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The European Banking Authority (EBA) published today the periodical update of its Risk Dashboard summarising the main risks and vulnerabilities in the banking sector on the basis of the evolution of a set of Risk Indicators (RI) across the EU in Q4 2015. The update shows a further increase in EU banks’ capital ratios. Profitability remains low and NPL ratios are still high.

The European Banking Authority (EBA) announced today that it will be conducting a transparency exercise in December 2016 on a wide sample of over 100 banks, which will provide actual information on banks’ balance sheet based on supervisory reporting data. Transparency exercises are an annual feature of the EBA’s work but this year’s exercise will be independent from, whilst complementary to, the 2016 EU-wide stress test. This will ensure appropriate coverage of banks across all countries in the EU.

The European Banking Authority (EBA) published today a comparative Report on governance arrangements and indicators in recovery plans. Such a benchmarking exercise is aimed at supporting supervisors and institutions in identifying the crucial elements that should be considered when designing credible governance arrangements and effective indicator frameworks. This is the third thematic comparative analysis the EBA has conducted in the area of recovery planning.

The European Banking Authority (EBA) published today its second analysis of the level of asset encumbrance across EU banking institutions. The report, which is part of a regular annual monitoring of asset encumbrance, aims to provide important elements for EU supervisors to assess the sustainability of banks’ funding sources and their ability to withstand funding stress.

The EBA has received an additional notification from the Magyar Nemzeti Bank (the Central Bank of Hungary) related to the application of the sale of business tool in the ongoing resolution process of MKB Bank Zrt.

The European Banking Authority (EBA) published today additional information on how the results of the EU-wide stress test will inform the Supervisory Review and Evaluation Process (SREP). The focus of today’s update is to explain how additional “capital guidance” can be used as a tool to address the quantitative outcomes of the stress test. Such guidance will not be relevant for the Maximum Distributable Amount (MDA), but will ensure banks’ ability to meet applicable capital requirements under stressed conditions. While serving the purpose of helping supervisors manage expectations towards banks and market participants, the information released today does not establish restrictions or constraints on existing supervisory powers.