We work to create consistent and efficient supervisory practices throughout the EU and ensure that Union laws are uniformly applied. To do this, we issue guidelines and recommendations. According to Article 16 of the EBA Founding Regulation, both competent authorities and financial institutions are expected to make every effort to comply with the EBA guidelines and recommendations.
Once our Board of Supervisors approves such regulatory products, we publish the English versions on our website. Any related reports, such as background information, feedback from public consultations, views from the EBA Banking Stakeholder Group (BSG), and cost-benefit analyses, are also published when relevant.
These guidelines and recommendations are formally issued only once published in all EU official languages on the EBA website. That is when the so-called ‘comply or explain’ period of two months starts. Competent authorities must inform the EBA whether they comply or intend to comply with the guidelines or recommendations. If a competent authority does not comply or does not intend to comply, it must inform the EBA of this and state reasons for non-compliance. If specified in the guidelines or recommendations, financial institutions might also have to report whether or not they comply.
After the compliance notification period, we publish a table that summarises the compliance status and lists the feedback received from each competent authority.