Today, the European Supervisory Authorities (ESAs) published the first set of Questions and Answers (Q&A) related to the Key Information Document (KID) requirements for Packaged Retail and Insurance-based Investment Products (PRIIPs) laid down in the European Commission Delegated Regulation (EU) 2017/653. This Q&A document aims at promoting common supervisory approaches and practices in the implementation of the KID.
The European Banking Authority (EBA) published today a periodical update of its Risk Dashboard. It summarises the main risks and vulnerabilities in the EU banking sector through a set of Risk Indicators in Q1 2017. Together with the Risk Dashboard, the EBA published the results of its Risk Assessment Questionnaire, which includes the opinions of banks and market analysts on the risk outlook between April and May this year.
The European Banking Authority (EBA) launched today a public consultation on draft regulatory technical standards (RTS) that specify the criteria for determining when the appointment of a central contact point under the PSD2 is appropriate and the functions that these contact points should have. The consultation runs until 29 September 2017.
The European Banking Authority (EBA) launched today a public consultation on the implementation of the EBA Guidelines on methods for calculating contributions to deposit guarantee schemes (DGSs). The draft Report assesses whether the principles outlined in the EBA Guidelines on these methods are being met in practice. It also evaluates whether there is appropriate and consistent implementation of these Guidelines. The consultation runs until 28 August 2017 .
The European Banking Authority (EBA) published today an Opinion responding to the European Commission’s (EC) intention to amend the EBA’s draft Regulatory Technical Standards (RTS) on strong customer authentication and common and secure communication. In its Opinion, while agreeing with the aims sought in the EC’s amendments, the EBA voices its disagreement with three of the four concrete amendments the Commission proposes on the basis that it would negatively impact the fine trade-off and balances previously found in the RTS.
The European Banking Authority (EBA) published today a Report presenting the conclusions of its assessment on the topic of innovative uses of consumer data by financial institutions. The Report looks at both the risks and potential benefits of this innovation and identifies a number of requirements under EU law applying to financial institutions, which mitigate many of the risks identified by the EBA. The Report concludes that no additional, industry-specific legislative or regulatory requirements are needed at present, but the EBA will continue to monitor closely this innovation. The Report encourages cooperation between supervisory authorities across all relevant policy areas and contributes to fostering a consistent supervisory approach to innovation in the financial sector.
The European Banking Authority (EBA) published today its annual consumer trends report for 2017. The Report covers the retail banking products that fall in the EBA's consumer protection mandate, including mortgages, personal loans, deposits, payment accounts, payment services and electronic money. The report also provides an overview of the topical issues identified in 2017 that may impact consumers and other market participants, namely indebtedness, banking fees and costs, selling practices, innovation in payments, foreign currency loans, alternative financial services providers, and innovative uses of consumer data.
The Joint Committee of the three European Supervisory Authorities (EBA, EIOPA and ESMA - ESAs) published today draft regulatory technical standards (RTS) to help Member States determine when payment service providers and electronic money issuers should appoint a Central Contact Point (CCP) to support the fight against money laundering and terrorist financing.
The Joint Committee of the three European Supervisory Authorities (EBA, EIOPA and ESMA - ESAs) published today its final Guidelines on anti-money laundering and countering the financing of terrorism (AML/CFT). The Guidelines promote a common understanding of the risk-based approach to AML/CFT and set out how it should be applied. . These Guidelines are part of the ESAs’ wider work on fostering a consistent and effective approach to AML/CFT by both, credit and financial institutions, and AML/CFT supervisors. The Guidelines provide credit and financial institutions with the tools they need to make informed, risk-based decisions on the effective management of individual business relationships and occasional transactions for AML/CFT purposes.
The European Banking Authority (EBA) launched today a Discussion Paper on the application of the structural FX provision. The paper outlines the rationale behind the treatment of structural positions as well as broader issues related to the structural FX concept, such as the actual nature of FX risk, considering both the accounting and regulatory perspectives. It also examines in greater detail the potential inconsistencies in the articulation of the FX requirements, both in the current Capital Requirements Regulation (CRR) as well as in the CRR2 proposal for institutions applying the standardised and internal model approaches. The consultation runs until 22 September 2017.
The European Banking Authority (EBA) announced today it has put on hold its draft Guidelines on the treatment of CVA risk under SREP until further notice, due to continued developments in the CVA risk framework at international level. However, monitoring work continues with the EBAs 2016 credit valuation adjustment (CVA) risk monitoring exercise, which was launched today. The exercise fits into the EBA mandate to monitor the own funds requirements for CVA risk and follows on from policy recommendation No 4 of the CVA Report. The EBA expects institutions to complete the exercise by 14 September 2017.
The European Banking Authority (EBA) published today its draft amending Regulatory Technical Standards (RTS) on credit valuation adjustment (CVA) proxy spread. These RTS propose limited amendments to the Commission Delegated Regulation (EU) No 526/2014 for determining proxy spread and limited smaller portfolios for credit valuation adjustment risk, based on two policy recommendations contained in the EBA’s CVA report, published on 25 February 2015. Through the proposed amendments the EBA expects to ensure a more adequate calculation of own funds requirements for CVA risk.
The European Banking Authority (EBA) received a notification regarding the resolution action taken by the Single Resolution Board (the SRB) in respect of Banco Popular Español as the conditions for resolution were met. The SRB adopted a resolution scheme providing for the application of the sale of business tool. Following a marketing process, the SRB decided to transfer Banco Popular to Banco Santander S.A. and to exercise the power of write-down and conversion of capital instruments prior to the transfer in order to address the shortfall in the value of the Institution.
The European Banking Authority (EBA) published today its 2016 Annual Report, which provides a detailed account of all the work the Authority achieved in the past year and anticipates the key areas of focus in the coming years.
The European Banking Authority (EBA) submitted today its response to the European Commission's Public Consultation on FinTech : a more competitive and innovative European financial sector Document on Retail Financial Services. In the response, the EBA conveys its views on a subset of the Commission’s questions, and focuses on the work the EBA has done so far on FinTech. Separately, the EBA is currently developing a Discussion Paper on FinTech issues that fall more into the EBA’s remit and will publish its views in the coming months.
The European Banking Authority (EBA) will hold a public hearing on 3 July 2017 at 14:00 UK time to update all relevant stakeholders on the progress made so far on the possibility of developing a new prudential regime for MiFID investment firms.
The European Banking Authority (EBA) issued today a revised list of validation rules in its Implementing Technical Standards (ITS) on supervisory reporting, highlighting those which have been deactivated either for incorrectness or for triggering IT problems.
The European Banking Authority (EBA) published today its 2018 EU-wide stress test draft methodology and templates for discussion with the industry. The exercise will cover 70% of the EU banking sector and will assess EU banks' ability to meet relevant supervisory capital ratios during an adverse economic shock. The methodology covers all relevant risk areas and, for the first time, will incorporate IFRS 9 accounting standards. The results will inform the 2018 Supervisory Review and Evaluation Process (SREP), challenging banks' capital plans and leading to relevant supervisory outcomes. The exercise will also provide enhanced transparency so that market participants can compare and assess the resilience of EU banks on a consistent basis. The list of institutions participating in the exercise is also released today.
The European Banking Authority launched today a consultation focusing on the scope of its draft Guidelines on connected clients, on which it had already sought the stakeholders’ views in July 2016. In the new consultation, the EBA is proposing to extend the scope of these draft Guidelines to the remaining aspects of the Capital Requirements Regulation (CRR), the EBA technical standards, and the EBA guidelines where the concept of group of connected client is relevant. The extension of the scope would ensure the consistent application of this concept throughout the CRR and the harmonisation of institutions’ practices. The consultation runs until 26 June 2017.
The Joint Committee of the three European Supervisory Authorities (EBA, EIOPA and ESMA - ESAs) launched today a public consultation on draft Regulatory Technical Standards (RTS) specifying how credit and financial institutions should manage money laundering and terrorist financing (ML/TF) risks where a third country’s law prevents the implementation in their branches or majority-owned subsidiaries of group-wide policies and procedures on anti-money laundering and countering the financing of terrorism (AML/CFT). These RTS are part of the ESAs' wider work on fostering a common approach to AML/CFT and will contribute to creating a level playing field across the Union’s financial sector. The consultation runs until 11 July 2017.