The EBA updates methodology on the regulatory and supervisory equivalence of non-EU countries

The European Banking Authority (EBA) today published its updated methodology for the assessment of regulatory and supervisory frameworks of non-EU countries. The changes reflect the amendments to the revised Capital Requirements Regulation (CRR) and Capital Requirements Directive (CRD).

The methodology used to perform a thorough assessment of the jurisdiction’s regulatory and supervisory framework is based on the following two questionnaires published on the EBA’s website:

• The 1^st step questionnaire consists of a preliminary screening to determine whether the main requirements and principles are in place.
• The 2^nd step questionnaire is a more in-depth examination, systematically mapping provisions of the EU framework with that of the non-EU country.

Further to aligning the methodology with the latest regulatory developments, the EBA also streamlined its 2^nd step questionnaire to improve the overall user experience.

Finally, the content of the questionnaires was moved to an online platform, allowing countries to reply directly via a secured digital format. Upon request, interested non-EU jurisdictions may get a dedicated access to this platform. They may contact the EBA for further information (Equivalence@eba.europa.eu).

Legal Basis and background

Article 33(2) provides that the EBA shall assist the European Commission in preparing equivalence decisions pertaining to regulatory and supervisory regimes in non-EU countries following a specific request for advice from the European Commission or where required to do so by the legislative acts referred to in Article 1(2) of Regulation (EU) 2010/1093.