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The European Banking Authority (EBA) published today its Report on Environmental, Social and Governance (ESG) risks management and supervision. The Report, which is a key component of the EBA’s broader ESG work, provides a comprehensive proposal on how ESG factors and ESG risks should be included in the regulatory and supervisory framework for credit institutions and investment firms.

The European Banking Authority (EBA) published today a Report on the data provided by PSPs on their readiness to apply SCA for the subset of payment transactions that are e-commerce card-based payment transactions. The Report highlights the status of issuing and acquiring PSPs in enrolling online merchants, payment cards and payment service users (PSUs) into SCA-compliant solutions, and in requesting SCA for online payment transactions after 31 December 2020, when the SCA migration period ended.

The Joint Committee of the three European Supervisory Authorities (EBA, EIOPA and ESMA - ESAs) published today two amended Implementing Technical Standards (ITS) on the mapping of credit assessments of External Credit Assessment Institutions (ECAIs).

The European Banking Authority (EBA) issued today a revised list of validation rules in its Implementing Technical Standards (ITS) on supervisory reporting, highlighting those, which have been deactivated either for incorrectness or for triggering IT problems. Competent Authorities throughout the EU are informed that data submitted in accordance with these ITS should not be formally validated against the set of deactivated rules.

​​​​​​​The European Banking Authority (EBA) published today its final revised Guidelines on major incident reporting under the Payment Service Directive (PSD2). The revised Guidelines optimise and simplify the reporting process and templates, focus on incidents with significant impact on payment service providers (PSPs), and improve the meaningfulness of the information to be reported. The revised Guidelines are also estimated to reduce the reporting burden for PSPs.

The European Banking Authority (EBA) launched today a second consultation on its draft regulatory technical standards (RTS) on the calculation of the threshold for investment firms. With this consultation, the EBA is seeking to address the level playing field concerns raised by the industry in relation to geographical constraints of some undertakings a well as to ensure a more proportionate and consistent methodology for the calculation of the thresholds. These RTS are part of the EBA’s roadmap for delivering on mandates related to the implementation of a new prudential regime for investment firms. The consultation runs until 17 July 2021.

As part of its drive for more proportionate regulatory and supervisory framework, the European Banking Authority (EBA) has finalised its comprehensive study of the cost of compliance of European Economic Area (EEA) banks with the supervisory reporting requirements. In the summary report published today, the EBA has identified numerous recommendations collectively leading to a potential reduction of the banks’ reporting costs by up to 15-24%. Most of the recommendations will be implemented by the EBA as part of its ongoing policy work on developing and enhancing the common EU supervisory reporting framework.

The European Banking Authority (EBA) published today an updated list of indicators for risk assessment and risk analysis tools, together with the accompanying methodological guide. This guidance, which describes how risk indicators are computed in EBA publications, allows competent authorities and users of EBA data to interpret key bank figures in a consistent fashion when conducting their risk assessments and analyses.

​​​​​​​The European Banking Authority (EBA) published today a consultation paper on draft Regulatory Technical Standards (RTS) specifying the information that crowdfunding service providers offering individual portfolio management of loans shall provide to investors in relation to the method to assess credit risk, and on each individual portfolio. The draft Regulatory Technical Standards also specify the policies, procedures and organisational arrangements that crowdfunding service providers shall have in place in relation to any contingency fund they may offer to investors. The consultation runs until 4 September 2021.

The European Banking Authority (EBA) published today an Opinion following the notification by the French macroprudential authority, the Haut Conseil de Stabilité Financière, of its intention to extend for a second time a measure introduced in 2018 to safeguard the resilience of systemic institutions from excessive risk-taking and to prevent the build-up of future vulnerabilities. The measure intends to tighten, for French global or other systemically important institutions, the large-exposure limits applicable to large and highly indebted non-financial corporations (NFCs) or groups of connected NFCs assessed to be highly indebted. Based on the evidence submitted, the EBA does not object to the extension of the proposed measure, which will be applied for two years from 1 July 2021 to 30 June 2023.

The European Banking Authority (EBA) published today an erratum of the technical package on the reporting framework 3.0.1. This is to correct mainly data type of two metrics and to modify the domain of the securitisation internal code (SIC) dimension. The impacted modules are COREP OF and COREP LE.

The European Banking Authority (EBA) published today an update to its Implementing Technical Standards (ITS) on benchmarking of internal approaches. The updated ITS include all benchmarking portfolios and metrics that will be used for the 2022 exercise. The benchmarking exercise is an essential supervisory tool to enhance the quality of internal models, which is particularly important in a stressed economic situation.

The European Banking Authority (EBA) published today its 2020 Annual Report, which provides a detailed account of all the work the Authority achieved in the past year and anticipates the key areas of focus in the coming year.

In line with its 3-year strategy focusing on the Single Rulebook, risk tools, data, digital finance, anti-money laundering and counter terrorism financing (AML/CFT), and environmental, social and governance (ESG) factors, the European Banking Authority (EBA) announced today a series of changes to its internal organisation. The new structure, which enters into force as of 1 June 2021, aims at fostering synergies, increasing focus, and developing staff.

​​​​​​​The European Banking Authority (EBA), jointly with the European Securities and Markets Authority (ESMA), published today a provisional list of additional instruments and funds that competent authorities may allow to use as own funds for some of the smallest investment firms. The latter include only non-legal persons or joint‐stock companies, or those which meet the conditions for qualifying as small and non‐interconnected investment firms as defined in the Investment Firm Regulation (IFR). The list is provisional and intended to provide guidance to investment firms and competent authorities ahead of the application of the IFR requirements, as of 26 June 2021.

The European Banking Authority (EBA) launched today a public consultation on draft implementing technical standards (ITS) on Pillar 3 disclosures regarding exposures to interest rate risk on positions not held in the trading book (IRRBB). The draft ITS put forward comparable disclosures that would allow stakeholders to assess institutions’ IRRBB risk management framework as well as the sensitivity of institutions’ economic value of equity and net interest income to changes in interest rates. The proposed standards will amend the comprehensive ITS on institutions’ public disclosures, in line with the strategic objective of developing a single and comprehensive Pillar 3 package that should facilitate implementation by institutions and further promote market discipline.

The European Banking Authority (EBA) published today its second quantitative Report on minimum requirements for own funds and eligible liabilities (MREL) under the new methodology. The Report shows that as of December 2019, the largest institutions have made good progress in reducing MREL shortfalls and that smaller institutions tend to lag behind.

The European Banking Authority (EBA) launched today a public consultation on its new Guidelines that set out how prudential supervisors, AML/CFT supervisors and financial intelligence units (FIUs) should cooperate and exchange information in relation to AML/CFT, in line with provisions laid down in the Capital Requirements Directive (CRD). Cooperation and information exchange is key to ensuring the prudential soundness and viability of institutions, to protecting the EU’s financial system from financial crime and to safeguarding its stability and integrity. This consultation runs until 27 August 2021.

The European Banking Authority (EBA) published today a thematic note comparing provisioning practices in the US and the EU during the peak of the COVID-19 pandemic. The note looks into the differences in the macroeconomic impact of the pandemic, in banks’ loan portfolios, and in accounting rules that might explain why the CoR of US banks was much higher compared to their EU peers in the first half of 2020 and fell at a faster pace afterwards.

​​​​​​​The European Banking Authority (EBA) published today a Report on the application of early intervention measures under the Bank Recovery and Resolution Directive (BRRD). The Report highlights the key challenges faced by supervisors in the application of the current regulatory framework on the EIMs and various options for addressing them. The Report  follows the Discussion Paper launched in June 2020 to explore ways of enhancing crisis management tools available for competent authorities in addition to well-established and widely used supervisory powers laid down in the Capital Requirements Directive (CRD) and in the Single Supervisory Mechanism Regulation (SSMR).