The European Banking Authority (EBA) launched today three consultations on draft technical standards (ITS and RTS) related to liquidity requirements. In particular, the EBA will be consulting on 1) draft ITS on currencies for which the justified demand for liquid assets exceeds their availability; 2) draft RTS on derogations for eligible currencies; and 3) draft ITS listing the currencies with an extremely narrow definition of central bank eligibility. All three consultations will run until 22 December 2013.
The draft implementing technical standard (ITS) on currencies for which the justified demand for liquid assets exceeds their availability aim at drawing a list of currencies featuring constraints on the availability of liquid assets. The list has been compiled on the basis of data gathered by Member States. In particular, the data collection has been completed for two currencies: the Norwegian krone (NOK) and the Danish krone (DKK). This list of currencies with constraints will be revised once a final definition of liquid assets is available at EU level.
The draft regulatory technical standards (RTS) on derogations for eligible currencies aim at specifying the derogations that could be applied to those currencies facing constraints on the availability of liquid assets. These standards aim to address the inherent difficulties that institutions would face in meeting their liquidity coverage requirement even in spite of a sound liquidity management. Although the RTS try to discourage, to the extent possible, the use of derogations, these may have to be applied in those circumstances where an institution can prove that, despite all mitigating actions undertaken, the need for liquid assets remains. Institutions willing to apply such derogations will, amongst other conditions, have to notify competent authorities and to provide detailed information 30 days prior to the initial use of the derogation.
The draft implementing technical standards (ITS) on currencies with an extremely narrow definition of central bank eligibility aim at drawing a list of currencies in which only central government debt or debt issued by the central bank is eligible as collateral for standard liquidity operations at the central bank. Based on this definition, as well as on the information provided by Member States, only the Bulgarian leva appears to have extremely narrow central bank eligibility.
Comments can be sent to the EBA by clicking on the "send your comments" button on the consultation page of each of the three consultations. Please note that the deadline for the submission of comments is 22 December 2013.
All contributions received will be published following the close of the consultation, unless requested otherwise.
A public hearing for the three consultations will take place at the EBA premises on 19 November from 14:00 to 17:00 UK time.
The proposed draft ITS and RTS have been developed on the basis of Regulation 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms.
The EBA is expected to submit these draft ITS and RTS by 31 March 2014.
The European Banking Authority (EBA) launched today three consultations on draft technical standards (ITS and RTS) related to liquidity requirements. In particular, the EBA will be consulting on 1) draft ITS on currencies for which the justified demand for liquid assets exceeds their availability; 2) draft RTS on derogations for eligible currencies; and 3) draft ITS listing the currencies with an extremely narrow definition of central bank eligibility. All three consultations will run until 22 December 2013.
The draft implementing technical standard (ITS) on currencies for which the justified demand for liquid assets exceeds their availability aim at drawing a list of currencies featuring constraints on the availability of liquid assets. The list has been compiled on the basis of data gathered by Member States. In particular, the data collection has been completed for two currencies: the Norwegian krone (NOK) and the Danish krone (DKK). This list of currencies with constraints will be revised once a final definition of liquid assets is available at EU level.
The draft regulatory technical standards (RTS) on derogations for eligible currencies aim at specifying the derogations that could be applied to those currencies facing constraints on the availability of liquid assets. These standards aim to address the inherent difficulties that institutions would face in meeting their liquidity coverage requirement even in spite of a sound liquidity management. Although the RTS try to discourage, to the extent possible, the use of derogations, these may have to be applied in those circumstances where an institution can prove that, despite all mitigating actions undertaken, the need for liquid assets remains. Institutions willing to apply such derogations will, amongst other conditions, have to notify competent authorities and to provide detailed information 30 days prior to the initial use of the derogation.
The draft implementing technical standards (ITS) on currencies with an extremely narrow definition of central bank eligibility aim at drawing a list of currencies in which only central government debt or debt issued by the central bank is eligible as collateral for standard liquidity operations at the central bank. Based on this definition, as well as on the information provided by Member States, only the Bulgarian leva appears to have extremely narrow central bank eligibility.
Comments can be sent to the EBA by clicking on the "send your comments" button on the consultation page of each of the three consultations. Please note that the deadline for the submission of comments is 22 December 2013.
All contributions received will be published following the close of the consultation, unless requested otherwise.
A public hearing for the three consultations will take place at the EBA premises on 19 November from 14:00 to 17:00 UK time.
The proposed draft ITS and RTS have been developed on the basis of Regulation 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms.
The EBA is expected to submit these draft ITS and RTS by 31 March 2014.
The European Banking Authority (EBA) launched today a consultation on draft Regulatory Technical Standards (RTS) setting out criteria for identifying the geographical location of all relevant credit exposures, namely credit risk, trading book and securitisation exposures. These RTS will be part of the Single Rulebook aimed at enhancing regulatory harmonisation in the banking sector in the European Union (EU). The consultation runs until 1 November 2013.
Under the capital requirements rules in the EU, institutions at Member State level are required to hold countercyclical buffers (CCB) to protect the banking system against potential losses when excess credit growth is associated with an increase in system wide risks. The size of countercyclical buffers will depend on the countercyclical buffer rates set by national authorities and the portfolio distribution of the institutions. In particular, the buffers to be held by individual institutions with cross-border activities will depend on the geographical location of their credit portfolios and not on the location of the institutions that hold these exposures.
The geographical location is to be determined for certain credit risk, trading book and securitisation exposures, as set out in Article 140 of the Capital Requirements Directive (CRD).
The consultation paper outlines the principles behind the identification of the geographical location of these exposures, on the basis of which the institution-specific countercyclical buffer rates shall be determined. In particular, the consultation paper proposes to use the location of the obligor or debtor as a general principle for the identification of the geographical location.
In order to ease the implementation of these standards for banks with limited cross-border activities and trading book activities, proportionality measures have been introduced in order to reduce the operational burden on these institutions.
Consultation process
Comments can be sent to the EBA by clicking on the "send your comments" button on the consultation page. Please note that the deadline for the submission of comments is 1 November 2013.
All contributions received will be published following the close of the consultation, unless requested otherwise.
A public hearing will take place at the EBA premises on 27 September 2013 from 12.00 to 14.00 hours UK time.
Legal basis
The proposed draft RTS have been developed on the basis of Directive 2013/36/EU of the European Parliament and of the council (CRD). The EBA is expected to submit these draft RTS to the European Commission for endorsement by 1 January 2014.
The European Banking Authority (EBA) launched today a consultation on draft Guidelines on retail deposits subject to different outflows aimed at providing greater harmonisation in the reporting of retail deposits in the EU banking sector. The consultation runs until 1 October 2013.
The proposed Guidelines, which are addressed to institutions and competent Authorities, set out the criteria for identifying retail deposits subject to different outflows during the next 30 days for the purpose of liquidity reporting under the Capital Requirements Regulation (CRR).
With the view of taking into account the behaviour of local depositors, in particular under stress conditions, these Guidelines propose to allocate retail deposits subject to different outflows to three different categories, depending on their underlying risk.
The data collected on retail deposits subject to different outflows will be able to inform the European Commission’s calibration of the liquidity coverage requirement.
Comments can be sent to the EBA by clicking on the "send your comments" button on the consultation page. Please note that the deadline for the submission of comments is 1 October 2013.
All contributions received will be published following the close of the consultation, unless requested otherwise.
A public hearing will take place at the EBA premises on 4 September 2013 from 15:00 to 18:00 hours UK time.
The proposed draft Guidelines have been developed on the basis of Regulation 575/2013 of 26 June 2013.
01 August 2013
The European Banking Authority (EBA) launched today a consultation on draft Regulatory Technical Standards (RTS) assessing the minimum materiality needed to implement internal approaches for calculating own fund requirements related to risks associated with debts instruments in the trading book. These RTS will be part of the Single rulebook aimed at enhancing regulatory harmonisation in the EU banking sector. The consultation runs until 15 October 2013.
In particular, these draft RTS set out criteria for assessing when the specific risk of debt instruments in the trading book is ‘material’ enough to trigger an evaluation by the competent Authority.
After this evaluation, competent Authorities will be able to determine whether they shall encourage banks to enhance their internal assessment capacity and increase the use of internal models for capital calculations.
Comments can be sent to the EBA by clicking on the "send your comments" button on the consultation page. Please note that the deadline for the submission of comments is 15 October 2013.
All contributions received will be published following the close of the consultation, unless requested otherwise.
The proposed draft RTS have been developed on the basis of Regulation 575/2013 of 26 June 2013. The EBA is expected to submit these draft RTS to the European Commission for endorsement by 1 January 2014.
The European Banking Authority (EBA) launches today a consultation on draft Regulatory Technical Standards (RTS) setting out the classes of instruments which can be used for the purposes of variable remuneration. These RTS will be part of the Single rulebook aimed at enhancing regulatory harmonisation in the EU. The consultation runs until 29 October 2013.
These draft RTS set out requirements to ensure that institutions’ credit quality is reflected in the instruments they issue and that they are appropriate for the purposes of variable remuneration. In particular, these draft RTS introduce requirements for additional Tier 1, Tier 2 and other instruments and they define the write-down and conversion mechanisms for Tier 2 and other instruments.
In order to ensure that the classes of instruments are appropriate for the purposes of variable remuneration, they should take account of the institutions’ long-term interests and incentivise prudent risk-taking of staff. In this respect, these instruments must have a sufficient maturity to cater for deferral and retention arrangements.
Furthermore, to ensure that these instruments are issued at market conditions, these draft RTS require that a significant portion of at least 60% be issued publicly or privately to other investors. Alternatively, a cap must be set on the distributions paid out.
Comments can be sent to the EBA by clicking on the "Send your comments" button on the consultation page. Please note that the deadline for the submission of comments is 29 October 2013.
All contributions received will be published following the close of the consultation, unless requested otherwise.
A public hearing will take place at the EBA premises on 3 October 2013 from 10:00 to 12:30 hours UK time.
The proposed draft RTS have been developed on the basis of Directive 36/2013 of 26 June 2013. The EBA expects to finalise the draft RTS at the beginning of 2014 and to submit them to the European Commission for endorsement by 31 March 2014.
The European Banking Authority (EBA) launches today a consultation on draft Regulatory Technical Standards (RTS) on close correspondence between the fair value of an institution’s covered bonds and the fair value of its assets. These RTS will be part of the Single rulebook aimed at enhancing regulatory harmonisation in the EU. The consultation runs until 1 September 2013.
The proposed draft RTS relate to prudential filters applied to own funds. In particular, they specify the criteria for defining the close correspondence between the fair value of the covered bonds and the fair value of the assets for the purpose of calculating capital requirements.
Comments can be sent to the EBA by clicking on the "send your comments" button on the consultation page. Please note that the deadline for the submission of comments is 1 September 2013.
All contributions received will be published following the close of the consultation, unless requested otherwise.
A public hearing will take place at the EBA premises on 6 August 2013 from 10:00 to 11:00 hours UK time.
The proposed draft RTS have been developed on the basis of Regulation 575/2013 of 26 June 2013. The EBA is expected to submit these draft RTS to the European Commission for endorsement by 30 September 2013. Before submission to the Commission, the EBA will review the draft RTS to include the feedback arising from the consultation process.
The European Banking Authority (EBA) launches today a consultation on draft Regulatory Technical Standards (RTS) on own funds requirements for investment firms based on fixed overheads. These RTS will be part of the Single Rulebook aimed at enhancing regulatory harmonisation in the banking sector in Europe. The consultation runs until 30 September 2013.
The purpose of these RTS is to harmonise the calculation of capital requirements for investment firms with limited authorisation to provide investment services, as well as to harmonise the conditions under which competent authorities can make adjustments to such requirements. To this end, the draft RTS also provide a definition of fixed overheads.
For the calculation of the fixed overheads, these draft RTS propose the so-called ‘subtractive’ approach whereby variable cost items are deducted from the total expenses as calculated according to the applicable accounting framework. They propose to also include the use of tied agents, since a tied agent exposes an investment firm to the same risk it is exposed to when it carries out business on its own.
Comments to this consultation can be sent to the EBA by clicking on the "send your comments" button on the consultation page. Please note that the deadline for the submission of comments is 30 September 2013.
All contributions received will be published following the close of the consultation, unless requested otherwise.
A public hearing will take place at the EBA premises on 5 September 2013 from 13:00 to 15:00 hours UK time.
The proposed draft RTS have been developed on the basis of Regulation (EU) 575/2013 (Capital Requirements Regulation – CRR) in consultation with the European Securities and Markets Authority (ESMA). ESMA will be consulted again before the finalisation of these draft RTS so as to ensure a consistent framework for investment firms. The EBA is expected to submit these draft RTS to the European Commission for endorsement by 1 March 2014.
The European Banking Authority (EBA) launches today a public consultation on draft Implementing Technical Standards (ITS) related to how competent authorities collaborate and exchange information regarding institutions operating through branches and regarding the freedom of provision of services in one or more EU Member States other than that in which head offices are situated. The consultation runs until 8 October 2013.
The draft Implementing Technical Standards (ITS) outline operational procedures and set out standard forms and templates for information sharing requirements. The quantity and frequency of information to be provided is based on the proportionality principle, depending on whether a branch is deemed as significant.
The proposed draft Technical Standards focus on exchange of supervisory information between supervisory authorities, with the aim of ensuring a structured and consistent process in the provision of and access to key supervisory information across Member States. The draft Standards are therefore not directly addressed to supervised institutions nor they introduce any direct reporting requirements.
The draft ITS are expected to be submitted to the European Commission by 1 January 2014.
Comments can be submitted by clicking on the "send your comments" button on the consultation page. Please note that the deadline for the submission of comments is 8 October 2013.
All contributions received will be published following the close of the consultation, unless requested otherwise.
A public hearing on these Standards will take place at the EBA premises on 4 September 2013 from 10:00 to 13:00 hours UK time.