EBA launches call for papers for its 2021 Policy Research Workshop

17 March 2021

The European Banking Authority (EBA) launched today a call for research papers in view of its 2021 Policy Research Workshop taking place on 16-17 November 2021 on the topic "The New Normal in the Banking Sector – Reshaping the Insights". The submission deadline is 9 July 2021.

The workshop aims at bringing together economists and researchers from supervisory authorities and central banks, as well as leading academics, to discuss how the future of the banking sector will look like in the new normal that is emerging from the COVID-19 pandemic. One of the topics under discussion will be the ambitious climate and energy targets as part of the European Green Deal with a specific action plan to support transition to a more sustainable economy.

In preparation for the workshop, the EBA invites the submission of policy-oriented, preferably empirical, research papers on the new normal in the banking sector. Researchers from supervisory authorities and central banks are particularly encouraged to submit their papers for presentation.

Interested parties can download the detailed call for papers which includes specific proposed topics for the papers, composition of the programme committee and contact details for the submission of papers. The submission deadline is 9 July 2021.

Contributors will be notified by early September 2021.

EBA consults on technical elements for the implementation of the alternative standardised approach for market risk as part of its FRTB roadmap

12 March 2021

The European Banking Authority (EBA) launched today two public consultations on its draft Regulatory Technical Standards (RTS) on gross jump-to-default (JTD) amounts and its draft RTS on residual risk add-on (RRAO). These draft RTS specify i) how gross JTD amounts are to be determined for the purposes of calculating the default risk charge for non-securitisation instruments, and ii) how to identify instruments exposed to residual risks for the purposes of the residual risk add on (RRAO) - under the alternative standardised approach for market risk. These draft RTS are part of the phase 3 deliverables of the EBA roadmap for the new market and counterparty credit risk approaches. Both consultations run until 12 June 2021.

Institutions using the alternative standardised approach (FRTB-SA) to determine own funds requirements for market risk are required to compute, on top of the own funds requirement under the sensitivities-based method, additional own funds requirements for default risk and for residual risks. The consultation papers published today provide technical specifications for the implementation of these two elements.

In particular, the draft RTS on gross JTD amounts specify the key inputs needed for computing own funds requirements for default risk under the FRTB-SA. Gross JTD amounts determined in accordance with the draft RTS are intended to be consistent with those determined in accordance with international standards, while employing the formulae and requirements set out in the Capital Requirements Regulation (CRR).

The draft RTS on RRAO clarify the scope of the RRAO, i.e. for which instruments the own funds capital requirements for residual risks should be determined. In particular, these RTS specify a non-exhaustive list of instruments bearing residual risks, and a list of risks that, in themselves, do not constitute residual risks. These RTS also clarify that longevity risk, weather, natural disasters and future realised volatility should all be considered as exotic underlyings.

Consultation process

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 12 June 2021. All contributions received will be published following the end of the consultation, unless requested otherwise.

A public hearing will take place on 29 April 2021 from 15.30 to 18.00 CET. 

Legal basis 

The draft RTS on gross JTD amounts have been developed according to Article 325w(8) of Regulation (EU) No 575/2013 (Capital Requirements Regulation – CRR), which mandates the EBA to “specify (a) how institutions are to determine the components P&Llong, P&Lshort, Adjustmentlong and Adjustmentshort when calculating the JTD amounts for different types of instruments in accordance with this Article; (b) which alternative methodologies institutions are to use for the purposes of the estimation of gross JTD amounts referred to Article 325w(7); (c) the notional amounts of instruments other than the ones referred to in points (a) and (b) of Article 325w(4)”.

The draft RTS on RRAO have been developed according to Article 325u(5) of Regulation (EU) No 575/2013 (CRR), which mandates the EBA to “specify what an exotic underlying is and which instruments are instruments bearing residual risks for the purposes of Article 325u(2)”.

EBA launches discussion paper on integrated reporting

11 March 2021

  • The EBA invites stakeholders to provide feedback on feasibility of options to increase efficiencies and reduce costs for the entire reporting ecosystem.
  • The core areas to set up an integrated system include a data dictionary, a central data collection point and related governance.
  • The discussion paper builds on existing experiences and tools for integration of reporting as well as evidence on current challenges.

The European Banking Authority (EBA) published today a discussion paper on the feasibility study of an integrated reporting system to collect feedback for the preparation of its final Report in this area. The discussion paper outlines possible options around the main building blocks of a possible integrated system including a single data dictionary and single reporting system across supervisory, resolution and central bank statistical data. The consultation runs until 11 June 2021.

The discussion paper presents a range of options around the main areas needed for the development of an integrated and consistent reporting system: a data dictionary and a central data collection point, together with the related governance aspects. Each of the areas are essential components of a reporting process and their design, as part of an integrated system, would influence the way the current reporting process is conducted.

The study builds on a fact-finding and research phase as well as on the experience of all relevant authorities in integrating reporting and private sector stakeholders’ views on current challenges and potential solutions. The discussion paper is neutral on outcomes and serves as a basis for further discussions with the aim of gathering additional evidence and opinions. Therefore, it does not make concrete proposals for any possible implementation.

Consultation process

Comments to this discussion paper 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 11 June 2021. All contributions received will be published following the end of the consultation, unless requested otherwise.

A workshop will be organised in the form of a webinar on 4 May from 14:00 to 16:00 CET. The EBA invites interested stakeholders to register via this link using the password Workshop.2021

The dial-in details will be communicated in due course.

Legal basis and background

Article 430c of the Capital Requirements Regulation (CRR) mandates the EBA to develop a Report on the feasibility regarding the development of a consistent and integrated system for collecting statistical, resolution, and prudential data.

The EBA was mandated to produce such a study to investigate ways to potentially reduce reporting costs and increase efficiencies by having common definitions and requirements, streamlining processes, facilitating data sharing and increasing coordination among authorities.

The feedback received will serve as a basis for the development of the final feasibility study, whose main objective is to identify ways to streamline the reporting processes, reduce the financial and administrative burden and increase efficiencies going forward, considering the principle commonly referred to as ‘define once, report once’.

EBA launches public consultation on draft revised Guidelines on stress tests of Deposit Guarantee Schemes (DGSs)

11 March 2021

  • The EBA is consulting on the repeal and replacement of the existing Guidelines to further strengthen the DGS stress testing framework.
  • The EBA proposes to extend current requirement to ensure that all DGSs test their abilities to perform all their functions as well as access to all their funding sources.
  • The proposals aim to ensure more harmonised approaches of stress tests across the Member States and greater comparability of results.

The European Banking Authority (EBA) launched today a public consultation on its revised Guidelines on the stress tests conducted by national DGSs under the Deposit Guarantee Schemes Directive (DGSD). The proposed revision will extend the scope of the DGS stress testing, by requiring more tests that will cover additional aspects of DGS interventions. The proposed framework will also achieve greater harmonisation and comparability, to enable the EBA to carry out a robust peer review of national DGS stress tests in 2024/25.

The EBA proposes to require DGSs to stress test their ability to perform all of the interventions allowed under their legal mandates, and to access all of their funding sources. The draft revised Guidelines strengthen the cooperation between DGSs and other authorities by testing scenarios where such cooperation is necessary. In addition, the proposed new provisions require DGSs to consider testing scenarios with additional business continuity challenges, such as the pandemic, ICT failures or other similar events.

The proposed revisions are based on the findings of the first EBA peer review of the DGS stress tests and resilience of national DGSs, which the EBA published in a report in June 2020. In this report, the EBA provided early indications of areas in which the DGS stress testing framework could be improved. The EBA subsequently discussed potential amendments to the framework with schemes and competent authorities in order to develop the draft Guidelines.

Consultation process

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 11 June 2021. All received contributions will be published at the end of the consultation, unless requested otherwise.

A public hearing will take place via conference call on Wednesday 26 May 2021 from 10:00 to 12:00 CET.

Legal basis  

These draft own-initiative Guidelines have been developed according to Articles 16(2) and 26(2) of Regulation (EU) No 1093/2010 (EBA Regulation). The Guidelines aim at enhancing the framework applicable to the stress tests that the DGSs are required to conduct in compliance with Article 4(10) of the DGSD. The Guidelines strive to strengthen the European system of national DGSs in accordance with Article 26(1) of the EBA Regulation.

The EBA consults on guidance on how to grant authorisation as credit institution

10 March 2021

The European Banking Authority (EBA) published today a Consultation Paper on its Guidelines on a common assessment methodology for granting authorisation as a credit institution. The draft Guidelines are addressed to all competent authorities across the EU in charge of granting authorisation as a credit institution, and cover the authorisation requirements set out in the Capital Requirements Directive (CRD). The draft Guidelines complement the Regulatory Technical Standards (RTS) on authorization of credit institutions and contribute to the convergence of supervisory practices around market access for credit institutions across the single market. The consultation runs until 10 June 2021.

The draft Guidelines advocate for a risk-based approach and insist on the importance of consistency with the supervisory approaches applied in going concern situations. In addition, they consider the proportionality principle for all relevant assessment criteria and apply to both traditional and innovative business models and/or delivery mechanisms, as they are technology neutral.

In the context of the assessment of the application for granting an authorisation, the draft Guidelines also include guidance on money laundering or terrorist financing (ML/TF) risks and highlight the importance of cooperation with the anti-money laundering (AML) supervisor and other public bodies, in accordance the CRD.

Consultation process

Responses to this consultation can be sent to the EBA by clicking on the "send your comments" button on the consultation page. All contributions received will be published after the consultation closes, unless requested otherwise. The deadline for the submission of comments is 10 June 2021.

A public hearing will be held on 22 April 2021 from 10:00 to 12:00 CET via conference call.

Legal basis

The draft Guidelines have been drafted in accordance with Article 8(5) CRD, which mandates the Authority to specify a common assessment methodology for granting authorisations in accordance with the CRD.

Cyber-attack on the European Banking Authority - UPDATE 3

09 March 2021

The European Banking Authority (EBA) has established that the scope of the event caused by the recently widely notified vulnerabilities was limited and that the confidentiality of the EBA systems and data has not been compromised.

Thanks to the precautionary measures taken, the EBA has managed to remove the existing threat and its email communication services have, therefore, been restored.

Since it became aware of the vulnerabilities, the EBA has taken a proactive approach and carried out a thorough assessment to appropriately and effectively detect any network intrusion that could compromise the confidentiality, integrity and availability of its systems and data.

The analysis was carried out by the EBA in close collaboration with the Computer Emergency Response Team (CERT-EU) for the EU institutions, agencies and bodies, the EBA’s ICT providers, a team of forensic experts and other relevant entities.

Besides re-securing its email system, the EBA remains in heightened security alert and will continue monitoring the situation. 

Cyber-attack on the European Banking Authority - UPDATE 2

08 March 2021

The EBA investigation is still ongoing and we are deploying additional security measures and close monitoring in view of restoring the full functionality of the email servers.

At this stage, the EBA email infrastructure has been secured and our analyses suggest that no data extraction has been performed and we have no indication to think that the breach has gone beyond our email servers.

The EBA has taken all precautionary measures to protect personal and other data and will take additional steps and provide further updates as necessary.

Cyber-attack on the European Banking Authority

07 March 2021

The European Banking Authority (EBA) has been the subject of a cyber-attack against its Microsoft Exchange Servers, which is affecting many organisations worldwide. The Agency has swiftly launched a full investigation, in close cooperation with its ICT provider, a team of forensic experts and other relevant entities.

As the vulnerability is related to the EBA’s email servers, access to personal data through emails held on that servers may have been obtained by the attacker. The EBA is working to identify what, if any, data was accessed. Where appropriate, the EBA will provide information on measures that data subjects might take to mitigate possible adverse effects.

As a precautionary measure, the EBA has decided to take its email systems offline. Further information will be made available in due course.

When email communication channels are restored, our Data Protection Officer, Jonathan Overett Somnier, can be contacted at dpo@eba.europa.eu.

For any urgent query, please contact the press line on +33 1 86 52 7052

EBA launches public consultation on draft technical standards on Pillar 3 disclosures of ESG risks

01 March 2021

  • The draft technical standards provide a framework for ESG disclosures to ensure stakeholders are informed about ESG exposures and strategies and can make informed decisions and exercise market discipline.
  • The standards put forward comparable disclosures and KPIs, including a green asset ratio, as a tool to show how institutions are embedding sustainability considerations in their risk management, business models and strategy and their pathway towards the Paris agreement goals
  • The EBA has developed the Consultation paper in parallel and consistently with its advice to the EU Commission on ESG disclosures under the EU taxonomy, including a proposal for a Green Asset ratio (GAR).

The European Banking Authority (EBA) published today a consultation paper on draft implementing technical standards (ITS) on Pillar 3 disclosures on Environmental, Social and Governance (ESG) risks. The draft ITS put forward comparable disclosures that show how climate change may exacerbate other risks within institutions’ balance sheets, how institutions are mitigating those risks, and their green asset ratio on exposures financing taxonomy-aligned activities, such as those consistent with the Paris agreement goals.

Disclosure of information on ESG risks is a vital tool to promote market discipline, allowing stakeholders to assess banks’ ESG related risks and sustainable finance strategy.

In line with the requirements laid down in the Capital Requirements Regulation (CRR), the draft ITS proposes comparable quantitative disclosures on climate-change related transition and physical risks, including information on exposures towards carbon related assets and assets subject to chronic and acute climate change events. They also include quantitative disclosures on institutions’ mitigating actions supporting their counterparties in the transition to a carbon neutral economy and in the adaptation to climate change. In addition, they include a GRA, which identifies the institutions’ assets financing activities that are environmentally sustainable according to the EU taxonomy, such as those consistent with the European Green Deal and the Paris agreement goals. Finally, the draft ITS provide qualitative information on how institutions are embedding ESG considerations in their governance, business model and strategy and risk management framework.

The EBA has integrated proportionality measures that should facilitate institutions’ disclosures, including transitional periods where disclosures in terms of estimates and proxies are allowed.

Consultation process

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 1 June 2021. All contributions received will be published following the end of the consultation, unless requested otherwise.

A public hearing will be organised in the form of a webinar on 26 March from 11:30 to 13:30 CET. The EBA invites interested stakeholders to register using this link.

The dial-in details will be communicated in due course.

Legal basis and background

Article 434a of the Capital Requirements Regulation (CRR) mandates the EBA to develop draft implementing technical standards specifying uniform disclosure formats, and associated instructions in accordance with which the disclosures required in Part eight of the CRR shall be made. Those uniform formats shall convey sufficiently comprehensive and comparable information for users of that information to assess the risk profiles of institutions.

The ITS will amend the final draft ITS on institutions’ public disclosures with the strategic objective of defining a single, comprehensive Pillar 3 framework under the CRR that should integrate all the relevant Pillar 3 disclosure requirements. This will facilitate institutions’ implementation and enhance clarity for users of such information, as expressed in the EBA Pillar 3 roadmap.

When developing these proposals, the EBA has built on the Financial Stability Board  Task Force on Climate-related Financial Disclosures (FSB-TCFD) recommendations, the Commission’s non-binding guidelines on climate-change reporting, and on the EU Taxonomy. The EBA has developed this consultation paper in parallel and consistently with the Advice to the Commission on disclosures under Article 8 of the Taxonomy Regulation, including a common proposal for a GAR.

EBA consults on draft technical standards to improve supervisory cooperation for investment firms

24 February 2021

  • The two sets of standards provide a framework for supervisory cooperation and information exchanges for cross-border investment firms.
  • The requirements cover all forms of cross-border operations and aim at ensuring that supervisory cooperation of cross-border operating investment firms is effective and efficient.

The European Banking Authority (EBA) launched today two public consultations on regulatory technical standards (RTS) and Implementing Technical Standards (ITS) on cooperation and information exchange between competent authorities involved in prudential supervision of investment firms. These draft standards provide a solid framework for (i) cooperation in the supervision of investment firm groups though colleges of supervisors and (ii) for information exchange for investment firms operating through branches or the free provision of services. These draft standards are part of the phase 2 mandates of the EBA roadmap on investment firms, and aim at improving cooperation and information exchanges between the supervisors of investment firms. Both consultations run until 23 April 2021.

The draft RTS on colleges of supervisors for investment firms groups specify the conditions under which colleges of supervisors exercise their tasks. The RTS target the investment firm groups falling under the remit of the Investment Firms Directive (IFD) and are built on the experience gained over the years in the colleges of supervisors of credit institutions and larger and more complex investment firms groups that have been established in accordance with the Capital Requirements Directive (CRD). The draft RTS are structured around four main sections:

  • establishment of colleges,
  • functioning of colleges;
  • planning and coordination of supervisory activities in going concern situations;
  • planning and coordination of supervisory activities in preparation for and during emergency situations.

The draft RTS and ITS on information exchange between the competent authorities of home and host Member States complement the RTS on colleges of supervisors and address situations where investment firms operate in another Member State through branches or the free provision of services, where colleges may not be established. In particular, the draft RTS specify the information that host Member State competent authorities and home Member State competent authorities shall exchange with each other, whereas the draft ITS establish standard forms, templates and procedures for sharing the information specified in the RTS.

Consultation process

Responses to the two consultations 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 23 April 2021.

A public hearing will take place on 7 April 2021.

Legal basis

The draft RTS on colleges of supervisors for investment firms groups have been developed in accordance with Article 48(8) of Directive (EU) 2019/2034, which mandates the Authority to develop, in consultation with ESMA, draft RTS to specify the conditions under which the colleges of supervisors established for investment firms groups exercise their tasks.

The draft RTS and ITS on information exchange have been developed in accordance with Articles 13(7) and Article 13(8) of Directive (EU) 2019/2034, which mandate the Authority to develop regulatory and implementing technical standards on the exchange of information between home and host competent authorities supervising investment firms operating through branches. Both mandates have to be delivered by the EBA in consultation with ESMA.