The three European Supervisory Authorities (ESAs) – the EBA, EIOPA and ESMA announced today the new composition of their Board of Appeal. The new members and alternates take up their positions as of today, 1 December 2021.
The European Banking Authority (EBA) published today its final draft Regulatory Technical Standards (RTS) specifying the methodology to apply to calculate the risk-weighted exposure amounts, in the context of the mandate-based approach when there are some missing inputs.
The European Banking Authority (EBA) published today a Report summarising the findings arising from the monitoring activities on the International Financial Reporting Standard (IFRS 9) implementation by EU institutions. The aim of this Report is to assist supervisors evaluate the quality and adequacy of IFRS 9 Expected Credit Loss (ECL) models, in order to contribute to a high-quality and consistent application of the IFRS 9 standard in the EU. In line with the IFRS 9 Roadmap, the EBA will continue monitoring and promoting consistent application of IFRS 9, as well as working on the interaction with prudential requirements.
The European Banking Authority (EBA) published today its revised Guidelines on internal governance for investment firms under the Investment Firms Directive (IFD).
The European Banking Authority (EBA) published today its revised Guidelines on sound remuneration policies for investment firms under the Investment Firms Directive (IFD).
The European Banking Authority (EBA) and the European Securities and Markets Authority (ESMA) launched today a public consultation on their Guidelines on common procedures and methodologies for the supervisory review and evaluation process (SREP). The EBA is also consulting on draft Regulatory Technical Standards (RTS) on the additional own funds requirements that could be determined by competent authorities for investment firms. Both regulatory products are based on the Investment Firms Directive (IFD) and aim at consistent supervisory practices with regard to the review and evaluation of investment firms. The consultations run until 18 February 2022.
The European Banking Authority (EBA) acknowledged today the EU Commission’s decision to consider the supervisory and regulatory framework applicable to credit institutions in Bosnia and Herzegovina and North Macedonia as equivalent to that applied in the Union. The EU Commission’s decision considered the EBA’s assessments carried out in 2019-20 and the respective Opinions, concluding that the supervisory and regulatory framework applicable to credit institutions in Bosnia and Herzegovina and North Macedonia could be regarded as equivalent to that applied in the Union.
The European Banking Authority (EBA) published today a Report on the possible impact of the net stable funding ratio (NSFR) on the functioning of the precious metals’ markets. The Report aims at assessing whether it would be justified to reduce the required stable funding factor for assets used for providing clearing and settlement services or for financing transactions of precious metals.
The European Banking Authority (EBA) announced today that its 2021 Risk Assessment Report and transparency exercise with bank by bank data will be released on Friday 3 December at 18:00 CET.
The European Banking Authority (EBA) published today a European Resolution Examination Programme (EREP) for 2022, which identifies key topics for resolution authorities’ attention across the European Union.
The European Banking Authority (EBA) published today the European Supervisory Examination Programme (ESEP) for 2022, which identifies key topics for supervisory attention across Europe. The ESEP is aimed at informing prudential supervisors’ planning processes and shaping their supervisory practices.
The European Banking Authority (EBA) published today the Final Paper of its Guidelines on a common assessment methodology for granting authorisation as a credit institution. It is the first guidance addressed to all competent authorities across the EU in charge of granting authorisation as a credit institution, and covers the authorisation requirements set out in the Capital Requirements Directive (CRD).
The European Banking Authority (EBA) published today a discussion paper on machine learning used in the context of internal ratings-based (IRB) models to calculate regulatory capital for credit risk. The aim of the discussion paper is to set supervisory expectations on how new sophisticated machine learning models can coexist with and adhere to the Capital Requirements Regulation (CRR) when used in the context of IRB models. The discussion paper seeks stakeholders’ feedback on many practical aspects related to the use of machine learning in the context of IRB with the aim of providing clarity on supervisory expectations on their use. The consultation runs until 11 February 2022.
The European Banking Authority (EBA) published today its first draft implementing technical standards (ITS) on Pillar 3 disclosure of institutions’ exposures to interest rate risk on positions not held in the trading book (IRRBB). The final draft ITS put forward comparable disclosures that will help stakeholders assess institutions’ IRRBB risk management framework as well as the sensitivity of institutions’ economic value of equity and net interest income to changes in interest rates. The standards will amend the comprehensive ITS on institutions’ public disclosures, in line with the strategic objective of developing a single and comprehensive Pillar 3 package that should facilitate implementation by institutions and further promote market discipline.
The European Banking Authority (EBA) published today Guidelines on recovery plan indicators. The Guidelines establish a common EU approach for developing the framework of recovery plan indicators, providing additional guidance on indicators’ calibration, monitoring and breaches notifications. The guidelines aim at strengthening the quality of recovery indicators framework and contributing to effective crisis preparedness of institutions.
The European Banking Authority (EBA) published today its Final Report on draft Regulatory Technical Standards (RTS) specifying the information that crowdfunding service providers offering individual portfolio management of loans shall provide to investors in relation to the method to assess credit risk, and on each individual portfolio. The draft RTS also specify the policies, procedures and organisational arrangements that crowdfunding service providers shall have in place in relation to any contingency fund they may offer to investors. These RTS are the first of two mandates assigned to EBA with a view to contributing to a sound prudential and disclosure framework for crowdfunding service providers.
The European Banking Authority (EBA) published today its final draft Regulatory Technical Standards (RTS) specifying the types of factors and conditions to be considered for the assessment of the appropriateness of risk weights and of minimum loss given default (LGD) values. These final draft RTS will support relevant authorities across EU Member States in carrying out their periodical assessments by striking the right balance between ensuring coherence and harmonisation of their assessments and preserving the necessary flexibility.
The European Banking Authority (EBA) launched today a public consultation on its draft Regulatory Technical Standards (RTS) on Initial Margin Model Validation (IMMV) under the European Markets Infrastructure Regulation (EMIR). The consultation paper sets out the supervisory procedures for initial and ongoing validation of initial margin models, which will be used to determine the level of margin requirements for uncleared over the counter (OTC) derivatives. Supervisory validation will ensure harmonised supervisory procedures and an appropriately prudent approach to the level of initial margins for EU derivatives counterparts. The consultation runs until 4 February 2022.
The European Banking Authority (EBA) published today its environmental statement in the context of the 2021 United Nations Climate Change Conference (COP26), highlighting its efforts to update and enhance the entire supervisory and prudential regulatory framework in the environmental, social and governance (ESG) domain. This will facilitate the transition of the banking and financial sector to a more sustainable economy and mitigate risks stemming from climate change and ESG factors.
The European Banking Authority (EBA) published today an Opinion following the notification by Finansinspektionen, the Swedish Financial Supervisory Authority (FSA), of its intention to extend a measure originally introduced in 2018 and extended in 2020. The measure entails a credit institution-specific minimum level of 25% for the average risk weight on Swedish housing loans applicable to credit institutions that have adopted an internal ratings-based (IRB) approach. Based on the evidence submitted, the EBA does not object to the extension of the measure.