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EBA 2016 Work Programme
The work programme package describes and summarises the main objectives, priorities and deliverables of the EBA in the forthcoming years. It is based on the tasks specified in the Regulation and in the relevant EU banking sector legislation.
EBA 2016 Work Programme reprioritisation exercise
In September 2015, the EBA sent to the EU institutions its proposed 2016 Work Programme. This document, which was also published on the EBA website, describes the main objectives and deliverables of the EBA in the forthcoming year and is based on the requested budget sought from the EU Institutions, which was not known at that time.
In November 2015, the EU Parliament approved the EBA 2016 budget, including its resources. The resulting 2016 EBA budget represents a nominal decrease by 11.5% compared to the draft 2016 budget and a reduction of 23 sought FTE staff.
Taking into account the budget constraints and its available resources, the EBA has carried out a reprioritisation exercise for its 2016 Work Programme focussing its efforts on the strategic areas for its future development and, therefore, rethinking its key priorities.
The EBA has decided to postpone some deliverables to 2017, namely its work on credit risk mitigation, the Guidelines on intraday liquidity risk, the RTS on consolidated methods and the RTS on central contact points under the revised Payments Service Directive.
In addition, the EBA will have to delay the integration of some pieces of legislation - such as the European Market Infrastructure Regulation, the Central Securities Depositories Regulation, the Anti-Money-Laundering Regulation - and its related technical standards into the Q&As tool and will need to reduce its frequency of its remuneration benchmarking and high earners data reports.
Finally, there are some areas where the EBA will not be able to commit at the desired level and where its engagement will be lower. These are mainly related to resolution planning and colleges, where the number of closely monitored banks covered in 2016 will drop from 45 to 32 and the number of closely monitored supervisory colleges will decrease from 36 in 2015 to approximately under 30. Consequently, the individual engagement with supervisory colleges will be reduced, and similarly, thematic feedback instead of individual feedback will be provided on both recovery planning and convergence. Work on benchmarking of Pillar 2 approaches will be reduced and assessments of equivalence in third countries halted.
The key priorities for 2016 are:
(i) Promoting a common approach to the calibration of the leverage ratio, enhancing the framework for credit risk and reviewing the impact of banking regulation, including the promotion of the capital markets union development;
(ii) Promoting convergence in supervisory approaches to ensure comparability and consistency in supervisory outcomes across the single market, including Pillar 2 and banks' internal models. At the same time the repair of EU banks will continue with a focus on addressing Europe's high levels of non-performing loans and assessing the resilience of banks in the 2016 EU wide stress test;
(iii) Concluding the new crisis management framework (which includes the Bank Recovery Resolution Directive, the Deposit Guarantee Scheme Directive and the Single Resolution Mechanism regulation), in particular finalising requirements for loss absorbing capacity and ensuring its consistent implementation across the EU Member States; and
(iv) Enhancing the framework for the protection of consumers and the monitoring of financial innovation and preparing for mandates under the revised Payments Service Directive.