The ESAs renew their Board of Appeal

The three European Supervisory Authorities (ESAs) – the EBA, EIOPA and ESMA announced today the new composition of their Board of Appeal. The new members and alternates take up their positions as of today, 1 December 2021.

EBA notes significant efforts in IFRS 9 implementation by EU institutions but cautions on some of the observed accounting practices, especially in the context of the COVID-19 pandemic

The European Banking Authority (EBA) published today a Report summarising the findings arising from the monitoring activities on the International Financial Reporting Standard (IFRS 9) implementation by EU institutions. The aim of this Report is to assist supervisors evaluate the quality and adequacy of IFRS 9 Expected Credit Loss (ECL) models, in order to contribute to a high-quality and consistent application of the IFRS 9 standard in the EU.  In line with the IFRS 9 Roadmap, the EBA will continue monitoring and promoting consistent application of IFRS 9, as well as working on the interaction with prudential requirements.

EBA and ESMA consult on framework for the supervisory review and evaluation process of investment firms

The European Banking Authority (EBA) and the European Securities and Markets Authority (ESMA) launched today a public consultation on their Guidelines on common procedures and methodologies for the supervisory review and evaluation process (SREP). The EBA is also consulting on draft Regulatory Technical Standards (RTS) on the additional own funds requirements that could be determined by competent authorities for investment firms. Both regulatory products are based on the Investment Firms Directive (IFD) and aim at consistent supervisory practices with regard to the review and evaluation of investment firms. The consultations run until 18 February 2022.

EBA acknowledges Commission’s decision on equivalence for Bosnia and Herzegovina and North Macedonia

​​​​​​​The European Banking Authority (EBA) acknowledged today the EU Commission’s decision to consider the supervisory and regulatory framework applicable to credit institutions in Bosnia and Herzegovina and North Macedonia as equivalent to that applied in the Union. The EU Commission’s decision considered the EBA’s assessments carried out in 2019-20 and the respective Opinions, concluding that the supervisory and regulatory framework applicable to credit institutions in Bosnia and Herzegovina and North Macedonia could be regarded as equivalent to that applied in the Union.

EBA sees limited impact of the NSFR on the functioning of the precious metals’ markets

The European Banking Authority (EBA) published today a Report on the possible impact of the net stable funding ratio (NSFR) on the functioning of the precious metals’ markets. The Report aims at assessing whether it would be justified to reduce the required stable funding factor for assets used for providing clearing and settlement services or for financing transactions of precious metals.

The EBA sets examination programme for prudential supervisors for 2022

The European Banking Authority (EBA) published today the European Supervisory Examination Programme (ESEP) for 2022, which identifies key topics for supervisory attention across Europe. The ESEP is aimed at informing prudential supervisors’ planning processes and shaping their supervisory practices.

The EBA publishes guidance on how to grant authorisation as credit institution

The European Banking Authority (EBA) published today the Final Paper of its Guidelines on a common assessment methodology for granting authorisation as a credit institution. It is the first guidance addressed to all competent authorities across the EU in charge of granting authorisation as a credit institution, and covers the authorisation requirements set out in the Capital Requirements Directive (CRD).

EBA consults on machine learning for internal ratings-based models

The European Banking Authority (EBA) published today a discussion paper on machine learning used in the context of internal ratings-based (IRB) models to calculate regulatory capital for credit risk. The aim of the discussion paper is to set supervisory expectations on how new sophisticated machine learning models can coexist with and adhere to the Capital Requirements Regulation (CRR) when used in the context of IRB models. The discussion paper seeks stakeholders’ feedback on many practical aspects related to the use of machine learning in the context of IRB with the aim of providing clarity on supervisory expectations on their use. The consultation runs until 11 February 2022.

EBA issues requirements on institutions’ Pillar 3 disclosure of interest rate risk exposures

The European Banking Authority (EBA) published today its first draft implementing technical standards (ITS) on Pillar 3 disclosure of institutions’ exposures to interest rate risk on positions not held in the trading book (IRRBB). The final draft ITS put forward comparable disclosures that will help stakeholders assess institutions’ IRRBB risk management framework as well as the sensitivity of institutions’ economic value of equity and net interest income to changes in interest rates. The standards will amend the comprehensive ITS on institutions’ public disclosures, in line with the strategic objective of developing a single and comprehensive Pillar 3 package that should facilitate implementation by institutions and further promote market discipline.

EBA publishes Guidelines on recovery plan indicators

The European Banking Authority (EBA) published today Guidelines on recovery plan indicators. The Guidelines establish a common EU approach for developing the framework of recovery plan indicators, providing additional guidance on indicators’ calibration, monitoring and breaches notifications. The guidelines aim at strengthening the quality of recovery indicators framework and contributing to effective crisis preparedness of institutions. 

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