The access to the market of regulated financial services is a critical 'gate keeping function' to ensure that only entities that are able to assure the safety and soundness of the business and the integrity of the market may provide such activities. For this reason, access to the market is subject to licensing by the competent authority. It includes authorisation, passporting notification, assessment of qualifying holdings and monitoring of regulatory perimeter also in light […]
Issuers of asset-referenced tokens (ARTs) and electronic money tokens (EMTs) are required to hold the relevant authorisation to carry out activities in the EU. The relevant requirements are set out in the Markets in Crypto-assets Regulation (MiCAR) and are complemented by technical standards and guidelines developed by the EBA.
DocumentsStatement on the application of MiCAR to ARTs and EMTs | Priorities for the supervision of for ART and EMT issuersStatement on timely preparatory […]
The Deposit Guarantee Scheme Directive (DGSD) aims to facilitate access to the internal market through the freedom of establishment and the freedom to provide financial services while increasing the stability of the banking system and the protection of depositors. To fulfil its role of monitoring the implementation of the DGSD, national authorities must notify the EBA of any relevant information as well as of any actions taken. The EBA publishes the non-confidential elements of these […]
Sustainable finance aims at integrating Environmental, Social or Governance (ESG) criteria into financial services, and at supporting sustainable economic growth. It also aims at increasing financial actors' awareness and transparency about the need to mitigate ESG risks via an appropriate management, considering in particular the longer-term nature of such risks and the uncertainty on their valuation and pricing.In March 2018, the European Commission published its Action plan on Financing […]
The EBA has a strong interest in promoting sound and high quality accounting and disclosure standards for the banking and financial industry, as well as transparent and comparable financial statements that strengthen market discipline. The EBA also advocates for sound audit practices that contribute to high quality corporate reporting and to useful and understandable auditor reporting. The developments in the area of international accounting and auditing standard setting are, therefore, […]
The aim of the Pillar 2 processes is to enhance the link between an institution's risk profile, its risk management and risk mitigation systems, and its capital planning. Pillar 2 can be divided into two major components: (i) aimed at institutions, where those are expected to establish sound, effective and complete strategies and processes to assess and maintain, on an ongoing basis, the amounts, types and distribution of internal capital commensurate to their risk profiles (ICAAP), as well as […]
Operational resilience is defined as the ability of an institution to deliver critical operations through disruption. This builds on the prudential operational risk framework, encompassing internal governance, outsourcing, business continuity and relevant risk management-related aspects. Such ability enables an institution to identify and protect itself from threats and potential failures, respond and adapt to, as well as recover and learn from disruptive events in order to minimise their […]
EU legislation requires that institutions adequately manage and mitigate operational risk, which is defined as the risk of losses stemming from inadequate or failed internal processes, people and systems or from external events. Operational risk includes legal risks but excludes reputational risk and is embedded in all banking products and activities. It has always existed in banking, and non banking, organizations but it has acquired a greater relevance given the increased complexity and […]
The EBA identifies and addresses harm that arises for EU consumers as a result of their interactions with financial institutions. It does so for all retail banking products in the EBA’s scope of action, which are mortgage credit, consumer credit, payment accounts, payment services, electronic money, and deposits, including structured deposits. linksEBA's information for consumerESMA's Investor cornerEIOPA's Consumer ProtectionJoint Consultation on amendments to the PRIIPs KID
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The EBA has a statutory duty to monitor and assess market developments, including financial innovation, to achieve a coordinated approach and to provide advice to the co-legislators where needed. In 2024-2027, in addition to the EBA’s strategic objective of implementing DORA and MiCAR and commencing oversight and supervision responsibilities under those measures, the EBA has a strategic objective to increase focus on innovation and consumers. In line with this mandate, the EBA has […]
Internal approaches used for the calculation of own funds requirements for market and credit risk are subject to an annual assessment by competent authorities. The EBA assists competent authorities in their assessment by providing a report, which includes benchmarks that help identify any material differences in RWA outcomes. The legal basis for the benchmarking exercises is laid down in the Capital Requirements Directive (CRD), in particular Article 78, as well as in the following technical […]
This page presents the policy work undertaken by the EBA to promote transparency and enhanced public disclosures by financial institutions in order to reinforce market discipline.Following the recent updates to the regulatory frameworks for credit institutions and investment firms, and the publication in 2018 of the European Commission’s action plan on sustainable finance, the EBA is implementing a new policy strategy on institutions’ Pillar 3 disclosures that seeks to increase efficiency of […]
This page provides on overview of supervisory reporting requirements. With the entry into force of the CRD IV/CRR framework new reporting requirements become applicable which are defined by the EBA via technical standards or guidelines.A pathway for a more efficient and proportionate supervisory reporting.
DocumentsEBA Risk Reduction Package RoadmapsDecision on institutions ESG data ad-hoc collectionLinksOverview of IT solutions under CRR reporting | IT […]
ECAIs play a significant role in the standardised approach and securitisation framework of prudential regulation through the mapping of each of their credit assessments to the corresponding risk weights. The EBA, together with ESMA and EIOPA, has been assigned the task of providing an objective mapping across all ECAIs in order to promote a consistent implementation of CRR across the EU. Importantly, the EBA will also contribute to the implementation of CRR2/CRDV and CRA 3 Regulation in […]
The main goal of equivalence is to manage effectively and facilitate cross-border activity of financial market players in a sound prudential environment, as third countries adhere and adopt the same high standards of prudential rules that are in force within the EU. To this extent, the recognition of equivalence can provide mutual benefits for both the EU and third country financial markets and institutions. The EBA carries out two types of equivalence assessments: equivalence of the […]
At the EBA our role is to lead, coordinate and monitor the fight against money laundering (ML) and terrorist financing (TF) across the European Union.Since financial crime respects no borders, a weakness in one area opens up the entire EU single market to abuse. A common approach is therefore key to effectively fight ML/TF in the EU. At the EBA we have led this work by issuing EU-wide AML/CFT policies and standards, building supervisory capacity, monitoring risks to the integrity of the […]
