Circular CSSF 23/830 is a CSSF circular, published 16 March 2023 and updated 20 March 2023. Subject: Clarification on the public disclosure framework applicable to credit institutions and CRR investment firms (Pillar 3).
\nRelevant for: Credit institutions.
\nKeywords: Internal governance, Risk management, Supervisory disclosure, Transparency.
\nAmends Circular CSSF 20/751. Repeals Circular CSSF 15/605, Circular CSSF 17/673, Circular CSSF 18/676.
\nCircular CSSF 23/830 Clarification on the public disclosure framework applicable to credit institutions and CRR investment firms (Pillar 3)
\nCircular CSSF 23/830 Subject: Clarification on the public disclosure framework applicable to credit institutions and CRR investment firms (Pillar 3)
\nLuxembourg, 16 March 2023
\nTo all credit institutions and
\nRepeal of Circulars CSSF 15/605, 17/673 and 18/676 The Commission Implementing Regulation (EU) 2021/637 1 laying down
\nCRR investment firms and
\nimplementing technical standards (ITS on Pillar 3 disclosures) with regard to
\nto all Luxembourg branches
\npublic disclosures by institutions of the information referred to Titles II and III
\nof credit institutions and
\nof Part Eight of Regulation (EU) No 575/2013 (CRR) is applicable since 28 June
\ninvestment firms having their registered office in a
\nthird country
\nThe application of this disclosure framework triggered some overlap with existing requirements contained in EBA guidelines. For this reason, the European Banking Authority (“EBA”) 2 decided to repeal the following guidelines: -
\nGuidelines on disclosure of encumbered and unencumbered assets (EBA/GL/2014/03);
\nGuidelines on disclosure requirements under Part Eight of Regulation (EU) No 575/2013 (EBA/GL/2016/11);
\nGuidelines on liquidity coverage ratio (LCR) disclosure to complement the disclosure of liquidity risk management (EBA/GL/2017/01).
\nConsequently, the CSSF has decided to repeal the following circulars with immediate effect: -
\nCircular CSSF 15/605 on conditions for the disclosure of unencumbered assets (adopting the EBA/GL/2014/03);
\nCircular CSSF 17/673 on disclosure requirements under Part Eight of Regulation (EU) No 575/2013 (adopting the EBA/GL/2016/11);
\nCircular CSSF 18/676 on LCR disclosure to complement the disclosure of liquidity risk management under Article 435 of Regulation (EU) No 575/2013 (adopting the EBA/GL/2017/01).
\nCommission Implementing Regulation (EU) 2021/637 : EUR-Lex - 32021R0637 - EN - EUR-Lex (europa.eu)
\nEBA communication on 12 October 2022 : EBA clarifies the status of several disclosure guidelines, and ensures continuous transparency of credit quality of exposures by all types of credit institutions | European Banking Authority (europa.eu)
\nAmendment to the scope of application of Circular CSSF 20/751 The ITS on Pillar 3 disclosures 3 also specify disclosure requirements on nonperforming and forborne exposures that are applicable only to large and other listed institutions, in line with Article 442 of Regulation (EU) No 575/2013 (CRR). However, the EBA pointed out that, in a post COVID-19 environment and considering the current geopolitical developments, external stakeholders' access to relevant information on non-performing and forborne exposures of all types of institutions, except for small and non-complex institutions that are non-listed, should be maintained. Therefore, the amending Guidelines (EBA/GL/2022/13) adjust the scope of application of the Guidelines (EBA/GL/2018/10) to clarify that: (1) the Guidelines will not apply to large and other listed institutions that are covered by the disclosure requirements under the ITS on Pillar 3 disclosures, but (2) the Guidelines will continue to apply only to listed small and non-complex institutions and to other institutions that are non-listed. The joint application of the amending Guidelines (EBA/GL/2022/13) and the Commission Implementing Regulation (EU) 2021/637 should ensure that all EU institutions will continue to disclose relevant information regarding non-performing and forborne exposures to achieve a sufficient level of transparency on the credit quality of the exposures held by all institutions. In this context, the scope of application of Circular CSSF 20/751 is modified accordingly (please refer to the Annex 1 for the details of the amendments to Circular CSSF 20/751).
\nThe text above is the opening of the document; the PDF carries the whole.
\nDocument page, PDF. Source: Commission de Surveillance du Secteur Financier (CSSF), reproduced with the CSSF's consent. The French text prevails.
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