BANKING SYSTEM MEASURES
2010 | 4th quarter 2015
29th March 2016
Quarter
Area
Institution
Measures
2015
4th
Monitoring and
supervision
Banco de
Portugal
Notice of Banco de Portugal No 3/2015, of 10 November
Defines the procedures for the submission, maintenance and review of recovery plans, as well as
other additional rules necessary for the implementation of Article 116-D of the Legal Framework
of Credit Institutions and Financial Companies (Legal Framework), approved by Decree-Law No
298/92, of 31 December, defines the procedures for determining simplified obligations in the
preparation and reporting of the recovery plans and exercises the option to waive from reporting
the institutions covered by Article 116-E of the Legal Framework.
Were also integrated into the legal framework the following EBA guidelines: (i) "Guidelines on the
range of scenarios to be used in recovery plans" and (ii) "Guidelines on the minimum list of
qualitative and quantitative recovery plan indicators".
4th
Monitoring and
supervision
Banco de
Portugal
Circular-Letter of Banco de Portugal No 85/2015/DES dated 3 November.
th
4
Monitoring and
supervision
European
Banking
Authority
Published on 24 November 2015, the Transparency Exercise by the European Banking Authority
(EBA), providing detailed bank-by-bank data on the capital positions, risk exposure amounts and
asset quality on 105 European banks, covering around 70% of the total European Union banking
assets. CGD, BCP and BPI were the Portuguese banks that participated in the exercise.
4th
Monitoring and
supervision
Single
Supervisory
Mechanism
Comprehensive Assessment results were published on 14 November 2015, which was a
financial health check through a stress test of nine financial institutions of the euro area that
had not been included in the same exercise held in 2014, which includes, in the Portuguese
case, Novo Banco. It was carried out by the Single Supervisory Mechanism.
4th
Solvency and
liquidity
Banco de
Portugal
Press release dated 29 December informing on the decision of Banco de Portugal to set the
countercyclical buffer rate at 0% of the total risk exposure amount, with effect from 1 January
2016 and to prevail in the first quarter of the year. This buffer applies to all credit exposures to
the domestic private non-financial sector of credit institutions and investments firms in Portugal
subject to the supervision of Banco de Portugal or the European Central Bank (Single
Supervisory Mechanism), as applicable.
4th
Solvency and
liquidity
Banco de
Portugal
Press release dated 29 December releasing the names of the banking groups identified as OSIIs in 2015 and the respective capital buffers, as a percentage of the total risk exposure amount.
4th
Solvency and
liquidity
Banco de
Portugal
Notice of Banco de Portugal No 4/2015 of 14 December 2015
Provides clarifications on the accounting treatment of contributions to the Resolution Fund.
Establishes, according to the current legal framework set out in Articles 138-Q and 138-R of the
Legal Framework of Credit Institutions and Financial Companies, approved by Decree-Law No
298/92 of 31 December 1992, the items to be disclosed by Banco de Portugal regarding the
identification of other systemically important institutions (O-SII), the capital buffer applicable to
each of these institutions and the reporting frequency of that disclosure.
This Notice entered into force on 15 December 2015.
4th
Solvency and
liquidity
European
Commission
Commission Implementing Regulation (EU) No 2015/2326 of 27 November 2015, on the
extension of the transitional periods related to own funds requirements for exposures to central
counterparties set out in Regulation (EU) No 575/2013 and (EU) No 648/2012 of the European
Parliament and of the Council.
This Regulation entered into force on 30 November 2015.
2
BANCO DE PORTUGAL • 2010 |4thquarter 2015
4th
Solvency and
liquidity
ECB
On 3 December 2015, the Governing Council of the ECB decided to decrease the interest rate
on the deposit facility by 10 basis points to -0.30%, with effect from 9 December 2015, keeping
the interest rate on the main refinancing operations and the interest rate on the marginal
lending facility unchanged at 0.05% and 0.30% respectively.
4th
Solvency and
liquidity
ECB
On 3 December 2015, the Governing Council of the ECB decided to adopt further nonstandard measures, namely:
4th
Legal framework
Banco de
Portugal
-
To continue conducting the Eurosystem’s main and three-month longer-term refinancing
operations as fixed rate tender procedures full allotment for as long as necessary, and at
least until the end of the last reserve maintenance period of 2017;
-
To extend the asset purchase programme (APP) until the end of March 2017, or beyond, if
necessary;
-
To reinvest the principal payments on the securities purchased under the APP as they
mature, for as long as necessary;
-
To include, in the public sector purchase programme, euro-denominated marketable debt
instruments issued by regional and local governments located in the euro area in the list
of assets that are eligible for regular purchases by the respective national central banks.
Notice of Banco de Portugal No 5/2015 of 7 December 2015
Requires that all entities subject to Banco de Portugal supervision shall prepare their financial
statements on an individual and consolidated basis, where applicable, in conformity with the
international accounting standards, and establishes transitional provisions to be in force up to
31 December 2016 for those situations that are not subject to the procedure laid down in
Regulation (EC) No 1606/2002 of the European Parliament and of the Council of 19 July 2002.
This Notice entered into force on 8 December 2015.
4
th
Legal framework
Portuguese
Government
Executive Order No 362/2015, Ministry of Finance that amends Executive Order No 95/94 of 9
February 1994 on the minimum capital requirements for Investment companies, financial
leasing companies, credit financial companies and savings banks and repeals the minimum
capital requirements established for certain types of companies, which, with Decree-Law No
157/2014 of 24 October 2014, no longer exist in Portuguese law.
This Executive Order entered into force on 16 October 2015.
4th
Legal framework
European
Parliament
and Council
Directive (EU) 2015/2366 of the European Parliament and of the Council of 25 November
2015, on payment services in the internal market, amending Directives 2002/65/EC,
2009/110/EC and 2013/36/EU and Regulation (EU) No 1093/2010, and repealing Directive
2007/64/EC.
4th
Legal framework
European
Commission
Approval of the Commission Delegated Regulation (EU) 2015/2303 of 28 July 2015 that further
develops Directive 2002/87/EC of the European Parliament and of the Council with regard to
regulatory technical standards specifying the definitions and coordinating the supplementary
supervision of risk concentration and intra-group transactions.
This Regulation entered into force on 31 December 2015.
4
th
Other
ECB
Recommendation of the European Central Bank of 17 December 2015 (ECB/2015/49)
Recommendation of the European Central Bank on dividend distribution policies. This
recommendation is addressed to significant supervised entities and significant supervised
groups as defined in Article 2(16) and (22) of Regulation (EU) No 468/2014 (ECB/2014/17).
The Recommendation was published on 30 December 2015.
3
rd
Solvency and
liquidity
Banco de
Portugal
Notice of Banco de Portugal No 1/2015 of 7 September
Regulates the implementation of the capital conservation buffer established in Article 138-D of
the Legal Framework of Credit Institutions and Financial Companies, approved by Decree-Law
No 298/92 of 31 December 1992, which is aimed at making financial institutions more resilient,
by increasing their capacity to absorb unexpected losses, thus contributing to the maintenance
of financial stability. Establishes the introduction of a capital conservation buffer of 2.5 %, with
effect from 1 January 2016.
This Notice entered into force on 8 September 2015.
3rd
Solvency and
liquidity
ECB
On 16 September 2015, the ECB Governing Council decision on the new communication policy
on Emergency Liquidity Assistance (ELA) was published. From that date onwards, national
central banks have the option to communicate publicly about the provision of ELA to the banks
in their country, in cases where they deem that such communication is necessary.
3rd
Legal framework
Banco de
Portugal
Publication of Guideline (EU) 2015/1938 of the European Central Bank of 27 August 2015, which
amends Guideline (EU) 2015/510 on the implementation of the Eurosystem monetary policy
Banking System Measures
3
framework (ECB/2015/27), (i) reflecting the revised Eurosystem counterparty framework as
defined by the Governing Council, in particular by specifying the financial soundness eligibility
criterion; and, (ii) introducing a new class of eligible assets in the Eurosystem collateral
framework, namely the “ non‑marketable debt instruments backed by eligible credit claims”,
DECCs. This Guideline took effect on 2 November 2015.
The Guideline was implemented at national level, taking into account the national specificities,
by the amended Instruction of Banco de Portugal No 3/2015 (Instruction No 16/2015).
3rd
Legal framework
Portuguese
Government
Decree-Law No 190/2015 of 10 September
Approves the legal framework of savings banks. It breaks down savings banks into two types –
affiliated savings banks (caixas económicas anexas) and full-service savings banks (caixas
económicas bancárias) – depending on the volume of assets.
It envisages transitional schemes for both types of savings banks.
This Decree-Law entered into force on 10 October 2015.
3
rd
Legal framework
Portuguese
Parliament
Law No 153/2015 of 14 September
Regulates the access and activities of real estate appraisers providing services to entities within
the Portuguese financial system.
This Decree-Law entered into force on 13 November 2015.
3
rd
Legal framework
Portuguese
Parliament
Law No 119/2015 of 31 August
Approves the Código Cooperativo (Cooperative Code). This Law is applicable to cooperatives of
all types and similar organisations, as expressly mentioned in special legislation.
This Law entered into force on 30 September 2015.
3
rd
Legal framework
Portuguese
Parliament
Law No 66/2015 of 6 July
Establishes the compulsory provision of minimum banking services by all credit institutions that
provide the services included in the minimum banking services set out in Decree-Law No 27C/2000 of 10 March, in the wording in force. In addition, this legislation is also enabling people
over 65 years old and with a degree of permanent disability equal to or greater than 60% to be
account holders of minimum banking services together with individuals who hold other deposit
accounts.
Prohibits the charging of fees to the beneficiary (the person who accepts a check in payment)
for returning the check, in situations of lack of or insufficient funds, closed, blocked or
suspended bank account and irregular withdrawal.
Requires credit institutions to send annually, in January, to the current account holder an
invoice-receipt itemizing all fees and expenses associated with the deposit current account
supported during the previous calendar year.
This Law entered into force on 4 October 2015.
2
Monitoring and
supervision
Banco de
Portugal
Approval of Circular Letter No 26/2015/DSC which transmits Banco de Portugal’s understanding
regarding the application of EURIBOR rates to credit and financing agreements, should this
index attain negative values.
2nd
Solvency and
liquidity
ECB
Decision (EU) 2015/774 of the European Central Bank, of 4 March (ECB/2015/10), OJ L 121,
14.5.2015.
nd
Decision on a secondary markets public sector asset purchase programme (PSPP). The
Eurosystem hereby establishes the PSPP under which the Eurosystem central banks shall
purchase eligible marketable debt securities on the secondary markets from eligible
counterparties, under specific conditions.
Enters into force on the day following its publication on the ECB's website and applies from
9 March 2015.
2nd
Solvency and
liquidity
ECB
Decision (EU) 2015/509 of the European Central Bank, of 18 February 2015 (ECB/2015/9), OJ
L 91, 2.4.2015.
Repeals Decision ECB/2013/6 on the rules concerning the use as collateral for Eurosystem
monetary policy operations of own-use uncovered government-guaranteed bank bonds,
Decision ECB/2013/35 on additional measures relating to Eurosystem refinancing operations
and eligibility of collateral (Article 1 of the Decision), and Articles 1, 3 and 4 of Decision
ECB/2014/23 on the remuneration of deposits, balances and holdings of excess reserves
(Article 2 of the Decision).
Article 1 enters into force on 1 May 2015 and Article 2 enters into force on 3 April.
4
2nd
BANCO DE PORTUGAL • 2010 |4thquarter 2015
Solvency and
liquidity
ECB
Decision (EU) 2015/656 of the European Central Bank, of 4 February (ECB/2015/4), OJ L 107,
25.4 2015.
Decision on the conditions under which credit institutions are permitted to include interim
or year-end profits in Common Equity Tier 1 capital in accordance with Article 26(2) of
Regulation (EU) No 575/2013.
Enters into force on 6 February 2015 and applies from the reporting reference date of 31
December 2014 in accordance with Article 2 of Implementing Regulation (EU) No 680/2014.
2nd
Legal framework
Banco de
Portugal
On 1 May entry into force of Guideline ECB/2014/60, regarding the implementation of the
monetary policy in the Eurosystem, amended by Guideline ECB/2015/20, which repeals
Guideline ECB/2011/14. It was implemented at national level, taking into account the national
specificities, by Instruction of Banco de Portugal No 3/2015 which repeals and replaces the
Instruction No 1/99.
2nd
Legal framework
Portuguese
Government
Decree-Law No 100/2015, of 2 June.
Approves the legal system of credit financial companies and amends the legal systems of
investment companies, financial leasing companies, factoring companies and mutual
guarantee companies, updating them in line with the amendments introduced by DecreeLaw No 26/2015 of 6 February to Article 349 of the Commercial Companies Code.
2nd
Legal framework
European
Parliament
and Council
Publication of Regulation (EU) 2015/751 of the European Parliament and of the Council, of 29
April 2015, on interchange fees for card-based payment transactions. This Regulation lays
down uniform technical and business requirements for card-based payment transactions
carried out within the Union, where both the payer's payment service provider and the
payee's payment service provider are located therein.
2nd
Other
Banco de
Portugal
Amendment of Instruction No 54/2012 on 15 January 2013 – TARGET2-PT Regulation,
following the publication, on 2 April 2015, of Guideline (EU) 2015/930 (ECB/2015/15), which
incorporates the Eurosystem service for securities settlement in central bank money
(TARGET2-Securities/T2S).
2nd
Other
ECB
Publication of Guideline (EU) 2015/930 of the European Central Bank of 2 April 2015, which
amends Guideline ECB/2012/27 on a Trans-European Automated Real-time Gross settlement
Express Transfer system (TARGET2) (ECB/2015/15), establishing a Eurosystem service for
securities settlement in central bank money (TARGET2-Securities/T2S).
1st
Solvency and
liquidity
ECB
Implementation of the Governing Council Decision of 20 of March 2013 regarding own-used
government-guaranteed bank bonds that, after 1 March 2015 may no longer be used as
collateral for the Eurosystem credit operations.
1st
Solvency and
liquidity
ECB
On 22 January 2015 the Governing Council approved an expanded asset purchase
programme to include a secondary markets public sector asset purchase programme
(hereinafter the ‘PSPP’). The PSPP started on 9 March 2015.
1st
Solvency and
liquidity
ECB
The Governing Council of the ECB decided, on 22 January 2015, that the interest rate for the
remaining six targeted longer-term refinancing operations (TLTROs) would be equal to the rate
on the main refinancing operations (MROs) prevailing at the time when each TLTRO is
conducted, eliminating the 10 basis point spread over the MRO rate which was applied in the
first two TLTROs.
1st
Legal framework
Portuguese
Parliament
Law No 23-A/2015, of 26 March.
Portuguese
Parliament
Law No 16/2015, of 24 February.
1st
Legal framework
Transposes into Portuguese law (i) Directive 2014/49/EU of the European Parliament and of
the Council of 16 April 2014 on deposit guarantee schemes and (ii) Directive 2014/59/EU of
the European Parliament and of the Council of 15 May 2014 establishing a framework for
recovery and resolution of credit institutions and investment firms, amending the Legal
Framework of Credit Institutions and Financial Companies, the Organic Law of Banco de
Portugal, Decree-Law No 345/98 of 9 November 1998, the Securities Code (Código dos
Valores Mobiliários), Decree-Law No 199/2006 of 25 October 2006, and Law No 63-A/2008
of 24 November 2008.
Transposes in part (i) Directives 2011/61/EU of the European Parliament and of the Council
of 8 June 2011 and (ii) 2013/14/EU of the European Parliament and of the Council of 21 May
2013, amending the legal framework of undertakings for collective investment and rewording
the Legal Framework of Credit Institutions and Financial Companies and the Securities Code.
Approves the Legal Framework of Undertakings for Collective Investment annexed thereto.
Subject to the exceptions provided for in this Law, it enters into force on the thirtieth day
following that of its publication.
Banking System Measures
1st
Legal framework
ECB
5
Regulation (EU) 2015/534 of the European Central Bank of 17 March 2015 (ECB/2015/13).
Lays down requirements concerning reporting of supervisory financial information to be
submitted by national competent authorities (NCAs) by significant supervised groups and less
significant supervised groups. In accordance with this Regulation, 31 December 2015 shall be
the first reference date for reporting of supervisory financial information concerning: (a)
significant supervised groups; (b) significant supervised entities which are not part of a
supervised group; 30 June 2016 shall be the first reference date for reporting of supervisory
financial information concerning: (a) significant supervised entities which are part of a
supervised group; (b) subsidiaries of significant supervised groups established in a nonparticipating Member State or a third country; 30 June 2017 shall be the first reference date
for reporting of supervisory financial information concerning: (a) less significant supervised
groups; (b) less significant supervised entities.
The Regulation was published on 31 of march 2015 and enters into force on the day following
that of its publication.
1st
Other
Banco de
Portugal
Amendment to Instruction of Banco de Portugal No 3/2009, in order to allow Banco de Portugal,
under exceptional circumstances, to admit direct participants in SICOI without having an
intraday credit line on TARGET2-PT.
1st
Other
EU General
Court
Decision of the EU General Court, dated 4 March, that annuls the location policy for central
counterparties (CCP), within the Eurosystem oversight policy framework, considering that the
ECB does not have autonomous regulatory powers in relation to securities clearing systems
under the Treaty on the functioning of the EU.
1st
Other
ECB
Recommendation of the European Central Bank of 28 January 2015 (ECB/2015/2) (2015/C
51/01).
Recommendation of the European Central Bank on dividend distribution policies. This
recommendation is addressed to significant supervised entities and significant supervised
groups as defined in Article 2(16) and (22) of Regulation (EU) No 468/2014 (ECB/2014/17).
The Recommendation was published on 13 of February.
2014
4th
Monitoring and
Banco de
Entry into force of Notice No 24/2014 of Banco de Portugal that regulates FINREP on solo
supervision
Portugal
basis.
With the publication of an updated version of European Banking Authority’s (“EBA”)
Implementing Technical Standards (“ITS”) on Supervisory Reporting on a consolidated basis,
the EBA is currently working on similar reporting concerning solo basis. Meanwhile, Banco
de Portugal concluded it was crucial to anticipate the FINREP reporting on solo basis (on a
simplified format) that allows the aggregation of data concerning every institution of the
Portuguese banking system for statistical purposes, until the ECB puts forward its own FINREP
reporting framework on solo basis, which may be more extensive.
4th
Monitoring and
ECB
supervision
Under Regulation 1024/2013, the European Central Bank (ECB) assumed, on 4 November,
responsibility for the supervision of Euro Area banks, following a year-long preparatory phase
which included an in-depth examination of the resilience and balance sheets of the biggest
banks in the euro area (Comprehensive Assessment), as well as the adoption of legal acts
defining how the Single Supervisory Mechanism (SSM) operates and the establishment of
new governance structures at the ECB.
The ECB will directly supervise about 120 significant banking groups. For all other 3500 banks
the ECB will also set and monitor the supervisory standards and work closely with the national
competent authorities in the supervision of these banks.
4th
Monitoring and
ECB and
Comprehensive Assessment results were published on 26 October 2014. The
supervision
Banco de
Comprehensive Assessment was a financial health check of 130 banks in the euro area
Portugal
(including Lithuania), covering approximately 82% of total bank assets. It was carried out by
the ECB together with the national supervisors between November 2013 and October 2014
in preparation for the Single Supervisory Mechanism to become fully operational.
The Comprehensive Assessment concluded with an aggregate disclosure of the overall outcomes
as well as bank-level data, together with recommendations for supervisory measures.
6
4th
4th
BANCO DE PORTUGAL • 2010 |4thquarter 2015
Solvency and
Banco de
Decision of the Banco de Portugal’s Board of Directors of 1 December to deactivate the
liquidity
Portugal
MMI/SG platform from 1 July 2015.
Solvency and
ECB
Announcement by the Governing Council of the ECB, on 2 October 2014, of the operational
liquidity
details of the two new asset purchase programmes, the Covered Bond Purchase Programme
3 (CBPP3) initiated on 20 October 2014 and the Asset-backed Securities Purchase
Programme (ABSPP) initiated on 21 November 2014.
4th
Legal framework
Banco de
Publication of Notice No 11/2014, of December 22, which regulates the application of
Portugal
prudential requirements to certain types of Portuguese companies – “sociedades financeiras
de crédito”, “sociedades de investimentos”, “sociedades de locação financeira”, “sociedades
de factoring”, “sociedades de garantia mútua” and “IFD – Instituição Financeira de
Desenvolvimento, S.A.”
4th
Legal framework
Banco de
Publication of Instruction No 25/2014 on 15 December (revoking Instruction No 12/2010),
Portugal
concerning Monetary Financial Institutions Balance Sheet and Interest Rates Statistics. The
new Instruction transposes into the national legal framework the statistical reporting
requirements to the ECB defined by the Regulations (EU) No 1071/2013 (ECB/2013/33) and
No 1072/2013 (ECB/2013/34) of the European Central Bank, both of 24 September 2013.
4th
Legal framework
Banco de
Publication of Notice of Banco de Portugal No 10/2014 on 3 December, on "Duties of
Portugal
information during the lifetime of consumer credit agreements", that enters into force on
1 July 2015. This Notice requires institutions to send their customers a regular statement on
the evolution of the consumer credit agreements, covering credit cards, personal credit and
car credit. The Notice also establishes that customers have the right to information on the
situation of their credit in case of arrears, settlement of arrears or early repayment, in part or
in full, of the credit agreement. The Notice also sets out in detail the information to be
included in the statements.
4th
Legal framework
Banco de
Publication of Notice No 9/2014, of November 3, which regulates certain options provided for
Portugal
in Regulation (EU) No 575/2013 on prudential requirements for credit institutions and
investment firms, whose exercise is assigned to the competent authorities.
4th
Legal framework
ECB
Publication of Regulation (EU) No 1333/2014 of the European Central Bank of 26 November
2014, concerning statistics on the money markets (ECB/2014/48), which defines the reporting
requirements to the ECB of comprehensive, detailed and harmonised statistical information
on the money markets in the euro area. This report has a daily periodicity and it will be
implemented in two phases: the first, from April 2016, for the information related to the major
banking institutions, in which Portugal won’t be, in principle, represented; and the second,
subject to a decision of the ECB Council, from 2018 onwards, in which all Member-States will
be represented by a minimum of three institutions.
4th
Legal framework
Portuguese
Publication of Decree-Law No 157/2014 of 24 October 2014 that: (i) implements in
Government
Portuguese law a number of options conferred on Member States by Regulation (EU) No
575/2013 of the European Parliament and of the Council of 26 June 2013; (ii) transposes the
Directive No 2013/36/EU of 26 June 2013 which constitutes, together with the Regulation
(EU) No 575/2013, the basis of the European Union legal framework which regulates the
access to the activity of the credit institutions and the supervisory framework and prudential
rules applicable to the credit institutions and investment companies. This Decree-law
amends: the Legal Framework of Credit Institutions and Finance Companies, approved by the
Decree-law No 298/92 of December 31 (the "Banking Law"); the Securities Code; Laws Nos
25/2008 (establishing the preventive and repressive measures for the combat against the
laundering of benefits of illicit origin and terrorism financing) and 28/2009 (reviews the legal
framework for imposing penalties in the financial sector concerning criminal and
administrative penalties); and the Decree-laws Nos 260/94 (legal framework of investment
companies), 72/95 (legal framework of financial leasing companies), 171/95 (legal framework
of factoring companies and factoring agreements), 211/98 (legal framework of mutual
guarantee companies), 357-B/2007 (legal framework applicable to companies whose
exclusive object is to provide investment advice in financial instruments and the reception
Banking System Measures
7
and transmission of orders on behalf of a third party with respect to same), 357-C/2007 (legal
framework applicable to management companies of regulated markets, management
companies of multilateral trading facilities, management companies of the clearing-house
acting as a central counterparty, management companies of the settlement system and
management companies of the Central Securities Depositary), 317/2009 (legal framework
governing the taking up of the business of payment institutions and the provision of payment
services) and 40/2014 (implements Regulation (EU) no. 648/ 2012 of the European Parliament
and of the Council of 4 July 2012 on OTC derivatives, central counterparties and trade
repositories as well as Delegated and Implementing Acts related to such Regulation).
4th
Legal framework
Decree-Law No 155/2014, published on 21 october, created the IFD – Instituição Financeira
de Desenvolvimento, S.A. and approved its by-laws.
The IFD was set with the purpose of overcoming the market's shortfalls to funding viable
SMEs by means of (i) managing investment funds and other similar vehicles financed by public
funds aimed at supporting the economy; (ii) granting credit, collaterals and other tools, as
necessary.
4th
Other
Banco de
Amendment to Instruction of Banco de Portugal No 3/2009, in order to reschedule the
Portugal
clearing and settlement times of the SEPA CORE and SEPA B2B Direct Debit subsystems.
In addition, the text of the Instruction was updated following the completion of the migration
to
SEPA
occurred
on
1
August
2014,
in
accordance
with
Regulation
(EU)
No 260/2012 of the European Parliament and of the Council, of 14 March, establishing
technical and business requirements for credit transfers and direct debits in euro.
Specifically, the references to the direct debits legacy subsystem were eliminated and the
references to the credit transfers legacy subsystem was replaced by the expression non-SEPA
credit transfers subsystem.
3rd
Solvency and
Banco de
Decision of the Banco de Portugal’s Board of Directors of 13 August to disable the MMI
liquidity
Portugal
platform/CG, with the adoption of the Instruction of Banco de Portugal 20/2014 of 15
September 2014, which revokes the Instruction 8/2013 of 15 April 2013, on the regulation of
the MMI/CG functioning.
3rd
Solvency and
ECB
liquidity
Frequency change of the Governing Council monetary policy meetings from a four-week to a
six-week cycle and extension of the reserve maintenance periods accordingly. Additionally,
ECB will publish accounts of its monetary policy discussions from January 2015.
3rd
Solvency and
BCE
liquidity
The Governing Council of the ECB, on 4 September 2014, decided to decrease:
̶ the interest rate on the main refinancing operations of the Eurosystem by 10 basis points
to 0.05%;
̶ the interest rate on the marginal lending facility by 10 basis points to 0.30%;
̶ the interest rate on the deposit facility by 10 basis points to -0.20%;
with effect from 10 September 2014.
3rd
Legal framework
Banco de
Entry into force of Notice of Banco de Portugal No 5/2014 of 23 September, which regulates the
Portugal
exemption of “caixas de crédito agrícola mútuo” belonging to the “sistema integrado de crédito
agrícola mútuo” of several prudential requirements established in Parts II to VIII of the Regulation
(UE) No 575/2013, of the European Parliament and of the Council of 26 June 2013.
3rd
Legal framework
Portuguese
Approval of Decree-Law No 114-A/2014 and Decree-Law No 114-B/2014, which aimed to
Government
clarify and adjust the Portuguese resolution legal framework through the approval of a set of
individual amendments. Among those amendments, the highlights are: (i) the no creditor
worse off principle was expressly specified in Portuguese law, according to which no creditor
can incur greater losses than it would have incurred if the institution had been wound up
under normal insolvency proceedings; (ii) it was clarified that the Resolution Fund can be used
in the context of the application of a resolution measure to guarantee the assets or the
liabilities of the institution under resolution; (iii) the scope of the liabilities that can be
transferred, when applying a resolution measure, was clarified; (iv) the methods and
conditions for the sale of the shares representing the share capital of a bridge bank or of its
8
BANCO DE PORTUGAL • 2010 |4thquarter 2015
property were altered so as to promote its sound and efficient management, thus facilitating
market solutions that will maintain and maximize its value.
3rd
Legal framework
Portuguese
Adoption of Ordinance No 140/2014 of 8 July, which defines the procedures necessary for
Government
the implementation of Law 63-A / 2008, with the wording introduced by Law No 1/2014, in
capitalization operations of credit institutions using public investment.
3rd
Legal framework
Portuguese
Publication of Law No. 64/2014 of 26 August, establishing an autonomous regime for the
Parliament
granting of mortgage loans to people with disabilities and provides for a subsidized interest
rate, provided that the conditions of access to the regime are met. The law does not establish
the obligation of credit institutions to grant this type of credit, but provides the customers’
right to convert their loan to the new regime where the acquisition of the degree of disability
equal to or greater than 60% is subsequent to the conclusion of the mortgage contract.
3rd
Legal framework
Portuguese
Approval of Law No 61/2014, of 26 August, that approves the special regime applicable to deferred
Parliament
tax assets that result from the non-deduction of expenses and negative equity changes due to
impairment losses on loans and post-employment benefits or long-term employee benefits.
3rd
3rd
Legal framework
Legal framework
Portuguese
Approval of Law No 58/2014, of 25 August, which amends the extraordinary framework to
Parliament
protect home loan borrowers in serious economic difficulties created by Law No 58/2012.
Portuguese
Approval of Law No 46/2014, of 28 July, which authorises the Government, as part of the
Parliament
transposition of Directive 2013/36 / EU of the European Parliament and of the Council of 26
June, to amend the Legal Framework of Credit Institutions and Financial Companies, the
Securities Code, the Laws Nos 25/2008 and 28/2009 and the Decree-Laws Nos 260/94, 72/95,
171/95, 211/98, 357-B/2007, 357-C/2007, 317/2009 and 40/2014.
3rd
Legal framework
ECB
The ECB publishes the Decision ECB/2014/34, of 29 July 2014, on measures relating to
targeted longer-term refinancing operations (TLTRO), which defines the conditions for
participation in the TLTROs and other operational aspects, as well as two annexes relating to
the conduct of the TLTROs and to the guidelines for completing the reporting template.
3rd
Other
Banco de
Amendment of No 8 of BP Instruction No 2/2009 (AGIL) that regulates the remuneration of
Portugal
accounts opened in the AGIL - Aplicativo de Gestão Integrada de Liquidações (integrated
settlement management application), establishing that the accounts will be remunerated in
accordance with the guidelines and decisions of the European Central Bank and shall be
specified in the contracts of the participants.
3rd
Other
Banco de
Amendment of Instruction No 54/2012 of BP (TARGET2-PT Regulation), according to the
Portugal
Guideline of the European Central Bank ECB/2014/25, amending Guideline ECB/2012/27.
On Annex II, two new definitions were added to article 1, and article 12 (3) was replaced,
establishing that “PM accounts and their sub-accounts shall either be remunerated at zero
per cent or the deposit facility rate, whichever is lower, unless they are used to hold required
minimum reserves”).
Quarter
Area
Institution
Measures
2014
2nd
Solvency and
liquidity
ECB
On 5 June 2014, when deciding to lower the key ECB interest rates,
the Governing Council of the ECB decided to adopt a negative
deposit facility interest rate of -0.10%, that also applies to average
reserve holdings in excess of the minimum reserve requirements
and other deposits held with the Eurosystem.
This decision materialized in the adoption of the Decision
ECB/2014/23, of June 5, 2014, which comes into effect on 11 June
2014, together with the changes to the key ECB interest rates.
EFAP’s structural
benchmarks
Banking System Measures
Quarter
2nd
Area
Solvency and
Institution
ECB
liquidity
Measures
On 5 June 2014 the Governing Council of the ECB decided to adopt
further non-standard measures, notably:
̶ To conduct a series of targeted longer-term refinancing
operations (TLTROs) maturing in September 2018 to support
bank lending to the non-financial private sector, with an interest
rate fixed over the life of each operation at the rate on the
Eurosystem’s main refinancing operations prevailing at the time
of take-up, plus a fixed spread of 10 basis points;
̶ To continue conducting the Eurosystem’s main and three-month
longer-term refinancing operations as fixed rate tender
procedures with full allotment for as long as necessary, and at
least until the end of the Eurosystem’s reserve maintenance
period ending in December 2016;
̶ To discontinue the Eurosystem’s special-term refinancing
operations with a maturity of one maintenance period, following
the operation to be allotted on 10 June 2014;
̶ To suspend the weekly fine-tuning operation sterilising the
liquidity injected under the Securities Markets Programme,
following the operation to be allotted on 10 June 2014;
̶ To extend the existing eligibility of additional assets as collateral,
notably under the additional credit claims framework, at least
until September 2018, in order to ensure sufficient collateral is
available for banks to participate in TLTROs.
2
nd
Legal framework
Banco de
Publication of Notice No 2/2014 which amends Notice No 9/2012 on
Portugal
the information requirements in the field of money laundering and
terrorist financing risk management, to be periodically reported to
Banco de Portugal by entities subject to its supervision or providing
financial services related to matters under its supervision.
1
st
Solvency and
ECB
liquidity
ECB Guideline, of 12 March 2014, with some measures to facilitate
the mobilization of eligible marketable assets on a cross-border
basis:
̶ Removal of the repatriation requirement to the issuer Central
Securities Depository (CSD), effective as of 26 May 2014; and
̶ Go-live of cross-border triparty collateral management services,
as of 29 September 2014.
1
st
Solvency and
ECB
liquidity
Decision by the Governing Council of the ECB to re-map DRBS BBBL
rating from Credit Quality Step (CQS) 4 to CQS3 and also to re-map
the short term ratings R1L (from CQS2 to CQS3) and R2L (from CQS4
to CQS3). This decision was applicable from 1 of April 2014.
1st
Solvency and
ECB
liquidity
In January 2014, decision by the Governing Council of the ECB to
cease to conduct the three-month US dollar liquidity-providing
operations as of April 2014 and to continue conducting the oneweek US dollar liquidity-providing operations at least until the 31st of
July 2014.
1
st
Monitoring and
Banco de
Approval of Circular Letter No 24/2014/DSC which indentifies best
supervision
Portugal
practice to be observed by credit institutions to simplify and
standardize the commissioning of deposit accounts. It entails Banco
de Portugal’s opinion that credit institutions should provide a
standard deposit account including, in general, the minimum
banking services set out in Decree-Law No 27-C/2000 of 10 March,
9
EFAP’s structural
benchmarks
10
BANCO DE PORTUGAL • 2010 |4thquarter 2015
Quarter
Area
Institution
Measures
in the wording in force, but without the access or commissioning
restrictions set out in that Decree-Law.
1st
Legal framework
Banco de
Entry into force of Notice of Banco de Portugal No 5/2013 of 18
Portugal
December, which regulates the conditions, mechanisms and
procedures needed for effective compliance with the anti-money
laundering and terrorist financing obligations, under the provision of
financial services subject to the supervision of Banco de Portugal.
1st
Legal framework
ECB
On 24 February 2014 the Governing Council adopted Decision
ECB/2014/6 on the organisation of preparatory measures for the
collection of granular credit data by the European System of Central.
This legal act relates to preparatory measures which are necessary
to establish in a stepwise manner a long-term framework for the
collection of granular credit data, i.e. about the credit exposures of
credit institutions or other loan-providing financial institutions vis-àvis borrowers, provided on a borrower-by-borrower basis or a loanby-loan basis, based on harmonised ECB statistical reporting
requirements.
1
st
Other
Portuguese
With the aim of diversifying funding alternatives to the corporate
Government sector, as an alternative to bank credit, the Law-Decree No 29/2014
of 25 February was approved. It revises the legal framework
concerning the commercial paper allowing a higher number of
issuers particularly corporations with a smaller dimension of using
this financing modality.
2013
4th
Solvency and
Banco de
Approval of Notice No 6/2013, which establishes transitional
liquidity
Portugal
arrangements for own funds, under Regulation (EU) No 575/2013,
and lays down measures to preserve those funds, requiring in
particular a minimum level of 4.5% for the common equity Tier 1
capital ratio, applicable as of 1 January 2014, and determining that
credit institutions and investment firms preserve a common equity
Tier 1 capital ratio of no less than 7%.
4th
Solvency and
ECB
liquidity
In November 2013, decision by the Governing Council of the ECB to
continue conducting its refinancing operations as fixed rate tender
procedures with full allotment for as long as necessary, and at least
until the first half of 2015.
4th
Monitoring and
Banco de
Undertaking a sectoral on-site inspection (ETRICC 12), entailing the
supervision
Portugal
assessment of business forecasts for the largest 12 banks'
counterparts, in order to ensure appropriate amounts of
impairment are included in the accounts.
4th
Monitoring and
Banco de
Publication of Instruction No 32/2013 (revoking Instruction No
supervision
Portugal
18/2012) which relates to the identification and earmarking of
restructured credit due to customer's financial difficulties. This new
Instruction revises the rules and assumptions defined by the
revoked Instruction and makes them consistent with the EBA
Implementing Technical Standards on “Non-Performing Exposures”.
EFAP’s structural
benchmarks
Banking System Measures
Quarter
4th
Area
Institution
11
EFAP’s structural
benchmarks
Measures
Monitoring and
Banco de
Undertaking an on-site inspection programme on the 8 largest
supervision
Portugal
banking groups to assess institutions' internal processes related to
the treatment of problematic credit, from the viewpoint of
maximising the capacity to recover such credit.
3rd
Solvency and
ECB
liquidity
In September 2013, decision by the Governing Council of the ECB to
revise its risk control framework on the collateral accepted for
Eurosystem credit operations.
3rd
Solvency and
ECB
liquidity
In July 2013, decision by the Governing Council of the ECB to adjust
the eligibility criteria and haircuts applied by National Central Banks
to pools of credit claims and certain types of additional credit claims
(ACC)
eligible
under
the
temporary
Eurosystem
collateral
framework. The implementation of these measures occurred in
January 2014.
3rd
Legal framework
Banco de
Portugal
Publication of Instruction No 17/2013, revising the Central Credit
Register Regulation (CCR) (Instruction No 21/2008). It determines
the reporting of additional loan information to the current Central
Credit Registry, including (i) as of January 2014, identification of nonperforming and restructured loans; and (ii) as of July 2014,
information on government guarantees, as well as the identification
of overdue and written-off loans disputed in court.
3rd
Legal framework
Portuguese
Approval of Law No 48/2013, introducing the possibility of Submit to Parliament
Government compulsory recapitalisation of credit institutions with public funding, amendments to the law
according to the severity of the consequences to the stability of the governing banks’ access to
national financial system stemming from the financial and prudential public capital.
deterioration of the institution and the inadequacy of authorisation
withdrawal and resolution measures.
2nd
Solvency and
Banco de
In May 2013, provision of a new platform for secured operations of
liquidity
Portugal
the interbank money market in order to facilitate the functioning of
the domestic interbank money market (Instruction No 8/2013),
following the creation of the platform for the registration and
processing of interbank money market unsecured operations in
September 2012.
2nd
Solvency and
ECB
liquidity
In May 2013, decision by the Governing Council of the ECB to
continue conducting its refinancing operations as fixed rate tender
procedures with full allotment for as long as necessary, and at least
until the second half of 2014.
2nd
Monitoring and
Banco de
Launching of a transversal on-site inspection of the 8 major banking
supervision
Portugal
groups, with the aim of assessing the adequacy of impairments
levels for credit portfolios (ETRICC in Portuguese).
2nd
Monitoring and
Banco de
Creation of a mandatory semiannual report for supervised credit
supervision
Portugal
institutions, containing a detailed assessment prepared by the
external auditor on the processes and methodologies used to
quantify the impairment for credit portfolios. To this effect,
Instruction No 5/2013 was published. The first report will refer to
June 30, 2013.
2nd
Legal framework
Portuguese
Approval of Decree-Law No 58/2013, which establishes the rules
Government applicable to the classification and determination of credit
operations’ maturity term, interest and its capitalisation and default.
12
Quarter
1st
BANCO DE PORTUGAL • 2010 |4thquarter 2015
Area
Solvency and
Institution
ECB
liquidity
Measures
EFAP’s structural
benchmarks
Decision by the Governing Council of the ECB on the rules
concerning the use of own-use uncovered government guaranteed
bank bonds as collateral for Eurosystem credit operations.
1st
Legal framework
Banco de
Approval of Notice No 1/2013 and Instruction No 6/2013, which Amend relevant legislation in
Portugal
establishes the specific method and procedures regarding the consultation with the EC, the
periodic contributions to the Resolution Fund, in accordance with ECB and the IMF to
Article 12 of Decree-Law No 24/2013. The periodic contribution is strengthen the early
based on a contribution rate which relates to the average monthly intervention framework,
amounts of liabilities, less original and complementary own funds introduce a regime for the
and those deposits that are guaranteed by the Deposit Guarantee restructuring of banks as a
Scheme. The contribution rate is calculated from a base rate, going concern under official
multiplied by an adjustment factor, which is a function of the control and strengthen
participating institution risk profile, taking into account its solvency deposit insurance
situation.
framework.
2012
4th
Solvency and
ECB
liquidity
In December 2012, decision by the Governing Council of the ECB to
continue conducting its refinancing operations as fixed rate tender
procedures with full allotment for as long as necessary, and at least
until 9 July 2013.
4th
Legal framework
Banco de
Approval of Notice No 18/2012, which defines the information items
Portugal
which deposit-taking credit institutions shall send to Banco Portugal,
for the development of resolution plans, as foreseen in the Legal
Framework of Credit Institutions and Financial Companies.
4th
Legal framework
Banco de
Approval of Notice No 17/2012, which specifies the duties credit
Portugal
institutions are obliged to observe in the prevention and settlement
of default situations arising from credit agreements by household
customers.
4th
Legal framework
Banco de
Approval of Notice No 13/2013 of Banco de Portugal, which
Portugal
establishes the rules applicable to the setting-up and operation of
bridge banks created following the decision of Banco de Portugal
under its legal power to apply resolution measures to credit
institutions and other entities legally subject to these measures.
4th
Legal framework
Banco de
Approval of Notice No 12/2012, which defines the content of recovery
Portugal
plans, that aim to identify the measures to be adopted to timely correct
a situation in which a credit institution is, or risks being, in financial
imbalance. Recovery plans shall be developed by institutions based on
several scenarios of different severity of financial difficulty, such as
systemic or idiosyncratic events or both, and shall not assume access
to or availability of extraordinary public support.
4th
Legal framework
Banco de
Publication of Instruction No 44/2012, which determines the reporting
Portugal
of information on credit agreements covered by the Out-of-court
Arrears Settlement Procedure (OASP), created by Decree-Law No
227/2012, and by the procedure set out by Law No 58/2012.
4th
Legal framework
Portuguese
Approval of the Resolution Fund regulation, through the issuance of Amend relevant legislation in
Government Executive Order No 420/2012.
consultation with the EC, the
ECB and the IMF to
strengthen the early
intervention framework,
introduce a regime for the
restructuring of banks as a
going concern under official
Banking System Measures
Quarter
Area
Institution
13
EFAP’s structural
benchmarks
Measures
control and strengthen
deposit insurance framework.
4th
Legal framework
Portuguese
Approval of Decree-Law No 227/2012, which establishes the
Government principles and rules to be observed by credit institutions in
preventing and settling default situations arising from credit
agreements by household customers and creates an out-of-court
system to assist household customers in the settlement of these
default situations. Approval of Law No 58/2012, which defines the
creation of an extraordinary framework to protect home loan
borrowers in serious economic difficulties.
4
th
Legal framework
Portuguese
Approval of Decree-Law No 226/2012, which establishes the
Government extension of the legal framework applicable to housing loans, set out
by Decree-Law No 51/2007, to all credit agreements concluded with
household customers and secured by a mortgage or other right
related to immovable property.
3
rd
Solvency and
Banco de
In September 2012, launching of the platform for the registration
liquidity
Portugal
and processing of interbank money market unsecured operations
by Banco de Portugal (Instruction No 25/2012).
3rd
Solvency and
ECB
liquidity
In September 2012, approval by the Governing Council of the ECB
of the establishment and certain features regarding Outright
Monetary Transactions (OMTs). Approval to generalise the
suspension of the application of the minimum credit rating
threshold for marketable debt instruments issued or guaranteed by
the central government, and credit claims granted to or guaranteed
by the central government, of countries that are eligible for Outright
Monetary Transactions or are under an EU-IMF programme, in the
context of collateral eligibility requirements for Eurosystem credit
operations.
3rd
Other
Portuguese
Preparation of a proposal, by a joint team of the Ministry of Prepare a proposal for
Government Finance/Banco
de
Portugal/CMVM,
for
encouraging
the encouraging the
Banco
de diversification of funding alternatives to the corporate sector, as an diversification of financing
alternative to bank credit.
alternatives to the corporate
Portugal
[see reports by the EC and IMF EC e do IMF relating to the fifth sector.
CMVM
quarterly review of EFAP].
2nd
Solvency and
Banco de
Publication of Instruction No 15/2012, which revises own funds
liquidity
Portugal
deductions stemming from paying interest on deposits above a
certain threshold, which depends on the maturity of the deposit.
2nd
Solvency and
Banco de
Publication of Instruction No 18/2012, which requires the
liquidity
Portugal
identification and ear-marking of restructured credits due to
financial difficulties of the customer.
2nd
Solvency and
ECB
liquidity
In June 2012, decision by the Governing Council of the ECB to reduce
the rating threshold to "BBB" for certain asset-backed securities (ABSs)
to be accepted as collateral in Eurosystem credit operations.
2nd
Solvency and
ECB
liquidity
In June 2012, decision by the Governing Council of the ECB to
continue conducting its refinancing operations as fixed rate tender
procedures with full allotment for as long as necessary, and at least
until 15 January 2013.
2nd
Monitoring and
Banco de
Establishment of an on-site special inspections programme (OIP in
supervision
Portugal
Portuguese) on the eight largest banking groups, which entails the
14
Quarter
BANCO DE PORTUGAL • 2010 |4thquarter 2015
Area
Institution
Measures
EFAP’s structural
benchmarks
assessment of credit portfolios of construction, real estate and
related sectors.
2nd
Legal framework
Banco de
Publication of Instruction No 20/2012 which amended Instruction
Portugal
No 12/2010 on the Statistics of Balance Sheet and Interest Rates of
Monetary Financial Institutions (MFIs). It requires the reporting of
additional information, on an operation-by-operation basis, for new
loans to non-financial corporations (amounts and interest rates) and
for the sales / acquisitions of loans by MFIs.
2nd
Legal framework
Portuguese
Approval of Decree-Law No 178/2012 that establishes an out-of- Make effective the
Government court recovery system for companies (SIREVE in Portuguese), which amendments to the
aims at better allowing the rescue of viable companies (after Corporate Insolvency Law to
completing all necessary legislative and publication requirements).
better support rescue of
viable firms (after completing
all necessary legislative and
publication requirements).
1st
Solvency and
ECB
liquidity
In February 2012, decision by the Governing Council of the ECB to
approve Banco de Portugal's proposal regarding the national
eligibility criteria and risk control measures for the temporary
acceptance of additional credit claims as collateral in Eurosystem
credit operations. These measures were implemented by Banco de
Portugal through Instruction No 7/2012.
1st
Legal framework
Portuguese
Approval of Decree-Law No 31-A/2012, which amends the Legal Amend relevant legislation in
Government Framework of Credit Institutions and Financial Companies and consultation with the EC, the
Decree-Laws No 199/2006 and 345/98, that strengthens early and ECB and the IMF to
corrective intervention, introduces a specific regime of resolution of strengthen the early
credit institutions, creates a Resolution Fund and revises the deposit intervention framework,
guarantee regime and the phase of judicial winding up of credit introduce a regime for the
institutions.
restructuring of banks as a
going concern under official
control and strengthen
deposit insurance framework.
1st
Legal framework
Portuguese
Approval of Law No 4/2012, which amends the framework for bank Amend the framework (Law
Government access to public capital, envisaging that banks’ capital increases No 63-A/2008) for bank
through public capital shall be considered as a supplement and last access to public capital.
resort solution.
2011
4th
Solvency and
Banco de
Publication of Instruction No 28/2011 that imposes a deduction
liquidity
Portugal
from own funds for institutions that pay interest on deposits above
a certain threshold.
4th
Solvency and
ECB
liquidity
In December 2011, decision by the Governing Council of the ECB to
reduce the rating threshold for certain asset-backed securities (ABSs)
to "A" to be accepted as collateral in the credit operations with the
Eurosystem and to reduce the reserve ratio from 2% to 1%.
4th
Solvency and
ECB
liquidity
In December 2011, decision by the Governing Council of the ECB to
conduct two longer-term refinancing operations with a maturity of
approximately three years on 21 December 2011 and 29 February
2012.
4th
Solvency and
liquidity
ECB
In October 2011, decision by the Governing Council of the ECB to
continue conducting its refinancing operations as fixed rate tender
Banking System Measures
Quarter
Area
Institution
15
EFAP’s structural
benchmarks
Measures
procedures with full allotment for as long as necessary, and at least
until 10 July 2012 and to conduct two longer-term refinancing
operations with a maturity of approximately one year on 26 October
and 21 December 2011 (the latter was then replaced by the first
three-year longer-term refinancing operation).
4th
Legal framework
Banco de
Approval of Notice No 10/2011, in the context of the transposition
Portugal
of Directive 2010/76/EU (CRD III), which establishes the principles
and rules that should be observed in credit institutions’
remuneration policy, with the goal of aligning compensation
mechanisms with prudent and appropriate risk control and
management and which aimed to enhance the regulation and
recommendations issues in the beginning of 2010 (Notice No
1/2010 and Circular Letter No 2/2010).
4th
Legal framework
Portuguese
Approval of Law No 16/2012, which amends the Insolvency and Amend the Insolvency Law to
Government Corporate Recovery Code (Decree-Law No 53/2004), simplifying better facilitate effective
formalities and procedures and introducing a special revitalisation rescue of viable firms.
process in order to better allow the effective rescue of viable
companies.
3rd
Solvency and
Banco de
The expert mission from the EC/ECB/IMF concluded in late June Seek evaluation of the
liquidity
Portugal
2011 that Banco de Portugal’s evaluation framework regarding bank enhanced solvency and
solvency
and
deleveraging
is
broadly
appropriate; deleveraging assessment
recommendations were also made to improve some specific framework by a joint team of
components.
experts from the EC, the ECB
[see reports by the EC e do IMF relating to the first quarterly review and the IMF.
of compliance with EFAP].
3rd
Solvency and
Banco de
Development and regular disclosure of a new credit quality Improve disclosure on non-
liquidity
Portugal
indicator, aligned with international practices, alongside the current performing loans by adding a
indicator that covers only overdue loan payments: Instructions No new ratio aligned with
22/2011 and No 23/2011 establish the rules to calculate the risk international practices to the
credit ratio.
current ratio that covers only
overdue loan payments.
3rd
Solvency and
ECB
liquidity
In August 2011, decision by the Governing Council of the ECB to
conduct a longer-term refinancing operation with a maturity of six
months on 10 August 2011 and to continue conducting its
refinancing operations as fixed rate tender procedures with full
allotment for as long as necessary, and at least until 17 January 2012.
3rd
Solvency and
ECB
liquidity
In July 2011, decision by the Governing Council of the ECB to
suspend the application of the minimum credit rating threshold for
marketable debt instruments issued or guaranteed by the
Portuguese government (waiver) in the context of the collateral
eligibility requirements for Eurosystem credit operations.
2nd
Solvency and
Banco de
Approval of Notice No 1/2011 that sets a minimum Core Tier 1
liquidity
Portugal
capital ratio of 8 percent by the end of 2011. In the context of EFAP,
this objective was enhanced by the increase in the minimum Core
Tier 1 capital ratio of 9 percent at the end of 2011 and 10 percent
from the end of 2012 onwards (Notice No 3/2011).
2nd
Solvency and
liquidity
ECB
In June 2011, decision by the Governing Council of the ECB to
continue conducting its refinancing operations as fixed rate tender
procedures with full allotment for as long as necessary, and at least
until 11 October 2011.
16
Quarter
2nd
BANCO DE PORTUGAL • 2010 |4thquarter 2015
Area
Institution
Measures
EFAP’s structural
benchmarks
Monitoring and
Banco de
Design of an on-site special inspections programme to validate the Design a programme of
supervision
Portugal
data on assets that banks provide as inputs for the solvency special on-site inspections to
assessment. This Special Inspection Programme (SIP), addressing validate the data on assets
the eight largest Portuguese banking groups, entailed the that banks provide as inputs
assessment of credit portfolios, the cross-sectional review of credit to the solvency assessment.
risk capital requirement calculations and the validation of the
methodologies and parameters used in stress-testing exercises.
1st
Solvency and
Banco de
Issuance of a recommendation to credit institutions to retain 2010
liquidity
Portugal
profits, in an amount that ensures the effective strengthening of own
funds, in order to properly prepare for compliance with the Basel III
own fund requirements.
1st
Solvency and
ECB
liquidity
In March 2011, decision by the Governing Council of the ECB to
continue conducting its refinancing operations as fixed rate tender
procedures with full allotment for as long as necessary, and at least
until 12 July 2011.
Monitoring and
Banco de
Strengthening of the monitoring and interaction with supervised
supervision
Portugal
institutions, with particular regard to the key areas of internal audit,
risk management and compliance. This aims to make procedures
swifter and to operationalise results, thereby enhancing supervisory
actions.
2010
4th
Solvency and
ECB
liquidity
In December 2010, decision by the Governing Council of the ECB to
continue conducting its refinancing operations as fixed rate tender
procedures with full allotment for as long as necessary, and at least
until 12 April 2011.
3rd
Solvency and
Banco de
Issuance of guidelines to banks to progressively reduce Eurosystem
liquidity
Portugal
funding, requesting the presentation of plans related to the
diversification of funding sources and/or related to assets
transformation.
3rd
Solvency and
ECB
liquidity
In September 2010, decision by the Governing Council of the ECB to
continue conducting its refinancing operations as fixed rate tender
procedures with full allotment for as long as necessary, and at least
until 18 January 2011.
2nd
Solvency and
ECB
liquidity
In June 2010, decision by the Governing Council of the ECB to return
to the fixed rate tender procedures with full allotment for the threemonth longer-term refinancing operations until September 2010.
2nd
Solvency and
ECB
liquidity
In April 2010, decision by the Governing Council of the ECB to
introduce the minimum credit threshold for marketable and nonmarketable assets in the Eurosystem collateral framework at
investment-grade level (i.e. BBB-/Baa3), except in the case of assetbacked securities (ABSs) and decision to apply, as of 1 January 2011,
a schedule of graduated valuation haircuts to the assets rated in the
BBB+ to BBB- range (or equivalent).
2nd
Monitoring and
Banco de
Enhancement of on-site supervision, ensuring a more active
supervision
Portugal
presence in supervised institutions, mainly operating through
permanent inspections teams in the main banking groups. This
measure is essential for a better knowledge of financial institutions,
Banking System Measures
Quarter
Area
Institution
Measures
their business lines and financial products’ risks, as well as for
identifying, assessing and managing institutions’ different types of
risks and their organisational and management model.
1st
Solvency and
liquidity
ECB
In March 2010, decision by the Governing Council of the ECB to
continue conducting its main refinancing operations and specialterm refinancing operations as fixed rate tender procedures with full
allotment for as long as necessary, and at least until 12 October
2010; and to return to the variable rate tender procedures for the
three-month longer-term refinancing operations.
17
EFAP’s structural
benchmarks