Standard RA4.4. Country risk reporting. Regulations and guidelines

Transcription

1 Standard RA4.4 Country risk reporting Regulations and guidelines

2 THE FINANCIAL SUPERVISION AUTHORITY J. No. 1/120/ (10) TABLE OF CONTENTS 1 Application 3 2 Objectives 4 3 Legal basis 5 4 to The Financial Supervision Authority Regular reporting Verification of reported data 7 5 Further details 8 6 Obsolete guidelines and regulations 9 7 Appendices 10

3 THE FINANCIAL SUPERVISION AUTHORITY J. No. 1/120/ (10) 1 APPLICATION (1) This reporting standard is applicable to credit institutions and their consolidation groups, foreign branches of Finnish credit institutions and Finnish branches of foreign credit institutions with an amount of foreign claims in excess of EUR 200 million, gross. (2) The Financial Supervision Authority has the right to order an individual credit institution or banking group to participate in the reporting where the foreign operations of the supervised credit institution are considerable in comparison with its other operations.

4 THE FINANCIAL SUPERVISION AUTHORITY J. No. 1/120/ (10) 2 OBJECTIVES (1) This reporting standard defines the supervised entities' reporting obligations in respect of country risks for the purpose of supervising concentrations of country risk. The reported data will also be used for preparing assessments of supervised entities' economic development and risks. The reporting standard refers to standard 4.4a on management of credit risk, issued within section 4 Capital adequacy and risk management of the Financial Supervision Authority's set of regulations. (2) Data collected on country risks (N forms) are used for analysing foreign claims and liabilities by country. This is done separately for Finnish credit institutions (excluding foreign branches), foreign branches of Finnish credit institutions, consolidation groups of credit institutions and Finnish branches of foreign credit institutions. (3) This process relates to the monitoring of banks international activities undertaken by the Bank for International Settlements (BIS). The Financial Supervision Authority provides BIS with aggregate data on the foreign claims and liabilities of Finnish credit institutions. In respect of consolidation groups, only data on claims are provided. Data submitted to BIS are country-specific, not bank-specific.

5 THE FINANCIAL SUPERVISION AUTHORITY J. No. 1/120/ (10) 3 LEGAL BASIS (1) The reporting of country risk is based on section 15, subsection 2, of the Act on the Financial Supervision Authority, as well as on section 16 of the Act on Foreign Credit and Financial Institutions in Finland and section 68a of the Credit Institutions Act.

6 THE FINANCIAL SUPERVISION AUTHORITY J. No. 1/120/ (10) 4 REPORTING TO THE FINANCIAL SUPERVISION AUTHORITY 4.1 Regular reporting (1) This reporting standard is applicable to the collection of data on the foreign claims and liabilities of credit institutions by country. The data required by the standard shall be submitted to the Financial Supervision Authority on a quarterly basis, reflecting the situation of the last day of the relevant quarter, by the end of the month following the reported quarter. (2) The data shall be submitted to the Financial Supervision Authority on the report forms (Appendix 2) and completed in accordance with the reporting instructions (Appendix 1) and the instructions on electronic reporting (Appendix 3). The instructions and forms are downloadable from the Jakelu Distribution Service available on the Financial Supervision Authority's website. (3) Data report forms N01/N02 Finnish credit institutions (excluding foreign branches) and Finnish branches of foreign credit institutions shall report their claims and liabilities by country and currency, to the Financial Supervision Authority, as set out in the forms. The relevant reporting institution categories applicable to the credit institutions participating in the Authority Task Force statistical reporting are 202, 211, 221 and 222. N11/N12 Foreign branches of Finnish credit institutions shall report their claims and liabilities by country, to the Financial Supervision Authority, as set out in the forms. The relevant reporting institution

7 THE FINANCIAL SUPERVISION AUTHORITY J. No. 1/120/ (10) categories of the credit institutions participating in the Authority Task Force statistical reporting are 203 and 212. N21/N22 Consolidation groups of credit institutions shall report their claims by country, to the Financial Supervision Authority, as set out in the forms. The relevant reporting institution categories of the credit institutions participating in the Authority Task Force statistical reporting are 204, 205 and Verification of reported data (4) Supervised entities are required to prepare a declaration on the accuracy of reported data. The purpose of the procedure is to ensure that the data submitted by the supervised entity to the Financial Supervision Authority is checked and accurate. The declaration shall be dated and signed by both the person preparing the report and the person verifying the data. The signed declaration form shall be kept by the supervised entity and presented to the Financial Supervision Authority on request. The declaration shall be prepared for the first time for the reporting of 31 March The declaration shall be updated each time changes occur in the process it describes. (5) Continued reporting of incorrect data to the Financial Supervision Authority will lead to a written request to the supervised entity for clarification. In its reply the supervised entity shall present an action plan on how it will remedy the erroneous reporting. Failure to comply with this standard may lead to administrative or other sanctions. (6) instructions, together with instructions on electronic reporting, are made available on the Financial Supervision Authority's website () under Regulations.

8 THE FINANCIAL SUPERVISION AUTHORITY J. No. 1/120/ (10) 5 FURTHER DETAILS Please find the necessary contact information in the list of Persons in charge of standards on the Financial Supervision Authority's website. Further information can also be obtained from the Credit and Market Risks Division,.

9 THE FINANCIAL SUPERVISION AUTHORITY J. No. 1/120/ (10) 6 OBSOLETE GUIDELINES AND REGULATIONS (1) This standard renders the Regulation on reporting country risk (105.7) obsolete.

10 THE FINANCIAL SUPERVISION AUTHORITY J. No. 1/120/ (10) 7 APPENDICES (1) This reporting standard includes the following appendices: Appendix 1: instructions Appendix 2: Data report forms Appendix 3: Instructions on electronic reporting Appendix 4: List of territories and islands whose data are included in the data of the countries of the country classification Appendix 5: List of international organisations Appendix 6: List of central banks Appendix 7: Calculation and control formulae Appendix 8: Use of Excel workbooks for reporting. (2) For further information on Appendices 3 and 8, please contact Information Systems, tel