The importance of supervisory transparency and accountability is stressed by the Basel Committee on Banking Supervision and by the European Banking Legislation (Directive 2013/36/EU and Regulation (EU) No 575/2013). The main purpose of supervisory disclosure is to provide stakeholders easy access to information, give a comprehensive overview of supervisory and regulatory framework in Europe and enable a meaningful comparison of the approaches adopted by the competent supervisory authorities in the different Member States.
The European Banking Authority (EBA) therefore developed a supervisory disclosure framework that consists of a standardised set of tables of information. The competent authorities fill in these tables which are published on their individual homepages in order to provide the exhaustive and detailed information required by the EU banking legislation. The EBA website serves as a centralised electronic repository and allows for quick and easy comparison of the relevant information.
It should be noted that the European Central Bank (ECB), as the competent authority for the prudential supervision of Significant Institutions under the Single Supervisory Mechanism (SSM) as from November 2014 publishes in this capacity the requested information since the 2015 supervisory disclosure exercise. The exercise of options and discretions by the ECB is laid down in its Regulation (EU) 2016/445 of 14 March 2016 and in its Guide on options and discretions available in Union law. The ECB exercises national discretions in accordance with national Law.
In this section, the CSSF publishes and gives access to information regarding Less Significant Institutions for the supervision of which it is directly responsible as well as for third country branches and CRR investment firms.
This information covers:
- the texts of laws, regulations, administrative rules and general guidance adopted in the field of prudential regulation and supervision in Luxembourg;
- the options and national discretions available in EU banking legislation;
- the general criteria and methodologies used nationally in the Supervisory Review and Evaluation Process (SREP); and
- the aggregate statistical data on key aspects of the implementation of the prudential framework in Luxembourg.
Rules and guidance
1. Luxembourg laws and regulations adopting the provisions of Directive 2013/36/EU and Regulation (EU) No 575/2013. These texts outline the primary supervisory requirements for supervised credit institutions, third country branches and CRR investment firms.
2. Administrative rules
There is a variety of definitions of administrative rules. For the purpose of supervisory disclosure they are understood as instructions to supervised entities to fulfil certain legislative and regulatory requirements.
3. General guidance includes explicit disclosure requirements from Directive 2013/36/EU and explanations deemed necessary to set out how the rules should be applied by institutions. Additionally, such guidance can cover any other relevant information that competent authorities may wish to release to enhance the understanding of the capital adequacy framework.
Options and national discretions
Directive 2013/36/EU, Regulation (EU) No 575/2013, and LCR Delegated Regulation LCR (EU) 2015/61 contain a large number of options and national discretions which may be applied on the basis of certain circumstances.
The exercise of options and national discretions for less significant credit institutions is governed by the Law on the Financial Sector, the CSSF Regulation N° 18-03 as well as the ECB Recommendation of 4 April 2017 (ECB/2017/10).
This section includes an overview of general criteria and methodologies of the SREP as well as of the approach of the CSSF to review and evaluate the ICAAP and ILAAP of Less Significant Institutions (LSIs).
Aggregate statistical data
This section includes aggregate statistical data on key aspects of the implementation of the prudential framework in Luxembourg. The disclosure includes national statistical data on the financial sector, credit risk, operational risk, market risk, waivers and on supervisory measures and administrative penalties for Less Significant Institutions, third country branches and CRR investment firms.
Data on national financial sector
Data on credit risk
Data on market risk
Data on operational risk
Data on supervisory measures and administrative penalites
Data on waivers
Aggregate statistical data (archives)
All archived aggregate statistical data can be found in the Regulatory framework section.