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The European Banking Authority (EBA) launched today a public consultation on Guidelines on the treatment of credit value adjustment (CVA) risk under the supervisory review and evaluation process (SREP), as well as a data collection exercise for the Quantitative Impact Study (QIS) to calibrate the threshold values. These Guidelines are based on a policy recommendation contained in the EBA’s CVA report and aim to provide a common European approach to the assessment of CVA risk under SREP, including adequacy of capital to cover for this risk, and the determination of any potential additional own funds requirements. The public consultation runs until 12 February 2016 and the data collection exercise should be completed on 28 January 2016.

The Implementing Technical Standards (ITS) on the reporting of the hypothetical capital of a central counterparty (CCP) relates to prudential requirements for banks’ exposures to central counterparties. In particular, they specify a reporting frequency on a quarterly basis and the template for the information that a CCP has to deliver to all credit institutions and investment firms that are clearing members, as well as to the supervisory authorities competent for those clearing members.

The European Banking Authority (EBA) published today a report benchmarking the institutions’ remuneration practices concerning the use of the possibility to increase the maximum ratio between variable and fixed remuneration up to 200%. The Capital Requirements Directive (CRDIV) limits the aforementioned ratio to 100%, unless it is increased following the shareholders’ approval. The report also shows that nearly all Member States have allowed for the possibility to increase the ratio between the two remuneration components to 200% but only institutions in 15 Member States have actually made use of this possibility.