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The European Banking Authority (EBA) published today the findings of its first EU-wide pilot exercise on climate risk, whose main objective is to map banks’ exposures to climate risk and provide an insight into the green estimation efforts banks have carried out so far. The findings give a clear picture of banks’ data gaps and highlight the sense of urgency to remedy them if they are to achieve a meaningful and smooth transition to a low-carbon economy. It is only through a more harmonised approach and common metrics that banks’ efforts will prove meaningful in addressing and mitigating the potentially disruptive impacts of environmental risks. The findings also show big differences in banks’ application of the EU taxonomy. A first estimate of the starting point of their green asset ratio (GAR) estimated with a top-down tool currently stands at 7.9%.

The European Banking Authority (EBA) announces that the annual 2021 EU-wide Transparency exercise will be carried out in autumn and the information on banks’ exposures and asset quality during the crisis will be released to market participants. The exercise will cover the figures from the second half of 2020 and the first half of 2021. The exercise is planned to be launched in September and the results are expected to be published at the beginning of December, along with the EBA Risk Assessment Report.

​​​​​​​The European Banking Authority (EBA) published today a Report, which analyses the extent to which Member States' national law relies on external credit ratings. Based on a survey among EU banking supervisors, no mechanistic reliance on external credit ratings was identified. Furthermore, using EBA supervisory reporting data, the Report shows that the use of external credit ratings in the calculation of risk-weighted exposure amounts (RWEA) under the standardised approach, and under the External Ratings Based Approach (SEC-ERBA) of the securitisation framework is limited. The EBA’s assessment will ensure a comprehensive overview of the reliance on ratings for regulatory purposes ahead of the implementation of Basel III reforms into the EU legislative framework.

The Joint Committee of the European Supervisory Authorities (ESAs – European Banking Authority, European Insurance and Occupational Pensions Authority, and European Securities and Markets Authority) published today its analysis of the implementation and the functioning of the EU Securitisation Regulation (SECR), including recommendations on how to address initial inconsistencies and challenges, which may affect the overall efficiency of the current securitisation regime. The Report is meant to provide guidance to the European Commission in the context of its review of the functioning of the SECR. It also provides initial inputs to the ongoing discussion on the efficiency of the securitisation framework given the role that securitisation could play in the recovery post the Covid-19 pandemic.