The European Banking Authority (EBA) launches today a data collection exercise to advise the European Commission on appropriate amendments to the European Credit Valuation Adjustment (CVA) framework and inform discussions on the CVA risk charge in Basel. Banks with substantial portfolios of OTC derivatives are encouraged to participate in this data collection exercise on a voluntary basis.
The European Banking Authority (EBA), following the launch of the data collection exercise on Credit Valuation Adjustment (CVA) on 30 April 2014, released today an updated version of the template that participating banks will be requested to fill in as well as a set of relevant instructions.
The EBA launched today a consultation on its draft Guidelines specifying the type of tests, review or exercises that may lead to extraordinary public support measures for institutions. These Guidelines are part of the EBA’s work to promote the consistent and coherent approach to bank resolution across the European Union. The consultation runs until 9 August 2014.
The EBA launched today two consultations on draft Regulatory Technical Standards (RTS) on resolution planning and on draft Guidelines on measures to reduce or remove impediments to resolvability. These RTS and Guidelines are part of the EBA’s work to promote a consistent and coherent approach to bank resolution across the European Union. Both consultations run until 9 October 2014.
The EBA publishes today an Opinion on the macroprudential tools laid down in the Capital Requirement Regulation (CRR) and Directive (CRDIV). The Opinion assesses whether the current rules are effective, efficient and transparent as well as the possible degrees of overlap across different macroprudential tools and the consistency of the EU framework with global standards. The Opinion also includes policy recommendations that the EU Commission should consider in its review of the macroprudential toolkit.
The European Banking Authority (EBA) published today an Opinion following the notification by the National Bank of Belgium (NBB) of its intention to modify capital requirements in order to address an increase in macroprudential or systemic risk that could have a severe impact on the financial system and the Belgian real economy. Based on the evidence submitted by the NBB, the EBA does not object the adoption of the proposed measures, which are in line with Article 458 of the Capital Requirements Regulation (CRR).
The European Banking Authority (EBA) published today an XBRL taxonomy to be used by competent authorities for remittance of data under the EBA Implementing Technical Standards (ITS) on supervisory reporting. It presents the data items, business concepts, relations, visualisations and validation rules described by the EBA Data Point Model (DPM) contained in the ITS on supervisory reporting, including the amendments relating to asset encumbrance, forbearance and non-performing exposures. The taxonomy proposed by the EBA will lead to greater efficiency in and convergence of supervisory practices across Members States. The reference date is as of 30 September 2014 onwards and it includes the first reports under FINREP.
The European Banking Authority (EBA) published today a final set of Guidelines that will support both originator institutions and competent authorities in the assessment of significant risk transfer (SRT) for securitisation transactions. These Guidelines will be part of the EU Single Rulebook in the banking sector and will ensure harmonised assessment and treatment of significant risk transfer across all EU Member States.
The European Banking Authority (EBA) published today its final Regulatory Technical Standards (RTS) specifying the conditions for assessing the materiality of extensions and changes of the Internal Models Approach (IMA) for market risk. These RTS complement and amend the standards on the rules for credit and operational risk which were adopted and published in the EU Official Journal on 20 May 2014.
The European Banking Authority (EBA) published today its final draft Regulatory Technical Standards (RTS) specifying the minimum margin periods of risk (MPOR) that institutions acting as clearing members may use for the calculation of their capital requirements for exposures to clients. These RTS will be part of the Single Rulebook aimed at enhancing regulatory harmonisation in the banking sector in the European Union.
The European Banking Authority (EBA) published today an Opinion addressed to the EU Council, European Commission and European Parliament setting out the requirements that would be needed to regulate ‘virtual currencies’. The Opinion is also addressed to national supervisory authorities and advises to discourage financial institutions from buying, holding or selling virtual currencies while no regulatory regime is in place.
The European Banking Authority (EBA) published today its technical advice to the European Commission on the use of a prudential filter for gains and losses arising from banks’ own credit risk of derivatives. The Authority considers as appropriate not to deviate from the current prudential approach applied at the international level under the Basel III rules, i.e. full deduction of institutions’ own credit risk of derivatives. The work of the EBA will inform the work of the EU Commission on the topic.
The European Banking Authority (EBA) launches today a consultation on draft Regulatory Technical Standards (RTS) aimed at specifying the minimum margin periods of risk (MPOR) that institutions acting as clearing members may use for the calculation of their capital requirements for exposures to clients. These RTS will be part of the Single Rulebook aimed at enhancing regulatory harmonisation in the banking sector in the European Union. The consultation runs until 9 May 2014.
The European Banking Authority (EBA) published today an opinion on the preferential capital treatment of covered bonds and a detailed report on the European covered bonds frameworks. While expressing support for the current approach laid down in the Capital Requirements Regulation (CRR), the EBA recommends additional criteria to qualify for preferential treatment. The opinion also calls for further clarifications on current disclosure requirements and provides advice on the preferential treatment of some specific cover assets. Finally, based on the analysis presented in the report, the EBA has identified a series of best practices ensuring a robust and consistent regulatory framework for covered bonds.
The European Banking Authority (EBA) published today its final Guidelines on harmonised definitions and templates for funding plans of credit institutions. These Guidelines aim at harmonising reporting of funding plans across the EU.
The European Banking Authority (EBA) launched today public consultation on its draft regulatory technical standards (RTS) on disclosure of information related to the countercyclical capital buffer. These RTS will be part of the EU Single Rulebook aimed at enhancing regulatory harmonisation in the banking sector. The consultation runs until 27 September 2014.
The European Banking Authority (EBA) published today its final Guidelines on disclosure of encumbered and unencumbered assets. They are the first step towards a harmonised disclosure framework of asset encumbrance in the EU and have been drafted in accordance with Recommendation D of the European Systemic Risk Board (ESRB).
The European Banking Authority (EBA) launched today a consultation on its draft Regulatory Technical Standards (RTS) specifying the conditions for the permanent and temporary uses of the Standardised Approach (SA) by institutions that have received permission to use the Internal Ratings Based (IRB) Approach. The EBA has identified the use of the SA as a major driver in the comparability of credit risk capital requirements. These RTS will be part of the EU Single Rulebook aimed at enhancing regulatory harmonisation in the banking sector. The consultation runs until 26 September 2014.
The European Banking Authority (EBA) published today its fifth semi-annual report on risks and vulnerabilities of the EU banking sector. The report shows improvements in market sentiment and confidence which has allowed banks to increase their capital levels ahead of the 2014 EU-wide stress test and to continue the repair of their balance sheets. However, the report cautions about ongoing uncertainties on asset valuations and future profitability in an environment where the signs of recovery remain modest and fragile. The report also draws attention to looming redress costs related to conduct issues as well as to geo-political concerns in emerging markets, which could lead to risk aversion and to an impact on capital flows.
The European Banking Authority (EBA) published today a report analysing the impact that the revised IAS 19 Employee Benefits in conjunction with the deduction of net pension assets under the Capital Requirements Regulation (CRR) and changes in net pension liabilities may have on the volatility of institutions' own funds. The report concluded that in most cases there may be limited volatility of own funds due to changes in the accounting and prudential requirements that derive from the revised IAS 19 Employee Benefits and the CRR.