The Committee of European Banking Supervisors (CEBS) has today published its final guidelines on the application of Article 122a of the Capital Requirements Directive (CRD).
Article 122a of the CRD provides new requirements to be fulfilled by credit institutions when acting in a particular capacity, such as originator or sponsor, and also when investing in securitisations. These include retention on an on-going basis of a material net economic interest of not less than 5% (so called "skin in the game"), due diligence and disclosure.
Following the amendments made to the CRD relating to securitisations, CEBS is required to issue guidelines ensuring convergence of supervisory practices with regard to the application of Article 122a. In particular, guidance is required on the implementation of the retention clause by the originator, the sponsor or original lender and on the due diligence and risk management practices credit institutions are asked to carry out when investing in securitisation positions.
Besides fostering a common understanding among the competent authorities across the EEA on the implementation and application of Article 122a, the current guidelines provide clarity as well as greater transparency for market participants in order to assist compliance by credit institutions with the relevant requirements of the Directive. In particular, CEBS provides an updated framework for competent authorities to apply an additional risk weight for infringements of the provisions of Article 122a.
In delivering its guidelines, CEBS has benefited from the views gathered from market participants through the responses to the public consultation (CP40) which ended on 1 October 2010, and through a public hearing held on 22 July 2010.
CEBS expects its Members to adopt the guidelines into their national supervisory framework and apply them from 1 January 2011, that is, when the new Directive provisions come into force.
CEBS has today published the final text of its Guidelines for the joint assessment of the elements covered by the supervisory review and evaluation process and joint decision regarding the capital adequacy of cross-border groups (GL 39). CEBS considers that these Guidelines will be very helpful to EEA supervisory authorities co-operating in supervisory colleges to meet the requirements of the revised Capital Requirements Directive (CRD), as well as for promoting convergent supervisory practices across colleges. The Guidelines should thus significantly foster CEBS's objectives of promoting the effective and efficient functioning of colleges and enhancing the supervision of cross-border banking groups.
As the revised CRD enters into force on 31 December 2010, the relevant members of the colleges for EEA headquartered banking groups will be expected to reach joint decisions on the risk based capital adequacy before the end of 2011. CEBS expects its members to fully implement these Guidelines by 31 March 2011, so as to allow colleges to use the Guidelines in their assessments of cross-border banking groups' capital adequacy.
The Committee of European Banking Supervisors (CEBS) has published today its final Guidelines on Remuneration Policies and Practices.
In revising the Guidelines, CEBS benefited from the views gathered from a wide spectrum of market participants and from academia. Input was provided through 39 responses to a public consultation and through a public hearing held at CEBS premises. Furthermore, the Committee of European Securities Regulators (CESR) rendered an opinion which placed particular focus on the scope of the guidelines and on the proportionality principle vis-à-vis firms providing investment services.
The final Guidelines shall be implemented as from 1 January 2011 in line with the entry into force of CRD III. CEBS has planned to carry out an implementation study in the fourth quarter of 2011 also in response to the concerns raised with regard to the convergent application of the CRD and the guidelines within the EEA.
The Committee of European Banking Supervisors (CEBS) has today published its revised Guidelines on the recognition of External Credit Assessment Institutions (ECAIs), which were first released on 20 January 2006.
In reviewing its guidelines, CEBS has benefited from the views gathered from market participants through the responses to the public consultation (CP37) which ended on 9 April 2010.
The amendments to Articles 81(2) and 97(2) of the CRD will have to be applied from 31 December 2010. Therefore CEBS expects its members to apply the revised guidelines at the same time as the amended Articles will come into force.
The Committee of European Banking Supervisors (CEBS) has today published its guidelines on revised Article 3 of Directive 2006/48/EC (hereinafter "Article 3").
The guidelines take account of the feedback received following CEBS's publication for consultation of its draft proposals (CP41) on the application of Article 3, as well as of the technical input and comments provided by industry experts appointed by the European Association of Co-operative Banks (EACB).
The Committee of European Banking Supervisors (CEBS) has published today its guidelines on liquidity cost benefit allocation. The draft guidelines were presented for public consultation with the consultation period ending 10 June 2010. During this period a public hearing was also held. A summary of the industry's responses to the consultation paper (CP36) is published in the feedback document. Based on the analyses provided in this document, the guidelines have not substantially changed. In particular, the five main guidelines have been kept unchanged.
The Committee of European Banking Supervisors (CEBS) has published today its guidelines on the management of operational risk in market-related activities.
Following the publication of CEBS's high level principles on Internal Governance (CEBS Guidelines on the Application of the Supervisory Review and Evaluation Process- Section 2), its high level principles on risk management and its high level principles on remuneration policies, CEBS now introduces more specific principles and implementation measures for the identification, assessment, control and monitoring of operational risk in market-related activities.
The Committee of European Banking Supervisors (CEBS) today publishes the final text of its revised Guidelines on the management of concentration risk under the supervisory review process taking into the account the results of the earlier public consultation, which ran from December 2009 to March 2010.
The revised Guidelines replace the earlier version of the Guidelines on technical aspects of the management of concentration risk under the supervisory review process published on 14 December 2006 and complement the principles set out in the CEBS's Guidelines on the application of the supervisory review process (GL03).
The Committee of European Banking Supervisors (CEBS) today publishes the final text of its revised Guidelines on stress testing which takes into the account the results of the earlier public consultation which run from December 2009 to March 2010.
The revised guidelines replace the Guidelines on technical aspects of stress testing under the supervisory review process that were published on 14 December 2006 and complement the principles set out in CEBS's Guidelines on the Application of the Supervisory Review Process under Pillar 2.
The Committee of European Banking Supervisors (CEBS) today publishes its implementation guidelines on Article 106(2) (c) and (d) of Directive 2006/48/EC (Capital Requirements Directive) as amended by Directive 2009/111/EC.
The Committee of European Banking Supervisors (CEBS) today publishes its guidelines for the operational functioning of colleges.
The revised Capital Requirements Directive (CRD) requires the establishment of supervisory colleges as an instrument for stronger coordination and cooperation whereby competent authorities reach agreement on key supervisory tasks. The colleges are expected to facilitate the handling of ongoing supervision and also to play a role in both the preparation for and handling of emergency situations.
The Committee of European Banking Supervisors (CEBS) today publishes its implementation guidelines on capital instruments.
The revised Capital Requirements Directive (CRD) introduces explicit rules for the treatment of instruments eligible as capital and, in particular, requirements for their inclusion in institutions' original own funds without limit. The amendments will need to be transposed into Member States' national law by 31 October 2010 and will be applied from 31 December 2010.
The Committee of European Banking Supervisors (CEBS) today publishes its Principles for disclosures in times of stress intended to guide financial institutions in the preparation of public disclosures made to conform with existing disclosure requirements or recommendations or on an ad hoc basis, incorporating the lessons learnt from the financial crisis.
The Committee of European Banking Supervisors (CEBS) today publishes its high level principles for risk management. These principles should be considered both by institutions (as part of the ICAAP) and supervisors (as part of the SREP) within the supervisory review framework under Pillar 2.
The High Level Principles for Risk Management were repealed by the EBA Internal Governance Guidelines, published on 27 September 2011.
The Committee of European Banking Supervisors (CEBS) today publishes its revised Guidelines on Supervisory Disclosure. CEBS has developed a web-based framework for supervisory disclosure which has been implemented at both EU and national levels since early 2007. The aim of supervisory disclosures is to make information related to prudential rules and supervisory criteria available to all interested parties, including credit institutions, investment firms, other market participants, other supervisors and consumers. The framework for supervisory disclosure is intended to provide information without interpreting or validating it.
CEBS publishes today the revised framework on Common Reporting (COREP). The COREP templates have been amended to incorporate changes of the CRD (directives 2009/27/EC and 2009/83/EC) as well as CRD II amendments (directive 2009/111/EC) and will be applicable by 31 December 2010.