A peer review assesses and compares the effectiveness of the supervisory activities and of the implementation of the provisions by competent authorities vis-à-vis those of their peers. The aim of the EBA in conducting peer reviews is to further strengthen consistency in supervisory outcomes and to facilitate the identification of supervisory best practices across competent authorities. Peer reviews can cover, among others, regulations, procedures, enforcement powers and practices. Follow-up measures may be adopted in the form of guidelines and recommendations.
A peer review includes but is not limited to:
The amended Article 30 of the EBA Founding Regulation, provides that the EBA shall conduct peer reviews of some or all of the activities of competent authorities in accordance with the two-year EBA work plan.
Peer reviews are carried out in accordance with a peer review methodology, which was adopted by the EBA Board of Supervisors on 28 April 2020 to ensure consistency throughout the process. The methodology includes guidance and procedures for the completion of both self-assessments and reviews by peers, reporting and publication requirements, and follow-up work. For each peer review, the methodology envisages the establishment of an ad-hoc peer review committee, which shall operate in accordance with the terms of reference approved by the EBA Board of Supervisors. The peer review committee shall strive to complement and avoid duplicating other EBA and other EU bodies’ review/evaluation projects.
The peer review committee shall, after consulting the competent authorities subject to the peer review, identify the reasoned main findings of the peer review. The EBA shall publish the main findings of the peer review and of any follow up report, unless these pose a risk to the stability of the financial system. Where the reasoned main findings of the EBA differ from those identified by the peer review committee, then the EBA shall transmit them on a confidential basis to the European Parliament, Council of the EU and European Commission.