EBA acknowledges adoption of new resolution reporting standards by the European Commission
29 October 2018
The European Banking Authority (EBA) acknowledged today the adoption by the European Commission of the Implementing Regulation on the procedures and standard forms and templates for the provision of information for the purposes of resolution plans for credit institutions and investment firms, repealing Regulation (EU) 2016/1066. The Implementing Regulation, which is based on the final draft Implementing Technical Standards (ITS) on the provision of information for resolution plans submitted by the EBA in April 2018, was adopted by the Commission on 23 October 2018. Its publication in the EU Official Journal is still pending. The reporting requirements will apply as of 31 December 2018 (reporting framework v2.8).
Click here to access the act and annexes of the Implementing Regulation adopted by the European Commission.
The related documents published on EBA's website have been updated to reflect the adoption of the Implementing Act (see Implementing Technical Standards on reporting for resolution planning and reporting framework 2.8).
ESAs propose new amendments to technical standards on the mapping of ECAIs
26 October 2018
EBA acknowledges adoption of amended supervisory reporting standards by the European Commission
The Joint Committee of the three European Supervisory Authorities (EBA, EIOPA and ESMA - ESAs) launched today a public consultation to amend the Implementing Regulations on the mapping of credit assessments of External Credit Assessment Institutions (ECAIs) for credit risk to reflect the outcomes of a monitoring exercise on the adequacy of existing mappings, namely changes to the Credit Quality Steps (CQS) allocation for two ECAIs and the introduction of new credit rating scales for ten ECAIs. The Implementing Regulations are part of the EU Single Rulebook for banking and insurance aimed at creating a safe and sound regulatory framework consistently applicable across the European Union (EU). The consultation runs until 31 December 2018.
In the Implementing Regulations on the mapping of ECAIs, adopted by the European Commission on 11 October 2016, the three ESAs specified an approach that establishes the correspondence between credit ratings and the credit quality steps defined in the Capital Requirements Regulation (CRR) and in the Solvency II Directive.
The ESAs are now consulting on an amendment to the Implementing Regulation to reflect the outcome of a monitoring exercise on the adequacy of the mappings, based on a quantitative and qualitative assessment. In particular, the ESAs are proposing to change the CQS allocation for two ECAIs, together with the introduction of new credit rating scales for ten ECAIs.
The ESAs also published individual draft mapping reports illustrating how the methodology was applied to produce the amended mappings in line with the CRR mandate.
Comments to the Consultation Paper on the mapping under Article 136 of the CRR can be sent by clicking on the "send your comments" button on the EBA's consultation page. Comments to the Consultation Paper on the mapping under Article 109 (a) of the Solvency II Directive can be provided using the template for comments downloadable from the Joint Committee website. Please note that the deadline for the submission of comments is 31 December 2018.
All contributions received will be published following the close of the consultation, unless requested otherwise.
The proposed revised draft ITSs have been developed according to Article 136 (1) and (3) of Regulation 575/2013 (Capital Requirements Regulation) and of Article 109 (a) of Directive 2009/138/EC (Solvency II Directive), which state that revised draft ITS shall be submitted by the ESAs, where necessary.
Note to editors
This change follows a first amendment to the Implementing Regulations, which was proposed by the ESAs in 2017 and adopted by the European Commission on 24 April 2018. The first change reflected the withdrawal of the registration of one CRA and the recognistion of five additional CRAs since the adoption of the Implementing Regulations in October 2016.
Two ECAIs, Creditreform and Spread Research, have not consented to the publication of their mapping reports. In the absence of a consent, the ESAs published only the outcome of the revision, i.e. the relevant mappings in Annex III of the draft amended ITS ("Mapping tables") together with two documents listing the applicable credit rating scales and credit rating types for each of the concerned ECAI.
09 October 2018
The European Banking Authority (EBA) acknowledged today the adoption by the European Commission of the Implementing Act amending Regulation (EU) No 680/2014 (Implementing Technical Standards on Supervisory Reporting) with regard to the inclusion of prudent valuation into COREP as well as other amendments. The Implementing Act, which is based on the final draft ITS on supervisory reporting submitted by the EBA in April 2018, was adopted by the Commission on 9 October 2018 but its publication in the EU Official Journal is still pending. The amended requirements will apply as of 31 December 2018 (reporting framework v2.8).
All the related documents published on the EBA's website have been updated to reflect the adoption of the Implementing Act (see Implementing Technical Standards on Reporting and Reporting framework 2.8).
Click here to access the Implementing Act and annexes as adopted by the European Commission.
EBA acknowledges notifications from Finansiel Stabilitet
08 October 2018
The European Banking Authority (EBA) acknowledged today notification from Finansiel Stabilitet with respect to its decisions related to the resolution of Københavns Andelskasse.
EBA publishes QIS templates to assess the impact of the finalised Basel III standards
06 September 2018
European Supervisory Authorities publish further guidance on the Key Information Document for PRIIPs
The European Banking Authority (EBA) released today the two sets of templates, which will be used in the 2018 impact assessment of the finalised Basel III standards. These two sets of quantitative impact study (QIS) templates, which build on the Basel III regular monitoring templates, will ensure that the data collection burden is proportionate to the institutions' size and complexity.
Following the European Commission's Call for Advice on the European impact and implementation of the revisions to the Basel III standards agreed by the Basel Committee on Banking Supervision (BCBS) in December 2017, the EBA launched, on 13 August 2018, a data collection exercise, which runs in parallel with Q2-2018 EBA-BCBS Basel III regular monitoring exercise.
To ensure that this data collection, which covers a wider sample of institutions, remains proportionate to the size and complexity of each institution, the EBA distributed two different types of QIS templates, which build on and expand the EBA-BCBS Basel III regular monitoring templates.
In particular, the ‘full' template was distributed to all banks participating in the Q2-2018 EBA-BCBS monitoring exercise and to those banks that only participate in the Call for Advice data collection that are large (as defined by Tier 1 capital higher than EUR 1.5 billion).
The ‘reduced' template was distributed to banks participating only in the Call for Advice data collection that are medium or small (as defined by Tier 1 capital equal or lower than EUR 1.5 billion).
The two sets of templates available for download are for information purposes only. Banks participating in the data collection should only use templates they received from their Competent Authority.
20 July 2018
The European Supervisory Authorities (ESAs) published today further guidance on the Key Information Document (KID) requirements for Packaged Retail and Insurance-based Investment Products (PRIIPs)
The guidance seeks to promote common supervisory approaches and practices based on ongoing work to monitor the implementation of the KID. It supplements material published last year prior to implementation.
The guidance consists of:
The European Supervisory Authorities will continue to assess whether further guidance is needed, in particular based on additional questions received.
Further information on the PRIIPs KID can be found via the following link
ESAs highlight the relevance of legislative changes for the Key Information Document for PRIIPs
01 October 2018
Today, the European Supervisory Authorities (ESAs) wrote a letter
to the European Commission expressing their concerns regarding the possibility of duplicating information requirements for investment funds from 1 January 2020 and the importance of legislative changes to avoid such a situation.
Additionally, to support such changes, as well as to address key issues that have arisen from the practical application of the Key Information Document (KID) for Packaged Retail and Insurance-based Investment Products (PRIIPs), the ESAs intend to propose targeted amendments to the PRIIPs Delegated Regulation.
Taking into account the time needed for the co-legislators to scrutinise any amendments to the Delegated Regulation, the ESAs intend to submit proposals to the European Commission in the first quarter of 2019. As part of this process, the ESAs intend to launch a short public consultation during the fourth quarter of this year.
The ESAs' letter responds to two letters received from the European Commission in July and August
stating a deferral of the review of the PRIIPs Regulation and requesting guidance from the ESAs regarding the information to be disclosed for investment funds.
The KID for PRIIPs is a mandatory, three-page A4 information document to be provided to consumers before purchasing a PRIIP. PRIIPs include for example funds, structured products, unit-linked and with-profits life insurance contracts, and structured deposits.
The PRIIPs Regulation defines the main rules and principles for KIDs. It is supplemented by a Delegated Regulation specifying the presentation and contents of the KID, which is based on Regulatory Technical Standards that the ESAs were mandated to develop.
ESAs Joint Board of Appeal decides on an individual appeal against a decision of ESMA in relation to binary options and contracts for differences
26 September 2018
The Joint Board of Appeal of the European Supervisory Authorities (ESAs – European Banking Authority, European Insurance and Occupational Pensions Authority, and European Securities and Markets Authority) publishes today its decision in an appeal brought by "V" against the European Securities and Markets Authority (ESMA).
The appellant sought to appeal against a decision of ESMA not to open a formal investigation of the Cyprus Securities and Exchange Commission (CySEC) in in relation to certain dealings in binary options and contracts for differences.
The Board of Appeal unanimously held that it had no jurisdiction to hear the appeal.
In accordance with Article 61 of the ESMA Regulation, the appellant has a right of appeal to the Court of Justice of the European Union.
EBA launches its 2018 EU-wide transparency exercise
24 September 2018
EBA revises standardised NPL data templates
The European Banking Authority (EBA) launched today its fifth annual EU-wide transparency exercise. In December 2018, together with the Risk Assessment Report (RAR), the EBA will release over 900000 data points on about 130 EU banks. The data will cover capital positions, risk exposure amounts, sovereign exposures and asset quality. This data disclosure, which provides the wider public with a consistent tool to access data on the EU banking system, is an important component of the EBA's responsibility to monitor risks and vulnerabilities and foster market discipline.
The transparency exercise covers a wide sample of banks and countries and provides consistent time series of semi-annual bank-by-bank financial information since 2011.
In 2018, the sample of banks will be aligned with the one used for the 2018 EBA RAR and the exercise will be based exclusively on supervisory reporting data, which will keep the burden for the banks at a minimum.
The data for December 2017 and June 2018 will cover financial information on capital, leverage ratio, risk exposure amounts, profit and losses, market risk, securitisation, credit risk, exposures to sovereign, non-performing exposures and forborne exposures. The information reported will be mostly in line with the previous exercises, although the introduction of IFRS 9 has required a revision of FINREP based templates. In addition, sovereign exposures data will be enriched with additional information and aligned with the new supervisory reporting tables.
The EBA will start today the interaction with banks for supervisory reporting data population and verification. The data will be frozen in mid-November 2018 and the EBA expects to publish it in December 2018, together with the EBA 2018 RAR.
12 September 2018
The European Banking Authority (EBA) published today a revised version of the standardised NPL data templates that aim at facilitating the NPL sale transactions across the EU. The revised templates include minor changes following the feedback received from the testing of the original version published in December 2017.
The practical experience from the use of the EBA NPL templates by various institutions and the EBA's engagement with stakeholders since their publication in December 2017 has resulted in additional feedback.
As a result of this feedback, the EBA published today a revised version of the NPL templates, which include amendments in data fields, a redesign of the related legal fields, and other editorial changes to improve their effectiveness and usability. A document (Version 1.1 - changes to version 1.0 of EBA NPL templates) presenting a summary of the changes is also included in the package.
The NPL data templates aim at creating the foundation for NPL transactions across the EU. In particular, the EBA standardised set of NPL data templates provide a common data set for the screening, financial due diligence and valuation during NPL transactions in the EU.