The Joint Committee of the three European Supervisory Authorities (ESAs) – EBA, EIOPA and ESMA – has launched a Discussion Paper on automation in financial advice, aimed at assessing what, if any, action is required to harness the potential benefits of this innovation and mitigate its risks.
The European Banking Authority (EBA) released today a report reviewing the publication by competent authorities, on an anonymous basis, of administrative penalties imposed for breach of the national provisions transposing the Capital Requirements Directive (CRD) or of the Capital Requirements Regulation (CRR). The report also includes links to the websites of competent authorities where such sanctions are published and makes recommendations to enhance harmonisation in terms of disclosure and facilitate access to information. The EBA also published a list of links to each competent authority’s publication of such administrative penalties, which will be updated on a regular basis.
The Joint Committee of the European Supervisory Authorities (ESAs) – EBA, EIOPA and ESMA –published today the 2015 List of Identified Financial Conglomerates.
The European Banking Authority (EBA) released today its assessment of the annual Pillar 3 reports of a sample of European banks, which relate to the 2014 financial year. This is the first report since the entry into force of the Capital Requirements Regulation (CRR) that assesses banks’ compliance against the disclosure requirements laid down in CRR.
The transparency exercise data published by the European Banking Authority (EBA) on 24 November 2015 contained information regarding the ‘fully loaded’ CET1 ratio’ for all EU banks in the sample. This ratio, which was published for information only, is calculated using existing supervisory reporting data. The EBA has been alerted that there was an error in the published ‘fully loaded CET1 ratio’ for some banks due to double counting of excess deductions from AT1 capital. The ‘fully loaded CET1 ratio’ for all individual banks published by the EBA has, therefore, been removed from the interactive tool on the website. The aggregate figures in the EBA’s report will be updated accordingly.
The European Banking Authority (EBA) will mark its first five years of activities with a conference on the achievements and remaining challenges in strengthening the banking sector of the European Union (EU) and supporting the effective functioning of the Single Market. The EBA 5th anniversary conference will take place on 5 February 2016 and will be hosted by the Lord Mayor of the City of London in the historical setting of the “Guildhall”. Discussions will benefit from the participation of high level policy makers, industry representatives, academics and other stakeholders from across the EU and beyond.
The European Banking Authority (EBA) launched today a public consultation on draft Regulatory Technical Standards (RTS) related to liquidity requirements for cross-border intragroup financial support under stress conditions. The purpose of these RTS is to specify the additional objective criteria listed in the Delegated Act (Commission Delegated Regulation EU No 2015/61 of 10 October 2014), for the application of a preferential treatment in the calculation of the liquidity coverage requirement (LCR) for cross-border intragroup liquidity flows. The consultation runs until 13 January 2016.
The European Banking Authority (EBA) launched today a public consultation on Guidelines on the treatment of credit value adjustment (CVA) risk under the supervisory review and evaluation process (SREP), as well as a data collection exercise for the Quantitative Impact Study (QIS) to calibrate the threshold values. These Guidelines are based on a policy recommendation contained in the EBA’s CVA report and aim to provide a common European approach to the assessment of CVA risk under SREP, including adequacy of capital to cover for this risk, and the determination of any potential additional own funds requirements. The public consultation runs until 12 February 2016 and the data collection exercise should be completed on 28 January 2016.
The European Banking Authority (EBA) published today a report benchmarking the institutions’ remuneration practices concerning the use of the possibility to increase the maximum ratio between variable and fixed remuneration up to 200%. The Capital Requirements Directive (CRDIV) limits the aforementioned ratio to 100%, unless it is increased following the shareholders’ approval. The report also shows that nearly all Member States have allowed for the possibility to increase the ratio between the two remuneration components to 200% but only institutions in 15 Member States have actually made use of this possibility.
The European Banking Authority (EBA) published today a follow up report on the actions taken following the publication of its Opinion on the use of allowances, in October 2014, where Competent Authorities were asked to use all necessary supervisory measures to ensure that by 31 December 2014 those institutions using the so called ‘role-based allowances’ adjust their remuneration policies in line with the criteria set out in the Opinion. The follow-up report concluded that Competent Authorities have taken measures in this respect and, where necessary, asked institutions to implement the necessary changes. However, such measures will, in most cases, only be effective for the remuneration awarded for the performance year 2015, while only in few cases were changes to institutions’ remuneration policies and practices already made for the performance year 2014.
The Joint Committee of the European Supervisory Authorities (ESAs) – EBA, EIOPA and ESMA – has launched its Joint Consultation Paper on PRIIPs Key Information Documents to gather stakeholder views on proposed rules on the content and presentation of the Key Information Documents (KID).
The European Banking Authority (EBA) launched today a public consultation on its draft Implementing Technical Standards (ITS) on the procedures, forms and templates that competent authorities in the EU should use when consulting each other on qualifying holdings. The objective of these ITS is to streamline information exchanges and ensure effective communications between concerned authorities, both on a cross-border basis and across sectors. This public consultation runs until 10 February 2016.
The European Banking Authority (EBA) launched today a public consultation on its draft Guidelines on stress tests of Deposit Guarantee Schemes (DGSs). The proposed Guidelines will provide the methodological principles to assess whether the operational and funding capabilities of DGSs are sufficient to ensure deposit protection in the event of a bank failure. In line with the Deposit Guarantee Schemes Directive (DGSD), these Guidelines will promote the quality and the consistency of these stress tests. The resulting data will also facilitate future peer reviews by the EBA, contributing to a safe and sound EU framework for the benefit of depositors and financial stability. The consultation runs until 8 February 2016.
The European Banking Authority (EBA) published today its 2016 EU-wide stress test draft methodology for discussion. The stress test will be formally launched in the first quarter of 2016 and will cover over 70% of the EU banking sector and will assess EU banks’ ability to meet relevant supervisory capital ratios during an adverse economic shock. The results will inform the 2016 Supervisory Review and Evaluation Process (SREP), acting as a challenge to banks’ forward looking capital plans. The exercise will also provide market participants with a consistent basis to compare and assess the resilience of EU banks. The list of institutions participating in the exercise is also released today.
The EBA published today the final set of templates and instructions that institutions participating in the Quantitative Impact Study (QIS) on the definition of default should complete and submit to their respective Competent Authorities (CAs) by 10 December 2015 at the latest.
In its risk dashboard for the EU banking sector published today, the European Banking Authority (EBA) gives an overview of the health of EU banks for the second quarter of 2015. While capital ratios have increased, the quality of loan portfolios remains weak, but EU banks profitability has increased compared to 2014. The EBA risk dashboard summarises the main risks and vulnerabilities in the banking sector on the basis of the evolution of a set of key risk indicators across the EU.
The European Banking Authority (EBA) launched today a consultation on draft Guidelines on how confidential information collected under the Bank Recovery and Resolution Directive (BRRD) should be disclosed in summary or collective form without identifying individual institutions or relevant entities. The aim of the Guidelines is to promote symmetric information and convergence of supervisory and resolution practices regarding the disclosure of confidential information. The consultation runs until 27 January 2016.
The European Banking Authority (EBA) published today its eighth report of the Basel III monitoring exercise on the European banking system. This exercise, run in parallel with the one conducted by the Basel Committee on Banking Supervision (BCBS) at a global level, allows the gathering of aggregate results on capital ratios and leverage ratio (LR), as well as on liquidity ratios - liquidity coverage ratio (LCR) and net stable funding ratio (NSFR) - for banks in the European Union (EU).
The European Banking Authority (EBA) signed a Memorandum of Cooperation with supervisory authorities in six South-Eastern European (SEE) countries, establishing a framework for cooperation and information exchange.
The European Banking Authority (EBA) published today an updated list of capital instruments that Competent Supervisory Authorities (CAs) across the European Union (EU) have classified as Common Equity Tier 1 (CET1). Since the publication of the first update of the list in December 2014, some new CET1 instruments have been assessed and evaluated as compliant with the Capital Requirements Regulation (CRR). This list is compiled in accordance with Article 26 of the CRR and is updated on a regular basis.