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The European Banking Authority (EBA) launched today a public consultation on draft Regulatory Technical Standards (RTS) and draft Implementing Technical Standards (ITS) on the impracticability of contractual recognition of write-down and conversion powers and related notifications as laid down in the Bank Recovery and Resolution Directive (BRRD). These standards aim at promoting the effective application of resolution powers to banks and banking groups and to foster convergence of practices between relevant authorities and institutions across the EU. The consultation runs until 24 October 2020.

Following the publication of its statement on additional supervisory measures in relation to the COVID-19 pandemic, the European Banking Authority (EBA) published today Guidelines that make available to competent authorities a special procedure for the supervisory review and evaluation process (SREP) for the year 2020.  The new Guidelines identify how flexibility and pragmatism could be exercised in relation to the SREP framework in the context of this pandemic.

The European Banking Authority (EBA) launched today a consultation on draft regulatory technical standards (RTS) specifying how institutions should determine exposures arising from derivative and credit derivative contracts not entered directly into with a client but whose underlying debt or equity instrument was issued by a client. These draft RTS will ensure appropriate levels of consistency through different pieces of the regulatory framework for the calculation of exposures for large exposure purposes. The consultation runs until 23 October 2020.

The European Banking Authority (EBA) published today its Report on benchmarking of remuneration practices in EU banks for the financial years 2017 and 2018 and high earners data for 2018. The data shows that in 2018, the number of high earners in EU banks receiving a remuneration of more than EUR 1 million increased slightly by 1.58%, from 4 861 in 2017 to 4 938 in 2018. Over a longer period of time, the number of high earners increased significantly (+44.09%), from 3 427 in 2010 to 4 938 in 2018. The average ratio of variable to fixed remuneration for all high earners in the EU/EEA increased over time from 127% in 2014 to 139% in 2018. The observed remuneration levels of high earners reached up to EUR 39 million.

As part of its drive for more proportionate regulatory and supervisory framework, the European Banking Authority (EBA) is looking for ways to optimise supervisory reporting requirements and reduce reporting costs for institutions, especially smaller ones. To fulfil this mandate the EBA launched a questionnaire addressed to all European banks and a call for case studies to collect evidence on reporting costs as well as industry views on ways to reduce such costs and make the supervisory reporting more efficient. The EBA expects the responses to the questionnaires and case studies in October 2020.

The European Banking Authority (EBA) launched today a consultation detailing on the three conditions institutions should comply with when they decide to make use of the alternative treatment with regard to tri-party repurchase agreements facilitated by a tri-party agent. The consultation runs until 22 October 2020.

The European Banking Authority (EBA) launched a consultation on draft Regulatory Technical Standards (RTS) on default probabilities (PDs) and losses given default (LGDs) for default risk model for institutions using the new Internal Model Approach (IMA) under the Fundamental Review of the Trading Book (FRTB). These draft RTS are part of the deliverables included in the roadmap for the new market and counterparty credit risk approaches published on 27 June 2019. The consultation runs until 22 October 2020.

The European Banking Authority (EBA) published today a list of the public guarantee schemes issued in response to the COVID-19 pandemic. This publication, which complements the information included in the EBA Report on the implementation of selected COVID-19 policies, aims at providing transparency to the public on the existence of public guarantees, as well as responding to the European Commission’s request for a stock-take of such guarantees.

The European Supervisory Authorities (ESAs) have informed the European Commission of the outcome of the review conducted by the ESAs of the key information document (KID) for packaged retail and insurance-based investment products (PRIIPs). This follows the ESAs’ consultation paper published on 16 October 2019 on draft regulatory technical standards (RTS) to amend the technical rules on the presentation, content, review and revision of KID (Delegated Regulation (EU) 2017/653).

The European Banking Authority (EBA) published today its reponse to the European Commission’s consultation on a Renewed Sustainable Finance Strategy. The EBA is committed to ensuring the resilience and long-term sustainability of banking sector activities and welcomes the Commission’s efforts to support the transition towards a more sustainable, and resilient EU economy. The EBA looks forward to the adoption of the Commission’s Renewed Sustainable Finance Strategy and stands ready to contribute to its objectives set out in the European Green Deal.

The European Banking Authority (EBA) updated today the 2019 list of closely correlated currencies that was originally published in December 2013. The list is part of the implementing technical standards (ITS) that were drafted for the purposes of calculating the capital requirements for foreign-exchange risk according to the standardised rules. The list was updated according to the procedure and methodology laid down in the ITS and submitted to the European Commission for endorsement.

The European Banking Authority (EBA) published today a new release of the reporting framework 2.10, providing the technical tools and specifications for the implementation of EBA reporting requirements. The package includes the validation rules, the Data Point Model (DPM) dictionary and XBRL taxonomies.

The European Banking Authority (EBA) published today a statement on resolution planning in light of the COVID-19 pandemic. With this statement, the EBA intends to reiterate the importance of resolution planning in times of uncertainty to ensure that resolution stands as a credible option in times of stress. In addition, the EBA highlights the importance for resolution authorities to continue promoting institutions’ efforts to enhance their capabilities and increase their resolvability.

After a plenary vote in the European Parliament on 8 July 2020, François-Louis Michaud was confirmed as the new Executive Director of the European Banking Authority (EBA). François-Louis Michaud, who will serve a five-year renewable term, was selected by the EBA Board of Supervisors from a shortlist of candidates compiled by the EBA Selection Committee.

The EBA Banking Stakeholder Group (BSG) held today its first meeting in its new composition. The renewed BSG, the fifth one since the establishment of the European Banking Authority (EBA) in 2011, was agreed by the EBA Board of Supervisors at its meeting on 17 June 2020. The 30 selected members, who started their four-year mandate on 1 July 2020, will provide advice to the EBA on its policy work and must be consulted on technical standards, guidelines and recommendations.

The European Banking Authority (EBA) published today a Report, which provides clarifications on the application of the prudential framework that have been raised as a consequence of the COVID-19 pandemics. This Report is part of the EBA’s wider monitoring of the implementation of COVID-19 policies as well as of the application of existing policies under these exceptional circumstances.

The European Banking Authority (EBA) published today its final Guidelines on the treatment of structural FX positions. The aim of these Guidelines is to establish a harmonised framework for the application of the structural FX waiver, which will allow its consistent application going forward. The Guidelines will be applicable from 1 January 2022, one year later than originally envisaged to ensure that institutions have time to prepare for the introduction of the requirements.

The European Banking Authority (EBA) published today its response to the European Commission’s consultation on a new Digital Finance Strategy for Europe. The EBA is committed to securing technology neutrality in regulatory and supervisory approaches and strongly supports the Commission’s initiative towards a new Digital Finance Strategy. The EBA identifies in its response a wide range of possible EU-level actions to support the scaling of innovative technology cross-border whilst ensuring high standards of consumer protection and financial sector resilience. The EBA looks forward to the publication of the Digital Finance Strategy and stands ready to play its role in optimising the EU Single Market for digital finance.

The European Banking Authority (EBA) published today a discussion paper exploring ways on how to enhance the Bank Recovery and Resolution Directive (BRRD) framework on early intervention measures. The objective is to further enhance 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).

The European Banking Authority (EBA) published today new Implementing Technical Standards (ITS) on public disclosures by institutions and revised final draft ITS on supervisory reporting that implements changes introduced in the revised Capital Requirements Regulation (CRR2) and the Prudential Backstop Regulation. The publication of the two ITS is a major step forward towards promoting market discipline through enhanced and comparable public disclosures for stakeholders, and towards keeping the reporting requirements in line with the evolving needs for Supervisory Authorities' risk assessments.