The access to the market of regulated financial services is a critical 'gate keeping function' to ensure that only entities that are able to assure the safety and soundness of the business and the integrity of the market may provide such activities. For this reason, access to the market is subject to licensing by the competent authority. It includes authorisation, passporting notification, assessment of qualifying holdings and monitoring of regulatory perimeter also in light […]
Issuers of asset-referenced tokens (ARTs) and electronic money tokens (EMTs) are required to hold the relevant authorisation to carry out activities in the EU. The relevant requirements are set out in the Markets in Crypto-assets Regulation (MiCAR) and are complemented by technical standards and guidelines developed by the EBA.
DocumentsStatement on the application of MiCAR to ARTs and EMTs | Priorities for the supervision of for ART and EMT issuersStatement on timely preparatory […]
The Deposit Guarantee Scheme Directive (DGSD) aims to facilitate access to the internal market through the freedom of establishment and the freedom to provide financial services while increasing the stability of the banking system and the protection of depositors. To fulfil its role of monitoring the implementation of the DGSD, national authorities must notify the EBA of any relevant information as well as of any actions taken. The EBA publishes the non-confidential elements of these […]
Sustainable finance aims at integrating Environmental, Social or Governance (ESG) criteria into financial services, and at supporting sustainable economic growth. It also aims at increasing financial actors' awareness and transparency about the need to mitigate ESG risks via an appropriate management, considering in particular the longer-term nature of such risks and the uncertainty on their valuation and pricing.In March 2018, the European Commission published its Action plan on Financing […]
The EBA has a strong interest in promoting sound and high quality accounting and disclosure standards for the banking and financial industry, as well as transparent and comparable financial statements that strengthen market discipline. The EBA also advocates for sound audit practices that contribute to high quality corporate reporting and to useful and understandable auditor reporting. The developments in the area of international accounting and auditing standard setting are, therefore, […]
Operational resilience is defined as the ability of an institution to deliver critical operations through disruption. This builds on the prudential operational risk framework, encompassing internal governance, outsourcing, business continuity and relevant risk management-related aspects. Such ability enables an institution to identify and protect itself from threats and potential failures, respond and adapt to, as well as recover and learn from disruptive events in order to minimise their […]
EU legislation requires that institutions adequately manage and mitigate operational risk, which is defined as the risk of losses stemming from inadequate or failed internal processes, people and systems or from external events. Operational risk includes legal risks but excludes reputational risk and is embedded in all banking products and activities. It has always existed in banking, and non banking, organizations but it has acquired a greater relevance given the increased complexity and […]
The EBA identifies and addresses harm that arises for EU consumers as a result of their interactions with financial institutions. It does so for all retail banking products in the EBA’s scope of action, which are mortgage credit, consumer credit, payment accounts, payment services, electronic money, and deposits, including structured deposits. linksEBA's information for consumerESMA's Investor cornerEIOPA's Consumer ProtectionJoint Consultation on amendments to the PRIIPs KID
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The EBA has a statutory duty to monitor and assess market developments, including financial innovation, to achieve a coordinated approach and to provide advice to the co-legislators where needed. In 2024-2027, in addition to the EBA’s strategic objective of implementing DORA and MiCAR and commencing oversight and supervision responsibilities under those measures, the EBA has a strategic objective to increase focus on innovation and consumers. In line with this mandate, the EBA has […]
Internal approaches used for the calculation of own funds requirements for market and credit risk are subject to an annual assessment by competent authorities. The EBA assists competent authorities in their assessment by providing a report, which includes benchmarks that help identify any material differences in RWA outcomes. The legal basis for the benchmarking exercises is laid down in the Capital Requirements Directive (CRD), in particular Article 78, as well as in the following technical […]