13 December 2013
The European Banking Authority (EBA) published today its final draft Implementing Technical Standards (ITS) on joint decisions on institution-specific prudential requirements. These ITS will ensure uniform conditions of application of the joint decision process - on capital and liquidity - between consolidating supervisors and relevant competent authorities.
The common procedures and templates laid out by the EBA ITS aim at facilitating the interaction and cooperation between the consolidating supervisor and the competent authorities responsible for the supervision of EU subsidiaries of an EU parent institution or an EU parent financial holding company or an EU parent mixed financial holding company in a Member State. The EBA had launched these ITS for public consultation in August 2013 and where possible, it took into account the comments received.
These final draft ITS have been developed pursuant to Articles 73, 86, 97, and Articles 104(1)(a) and 105 of Directive 2013/36 of the European Parliament and of the Council of 26 June 2013 on access to the activity of credit institutions and the prudential supervision of credit institutions and investment firms (colloquially known as Capital Requirements Directive or CRD).
The proposed ITS partly build on CEBS' Guidelines for the joint assessment and joint decisions regarding the capital adequacy of cross-border groups. However, they reflect the additional requirements stemming from Article 113 of Directive 2013/36/EU, namely those covering the reaching of liquidity joint decisions under Pillar II.
The final standards have been sent today to the European Commission for their adoption as EU Regulations that will be directly applicable throughout the EU.