The European Banking Authority (EBA) published today the European Resolution Examination Programme (EREP) for 2023, which identifies key topics for resolution attention across the European Union. The EREP is aimed at shaping resolution authorities` work priorities and respecti
The European Banking Authority (EBA) today published a Report on how to incorporate ESG risks in the supervision of investment firms. The Report also provides an initial assessment of how ESG factors and ESG risks could be included in the supervisory assessment of investment firms.
The European Banking Authority (EBA) today issued a call for expression of interest to join two Technical Expert Groups - on crypto assets service providers and anti-money laundering and countering the financing of terrorism (TEG-CASPs/AML) and on restrictive measures regimes (TEG-RMRs) – and a call for input on the “joint Guidelines to prevent the abuse of fund transfers for ML/TF purposes” issued in 2017 by the European Supervisory Authorities. These will provide technical advice to the EBA on those aspects of the revised Regulation on information accompanying transfers of funds (TFR) that relate to the EBA’s mandates.
The European Banking Authority (EBA) published today a final set of Guidelines and two final draft Regulatory Technical Standards (RTS) specifying technical aspects of the revised framework capturing interest rate risks for banking book (IRRBB) positions. These regulatory products complete the onboarding into EU law of the Basel standards on IRRBB and are of crucial importance given the current interest rate environment. The EBA will also closely monitor their implementation and more generally the impact of the evolving interest rates on the management of IRRBB by EU institutions and on other related prudential aspects.
The European Banking Authority (EBA) published today an Opinion on the amendments proposed by the European Commission to the EBA final draft Implementing Technical Standards (ITS) on prudential disclosures of environmental, social and governance (ESG) information. In the Opinion, while accepting the two substantive changes proposed by the Commission to enhance proportionality, the EBA insists that institutions should make every effort to collect and disclose the very relevant information reflected in the BTAR.
The European Banking Authority (EBA) published today the conclusion of its peer review of how competent authorities supervise institutions’ ICT risk management and have implemented the EBA Guidelines on ICT risk assessment under the supervisory review and evaluation process (SREP). Overall, the analysis suggests that the competent authorities across the EU have applied a risk-based approach to the supervision of ICT risk management. The EBA has not identified any significant concerns regarding the supervisory practices but makes some general recommendations for further improvements.
The European Banking Authority (EBA) today published the list of all third country groups (TCGs) operating in the European Union and European Economic Area (EU/EEA) with the intermediate EU parent undertakings IPU(s), where applicable. The EBA also published the list of all third country branches (TCBs) of credit institutions authorised to operate in the EU/EEA.
The European Banking Authority (EBA) is providing today clarity on the applicability of several EBA disclosure guidelines which are replaced totally or partially by the Implementing Technical Standards (ITS) on Pillar 3 disclosure. As part of this effort, the EBA has repealed three guidelines that are replaced by that ITS and revised the scope of application of the Guidelines on disclosure of non-performing and forborne exposures. The amending Guidelines published today ensure the continuity of public disclosures on non-performing and forborne exposures by all credit institutions.
The European Banking Authority (EBA) published today a thematic note on EU banks’ residential real estate exposures. EU banks reported more than EUR 4.1 trillion of loans and advances collateralised by residential immovable property. This corresponds to 1/3 of all loans towards households and non-financial corporates.
The European Banking Authority (EBA) today published an updated total loss-absorbing capacity and minimum requirement for own funds and eligible liabilities (TLAC/MREL) monitoring Report. Following the first TLAC-MREL monitoring Report, the EBA has observed that its recommendations have been, overall, well implemented. However, it has identified the need for a few new notable provisions to be recommended and for some others to be avoided. This Report provides policy views based on TLAC/MREL instruments assessed up to February 2022 with a view to continue strengthening the quality of the instruments and to have more standardised information across the EU.
The European Banking Authority (EBA) today published its quarterly Risk Dashboard covering the main risks and vulnerabilities in the EU banking sector.
The European Banking Authority (EBA) today published a Report on the reliance of the EU financial sector on counterparties, operators, and financing originating from outside the Single Market. As of June 2021, 360 banks controlled by non-EU entities were operating in the EU representing 12% of the Union’s total banking assets. At the same time, EU banks had, on average, 19% of their total funding denominated in significant foreign currencies. These findings reflect the high degree of openness of the EU economy within the global financial system. While raising funding from non-EU sources brings opportunities, it may create vulnerabilities in some areas. Against this background, matching foreign currency assets with liabilities denominated in the same currency is generally considered prudent risk management.
The European Banking Authority (EBA) today published he technical package for phase 3 of version 3.2 of its reporting framework. The technical package supports the implementation of the updated reporting framework by providing standard specifications and includes the validation rules, the Data Point Model (DPM) and the XBRL taxonomies for version 3.2.
The three European Supervisory Authorities (EBA, EIOPA and ESMA – ESAs) have today delivered to the European Commission (EC) their Final Report with draft Regulatory Technical Standards (RTS) regarding the disclosure of financial products’ exposure to investments in fossil gas and nuclear energy activities under the Sustainable Finance Disclosure Regulation (SFDR).
The European Banking Authority (EBA) today published its first mandatory Basel III Monitoring Report which assesses the impact that Basel III full implementation will have on EU banks in 2028. According to this assessment, which uses a significantly larger sample than in previous years and applies the same methodology as the Basel Committee on Banking Supervision (BCBS), the full Basel III implementation would result in an average increase of 15.0% of the current Tier 1 minimum required capital of EU banks. To comply with the new framework, EU banks would need EUR 1.2 billion of additional Tier 1 capital. The overall impact includes the economic impact of the Covid-19 pandemic on participating banks that materialised up to December 2021, the reference date of this Report. The Report also includes a separate Annex on the impact of the EU Commission proposal for the EU implementation under the Capital Requirements Regulation (CRR3).
For the first time in the context of the G-SII identification methodology and buffer rates allocation, the European Banking Authority (EBA) today disclosed data items specific to the recognition of the Banking Union and of institutions that are part of the Single Resolution Mechanism. Today’s publication covers 13 indicators and updated underlying data for the 30 largest institutions in the EU whose leverage ratio exposure measure exceeds EUR 200 bn. Acting as a central data hub in the disclosure process, the EBA updates this data on a yearly basis and provides user-friendly tools to aggregate it across the EU.
The European Banking Authority (EBA) published today its annual work programme for 2023, describing the key strategic areas of work for the Authority for the coming year, as well as related activities and tasks.
The European Banking Authority (EBA) today published its final Guidelines on transferability to support the resolvability assessment for transfer strategies. In particular, the guidelines on transferability provide guidance relating to (i) the definition of the transfer perimeter and (ii) the steps to operationalise the implementation of the transfer. The transferability Guidelines complement the resolvability Guidelines, which were published on 13 January 2022. Institutions and resolution authorities should comply with these Guidelines in full by 1 January 2024.
The European Banking Authority (EBA) launched today its annual EU-wide transparency exercise, as part of its efforts to monitor risks and vulnerabilities and to reinforce market discipline. As in the past, the exercise is exclusively based on supervisory reporting data, which will keep the burden for the banks to a minimum. Results are expected to be published at the beginning of December.
The European Banking Authority (EBA) today published its final draft Regulatory Technical Standards (RTS) specifying the minimum performance-related triggers for simple, transparent and standardised (STS) on-balance-sheet securitisations that feature non-sequential amortisation. The Capital Markets Recovery Package amended the Securitisation Regulation in several aspects, including creating a specific framework for STS on-balance-sheet securitisation to ensure that the Union securitisation framework provides for an additional tool to foster economic recovery in the aftermath of the COVID-19 crisis.