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The European Banking Authority (EBA) launched today a consultation on Regulatory Technical Standards (RTS) on the conditions that Competent Authorities have to take into account when tightening capital requirements for mortgage exposures. The proposed RTS illustrate the conditions, as well as financial stability considerations, that would ensure a harmonised approach in setting higher risk weights and higher minimum loss given default (LGD) values. The consultation runs until 6 October 2015.

The European Banking Authority (EBA) published today its Final draft Regulatory Technical Standards (RTS) that specify the operational functioning of the resolution colleges established for those groups that operate on a cross-border basis in the European Economic Area (EEA). These RTS have been developed within the framework established by the EU Bank Recovery and Resolution Directive (the BRRD) and specify how resolution colleges should function, from their establishment, going concern function and resolution planning, to situations of cross-border resolution.

The EBA today published its regular risk assessment report. The report is based on December 2014 data and the final production date for this report was 12 June 2015. The report therefore does not cover the current challenges posed by the situation in Greece. However, the report notes that direct exposures to Greek counterparties are limited. Nonetheless indirect challenges of contagion remain a concern and will require careful monitoring and coordination of supervisory activities across the single market.

The European Banking Authority (EBA) issued today an Opinion to the European Commission supporting its proposed amendments to the EBA final draft Regulatory Technical Standards (RTS) submitted to on 27 March 2014, which specifies the derogations concerning currencies featuring constraints on the availability of liquid assets. In particular, the EBA agrees with removing from its RTS the minimum 15% haircut to the value of the collateral posted by an institution with a central bank in order to obtain a credit line. It also supports the Commission’s other proposed amendments, which provide added detail and further legal certainty on the necessary conditions for the application of the derogations.

The three European Supervisory Authorities (ESAs) are launching a public consultation on updated Guidelines for the prudential assessment of acquisitions of qualifying holdings. The Guidelines define common procedures based on the assessment criteria laid down in the EU legislative framework that establishes how acquisitions and increases of qualifying holdings by natural or legal persons in financial institutions should be assessed. The Guidelines aim to harmonise supervisory practices in the financial sector across the EU and to provide more clarity to proposed acquirers on how they should notify the competent supervisory authorities.