republic and Ireland, we are advocating for European policies that effectively stimulate the use of sustainable carbon sources in the chemical industry.”

Minister Micky Adriaansens (Economic Affairs and Climate Policy): “The chemical industry is indispensable for our medicines, paint, but also for our food and construction. We would therefore like to preserve this industry in the Netherlands and Europe. In fact, we want the chemical industry to become a global leader in green chemistry. I therefore think it is important that we work hard to make this sector more sustainable and at the same time strengthen its competitive position by working together in a European context.”

Competitiveness

An overarching European policy framework is also essential to ensure the long-term competitiveness of the European chemical industry and to reduce our dependence on (fossil) raw materials from abroad.

An EU policy package should help to create markets, the availability of sustainable carbon and tools to strengthen the competitiveness of the chemical industry.

Source: European Banking Authority

The European Banking Authority (EBA), the European Insurance and Occupational Pensions Authority (EIOPA) and the European Central Bank (ECB) set up a Data Point Model (DPM) alliance, establishing a common governance framework for the collaboration on the DPM 2.0 Standard. Together with the establishment of a Joint Bank reporting Committee (JBRC) between the EBA and ECB, this alliance is another step in the process of building an integrated reporting system.

Following the publication by the EBA and EIOPA of the DPM 2.0 standard in June 2023, the two ESAs together with the ECB have agreed on the common arrangements that will govern their cooperation on DPM 2.0 (the DPM alliance).

Under the DPM alliance, the EBA, EIOPA and ECB will together govern the DPM 2.0 standard and cooperate in the DPM methodology for modelling reporting requirements, the metamodel used for populating the reporting requirements and the associated documentation. 

The DPM alliance seeks to facilitate the definition and exchange of regulatory data within the financial sector; increase efficiencies and avoid duplication of efforts; promote more efficient processes for defining and communicating reporting requirements, and for collecting and exchanging data and metadata amongst reporting entities, national authorities and European authorities; and facilitate good practices in the definition and exchange of regulatory reporting data and information.

The DPM alliance is established through a Memorandum of Understanding that was signed by the EBA, ECB, and EIOPA.

Note to the editors

The Data Point Model (DPM) is the data dictionary providing the structured representation of the data required for regulatory purposes by the EBA. It encompasses its regulatory processes and integrates the data of different EBA Technical Standards and Guidelines. The DPM may include also other data definitions relevant to the common understanding of the EBA regulatory data – business concepts and their relations, as well as their validation and calculation rules.

Since its inception, the EBA has been using the same DPM Standard 1.0 and together with the European Insurance and Occupational Pensions Authority (EIOPA) has worked on a DPM Refit project aimed at achieving a common DPM Standard 2.0, which is better prepared to address the new challenges of regulation of financial sector.

At EBA the two models will coexist with the same integrated data during a transitional period in order to enable a smooth evolution to all stakeholders involved in regulatory processes.

Source: Government of the Netherlands

News item | 15-04-2024 | 18:00

Carbon capture and storage is a tool that can capture some of the emissions that are very difficult to prevent – and capturing those emissions is necessary in order to reach European climate goals. That makes carbon capture and storage an essential climate tool.

In 2021, Norway and the Netherlands signed an arrangement on energy cooperation around the North Sea, including carbon capture and storage. Similar arrangements are in place between Norway and Belgium (2022) and Denmark (2023), as well as a joint declaration with Sweden in 2022. In addition, in 2022 and 2023 Denmark, Belgium (the Federal State, Flanders and Wallonia) as well as Netherlands signed arrangements for the transport and storage of captured carbon across borders.

Today, Denmark, Belgium, the Netherlands and Sweden each established an arrangement on cross-border transport of CO₂ with Norway. Sweden and Denmark concluded a similar arrangement, too. This removes some of the obstacles on the way to a well-functioning carbon capture and storage-market in the wide North Sea region.

“Storage of CO2 is a cost-effective means of reducing emissions on time to reach the EU climate targets. This cooperation between Norway and the Netherlands on cross-border CO2 transport, is an important step in the development of an open European CCS market.It contributes to the EU climate goals and economic development. I am hopeful that this declaration will soon be followed by concrete project between the Netherlands and Norway,” says Rob Jetten Minister for Climate and Energy, the Netherlands.

“Norway has great potential to store CO₂ and I am pleased that other countries will store CO₂ in Norwegian storage sites. The capacity is enormous. The climate challenge transcends borders, and it is crucial that we put in place solutions for transport of CO₂ across national borders. This is an important day for the climate, for our industries and for the first full-scale European CCS project “Longship,” says Norway’s Minister of Energy Terje Aasland.

”In order to decarbonize hard-to-abate sectors, we need carbon capture and storage. In order to reach climate neutrality by 2050 in Europe, we need carbon capture and storage in a larger, international scale. Today’s arrangements are two great steps in the right direction. It’s all hands on deck – and I’m glad to see both Norway and Sweden joining our work towards an international industry for carbon capture and storage,” says Danish Minister for Climate, Energy and Utilities Lars Aagaard.

“Beside extensive mitigation, the capture and storage of CO2 will be necessary to curb the climate crisis. CCS and BECCS will play a key role towards EU:s objective for climate neutrality 2050 and negative emissions thereafter. Sweden has a great potential för BECCS and we already have projects underway. These agreements are essential for Sweden and its industry in realizing a fossil free future,” says Sweden’s Minister for Climate and Environment Romina Pourmokhtari.

”Developing new methods to reduce CO2 emissions is crucial for the future of our planet. This is a promising climate technology. The sea can play a key role in this regard. Not only has it always been of great importance in regulating our climate, but it also offers opportunities for carbon capture and storage. Over the past 2 years, we have already concluded agreements with the Netherlands and Denmark. Today, we are taking another important step with Norway to store captured CO2 in their depleted oil and gas fields,” says Belgian Minister of the North Sea Paul Van Tigchelt.

“Like the rest of Europe, Wallonia is at a pivotal point in its development. The ques-tion of the resilience of our economy and, more broadly, of our society, has become central. If we are to achieve our climate objectives, the key factors are undoubtedly energy sobriety, energy efficiency and the development of renewable energies. How-ever, not all Walloon companies face the same challenges: their manufacturing pro-cesses vary and CO2 emissions are sometimes inherent to production processes. CO2 capture therefore becomes a vital solution for these enterprises. I welcome today’s signing of the Memorandum with Norway to enable the permanent storage of carbon dioxide, which takes on its full meaning in this context”, says Walloon Minister for Climate, Energy, Mobility, and Infrastructure of the Walloon Region Philippe Henry

“The capture, transport, storage and reuse of CO2 will play an important role in the future of Flanders, in addition to the continuation of our strong policy on renewable energy and well-thought-out energy efficiency measures. Various companies in Flanders are already focusing on the rollout of the CCUS to reduce their footprint. Since Norway has great potential for the storage of CO2, this intense cooperation between Flanders and Norway supports and stimulates the future development of the CCUS-value chain”, says Flemish Minister for Justice and Enforcement, Environment, Energy and Tourism Zuhal Demir.

Source: Government of the Netherlands

News item | 15-04-2024 | 17:05

We will continue to closely monitor the security situation at the missions, and it is possible that they may be closed again in the future. For obvious reasons the ministry cannot comment on security measures.

Now that the missions have been re-opened to the public, they can again provide consular services. People with appointments that had to be cancelled due to the temporary closure will be contacted to reschedule.

Source: Government of the Netherlands

News item | 15-04-2024 | 16:18

‘The International Red Cross and Red Crescent is right about this becoming a forgotten crisis,’ says Ms Schreinemacher. ‘Sudan rarely makes the front pages even though nearly 18 million people there are facing acute hunger. It is imperative that we step up the international pressure, because a ceasefire is vital. The millions of Sudanese who have sought refuge throughout the region need prospects for the future.’

Unrestricted access

In Sudan not only is there a shortage of food, water and medicine, it is also incredibly difficult to get aid to those who really need it. According to the UN, only 10% of people facing hunger are currently receiving food aid. ‘In conflict areas it’s always hard to deliver aid safely. But in Sudan the warring parties are actively obstructing emergency assistance. Aid workers and aid deliveries are being blocked at the borders, and NGOs have to contend with all sorts of red tape. The warring parties must significantly improve access.’

In very hard-to-reach areas, local people are playing an important role in delivering aid. Women and young people are in many cases rising to the challenge and offering food, protection and medical assistance. The UN and other aid organisations can use the Netherlands’ contribution to support these local initiatives.

Aid to Sudan

The additional contribution brings the Netherlands’ support for emergency aid to Sudan in 2024 to a total of over €42 million. The Netherlands is also helping the Sudanese in other ways. The UN Central Emergency Response Fund (CERF) has made $35 million available for assistance to Sudan, and the Netherlands contributes €55 million annually to CERF. The Netherlands also contributes to the reception of Sudanese refugees in neighbouring countries. Some 8 million Sudanese people have been internally displaced, and 2 million have fled to the surrounding countries.

Source: Government of the Netherlands

News item | 15-04-2024 | 14:31

Ms Schreinemacher: ‘I’ve had four wonderful months of maternity leave, and it is with great pleasure that I return to my position as minister today. I would like to thank Geoffrey van Leeuwen for taking over my duties in my absence, especially during these turbulent times. It was a relief to know that everything was in his expert hands while I was away.’

Source: Government of the Netherlands

News item | 14-04-2024 | 15:19

Anyone with an appointment has been notified or will be notified as soon as possible and appointments will be rescheduled. This will mainly affect people wishing to apply for a visa for travel to the Netherlands. At present, the temporary closure is not affecting the services of VFS Global in Tehran and Erbil. Any updates can be found at www.vfsglobal.com.

The diplomatic missions in Tehran and Erbil will continue to carry out their other tasks as far as possible, with staff safety as their highest priority. The ministry does not comment on security-related measures. If you urgently need help from the embassy or the consulate-general, please call +31 247 247 247.

Source: Government of the Netherlands

News item | 13-04-2024 | 10:04

Anyone with an appointment has been or will be notified in good time and appointments will be rescheduled. This will mainly affect people who wish to apply for a visa to travel to the Netherlands. At present, the temporary closure is not affecting the services of VFS Global in Tehran and Erbil. Any updates can be found at www.vfsglobal.com.

As the missions in Tehran and Erbil continue to carry out their other work, the safety of the staff is the highest priority. For obvious reasons the ministry does not comment on security measures. If you urgently need help from the embassy or the consulate-general, please call +31 247 247 247.

All Dutch diplomatic missions in the region are closed to the public on Saturdays. The missions in Tehran and Erbil would normally be open to the public on Sunday, which is the first day of the working week in countries in the region.

Source: European Banking Authority

The European Banking Authority (EBA) today published its 2023 Reports on the annual market and credit risk benchmarking exercises. These exercises aim at monitoring the consistency of risk weighted assets (RWAs) across all EU institutions authorised to use internal approaches for the calculation of capital requirements. Regarding market risk, for the majority of participating banks, the results confirm a relatively low dispersion in the initial market valuation (IMVs) of most of the instruments, and a decrease in the dispersion in the value at risk (VaR) submissions compared to the previous exercise. For credit risk, the variability of RWAs remained stable compared with the previous year, but for some asset classes a reduction could be observed in a longer perspective. 

Market Risk exercise            

The Report presents the results of the 2023 supervisory benchmarking and summarises the conclusions drawn from a hypothetical portfolio exercise (HPE) conducted in 2022/23. 

The results confirm that most participating banks have seen a relatively low dispersion in the initial market valuation (IMVs) of most of the instruments, and a decrease in the dispersion in the value at risk (VaR) submissions compared to the previous exercise. 

From a risk factor perspective, FX portfolios exhibit a lower level of dispersion than the other asset classes. In general, variability is substantially lower than in the previous exercise. This is likely due to an improvement in the data submission, which impacted the dispersion of the risk measures, decreasing the dispersion in general.

Regarding the single risk measures, across all asset classes except for CO, the overall variability for value at risk (VaR) is lower than the observed variability for stressed VaR (sVaR) (16% and 21%, compared to 21% and 28% in the 2022 exercise, with 27% and 31% in 2021 and with 18% and 29% in 2020). More complex measures, such as the incremental risk charge (IRC), show a higher level of dispersion (42%, compared to 45% in the 2022 exercise, with 43% in 2021 and 49% in 2020).

Competent authorities also complemented a questionnaire on banks participating in the exercise to supplement the quantitative analysis. The majority of the significant dispersions have been examined and justified by the banks and Competent Authorities. A small minority of the outlier observations remain unexplained and are expected to be part of the ongoing activities of supervisors, who are expected to monitor and investigate the situation.

Credit Risk exercise

The report shows that the relative share of the Exposure at Default (EAD) subject to the Internal Ratings Based (IRB) method appears practically constant in the last years.

Furthermore, the share of approved material model changes has increased for all asset classes, indicating that the implementation of the IRB roadmap (set out by the EBA in February 2016) is progressing.

The report goes on to show the evolution of the variability of the risk parameters over the period 2015-2023. A clear decreasing trend of variability can be observed in the Corporates class, whereas for the other asset classes the variability seems more stable. The report provides evidence that, besides risk factors able to capture the underlying portfolio characteristics, prudential adjustments could potentially explain part of the variability.

A specific analysis regarding the portfolio Retail shows the role that the type and degree of collateralisation can play in explaining the variability of the Loss Given Default (LGD).  

Notes to the editors 

These annual benchmarking exercises contribute to improving the regulatory framework, increasing convergence of supervisory practices and, thus, restoring confidence in internal models. For credit risk internal models, the EBA has followed its roadmap for the implementation of the regulatory review of internal models.

This exercise should be read in parallel with other efforts to reduce undue level of variability. In particular, the  EBA roadmap to Repair IRB models is a key component of the review of the IRB framework, along with the enhancements brought by the final Basel III framework assessed by the EBA in a set of recommendations as an answer to the call for advice of the European Commission.

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