EBA proposes new prudential rules for securities depositories

The European Banking Authority statement of 12 October says the draft would amend prudential requirements for central securities depositories and designated credit institutions. The CSDR Refit already allows banking CSDs to provide cash, foreign-exchange and payment services to other CSDs. EBA wants closer institutional links to avoid creating uncontrolled systemic risk.

For Hungary, the stake is secure European securities settlement and access to foreign-currency liquidity: the rules affect the infrastructure through which banks and investment firms complete transactions. The proposal focuses on the banking CSD's risk profile and notifications to supervisors. This is not adopted EU law; it is EBA's final draft regulatory technical standard for the European Commission to consider.

EBA prepared the details on measuring, managing, reporting and disclosing credit and liquidity risks under Article 59(5). The next step is a Commission decision and an application date. The subject connects with the IMF–World Bank meetings, our analysis of Hungarian bank balance-sheet risk, and the latest global close review.